ICCA 2012 session: How “Net Promoter” companies thrive in a customer-driven world?
Promotion power means telling a friend (report extracted from ICCA daily day 3)
Girls who tattoo their midriffs with the Apple logo are the supreme example of satisfied customers and are worth a fortune to the company. That was the kernel of the message carried by Stephen Baxter, GM, Global Mid-Market Solutions for Satmetrix Systems, Inc., in the Net Promoter session.
The NPS or Net Promoter Score was the aggregated results of feedback collected by certain companies through surveys. The tattooed girl is worth four thousand dollars to
Apple and is in the ‘promoter’ end of the scale. However, at the other end of the sliderule are the detractors who can cost the company seven thousand dollars each.
“Eighty per cent of companies believe they are delivering superior customer service but ask the customer and it is only eight per cent,” revealed Baxter. “Of those companies the achievers vastly outperform the believers,” he continued.
Four loyalty behaviours drive growth:
• They buy again
• They buy additional lines
• They refer the company to others and
• They provide constructive feedback.
“The last is most important because they are helping you to improve your business”, concluded Baxter.