Building A Net Promoter Road Map

Last month, I provided a high-level view of getting sales staff aligned with customers in your company or organization using a customer loyalty metric like the Customer Experience Monitor. We discussed why change is hard and the importance of getting front-line staff aligned and involved with improving customer loyalty.

This month, we will begin building a company road map to use customer experiences to guide improvements. A successful journey to increase customer loyalty involves a combination of committed staff, clear process, and data technologies. There is always low hanging (but previously unseen) fruit that can be harvested quickly. I call these Operational wins. Operational improvements generally involve one customer at a time. They are tactical opportunities to improve customer experiences at the point of contact.

Imagine this spring that one of your customers will experience a delay in a field being sprayed. This, in turn, impacts his seeding schedule and he is upset with your company. He calls his sales agronomist, who responds immediately, apologizes for the delay, and then reschedules the application with another rig within the next few hours. The service recovery effort exceeds the customer’s expectations and a possible Detractor is converted to a Promoter. Aren’t you glad the call didn’t get stacked up in voice mail?

Discussing Structure

Other company changes that impact loyalty are more Structural in nature. Implementing them takes longer but they often have a deeper impact on loyalty and revenue than Operational changes. Structural changes typically involve the business model, product design, or service delivery processes.

Let’s move on to survey considerations and see how design decisions there relate to the Operational/Struc­tural issue. As you start to measure your Net Promoter Score, your first decision is whether to implement a Transactional of Relationship survey. Transactional surveys measure specific events involving a customer. The quality of a sales call, clarity of an invoice, or accuracy of field spraying are events where the customer experience can be measured. The timing of the feedback is dictated by the timing of the event. Measurement of these moments of truth often reveal opportunities where service delivery can be improved.

But what if you want to measure the overall health of your relationship with your most profitable customers? We definitely want these relationships to continue! In this case, a customer’s willingness to recommend you likely results from many interactions over one or more sales cycles. In this case, a relationship measurement is needed to gauge the customer’s accumulated experience. Relationship Net Promoter Scores (NPS) capture the overall perception that customers and prospects have of your company and are not based on any one interaction. Typically, relationship NPS are gathered on a periodic basis that reflects a company’s business cycle.

For ag retailers, I recommend a relationship measurement be taken twice a year, potentially in the winter and in the summer before harvest. A consistent data collection strategy helps to build comparable data from one period to another. This, in turn, increases the validity of any decision you make from your customer experience data.

  Operational Improvements Structural Improvements
Relationship Relationship management. Strength and weaknesses of competitors.

Relationship
Feedback

Pipeline analysis. Company messages.
 
 
Account management and performance. Segmentation.
  Support of mergers and acquisitions.
Transactional Key customer recovery. Sales quality improvements.
Feedback Manage prospect concerns. Process improvements.
  Sales agronomist coaching. Equipment investments.
Performance management.  

Looking At Transactionals

If the transactional measurements you make are on significant events that drive the strength of your relationship, they will be leading indicators of relationship NPS. In other words, as your NPS increases or falls based on key customer interactions, this will predict the future health of your overall relationship with a customer.

Here’s one final consideration in thinking about transactional vs. relationship measurements: The most effective benchmarking efforts are made across the entire relationship. A specific transactional-type benchmark at a single touchpoint may not reveal whether your organization has successfully differentiated itself. For this reason, AgKnowlogy uses a relationship feedback to benchmark its clients against their competition from a complete end-to-end perspective.

As we conclude this month’s column, you might be thinking that transactional measurements only drive operational improvements, and relationship measurements are used only for structural changes. The reality is that both operational and structural measurements can be used both tactically and strategically. This is shown in the example above.

As we have been discussing in these columns, the quality of a customer’s experiences or a prospect’s perceptions with your company have strong impacts on loyalty (in the case of customers) and the likeliness of trying your service, in the case of prospects. AgKnowlogy’s Customer Experience Monitor measures customer and prospect experience and perceptions to help ag retailers make key operational and structural improvements. Transactional measurements tend to measure the quality of specific events in the customer sales cycle. These measurements help you make operational improvements in how you service customers. Relationship measurements, on the other hand, are meant to measure the overall strength of the customer equity you have built up over time. These measurements can help you make significant structural improvements to your company.

Next month, we’ll discuss the customer corridor, and I will show you how transactional and relationship measurements can be taken along the corridor.

Leave a Reply

Latest News
Greenleaf Technologies TADF03-D Dual Fan Nozzle
NozzlesSix Greenleaf Nozzles Approved For XtendiMax With Vapor…
February 22, 2017
Greenleaf Technologies has announced that six of its TurboDrop D Series nozzles have been approved for use with Monsanto’s XtendiMax Read More
Winter Wheat
Industry NewsTiger-Sul Hires Manitoba And Eastern Canada Account Man…
February 22, 2017
Tiger-Sul, a global leader in sulphur fertilizers and crop performance products, has announced that sales veteran Trevor Loewen has joined Read More
NFMS 17 Hagie Sprayer
Eric SfiligojThe Read From Louisville: Uncertain
February 22, 2017
By the time this column appears across the country, the annual Commodity Classic will be in full swing. This means Read More
SprayersApache 1000 Series Sprayer Earns 2017 EquipmentWatch Hi…
February 21, 2017
ET Works has been named a winner in the 2017 EquipmentWatch Highest Retained Value Awards program, the industry’s only award Read More
Measuring Bulk Tanks
StewardshipMeister Media Among 2017 Award Winners Presented By The…
February 21, 2017
The Pesticide Stewardship Alliance (TPSA) held its annual conference in San Diego, CA, earlier this month where three awards were Read More
John Reifsteck
CropLife 100GROWMARK’s Reifsteck Earns NCFC Director Of The Y…
February 21, 2017
GROWMARK Chairman of the Board and President John Reifsteck has earned the prestigious Director of the Year Award from the Read More
Roy Blunt
LegislationARA Recognizes Blunt, Heitkamp For Legislative Efforts …
February 17, 2017
Agricultural industry continues to face federal regulatory challenges. Thankfully, agriculture’s allies in the U.S. Senate stepped forward. The Agricultural Retailers Read More
LegislationThe Fertilizer Institute Commends Senate On Confirmatio…
February 17, 2017
The Fertilizer Institute (TFI) President Chris Jahn issued the following statement on the Senate confirmation of Oklahoma Attorney General Scott Read More
Trump, Senate, Cabinet
LegislationBREAKING: Trump EPA Nominee Scott Pruitt Confirmed by S…
February 17, 2017
Scott Pruitt, who as Oklahoma’s attorney general spent years suing the Environmental Protection Agency over its efforts to regulate various Read More
ManagementFebruary Road Trip Edition
February 17, 2017
Editors Paul Schrimpf and Eric Sfiligoj discuss their recent visits to Indiana and Kentucky. Read More
Heritage Cooperative Finished Building Aerial
ManagementHeritage Cooperative, Agland Co-op Approve Merger
February 17, 2017
Agland Co-op and Heritage Cooperative stockholders have both approved the merger agreement between Agland Co-op and Heritage Cooperative. Now begins Read More
LegislationARA Fly-In: Ag Retail Descends on Capitol Hill, Lawmake…
February 15, 2017
More than 100 agricultural retailers, distributors and suppliers headed to Capitol Hill Tuesday morning for the Agribusiness Congressional Fly-in, according to a Read More
Untreated soybean seed Heartland Coop
Seed/BiotechMarrone Bio Innovations, Groundwork BioAg Bio-stacked M…
February 13, 2017
Marrone Bio Innovations, Inc. and Groundwork BioAg, Ltd have announced successful seed treatment field trials of the world’s first all-biological Read More
NL5000 With G5 Technology
SpreadersNew Leader Introduces NL5000 Dry Nutrient Applicator Wi…
February 13, 2017
New Leader, a division of Highway Equipment Company (HECO), has announced the next generation of spreading technology with the NL5000 Read More
Fertilizer Storage
Crop InputsThe State Of The Fertilizer Industry
February 9, 2017
He’s all hat, no horse.” It’s a humorous way of describing a person who tells a good story, but is Read More
CropLife 100Pinnacle Agriculture Agrees To Credit Agreement Amendme…
February 9, 2017
Pinnacle Operating Corp. has entered into an amendment (the “Amendment”) to its First Lien Credit Agreement that will provide for, Read More
ManagementUpdates on Upcoming Trips, Dow-DuPont, and the Des Moin…
February 9, 2017
Editors Paul Schrimpf and Eric Sfiligoj review a few future travels, along with the latest on big company mergers and Read More
Championship Tractor Pull
EquipmentNational Farm Machinery Show Highlighted By Championshi…
February 9, 2017
The scream of monster engines, the stench of burning rubber and the ground-pounding vibrations of the country’s largest, loudest and Read More