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Earn real money using Net Promoter! Think you know your best customers?

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Do you really know your customers? Find out in this short presentation. We take a TYPICAL retail e-commerce account. We show how under 10% of the customer base is worth 50% sales. Then we use Net Promoter to find the top 2.5% and market to them. Result: $65 PER EMAIL sent. This is how the CustomerGauge Revenue Accelerator system adds value. http://customergauge.com

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Earn real money using Net Promoter! Think you know your best customers?

  1. 1. DO YOU REALLY KNOW YOUR TOP CUSTOMERS? © CustomerGauge / Directness BV Revenue Accelerator
  2. 2. Learn about your best customers with CustomerGauge" Revenue Accelerator Adam Dorrell 18 September 2013 © CustomerGauge / Directness BV Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.
  3. 3. About a customer base: “Super-Pareto” $ 37,500 customers 49% revenue $71m 351,800 customers 91% = 51% revenue $73m Typical split for a B2C company: Less than 10% Customers account for HALF Total Revenue © CustomerGauge / Directness BV
  4. 4. About a customer base: Revenue 9% customers Average Spend* 49% revenue HIGHER VALUE CUSTOMERS 91% customers (8x lesser value customers) Average Spend LESSER VALUE CUSTOMERS Based on typical b2c customer. With 2 year Lifetime value of 400,000 customers, $150m Average spend was normalised to $100 average (actually $323) NPS 41 with Response 23% © CustomerGauge / Directness BV $483 $58
  5. 5. About a customer base: NPS 8% customers 49% revenue HIGHER VALUE CUSTOMERS NPS 51 (1.3x or 20 points higher than lesser value customers) Response 41% (2x lesser value customers) 92% customers LESSER VALUE CUSTOMERS NPS 39 Response 20% Based on typical b2c customer. With 2 year Lifetime value of 400,000 customers, $150m Average spend was normalised to $100 average (actually $323) NPS 41 with Response 23% © CustomerGauge / Directness BV
  6. 6. NPS Detail by Detractor & Promoter Detractor 0 - 8 HIGHER VALUE Top 8% customers 49% Revenue Promoter 9 - 10 No response Top Promoters: 2.5% $11m Ave $517 of customers = $20m Ave $517 14% revenue $92m Ave $275 From NPS Responses 35% Revenue Covered LESSER VALUE Bottom 92% customers 51% Revenue $8m Ave $64 $10m Ave $67 $Total for segment Ave $Spend per customer Customers that respond to NPS account for 35% revenue (even though response was 23%) Promoters (9,10) alone are 21% revenue Top promoters are 14% of revenue but only 2.5% of the customer base! © CustomerGauge / Directness BV
  7. 7. Email Campaign: Revenue Accelerator 8% customers Email sent to top promoters 2.5% of customers = Dear Customer, Thank you for saying you would be likely to recommend us. 10,000 Emails sent Here is a gift from us for you: $25 XYZ122333444 Existing customer (upsell) And something for 2 friends so they can try us too. Coupons sent by email to approx 10,000 customers. Typical campaign, spring 2013 © CustomerGauge / Directness BV $25 XYZ122333666 $25 XYZ122333999 New Customers (referral)
  8. 8. Email Campaign: Results TOTAL VALUE OF CAMPAIGN VALUE PER EMAIL SENT $645,000 $65 Existing customer (upsell) used 2113 coupons. 13.5% Redemption (18% emails open and actioned), Coupons sent by email to approx 10,000 customers. Typical campaign, spring 2013 Based on Gross Sales before discount). Total sales based on projected lifetime sales $550 of new customers) © CustomerGauge / Directness BV $220 Average Order New Customers (referral) 331 New Acquired $182,000 Value
  9. 9. CustomerGauge Life Cycle Report •  AUTOMATICALLY Identifies your high spending clients and their NPS results. •  Based on Pareto 20/80 •  Available in CustomerGauge together with EmailEngine Marketing Tool © CustomerGauge / Directness BV
  10. 10. THANK YOU " INFO@CUSTOMERGAUGE © CustomerGauge / Directness BV Revenue Accelerator

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