Net Promoter Recession-Proof Growth Strategy

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A Recession Proof Growth Strategy

Net Promoter

Net Promoter is a registered trademark of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld

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Lake Wobegon Purple Cows

Red QueensBad Profits

Credit Crunch Proof

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Hello, we’re clickadvisor, a new digital insight agency that uses online

brainstorming techniques to generate insight for innovation

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We use Net Promoter as an insight engine

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Loyalty

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Profitability=/Loyalty

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Profitability=/Satisfaction =/ Loyalty

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The Red Queen Effect

IF YOU WANT LOYALTY, GET A DOG

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Bad Profits

Telecoms - Customers can’t get Best Deals

Hotels - Phone Bills > Room Charge

Airlines - Change Fees

Trains - SLA - what SLA?

Music - DRM - It’s yours but...

Car Hire - Refilling costs

Utilities - What goes up stays up

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Wobegon

Effect

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Wobegon

Effect

80% of CEOs believe their firm offers a superior product…

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…8% of their customers agree

Wobegon

Effect

80% of CEOs believe their firm offers a superior product…

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Profit vs. ExperienceGood Profits and Sustainable Growth

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“experience” +-

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“experience” +-

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“experience” +-

AngelsDetainees

MissionariesAgnosticsInsurgents

AngelCandidates1 2

RECOMMENDATIONS ARE A GOOD PROXY FOR EXPERIENCE80% OF RECOMMENDATIONS TRIGGERED BY EXPERIENCE

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Advocacy

Favourability

Familiarity

IPSOS Reputation Pyramid

“Our work shows that there is a strong correlation between an organisation's

reputation and its ability to successfully market to consumers”

IPSOS 2008

RECOMMENDATIONS ARE A GOOD PROXY FOR EXPERIENCECUSTOMER ADVOCACY DRIVES REPUTATION

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The most recommended product in it’s category grows 2.5x category average

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“1 in 3 people come to a brand through personal

recommendation”

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“Something remarkable is worth talking about. Worth noticing. Exceptional. New. Interesting. It’s a Purple Cow. Boring stuff is invisible. It’s a brown cow. … Remarkable marketing is the art of building things worth noticing right into your product or service.”

Seth Godin

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Radical Simplicity

RECOMMENDATIONS ARE SIMPLE TO UNDERSTAND, MEASURE AND COMMUNICATE

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HighNeutralLow

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HighNeutralLow

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HighNeutralLow

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AngelsDetainees

AngelCandidates1 2

propensity to recommend

HighNeutralLow

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Propensity to Recommend

How likely would you be to recommend us to a friend?Please rate us on a scale of 0-10 where 0 = Extremely Unlikely and 10 = Very Likely

Promoters 259Passives 160

Detractors 64 483

= 41% (NPS)Net Promoter is a registered trademark of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld

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0 1 2 3 4 5 6 7 8 9 10

Detractors 64 483

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0 1 2 3 4 5 6 7 8 9 10

Detainees + Insurgents= Detractors

Angels + Missionaries = Promoters

Detractors 64 483

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What’s the one thing we could do to most improve our score?

Tag & Vote

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HighNeutralLow

Priority 1Priority 2Priority 3

Net Promoter is a Customer-focused Growth StrategyGood Profits and Sustainable Growth

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HighNeutralLow

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HighNeutralLow

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HighNeutralLow

CouponsInterface Support

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HighNeutralLow

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HighNeutralLow

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HighNeutralLow

NPS up +46

Market Share

clickadvisorNet Promoter is a registered trademark of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld

What’s the one housework tip you’d most likely recommend to a friend?

Tag & Vote

Market-led

Innovati

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What’s the one thing we could do to most improve our score?

producti

vity gain

NPS up 68%

Hardwiring the Voice of the Customer into Growth Strategy

Radical Simplicity

ONE NUMBER, ONE GOAL - NET PROMOTER USES RADICAL SIMPLICITY TO HARDWIRE THE VOICE OF THE CUSTOMER INTO YOUR GROWTH STRATEGY

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“The authors found that the linkage between the Net Promoter Score and subsequent customer behavior was modest at best;models based on multiple variables consistently outperformed models based on Net Promoter”

NET PROMOTER CAN’T BEAT MULTIVARIATE MODELS AS A FORECASTING TOOL

Radical Simplicity

BUT A NET PROMOTER STRATEGY CAN ALIGN AN ORGANISATION AROUND CUSTOMER-FOCUSED GROWTH

AND ONE MORE THING, A NET PROMOTER STRATEGY FUTURE-PROOFS YOUR ORGANISATION BY HARNESSING POWERFUL FREE MEDIA: PEOPLE MEDIA

Thanks to promoterz.com for the analogy

PEOPLE ARE GETTING BETTER THAN EVER AT IGNORING YOU

Thanks to promoterz.com for the analogy

AND PRODUCT CLUTTER MAKES CUTTING THROUGH EVER MORE DIFFICULT

Buy Me!Buy Me!

Buy Me!

Buy Me!Buy Me!

Buy Me!

Buy Me! Buy Me!

Buy Me!

Buy Me!Buy Me!

Buy Me!

AND PRODUCT CLUTTER MAKES CUTTING THROUGH EVER MORE DIFFICULT

76% don’t

believe you

A NET PROMOTER GROWTH STRATEGY WILL CUT THROUGH THE CLUTTER...

92%% of consumers who rate word of mouth best source of informationNOP World 2005

#1 Customer Advocacy is #1 influence on purchase decisions (Weber Shandwick 2008)

91%% likely to try a new product or service if personally recommended to themNOP World 2005

56Average brand mentions in conversation per week(Keller Fay 2006)

This Space for Hire

WOULD YOU RECOMMEND

...BY IGNITING WORD OF MOUTH NETWORKS

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Net Promoter as Credit-Crunch Proof Growth StrategyBeating the credit crunch by activating promoters

HighNeutralLow

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HighNeutralLow

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HighNeutralLow

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AngelsDetainees

AngelCandidates1 2

HighNeutralLow

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OH F**K!

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“50% of people who say they would recommend your brand,

haven’t yet recommended”

A NEW ROLE FOR MARKETING - ACTIVATING ADVOCACY

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What’s the main reason you’d give for recommending us?

Tag & Vote

Use insights to brief your marketing agency - to build campaigns that help promoters

articulate the reason to recommend

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Tag & Vote

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Tag & Vote

ACTIVATE PROMOTERS WITH MARKETING THAT HELPS PROMOTERS ARTICULATE THE REASON TO RECOMMEND

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Why choose Net Promoter as your Growth Strategy

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Good ProfitsRadical SimplicityActionable Results

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Good ProfitsRadical SimplicityActionable Results

(Open Source)

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Whatever you do, make sure it’s worth talking about

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Thank you

For copies please email paul.marsden@clickadvisor.com

Net Promoter Recession-Proof Growth Strategy

Business

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