nestle purina customer engagement - asqasq.org/.../former/nestle_purina-customer_engagement.pdf ·...

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Customer EngagementNestle Purina PetCare

Quest for ExcellenceApril 9, 2013

Overview of Nestlé S.A.

• Largest and most admired food company in world

• A nutrition, health and wellness company

• Baby foods, coffee, dairy products, breakfast cereals, confectionary, bottled water, ice cream, health sciences, pet food, etc.

• 98B USD Annual revenue

• 13B USD Operating Income

• 468 factories in 86 countries

• 330,000 worldwide employees

• Products sold on almost every country in world

Nestlé Purina PetCare

Pet Food Category– Worldwide - 324MM Dogs; 263MM Cats

– Worldwide $61B; U.S. & Canada $20B

– 42% U.S. Households own a dog (1.7/HH)

– 35% U.S. Households own a cat (2.2/HH)

NPPC No. 1 in U.S. Pet Category Sales

Market Share

Trust

2

Purina U.S. locations - Map

Results

18 Consecutive Years of Sales Growth

5 Consecutive Years of Increased Share in ALL Categories Dry Dog Food

Wet Dog Food

Dry Cat Food

Wet Cat Food

Total Treats

Litter

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Culture - The Foundation

William H. DanforthFounder

Culture

The Four TallsStand Tall

Think Tall

Smile Tall

Live Tall

4

Westminster Dog Show Winners

Our Vision

A Checkerboard in every involved pet owner’s home

We stand for trust. We earn it every day as we enrich the lives of pets and the people who love them.

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For Us … Defining Moments

• 1990 business results showed stagnating revenue & profit

• Capabilities were not sufficient to meet the demands of changing environment

“We were working hard but not achieving desired results”

“Everyone came to work wanting to do what’s right … they just didn’t know what’s right”

“We did not communicate what we were trying to achieve”

- Retired COO

Design & Implementation Project (D&I)

• Commissioned by CEO

• 2 year cross-functional project

• Dedicated full-time assignments

• 3 Phases – Assessment, Design, Implementation

Goals of D&I

• Identify & Implement New “Customer” Focused Capabilities

– Retailers – becoming larger and more influential

– Consumers – changing wants/needs

• Build on the unique culture of Purina (Four Talls)

• Increase integration across all functions– Optimize systems/processes instead of functions

– Improve organizational discipline

• Improve communication and measurement

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NPPC’s “Customers” Defined Expansively:

• Retail customers (i.e. Walmart, PetSmart, Kroger, Giant, Safeway, etc.)

• Consumers

• Customers of customers (shoppers)

• Internal “customers”

• Pets

Key Supporting “Mechanism”

Quality Systems:– Customer focused (non-financial) performance measures and

systems that support continuous improvement in customer relations, consumer products and our workplace.

Guiding Principles– Linkage: Continually evaluated by the ability to predict/produce

business results.

– System-based: Implemented with systems that support on-going decision making.

– Model-based: Developed in context with an overall conceptual model.

Triangle Model…

Customer/Consumer Measures

Employee Measures

Business Results

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Listening Posts…

• Product Quality Function Deployment (QFD) (consumer)

• Retail Quality Function Deployment (QFD) (shopper)

• Customer Satisfaction Measurement (retail customer)

• Organizational Capabilities Questionnaire (associates)

• Retailer Advocacy Measurement Project (retail associates)

• Retail Organizational Capabilities Questionnaire

• Internal Customer Satisfaction Surveys

• Leadership Skills Inventory

• Project “Ninja”

• Customer Integration Assessment

• Pet-Decelerators

• Project “Kvetch”

• Etc.

Listening Posts…













• Etc.

Triangle Model…

Quality Function Deployment (QFD)

Employee Measures

Market Share/Category Growth

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What is QFD going to tell us?

1. What’s important to your customers relative to a product/service?

2. How do your customers rate your product/service on these criteria?

3. How do customers rate your competitions’ product/service on these criteria?

The QFD process…

1. Focus Groups & Interviews (Qualitative)• Customers reveal their root wants and needs…the

Voice of the Consumer (VOC).

QFD data collected in a two-phase process…

2. Questionnaire (Quantitative)• Customers rate Importance of each VOC

• Customers rate Performance of product/service for each VOC

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Putting it all together…

Performance

Basic

Basic

Performance

Performance

Excitement

2

6

38

29

46

59

1

2

3

4

5

6

Easy for me to find the products quickly

Product is in stock

Products are competitively priced

Wide variety of products available

Retailer provides product suggestions / advice

Retail personnel look & act professional

Importance R

ank

Grocery

Mass

Club

Dollar

Supercenter

Consum

er Needs

Tim

e-Series An

alysis

Voice of the Customer (VOC) Matrix…

Customer Example…

LINK

Category Growth

Retail QFD Employee Measures

R2 = .38 (2000-2011)

Listening Posts…













• Etc.

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Sales Example…

LINK

$ Sales

Customer Satisfaction Index (CSI)

Employee Measures

..

We make It Easy for Our Customers to Give Feedback …

Tell us how Nestlé Purina Pet Care rates compared to all other suppliers

Sales Example…

LINK

$ Sales

Customer Satisfaction Index (CSI)

Employee Measures

R2 = .22 (1992-2011)

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Listening Posts…




• Organizational Capabilities Questionnaire (employee)

• Retailer Advocacy Measurement Project (retail employee)








• Etc.

Sales Example…

LINK

$ Sales

Customer/ConsumerMeasures

Organizational Capabilities Questionnaire (OCQ)

The OCQ Process…

• Developed from VOC and NPPC “Blueprint”; tailored to each function; “behaviors, processes and outcomes”

• Annual, “comprehensive” length survey (130+ items)

• Work team focus (teams with 3+ associates)

• Confidential responses

• 92+% average response rate

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The OCQ Process Provides…

• Team- and department-level feedback

• Increased knowledge of functional role in implementing NPPC Blueprint strategies

• Deployment of “voice of the customer”; early warning on potential customer issues

Items Customized to Each Functional Role …

1 2 3 4 5 6 7

3.00

14. NPPC makes it easy for our customers to do business with us.

4.97Your Team

CDG

1 2 3 4 5 6 7

6.25

13. When I make a commitment to the customer, I feel that I will be backed up.

6.07Your Team

CDG

1 2 3 4 5 6 7

5.75

12. Team members feel they have the authority to make the customer decisions they need to make.

5.98Your Team

CDG

1 2 3 4 5 6 7

5.25

11. CDG Leadership places priority on developing and enhancing integrated customer relationships.

6.17Your Team

CDG

1 2 3 4 5 6 7

6.33

10. My team’s contacts with functions outside of procurement have increased in the past year.

5.72Your Team

CDG

Sales Example…

LINK

$ Sales

Customer/Consumer Measures

Organizational Capabilities Questionnaire (OCQ)

R2 = .38 (1992-2012)

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Approach Deployed Throughout NPPC

Safety, Quality, Productivity

CSI

MFG

OCQ

MKTG

OCQProduct Quality

MKT Share

ORM

Fill rates, On Time

OCQCSI

Other Examples


CSI

MFG

OCQ

MKTG

OCQProduct Quality

MKT Share

ORM

Fill rates, On Time

OCQCSI

Sample Manufacturing Items…• Safety

“We take the time to review all accidents and near misses.”• Quality

“Employees are trained in finding potential problems before they are observed by team leaders or the QA lab.”

• Customer Service“We deliver complete orders/high % fill rate.”

• Target Savings“Employees have an understanding of cost structures and how they can be impacted.”

• Team Effectiveness“My team has a clear understanding of how each other’s roles and responsibilities work together.”

• People Leadership“My supervisor/team leader maintains good working relationships by respecting and cooperating with other departments.”

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Sample Findings…

• Total production positively correlated with:– Leadership effectiveness subscale

– Perceived respect and trust among team members

– Perceived cooperation of supervisor with other groups

– Perception of supervisor dealing with poor performance in a timely manner

• Recordable injury rate is negatively correlated with:– Perception that associates take the time to review all accidents and

near misses

Sample Findings…

• Final quality is positively correlated with:– Quality subscale

– Customer Service subscale

– Perceptions that they provide high quality unit loads at delivery

• Consumer Complaints Index is negatively correlated with:– Customer Service subscale

• Plant controllable on-time arrival is positively correlated with:

– Perception that they provide orders on time or at the time requested

– Perception that they deliver accurate orders

– Perception that there are effective processes in place for continuously improving shipment accuracy

Marketing…


CSI

MFG

OCQ

MKTG

OCQProduct Quality

MKT Share

ORM

Fill rates, On Time

OCQCSI

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Perceived Quality Matters…

0

10

20

30

40

50

60

70

80

6 7 8 9 10

Rating

SO

R

R2 = .72 (1999-2011)

Brands

Once Linkage is Established…

CSI

$ Sales

OCQ

Full Circle Feedback

Further Deployment is Possible…

$ Sales

CSI OCQ

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Full Circle Feedback “Uploads”…

Importance of the “Voice of the Customer”…

Refine strategy (if necessary)

Review current offerings and service processes; identify potential opportunities

Develop and deploy customer-centric measurement/improvement systems

- customer satisfaction

- employee survey development

- full circle feedback development

Voice of the Customer

(VOC)

nestle purina customer engagement - asqasq.org/.../former/nestle_purina-customer_engagement.pdf ·...

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