an introduction to onva
TRANSCRIPT
An introduction to Onva
How to gain a positive word-of-mouth advantage to drive sales and loyalty
Delivering a word-of-mouth advantage
© 2010 Onva Consulting
The business results Onva
delivers
Helped client outgrow market by 2.5 times
Saved £7.25 million in customer acquisition costs by reducing each unit from over £75 per customer to under £3!
600% increase in revenue between adviser customers and normal customers
Secured over 100,000 loyal customers
New product launches most successful in client 50 year history
Failing marketing initiatives identified and cancelled – saving significant sums
Improved employee NPS by 35 points – more motivated, positive loyal and engaged
© 2010 Onva Consulting
We live in the
Recommendation Generation
© 2010 Onva Consulting
The decline in traditional
marketing
2% trust advertising
2% trust DM
15% trust customer opinions posted online
49% trust personal recommendations
So 64% of people trust the opinions of others and
not what you say
© 2010 Onva Consulting
The Loyalty Factor
• Creating secure revenueRepurchase
• Presenting opportunities to cross-sell and up-sell and produce significant extra revenueBuy additional products
• Driving new customers at less cost who then become PromotersRefer/ Recommend
• De-risking decision making and creating effective marketing/sales collateralFeedback
Research has shown that loyal customers/clients behave in four different ways. They...
© 2010 Onva Consulting
Who knows best? You or those that invest in you?
© 2010 Onva Consulting
The Onva Listen Methodology
1. Listen – Identify customers and
employees that ‘love’ and ‘hate’ you – and
the reasons why - by using Net Promoter
2. Involve – Drive Word-of-Mouth
recommendations (on and offline) by
creating a volunteer sales force
3. Sell – Improve Sales Effectiveness
through customer input
© 2010 Onva Consulting
How do you listen to your customers?
© 2010 Onva Consulting
Net Promoter – The
Ultimate Question
© 2010 Onva Consulting
A globally trusted business
metric
© 2010 Onva Consulting
The brands that listen and drive customer loyalty
© 2010 Onva Consulting
The Psychology of Recommendations
Does your business miss, meet or exceed
expectations on the promise that you
communicate?
Promoters Business is exceeding customer expectations and they
actively recommend
Passives Business is meeting customer expectations but they
are word-of-mouth mutes and may defect
Detractors Business is missing customer expectations and they
actively bad mouth the product/service
© 2010 Onva Consulting
Missing expectations
The danger of not identifying and addressing the reasons for detraction
Delivering a word-of-mouth advantage
© 2010 Onva Consulting
We also live in the switching generation
© 2010 Onva Consulting
The ultimate six pointer in business
How long does it take you to win a new customer?
How long does it take them to leave?
How much time and money do you invest in acquisition?
When you have won them, do you focus on them? Or just look for the next
new customer?
Wouldn’t it be great not having to replace churning customers with new
ones?
© 2010 Onva Consulting
Why do your customers leave?
Percentage Reason
23% Unfair fees or charges
22% Poor product or service quality
19% Rude or disinterested employees
12% Couldn't get hold of anyone to deal with my problem
7% Discounts for new customers but not for existing customers
5% Out of territory call centres
4% Inadequate return or refund policy
1% Inadequate environmental policy
© 2010 Onva Consulting
Missing expectation leads to...
Creating more Detractors
Draining budget They use costly resources while their issues are being
addressed
Churning They will ultimately defect to a rival
Generating negative WOM Negative recommendations make it harder for a brand to
attract new customers – thus substantially increasing the cost
of operations/cost of customer acquisition.
It is also three times more powerful than positive WOM.
Therefore one potential customer upon hearing a bad
experience will need four positive recommendations to
change their impression/mind
© 2010 Onva Consulting
And one bad experience
……
© 2010 Onva Consulting
Reducing Detractors while
growing Promoters pays off
Increasing your Net Promoter score by 12% will deliver your business
double the sector growth average
Increasing your share of Promoters by 7% will deliver your business 1%
growth
Reducing your share of detractors by 2% will deliver your business 1%
growth
If your business has an above average NPS profile in its sector you could
see 4x the growth rate
* As discovered by the London School of Economics
© 2010 Onva Consulting
What can you do to cut churn?
Ask your customers
Use the Net Promoter question to identify the main reasons people may
want to leave
Tell them what they told you and what you plan to do about it
Identify the reasons you can deal with profitably
Perhaps stop services that you can’t improve profitably
© 2010 Onva Consulting
Your employee recommendability
impacts the business
If employees are detractors of the customer experience/service that they
deliver it is highly likely to create detractors amongst your customers as
well.
Employee NPS Customer NPS
© 2010 Onva Consulting
Exceeding Expectations
An opportunity to drive sales and loyalty with your own volunteer salesforce
Delivering a word-of-mouth advantage
© 2010 Onva Consulting
How do you win new business?
Do you know who will buy again?
Do you know who will buy new products and services?
Do you know who will recommend you?
Do you know who will bad mouth you?
Do you know which marketing/sales activities bring the best customers?
Do you have a strategy for increasing your share of wallet?
Are you stimulating conversations online and offline?
Can you do this with total certainty?
© 2010 Onva Consulting
What can you do to sell smarter?
Segment your customers by Promoter, Passive and Detractor
Develop different approaches for each
Identify the NPS for each product/service, salesman and marketing activity
– improve accordingly
Activate Promoters – give them reasons and the platform to recommend
Publish and share customer reviews
© 2010 Onva Consulting
How strong is your WOM Balance Sheet?
Word-of-Mouth (WOM) is synonymous with
recommendations
Businesses have a WOM Balance Sheet and the
strength of this balance – your recommendability
– is the key to your success
© 2010 Onva Consulting
Exceeding expectations leads to...
Generating more Promoters
Greater customer advocates
Repurchasing Creating secure revenue
Buying additional products Presenting opportunities to cross-sell and up-sell and thus
grow revenues
Referring/Recommending Driving new customers at lower cost who become Promoters
Providing Feedback De-risking decision making and creating unique marketing
collateral
© 2010 Onva Consulting
It’s about getting your
Promoters talking
Conversations between people who trust each
other about content that interests or inspires
Conversations and content you can’t control
But conversations you can influence with content
you help to create
And conversations you can stimulate with direct
engagement
© 2010 Onva Consulting
Bring your promoters on the inside
Give them VIP status
Give them a purpose Business improvement for their benefit
Reward them VIP privileges, first looks
Deeper involvement
Make things really simple VIP votes
Capture their content
Close the loop Regular feedback, inside scoops
Feed them stories to share to drive sales
Benefit from their ideas, advice and tips To set you apart
© 2010 Onva Consulting
Retailers in the U.S., the U.K. and
Europe say the following
happened after putting customer-created reviews
on their websites:
77% reported site traffic increases
56% reported improved
conversion rates (= rate of site
visits to actual purchases)
42% reported higher average
order values
Share reviews to build trust
© 2010 Onva Consulting
A Simple Case Study
Multi-award winning platform created by the
Onva team
Simple VIP - the largest UK consumer
engagement panel with over 100,000 brand
advisers in a year from a standing start Significant reduction to customer acquisition costs –
2500% less than direct mail! or £7.25m + in savings
Significant increase in product trial – 98% of advisers
try an additional 1-2 products
Products launched via the panel get best response in
50 year history
Free research helps feed PR, marketing and sales
machine
Outperforms market growth by 2.5 times
Leapfrogs global giant to #2 in market
© 2010 Onva Consulting
Let your customers guide you
Who better to advise you than the people that
invest in you?
Free research platform that creates economies of
scale
Genuine insight into their behaviour
De-risks marketing campaigns
Directs business on where it misses/exceeds
expectation
Generates deep and lasting customer loyalty
© 2010 Onva Consulting
Involvement increases advocacy and loyalty
Work with multiple clients has proven that if a
customer/client is directly engaged by the
business, the Net Promoter score/levels of
advocacy increases dramatically
It has also proven that customers that arrive
through personal recommendations have their
expectations set correctly and become
recommenders themselves
© 2010 Onva Consulting
Checklist for sustainable growth
Listen to customers – ask the Net Promoter question
Remove the reasons people want to leave
Identify your Promoters – target them with special sales offering
Activate Promoters to drive a systematic referral stream
Identify the strengths of your business by examining reasons for promotion – accentuate
these in sales activity
Tap into customer creativity to develop new ideas and unique content that sets you apart
© 2010 Onva Consulting
What we will deliver you
Millions saved and earned through efficiencies, increased loyalty, cross-selling....the list goes on
Delivering a word-of-mouth advantage
© 2010 Onva Consulting
Improving sales effectiveness
We identify and ‘activate’ customers who will positively recommend – to help you win new customers
We identify where you can cross-sell and up-sell and help you do this in the most effective way
We identify ways to exceed expectations profitably to create more loyal customers so your competitors can’t steal them
We help you remove the reasons for detraction so you no longer have to battle against negative WOM
© 2010 Onva Consulting
Improving sales effectiveness
We create powerful marketing collateral with customers that gives you an edge in the market
We create trusted reviews from customers that increases your status as a ‘safe buy’ and improves the conversion rate of new customers
We identify which marketing you can eliminate and which to focus on to reduce the cost of sale
We listen to customer feedback and then help you develop a more compelling product/brand proposition and sales messages
© 2010 Onva Consulting
Onva turns customers and
employees into drivers of growth
Listen Full Net Promoter audit and analysis service – the insight you need to make vital decisions
Identify which customers and clients love or hate you Targeted approach to address needs and improve performance
Identify the strengths of your business by examining reasons for promotion Sales and marketing effectiveness consulting and programmes
Identify the weaknesses of your business through reasons for detraction Business improvement consulting and programmes including involvement and innovation
© 2010 Onva Consulting
Expertise
Crispin Manners – CEO and Founding Fellow of PRCA
Crispin Manners is a recognised authority in harnessing the power of Net Promoter and Word-of-Mouth as
part of an integrated sales, marketing and loyalty strategy.
Crispin has over 25 years experience in delivering integrated communications solutions for businesses and
brands. Discovering Net Promoter® has allowed Crispin to systematise his approach and to use customer
feedback to build more compelling propositions for clients and to develop award-winning engagement
programmes that turn customers and employees into advocates.
Throughout his career he has created business momentum for his clients and his own business. He led his
earlier company (Kaizo) to be the fastest growing PR Company in the UK in 1991, the #2 performer over a
decade in 1997, the #5 best PR firm to work for in the UK, the OFEX Company of the Year in 2001 and the
CBI’s Innovative Company of the Year in 2003. He is a natural facilitator, a skilled mentor and valued for the
strategic choices he uncovers for his clients.
© 2010 Onva Consulting
Expertise
Matt Manners – Director
Matt Manners is an award-winning marketing and PR professional with over a decade’s
experience. Over the past two years he has been focused on empowering businesses
through Net Promoter®, to directly engage with customers, drive up levels of customer
advocacy, sales and deliver a word-of-mouth advantage.
Previously he worked as a PR professional in both London and Sydney for two of the
world’s largest PR firms – Weber Shandwick and Burson-Marsteller. He has
worked across brands such as PlayStation, Siemens, PalmOne, Simple, Unicef, Hewlett
Packard, Castrol and the Football Federation Australia. His ability and experience allows
him to ascertain the needs of a business rapidly and to implement a successful,
customer loyalty and communications strategy that delivers targeted results.
© 2010 Onva Consulting
Questions?
Contact Crispin Manners +44 7774774272
Or
Matt Manners +44 7799876473