With the clutter and the shear volume of advertising ‘ spam ‘ we are all subject to, trusting and listening to others who have already experienced a brands many touch points ( sales team, call centres ) and used its products or services, gives us an authentic message no marketing department can replicate.
After all whose interests do they have at heart ?
Previous posts around WOM spreading product adoption through recommendation have all given positives to this medium. However as with all positives there are negatives.
None better demonstrated than through a recent article on a colleagues blog about creating positive relationships, his example of how not to do this was taken from a kitchen manufacturer called Moben.
Reviewing user ratings of both the companies service and product comments made on the price comparison site DooYou, it was a good opportunity to apply a simple but effective method for measuring customer satisfaction – Net Promoter Score ( NPS )
About NPS
A simple question is asked with a scale of between 0 and 10 – “ How likely is it that you would recommend us to a friend or colleague “ .
Score
- 9 – 10 you are classed as a promoter
- 7 – 8 are passive
- 0 – 6 are known as Detractors
Promoters
The thinking is promoters are you brand advocates, the people who will likely recommend your company and it’s products to friends ( depending on the product and also the peer standing of these people will effect the pass on rate and acceptance of these recommendations – more here on this topic )
Passive
Neither a promoter of a detractor. Not likely to promote or air negative views.
Detractors
Will not be a long term customer, have a negative and will be vocal in their criticism.
Results
As you would expect gaining a NPS of 100% is the highest accolade an organisation could hope for, however in the real world star performing score in the high 80%’s, with most companies occupying the 10 – 5% space.
Those with a negative number are in trouble, customers are defiantly not happy.
Why is NPS it important ?
Studies conducted have linked NPS to a companies financial performance against it’s peers.
Research from the London School of Economics ( Advocacy Drives Growth ) has shown companies with high ( NPS )and therefore higher word of mouth advocacy out perform their competitors.
More importantly the research found a 1% reduction in negative word of mouth, led to over £24 million in additional revenues.
While there is debate as to whether a single number can predicate a companies success, there can be no doubt people willing to promote your company can only be positive.
Now Moben - Winner or Looser ?
Applying NPS to the feedback on DooYou, they scored a worrying
– 56% *, a definite looser.
* The scoring used was not in line with the 0 – 10 NPS uses , therefore the following scale was applied . 5 -4 promoter, 3 passive and 2 - 1 Detractors.
Sources Wikipedia, http://www.netpromoter.com.
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