• Save
Answering the Ultimate Question For Social Media
Upcoming SlideShare
Loading in...5
×
 

Answering the Ultimate Question For Social Media

on

  • 2,153 views

 

Statistics

Views

Total Views
2,153
Views on SlideShare
2,147
Embed Views
6

Actions

Likes
2
Downloads
0
Comments
0

3 Embeds 6

http://www.bsi.ag 4
http://bsi.ag 1
http://webcache.googleusercontent.com 1

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

CC Attribution-ShareAlike LicenseCC Attribution-ShareAlike License

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • Across companies: the relationship holds as more promoters, the more + womPromoters drive PWOM; if you care about your business’ WOM, you need to care about your proportion of Promoterscustomer experience– and loyalty– become a relevant dimension to consider in marketing efforts r = .87Data come from 2008 NP benchmarkData cleaned for inconsistent responses (ex. “I have recommended in the past” AND “number of recommendations = 0”); cut cases above 98th percentile spend; Only business with more than 24 responses included in the analysis.

Answering the Ultimate Question For Social Media Answering the Ultimate Question For Social Media Presentation Transcript

  • BSI
    Answeringthe Ultimate QuestionForSocial Media
    Marketing 2.0 Conference, Paris 2009
  • Jointheconversation
    MARKETING 2.0 CONFERENCE
    www.marketing2conference.com
  • Answering the Ultimate Question for Social Media
  • How to make money in social media?
    Solve real problems, don’t create imagined benefits
    Retain customers, sell them more, keep them longer
    Co-innovate, develop better products and services
    Create promoters of your brand
    Encourage and enable promoters to advocate for you
    Word of mouth is alluring but elusive
  • Advertising goes into cardiac arrest
    “The problem is not the medium, the problem is the message, and the fact that it is not trusted, not wanted, and not needed,”
    Prof. Eric Clemons, Wharton, March 2009
    “…every business needs revenues—and advertising, it transpires, is not going to provide enough”
    The Economist, March 2009
  • Word of Mouth impacts buying behaviors in both B2B and B2C
    • 80% of customers trust WOM more than any other source of information (Forrester Research)
    • Word of mouth is 9X as effective as advertising in converting unfavorable or neutral dispositions into positive attitudes. (Day)
    • More than 90% of customers consider WOM as the best source of ideas and info about products and services (McKinsey & Co )
    Source: CMO Council
    Profitability from Customer Affinity Report 2007
  • 7
    Business leaders in all industries are adopting Net Promoter
  • More than a score…
  • NPS is Word of Mouth capacity
    Capacity (economics), the point of production at which a firm or industry's average (or "per-unit") costs begin to rise, usually because some factor is fixed (often capital or land).
  • Word of Mouth is on the rise
    Promoter Referral Rate (Average)
    Promoter Referral Rates By Industry
    +8%
    +11%
    +7%
    14% average
    increase
    +14%
    +6%
    +2%
    +18%
    +24%
    +4%
    +20%
    8% average
    increase
    +15%
    +7%
    +5%
    +8%
    +14%
    +8%
    +13%
    +19%
    Banking
    2006
    2007
    2008
    Cable
    Wireless
    Computer Software
    Computer Hardware
    Brokerage
    Credit Card
    Local / Long-Distance
    ecommerce
    © 2009 Satmetrix Systems, Inc. All rights reserved. Satmetrix and the Satmetrix logo are trademarks of Satmetrix Systems, Inc. Net Promoter, NPS and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.
  • Referral economics for B2C Wireless Providers
    Economic Impact of Promoter and Detractor WOM for B2C Wireless Providers
    1000
    Each Promoter’s PWOM behavior brings in an additional $639 in revenue.
    +$639
    500
    Promoter
    0
    Detractor
    Customer WOM Value
    -500
    -1000
    Each Detractor’s NWOM behavior is responsible for $1459 in lost revenue.
    -$1459
    -1500
    © 2009 Satmetrix Systems, Inc. All rights reserved. Satmetrix and the Satmetrix logo are trademarks of Satmetrix Systems, Inc. Net Promoter, NPS and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.
  • Incidence of positive referrals increases as Promoters increase
    Proportion of Customers Positively Referring by Proportion of Promoters
  • So how can Web 2.0 be applied to create promoters?
  • Reciprocity drives NPS
  • Intuit Consumer Tax Group Inner Circle
    Gather Insights to Drive Immediate Change and Increase Customer Loyalty
    Objective: Create community members for ongoing product feedback
    Approach: Theme-based approach to gather feedback by product line
    Net Promoter driven product feedback
    Results:
    • 17,000 community members
    • Increased NPS by 5 points in 1 year
  • A&E Insiders
    Build Brand Loyalty, Increase Viewership
    and Activate WOM
    Objective: Create a community for ongoing feedback and increased WOM
    Approach: Targeted 325,000 AE TV community to provide feedback and rank favorite shows
    Identify Super Advocates to generate WOM
    Results:
    • 65,000 Insider community members
    • Insider influence is 3X greater than TV Community
    • 87% would recommend A&E
    • 43% watch more shows
    • 11% increase in satisfaction scores
    • WOM reach of 1.5 million
  • Creating Loyal Customers with the World’s Leading Companies
    richardo@satmetrix.com
    www.satmetrix.com
    www.netpromoter.com
    Satmetrix and the Satmetrix logo are registered trademarks of Satmetrix Systems, Inc. Net Promoter, NPS and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.