A presentation on Net Promoter as a recession-proof business growth strategy

1. Net Promoter
A Recession Proof Growth Strategy
clickadvisor
Net Promoter is a registered trademark of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld

2. Lake Wobegon Purple Cows
Cred
Crun it
ch
Proo
f
Bad Profits Red Queens
clickadvisor

3. Hello, we’re clickadvisor, a new digital
insight agency that uses online
brainstorming techniques to generate
insight for innovation
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4. We use Net Promoter
as an insight engine
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5. Loyalty
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6. Loyalty =
/ Profitability
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7. Satisfaction =
/ Loyalty =
/ Profitability
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8. The Red Queen Effect
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9. Dog
IF YOU WANT LOYALTY, GET A DOG

10. 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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11. ake on
L g
be ct
Wo Effe
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12. ake on
L g
be ct
Wo Effe
80% of CEOs believe their firm
offers a superior product…
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13. ake on
L g
be ct
Wo Effe
80% of CEOs believe their firm
offers a superior product…
…8% of their
customers agree
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14. Profit vs. Experience
Good Profits and Sustainable Growth
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15. Profit vs. Experience
Good Profits and Sustainable Growth
+
profitability
-
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16. Profit vs. Experience
Good Profits and Sustainable Growth
+
profitability
-
- “experience”
+
clickadvisor

17. Profit vs. Experience
Good Profits and Sustainable Growth
+
profitability
-
- “experience”
+
clickadvisor

18. Profit vs. Experience
Good Profits and Sustainable Growth
Angel
+ Detainees 1 2 Angels
Candidates
profitability
3
- Insurgents Agnostics Missionaries
- “experience”
+
clickadvisor

19. RECOMMENDATIONS ARE A GOOD PROXY FOR EXPERIENCE
80% OF RECOMMENDATIONS TRIGGERED BY EXPERIENCE

20. Advocacy
Trust
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 EXPERIENCE
clickadvisor
CUSTOMER ADVOCACY DRIVES REPUTATION

21. clickadvisor

22. The most recommended
product in it’s category grows
2.5x category average
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23. “1 in 3 people come to a
brand through personal
recommendation”
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24. “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
clickadvisor

25. Radical Simplicity
RECOMMENDATIONS ARE SIMPLE TO UNDERSTAND,
MEASURE AND COMMUNICATE clickadvisor

26. Profit vs. Experience
Good Profits and Sustainable Growth
Low Neutral High
clickadvisor
Net Promoter is a registered trademark of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld

27. Profit vs. Experience
Good Profits and Sustainable Growth
+
profitability
-
Low Neutral High
clickadvisor
Net Promoter is a registered trademark of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld

28. Profit vs. Experience
Good Profits and Sustainable Growth
+
profitability
-
Low Neutral High
clickadvisor
Net Promoter is a registered trademark of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld

29. Profit vs. Experience
Good Profits and Sustainable Growth
Angel
+ Detainees 1 2 Angels
Candidates
profitability
3
- Insurgents Agnostics Missionaries
Low Neutral High
propensity to recommend
clickadvisor
Net Promoter is a registered trademark of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld

30. 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 259 4%
5
Passives 160 -
Detractors 64 13%
483 41% = (NPS)
clickadvisor
Net Promoter is a registered trademark of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld

31. 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
0 1 2 3 4 5 6 7 8 9 10
Promoters 259 4%
5
Passives 160 -
Detractors 64 13%
483 41% = (NPS)
clickadvisor
Net Promoter is a registered trademark of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld

32. 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
0 1 2 3 4 5 6 7 8 9 10
Detainees + Insurgents Angels + Missionaries
= Detractors = Promoters
Promoters 259 4%
5
Passives 160 -
Detractors 64 13%
483 41% = (NPS)
clickadvisor
Net Promoter is a registered trademark of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld

33. 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
What’s the one thing we could do to most improve our score?
Tag & Vote
clickadvisor

34. Net Promoter is a Customer-focused Growth Strategy
Good Profits and Sustainable Growth
Priority 1 Priority 1 Priority 1
Priority 2 Priority 2 Priority 2
Priority 3 Priority 3 Priority 3
Priority 1 Priority 1 Priority 1
Priority 2 Priority 2 Priority 2
Priority 3 Priority 3 Priority 3
Low Neutral High
clickadvisor
Net Promoter is a registered trademark of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld

35. Net Promoter is a Customer-focused Growth Strategy
Good Profits and Sustainable Growth
Priority 1 Priority 1 Priority 1
+ Priority 2 Priority 2 Priority 2
profitability
Priority 3 Priority 3 Priority 3
Priority 1 Priority 1 Priority 1
- Priority 2 Priority 2 Priority 2
Priority 3 Priority 3 Priority 3
Low Neutral High
clickadvisor
Net Promoter is a registered trademark of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld

36. Net Promoter is a Customer-focused Growth Strategy
Good Profits and Sustainable Growth
Priority 1 Priority 1 Priority 1
+ Priority 2 Priority 2 Priority 2
profitability
Priority 3 Priority 3 Priority 3
Priority 1 Priority 1 Priority 1
- Priority 2 Priority 2 Priority 2
Priority 3 Priority 3 Priority 3
Low Neutral High
propensity to recommend
clickadvisor
Net Promoter is a registered trademark of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld

37. Net Promoter is a Customer-focused Growth Strategy
Good Profits and Sustainable Growth
Interface Support Coupons
Priority 1 Priority 1 Priority 1
Priority 2 Priority 2 Priority 2
Priority 3 Priority 3 Priority 3
Low Neutral High
clickadvisor
Net Promoter is a registered trademark of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld

38. Net Promoter is a Customer-focused Growth Strategy
Good Profits and Sustainable Growth
+ Interface Support Coupons
profitability
Priority 1 Priority 1 Priority 1
- Priority 2 Priority 2 Priority 2
Priority 3 Priority 3 Priority 3
Low Neutral High
clickadvisor
Net Promoter is a registered trademark of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld

39. Net Promoter is a Customer-focused Growth Strategy
Good Profits and Sustainable Growth
+ Interface Support Coupons
profitability
Priority 1 Priority 1 Priority 1
- Priority 2 Priority 2 Priority 2
Priority 3 Priority 3 Priority 3
Low Neutral High
propensity to recommend
clickadvisor
Net Promoter is a registered trademark of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld

40. Net Promoter is a Customer-focused Growth Strategy
Good Profits and Sustainable Growth
+ Interface Support Coupons
profitability
Priority 1 Priority 1 Priority 1
- Priority 2 Priority 2 Priority 2
Priority 3 Priority 3 Priority 3
46%p 7% Neutral
p+e
Low u
u r High
PS Sha propensity to recommend
N et
M ark clickadvisor
Net Promoter is a registered trademark of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld

41. Net Promoter is a Customer-focused Growth Strategy
Good Profits and Sustainable Growth
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
What’s the one housework tip you’d most likely recommend to a friend?
Tag & Vote
led
et- ion
ark vat
M no
In clickadvisor
Net Promoter is a registered trademark of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld

42. Net Promoter is a Customer-focused Growth Strategy
Good Profits and Sustainable Growth
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
What’s the one thing we could do to most improve our score?
M gains
38 ty
£ vi
ti p 68%
duc S u
pro NP
clickadvisor

43. Hardw
iring th
of the e Voic
Custom e
Growt er into
h Stra
tegy

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

45. “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
clickadvisor

46. Radical Simplicity
BUT A NET PROMOTER STRATEGY CAN ALIGN AN
ORGANISATION AROUND CUSTOMER-FOCUSED GROWTH

47. Thanks to promoterz.com for the analogy
AND ONE MORE THING, A NET PROMOTER STRATEGY FUTURE-PROOFS YOUR
ORGANISATION BY HARNESSING POWERFUL FREE MEDIA: PEOPLE MEDIA

48. Thanks to promoterz.com for the analogy
PEOPLE ARE GETTING BETTER THAN EVER AT IGNORING YOU

49. AND PRODUCT CLUTTER MAKES CUTTING THROUGH EVER MORE DIFFICULT

50. Buy Me!
Buy Me!
Buy Me! Buy Me!
Buy Me! Buy Me!
Buy Me!
Buy Me!
Buy Me! Buy Me!
Buy Me!
Buy Me! Buy Me!
Buy Me!
Buy Me!
Buy Me!
Buy Me! Buy Me! Buy Me!
Buy Me! Buy Me!
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
Buy Me!

51. 7 6% don’t
believe you

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

53. % of c 92%
rate w onsume
ord of rs who
best so mouth
inform urce of
NOP a
World tion
2005
A NET PROMOTER GROWTH STRATEGY WILL CUT THROUGH THE CLUTTER...

54. Custom #1
is #1 i er Adv
ocacy
purcha nfluence on
(Weber se dec
wick 2 isions
Shand
008)
A NET PROMOTER GROWTH STRATEGY WILL CUT THROUGH THE CLUTTER...

55. % likel 91%
produc y to tr
t or se y a ne
w
recomm persona rvice if
ended lly
World to the
NOP
2005 m
A NET PROMOTER GROWTH STRATEGY WILL CUT THROUGH THE CLUTTER...

56. Avera 56
ge bra
mentio nd
convers ns in
ation p
Fay 20 er we
(Keller
06) ek
A NET PROMOTER GROWTH STRATEGY WILL CUT THROUGH THE CLUTTER...

57. This Space
for Hire
A NET PROMOTER GROWTH STRATEGY WILL CUT THROUGH THE CLUTTER...

58. WOULD YOU
RECOMMEND
US?
...BY IGNITING WORD OF MOUTH NETWORKS

59. Net Promoter as Credit-Crunch Proof Growth Strategy
Beating the credit crunch by activating promoters
Low Neutral High
clickadvisor
Net Promoter is a registered trademark of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld

60. Net Promoter as Credit-Crunch Proof Growth Strategy
Beating the credit crunch by activating promoters
+
profitability
-
Low Neutral High
clickadvisor
Net Promoter is a registered trademark of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld

61. Net Promoter as Credit-Crunch Proof Growth Strategy
Beating the credit crunch by activating promoters
+
profitability
-
Low Neutral High
clickadvisor
Net Promoter is a registered trademark of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld

62. Net Promoter as Credit-Crunch Proof Growth Strategy
Beating the credit crunch by activating promoters
Angel
+ Detainees 1 2 Angels
Candidates
profitability
3
- Insurgents Agnostics Missionaries
Low Neutral High
propensity to recommend
clickadvisor
Net Promoter is a registered trademark of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld

63. OH F**K!
clickadvisor

64. “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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65. 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
What’s the main reason you’d give for recommending us?
Use i
your nsights
- to mark to b
eting rief
that build cam agency
Tag & Vote
artic help pr paigns
ulate omote
to re the re rs
comm ason
end clickadvisor

66. 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
What’s the main reason you’d give for recommending us?
Use i
your nsights
- to mark to b
eting rief
that build cam agency
Tag & Vote
artic help pr paigns
ulate omote
to re the re rs
comm ason
end clickadvisor

67. 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
What’s the main reason you’d give for recommending us?
Use i
your nsights
- to mark to b
eting rief
that build cam agency
Tag & Vote
artic help pr paigns
ulate omote
to re the re rs
comm ason
end clickadvisor

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

69. Why choose Net Promoter as your Growth Strategy
clickadvisor

70. Why choose Net Promoter as your Growth Strategy
Good Profits
Radical Simplicity
Actionable Results
clickadvisor

71. Why choose Net Promoter as your Growth Strategy
Good Profits
Radical Simplicity
Actionable Results
(Open Source)
clickadvisor

72. Whatever you do, make sure
it’s worth talking about
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73. clickadvisor

74. Thank you
For copies please email paul.marsden@clickadvisor.com
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