How many questions do you need to ask if you want to find out whether a customer is satisfied or not? Five? Ten? Just one might be enough: "How likely is it that you would recommend our company to a friend or colleague?"

Research has shown that this simple question gives you the insight you really need about customer satisfaction. "Interestingly, within Allianz the idea didn't come from business consultants, but from senior managers in the Allianz Excellence Program," says Uwe Michel, head of Allianz Group Business Services (AGBS).

Frederick F. Reichheld, a former Bain consultant, had discovered the "Net Promoter Score" (see below) about ten years ago. As explained in his article "The one number you need to grow", Reichheld and his team linked the number of promoters to a company's average growth rate in several industries – and found a strong correlation between the two.

"Allianz has introduced the Net Promoter Score as an important part of its Customer Focus initiative," says Michel. "It's a crucial indicator for sustainable growth."

His department coordinates together with the CFI Initiative, lead by the Allianz AG board member Jan Carendi, the introduction of the bottom-up Net Promoter Score across the Allianz globe. "Bottom-up means that we are especially interested in the specific local circumstances," explains Michel. "We pose the question only to Allianz customers after a touch point or 'moment of truth', for example after handling an insurance claim."

Keep it short and simple – the Net Promoter Score idea certainly sticks to that. "90 percent of the customers answer our question – that's much more than if you do a classical survey with lots of questions", says Michel. When a customer is particularly enthusiastic or disappointed, the call center agent might ask a second question: "Would you accept a second call by an Allianz employee?" More than 80 percent say again yes.

That's were the bottom-up idea really comes alive: In most cases, the agent or employee handling the case will now call the customer and hear directly why he will recommend Allianz – or advise against the company. "It's better to get problems reported directly," say Allianz employees who have started calling customers. "A feedback call is a great opportunity to put yourself in the customer's shoes."

"There have always been customers who complain," notes Michel. "But it is worth a lot getting the feedback of those who don't. Praise encourages the staff, direct criticism helps improve the service – especially when it comes from people who wouldn't have complained but might have switched to a competitor some day."

Why hasn't Allianz thought of this before? "We've had many customer programs already in place," says Michel. "But now we are introducing one simple system around the crucial question which works in all our segments – whether we're talking to private customers, business customers or brokers, in insurance, banking or asset management."

Fireman's Fund, Allianz Group's property & casualty insurer in California, already works successfully with the Net Promoter Score, and so does Allianz Australia; a pilot is following in France at AGF. All large and many smaller Allianz companies will follow. Michel's department AGBS supports the implementation with training, coaching and change management know-how.

In Germany, first service improvements have already been implemented, following customers' feedback in pilot projects – for example, a new electronic claims form, or a more simple mortgage application at Allianz Leben.

The customers have responded positively to Allianz seeking their feedback on its service. "The beauty of the NPS process is that it continuously generates up-to-date feedback on what our customers really want," says Alexander Schorn, responsible for introducing the Net Promoter Score in Germany.

To supplement this bottom-up approach, Allianz identifies also a "top-down" or market-wide Net Promoter Score once a year, using more traditional market research tools. In each market, a sample of the whole population is surveyed on their willingness to promote the companies they're insured with. This more general figure helps the management to see how their company is scoring as a whole – and will soon influence board members' remunerations in the Allianz Group.

Jan Carendi, Allianz AG board member responsible for the Customer Focus Initiative, says: "The Net Promoter Score provides the perfect tool to measure and incentivize customer focus. It helps us to ensure that everything we do at Allianz starts and ends with the customer’s best interest in mind."

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