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Answering the Ultimate Question For Social Media

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Answering the Ultimate Question For Social Media

  1. 1. BSI<br />Answeringthe Ultimate QuestionForSocial Media<br />Marketing 2.0 Conference, Paris 2009<br />
  2. 2. Jointheconversation<br />MARKETING 2.0 CONFERENCE<br />www.marketing2conference.com<br />
  3. 3. Answering the Ultimate Question for Social Media<br />
  4. 4. How to make money in social media?<br />Solve real problems, don’t create imagined benefits<br />Retain customers, sell them more, keep them longer<br />Co-innovate, develop better products and services<br />Create promoters of your brand<br />Encourage and enable promoters to advocate for you<br />Word of mouth is alluring but elusive<br />
  5. 5. Advertising goes into cardiac arrest<br />“The problem is not the medium, the problem is the message, and the fact that it is not trusted, not wanted, and not needed,”<br />Prof. Eric Clemons, Wharton, March 2009<br />“…every business needs revenues—and advertising, it transpires, is not going to provide enough”<br />The Economist, March 2009 <br />
  6. 6. Word of Mouth impacts buying behaviors in both B2B and B2C<br /><ul><li>80% of customers trust WOM more than any other source of information (Forrester Research)
  7. 7. Word of mouth is 9X as effective as advertising in converting unfavorable or neutral dispositions into positive attitudes. (Day)
  8. 8. More than 90% of customers consider WOM as the best source of ideas and info about products and services (McKinsey & Co )</li></ul>Source: CMO Council <br />Profitability from Customer Affinity Report 2007<br />
  9. 9. 7<br />Business leaders in all industries are adopting Net Promoter<br />
  10. 10. More than a score…<br />
  11. 11. NPS is Word of Mouth capacity<br />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). <br />
  12. 12. Word of Mouth is on the rise<br />Promoter Referral Rate (Average)<br />Promoter Referral Rates By Industry<br />+8%<br />+11%<br />+7%<br />14% average<br />increase<br />+14%<br />+6%<br />+2%<br />+18%<br />+24%<br />+4%<br />+20%<br />8% average<br />increase<br />+15%<br />+7%<br />+5%<br />+8%<br />+14%<br />+8%<br />+13%<br />+19%<br />Banking<br />2006<br />2007<br />2008<br />Cable<br />Wireless<br />Computer Software<br />Computer Hardware<br />Brokerage<br />Credit Card<br />Local / Long-Distance<br />ecommerce<br />© 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.<br />
  13. 13. Referral economics for B2C Wireless Providers <br />Economic Impact of Promoter and Detractor WOM for B2C Wireless Providers<br />1000<br />Each Promoter’s PWOM behavior brings in an additional $639 in revenue.<br />+$639<br />500<br />Promoter<br />0<br />Detractor<br />Customer WOM Value<br />-500<br />-1000<br />Each Detractor’s NWOM behavior is responsible for $1459 in lost revenue.<br />-$1459<br />-1500<br />© 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.<br />
  14. 14. Incidence of positive referrals increases as Promoters increase<br />Proportion of Customers Positively Referring by Proportion of Promoters<br />
  15. 15. So how can Web 2.0 be applied to create promoters?<br />
  16. 16. Reciprocity drives NPS<br />
  17. 17. Intuit Consumer Tax Group Inner Circle<br />Gather Insights to Drive Immediate Change and Increase Customer Loyalty<br />Objective: Create community members for ongoing product feedback<br />Approach: Theme-based approach to gather feedback by product line<br /> Net Promoter driven product feedback<br />Results:<br /><ul><li>17,000 community members
  18. 18. Increased NPS by 5 points in 1 year</li></li></ul><li>A&E Insiders<br />Build Brand Loyalty, Increase Viewership <br />and Activate WOM<br />Objective: Create a community for ongoing feedback and increased WOM<br />Approach: Targeted 325,000 AE TV community to provide feedback and rank favorite shows <br /> Identify Super Advocates to generate WOM<br />Results: <br /><ul><li>65,000 Insider community members
  19. 19. Insider influence is 3X greater than TV Community
  20. 20. 87% would recommend A&E
  21. 21. 43% watch more shows
  22. 22. 11% increase in satisfaction scores
  23. 23. WOM reach of 1.5 million</li></li></ul><li>Creating Loyal Customers with the World’s Leading Companies<br />richardo@satmetrix.com<br />www.satmetrix.com<br />www.netpromoter.com<br />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. <br />

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