Joe Allan, Head of Customer Insight Strategy and Marketing, Credit Union Australia

1. Telling Five Friends
Harnessing Growth through
Customer Advocacy
Joe Allan
Head of Customer Insight
Strategy and Marketing
September, 2011

2. Topics for discussion
Customer Advocacy, Degrees of Separation, Spheres of Influence
Influence of family and friends
Be your own restaurant critic
Net Promoter® Score
“Good Profits” vs “Bad Profits”
Customer Advocacy Equation
Who do you adovcate?
“Fair Banking” agenda
CUA’s advocacy position
Low versus High Involvement Products
Social Network Analysis
Value opportunity
In Conclusion

3. Customer Advocacy, Degrees of Separation &
Spheres of Influence

4. Influence of family and friends

5. Be your own restaurant critic

6. Net Promoter® Score
“The one number you need to grow”
The “Golden Rule” – treat others as you expect to
be treated
The Question:
“How likely is it that you would recommend
Company X to a friend or colleague?”

7. “Good Profits” vs “Bad Profits”
Detractors drive “Bad Profits”
They cut back on purchases
Switch to the competition
Spread negative word of mouth over the
Global PA System: the Internet
Promoters drive “Good Profits”
They willingly come back for more
Tell family, friends and colleagues to do
business with you
Become part of your Marketing Department
(for free!)
Understanding who are your Promoters and who are your Detractors is key
Companies seeking to grow must increase %Promoters and Decrease
%Detractors

8. Customer Advocacy Equation
+ =

9. Net Promoter Score – Fact, Fad or Fiction?

10. Net Promoter® Stars

11. Who, or what, do you advocate?

12. Fair Banking Agenda

13. CUA - uniquely positioned on customer advocacy

14. Pen Portrait - Mutual Families
Average Age: 43
Gender: Product Holdings
• Home loan
F43% M57%
• Personal Loan
Marital Status • Savings Account
• Married/De Facto: 75% • Transaction Account
• Single/ Never Married: 14% • Insurance
• Divorced/ Widowed: 11%
• Segment Share of CUA Customers: 20%
• Segment contribution to CUA by value: 43%
• Tenure : 11 Years

15. Low Involvement Product

16. High Involvement Product

17. The need for Social Network Analysis

18. Punching above our weight

19. Advantage for credit unions

20. Value opportunity

21. In Summary
To Harness growth through Customer Advocacy, need to consider:
Who are your Promoters?
Who are your Detractors?
Understand how these are connected in Social Networks
How to reward, recognise and/or incent your Promoters
Measure results and continue to improve

22. Acknowledgements
SAS Institute
Datamonitor
RFI
Colmar Brunton research
IBM

23. Questions?