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Across companies: the relationship holds as more promoters, the more + womPromoters drive PWOM; if you care about your business’ WOM, you need to care about your proportion of Promoterscustomer experience– and loyalty– become a relevant dimension to consider in marketing efforts r = .87Data come from 2008 NP benchmarkData cleaned for inconsistent responses (ex. “I have recommended in the past” AND “number of recommendations = 0”); cut cases above 98th percentile spend; Only business with more than 24 responses included in the analysis.
Answering the Ultimate Question for Social Media<br />
How to make money in social media?<br />Solve real problems, don’t create imagined benefits<br />Retain customers, sell them more, keep them longer<br />Co-innovate, develop better products and services<br />Create promoters of your brand<br />Encourage and enable promoters to advocate for you<br />Word of mouth is alluring but elusive<br />
Advertising goes into cardiac arrest<br />“The problem is not the medium, the problem is the message, and the fact that it is not trusted, not wanted, and not needed,”<br />Prof. Eric Clemons, Wharton, March 2009<br />“…every business needs revenues—and advertising, it transpires, is not going to provide enough”<br />The Economist, March 2009 <br />
Word of Mouth impacts buying behaviors in both B2B and B2C<br /><ul><li>80% of customers trust WOM more than any other source of information (Forrester Research)
Word of mouth is 9X as effective as advertising in converting unfavorable or neutral dispositions into positive attitudes. (Day)
More than 90% of customers consider WOM as the best source of ideas and info about products and services (McKinsey & Co )</li></ul>Source: CMO Council <br />Profitability from Customer Affinity Report 2007<br />
7<br />Business leaders in all industries are adopting Net Promoter<br />
NPS is Word of Mouth capacity<br />Capacity (economics), the point of production at which a firm or industry's average (or "per-unit") costs begin to rise, usually because some factor is fixed (often capital or land). <br />
Intuit Consumer Tax Group Inner Circle<br />Gather Insights to Drive Immediate Change and Increase Customer Loyalty<br />Objective: Create community members for ongoing product feedback<br />Approach: Theme-based approach to gather feedback by product line<br /> Net Promoter driven product feedback<br />Results:<br /><ul><li>17,000 community members
Increased NPS by 5 points in 1 year</li></li></ul><li>A&E Insiders<br />Build Brand Loyalty, Increase Viewership <br />and Activate WOM<br />Objective: Create a community for ongoing feedback and increased WOM<br />Approach: Targeted 325,000 AE TV community to provide feedback and rank favorite shows <br /> Identify Super Advocates to generate WOM<br />Results: <br /><ul><li>65,000 Insider community members
Insider influence is 3X greater than TV Community
WOM reach of 1.5 million</li></li></ul><li>Creating Loyal Customers with the World’s Leading Companies<br />firstname.lastname@example.org<br />www.satmetrix.com<br />www.netpromoter.com<br />Satmetrix and the Satmetrix logo are registered trademarks of Satmetrix Systems, Inc. Net Promoter, NPS and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld. <br />