2. % of people who trust companies less in 2009 than in 2008 Source: Edelman Trust Barometer, 2009 Nearly 70% of consumers surveyed thought that pharmaceutical information from peers was credible and believable, even if the peers were not experts. When it comes to company information, a “peer” is as credible as an industry analyst and only preceeded by an “expert” Word-of-Mouth is the #1 influence on business-to-business buying decisions Source: Edelman Trust Barometer, 2009 Source: Keller Fay, 2006 Source: Keller Fay, July 2008 The Power of Recommendation
3. How can we measure the value of recommendation?
4. What is the Net Promoter Score (NPS)? The Net Promoter® score allows you to categorize customers into three groups based on their willingness to recommend your company or product to a friend or colleague: Promoters (score 9–10) are loyal enthusiasts who will keep buying and refer others, fueling growth. Passives (score 7–8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings. Detractors (score 0–6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth. Calculating Your Net Promoter Score One question provides the best predictor of customer loyalty for the vast majority of businesses: How likely is it that you would recommend (Company/Product X) to a friend or colleague? Using a 0 to 10 scale, you can calculate your Net Promoter Score (NPS) by taking the percentage of Promoters, and subtracting the percentage of Detractors. NPS is a straightforward metric that holds companies and employees accountable for how they treat customers. When combined with appropriate diagnostics and follow-up actions, it drives improvements in customer loyalty and enables profitable growth. The Power of Recommendation
10. ...Slide: Bain & Company, official NPS(tm) presentation Fred Reichheld. Net Promoter Score ™ is a registered trademark of Bain & Company, Satmetrix and Fred Reichheld The Power of Recommendation
43. FUTURELAB Net Promoter Score Benchmarking Industry: Consumer Products Country: Romania Net Promoter Score Conducted by: The Net Promoter (tm) Score is a registered trademark of Fred Reichheld, Satmetrix and Bain & Company
44. Lukoil N = 200 Mol N = 182 -0.5 24.7 OMV N = 259 34.7 43.1 Petrom N = 545 34.5 34.1 Rompetrol N = 246 Market Average (mean of NPS of the brands measured) Gas Station: Recommendation of the Used Brand NPS* % *Net Promoter Score = Promoters (10+9) – Detractors(6+…+0) Q. Would you recommend ...[SHOW EACH BRAND USED IN THE PAST 12 MONTHS] to a colleague or a friend ? Please use a 0 to 10 scale, where 0 means “I wouldn’t recommend” and 10 means “I would recommend for sure” 8
45. Activia N = 133 63.2 39.3 18.1 Danone Natural Nutriday N = 572 34.9 30.0 Milli N = 127 25.4 Napolact N = 172 Tnuva N = 120 Market Average (mean of NPS of the brands measured) Plain Yoghurt: Recommendation of the Used Brand NPS* % *Net Promoter Score = Promoters (10+9) – Detractors(6+…+0) Q. Would you recommend ...[SHOW EACH BRAND USED IN THE PAST 12 MONTHS] to a colleague or a friend ? Please use a 0 to 10 scale, where 0 means “I wouldn’t recommend” and 10 means “I would recommend for sure” 9
46. Activia N = 119 Danone (unspecified) N = 326 Market Average (mean of NPS of the brands measured) Fruit Yoghurt: Recommendation of the Used Brand NPS* % 56.3 41.1 41.1 *Net Promoter Score = Promoters (10+9) – Detractors(6+…+0) Q. Would you recommend ...[SHOW EACH BRAND USED IN THE PAST 12 MONTHS] to a colleague or a friend ? Please use a 0 to 10 scale, where 0 means “I wouldn’t recommend” and 10 means “I would recommend for sure” 10
47. Delma N = 502 35.9 20.8 Linco N = 159 50.6 Rama N = 318 18.1 28.2 Wiesana N = 155 Market Average (mean of NPS of the brands measured) Margarine: Recommendation of the Used Brand % NPS* *Net Promoter Score = Promoters (10+9) – Detractors(6+…+0) Q. Would you recommend ...[SHOW EACH BRAND USED IN THE PAST 12 MONTHS] to a colleague or a friend ? Please use a 0 to 10 scale, where 0 means “I wouldn’t recommend” and 10 means “I would recommend for sure” 11
48. Borsec N = 601 54.2 Bucovina N = 158 47.5 Izvorul Alb(Dorna) N = 563 48.3 Izvorul Minunilor N = 338 30.2 Perla Harghitei N = 113 43.4 Roua / Roua Muntilor N = 100 27.0 Market Average (mean of NPS of the brands measured) 30.2 Still Water: Recommendation of the Used Brand % NPS* *Net Promoter Score = Promoters (10+9) – Detractors(6+…+0) Q. Would you recommend ...[SHOW EACH BRAND USED IN THE PAST 12 MONTHS] to a colleague or a friend ? Please use a 0 to 10 scale, where 0 means “I wouldn’t recommend” and 10 means “I would recommend for sure” 12
49. Borsec N = 642 58.4 Dorna N = 324 42.3 Izvorul Minunilor N = 354 31.6 Perla Harghitei N = 181 25.4 Poiana Negri N = 140 29.3 Tusnad N = 119 26.1 Market Average (mean of NPS of the brands measured) 29.9 Sparkling Water: Recommendation of the Used Brand % NPS* *Net Promoter Score = Promoters (10+9) – Detractors(6+…+0) Q. Would you recommend ...[SHOW EACH BRAND USED IN THE PAST 12 MONTHS] to a colleague or a friend ? Please use a 0 to 10 scale, where 0 means “I wouldn’t recommend” and 10 means “I would recommend for sure” 13
50. Cappy (nespecificat) N = 223 45.3 50.2 Prigat Nectar N = 422 55.0 Santal N = 202 33.7 Tymbark N = 101 46.6 Market Average (mean of NPS of the brands measured) Nectar and Natural Juice 100%: Recommendation of the Used Brand % NPS* *Net Promoter Score = Promoters (10+9) – Detractors(6+…+0) Q. Would you recommend ...[SHOW EACH BRAND USED IN THE PAST 12 MONTHS] to a colleague or a friend ? Please use a 0 to 10 scale, where 0 means “I wouldn’t recommend” and 10 means “I would recommend for sure” 14
51. 35.2 Cappy (unspecified) N = 179 32.4 Giusto Natura N = 105 46.3 37.9 Prigat (unspecified) N = 227 Market Average (mean of NPS of the brands measured) Still Drink: Recommendation of the Used Brand % NPS* *Net Promoter Score = Promoters (10+9) – Detractors(6+…+0) Q. Would you recommend ...[SHOW EACH BRAND USED IN THE PAST 12 MONTHS] to a colleague or a friend ? Please use a 0 to 10 scale, where 0 means “I wouldn’t recommend” and 10 means “I would recommend for sure” 15
52. 62.9 Nurofen Raceala&Gripa N = 175 53.3 Paracetamol N = 229 49.5 Market Average (mean of NPS of the brands measured) Cough and cold meds: Recommendation of the Used Brand % NPS* *Net Promoter Score = Promoters (10+9) – Detractors(6+…+0) Q. Would you recommend ...[SHOW EACH BRAND USED IN THE PAST 12 MONTHS] to a colleague or a friend ? Please use a 0 to 10 scale, where 0 means “I wouldn’t recommend” and 10 means “I would recommend for sure” 16
53. 3.4 Algocalmin N = 444 -10.1 Antinevralgic P N = 99 46.8 Nurofen N = 293 6.1 Paracetamol N = 131 21.3 Market Average (mean of NPS of the brands measured) Analgesics: Recommendation of the Used Brand % NPS* *Net Promoter Score = Promoters (10+9) – Detractors(6+…+0) Q. Would you recommend ...[SHOW EACH BRAND USED IN THE PAST 12 MONTHS] to a colleague or a friend ? Please use a 0 to 10 scale, where 0 means “I wouldn’t recommend” and 10 means “I would recommend for sure” 17
54. BCR - Banca Comerciala Romana N = 462 27.3 17.3 BRD - Banca Romana de Dezvoltare N = 475 32.7 -9.4 Banca Transilvania N = 226 44.1 Bancpost N = 159 29.8 19.0 ING Bank N = 161 Raiffeisen Bank N = 309 Market Average (mean of NPS of the brands measured) Banks: Recommendation of the Used Brand % NPS* *Net Promoter Score = Promoters (10+9) – Detractors(6+…+0) Q. Would you recommend ...[SHOW EACH BRAND USED IN THE PAST 12 MONTHS] to a colleague or a friend ? Please use a 0 to 10 scale, where 0 means “I wouldn’t recommend” and 10 means “I would recommend for sure” 18
55. 55.5 Axion N = 640 74.5 64.1 Fairy N = 595 60.2 Pur N = 834 Market Average (mean of NPS of the brands measured) Dishwashing detergent: Recommendation of the Used Brand % NPS* *Net Promoter Score = Promoters (10+9) – Detractors(6+…+0) Q. Would you recommend ...[SHOW EACH BRAND USED IN THE PAST 12 MONTHS] to a colleague or a friend ? Please use a 0 to 10 scale, where 0 means “I wouldn’t recommend” and 10 means “I would recommend for sure” 19
56. Avon; N = 113 53.1 Clear; N = 192 Dove; N = 161 65.6 Elseve; N = 126 71.4 Garnier Fructis; N = 182 Head & Shoulders; N = 729 75.4 Nivea; N = 284 Palmolive; N = 121 58.8 Pantene; N = 229 Schauma; N = 126 62.1 Wash&Go; N = 362 63.7 Market Average (mean of NPS of the brands measured) 38.8 57.6 33.3 47.5 59.5 Shampoo: Recommendation of the Used Brand % NPS* *Net Promoter Score = Promoters (10+9) – Detractors(6+…+0) Q. Would you recommend ...[SHOW EACH BRAND USED IN THE PAST 12 MONTHS] to a colleague or a friend ? Please use a 0 to 10 scale, where 0 means “I wouldn’t recommend” and 10 means “I would recommend for sure” 20
57. Avon N = 384 52.6 Adidas N = 143 55.2 Dove N = 397 78.1 Fa N = 152 32.9 Nivea N = 473 65.1 Palmolive N = 319 47.6 Market Average (mean of NPS of the brands measured) 50.7 Shower Gel: Recommendation of the Used Brand % NPS* *Net Promoter Score = Promoters (10+9) – Detractors(6+…+0) Q. Would you recommend ...[SHOW EACH BRAND USED IN THE PAST 12 MONTHS] to a colleague or a friend ? Please use a 0 to 10 scale, where 0 means “I wouldn’t recommend” and 10 means “I would recommend for sure” 21
58. Aquafresh N = 181 50.8 61.3 Blend A Med N = 640 68.3 Colgate N = 1560 67.9 57.4 Sensodyne N = 218 Market Average (mean of NPS of the brands measured) Tooth Paste: Recommendation of the Used Brand % NPS* *Net Promoter Score = Promoters (10+9) – Detractors(6+…+0) Q. Would you recommend ...[SHOW EACH BRAND USED IN THE PAST 12 MONTHS] to a colleague or a friend ? Please use a 0 to 10 scale, where 0 means “I wouldn’t recommend” and 10 means “I would recommend for sure” 22
59. 38.8 Argus N = 178 59.1 Bunica N = 707 47.0 Floriol N = 481 9.7 Raza Soarelui N = 185 44.6 Unisol N = 388 31.3 Ulvex N = 182 29.2 Market Average (mean of NPS of the brands measured) Cooking oil: Recommendation of the Used Brand % NPS* *Net Promoter Score = Promoters (10+9) – Detractors(6+…+0) Q. Would you recommend ...[SHOW EACH BRAND USED IN THE PAST 12 MONTHS] to a colleague or a friend ? Please use a 0 to 10 scale, where 0 means “I wouldn’t recommend” and 10 means “I would recommend for sure” 23
60. 12.9 Aldis N = 202 28.9 Campofrio N = 308 26.4 Caroli N = 174 43.0 Cris Tim N = 395 45.3 Matache Macelarul N = 161 33.3 Market Average (mean of NPS of the brands measured) Processed Meat : Recommendation of the Used Brand % NPS* *Net Promoter Score = Promoters (10+9) – Detractors(6+…+0) Q. Would you recommend ...[SHOW EACH BRAND USED IN THE PAST 12 MONTHS] to a colleague or a friend ? Please use a 0 to 10 scale, where 0 means “I wouldn’t recommend” and 10 means “I would recommend for sure” 24
61. Africana N = 217 -8.8 Heidi N = 125 47.2 Kandia N = 160 41.9 Laura N = 136 -12.5 Milka N = 479 Poiana N = 534 70.4 Primola N = 215 39.9 Market Average (mean of NPS of the brands measured) 33.0 28.1 Chocolate (Tablets): Recommendation of the Used Brand % NPS* *Net Promoter Score = Promoters (10+9) – Detractors(6+…+0) Q. Would you recommend ...[SHOW EACH BRAND USED IN THE PAST 12 MONTHS] to a colleague or a friend ? Please use a 0 to 10 scale, where 0 means “I wouldn’t recommend” and 10 means “I would recommend for sure” 25
62. 66.1 Joe N = 171 60.2 Lion N = 133 57.5 Mars N = 134 68.2 Snickers N = 217 56.4 Twix N = 94 55.0 Market Average (mean of NPS of the brands measured) Chocolate Bars and wafers : Recommendation of the Used Brand % NPS* *Net Promoter Score = Promoters (10+9) – Detractors(6+…+0) Q. Would you recommend ...[SHOW EACH BRAND USED IN THE PAST 12 MONTHS] to a colleague or a friend ? Please use a 0 to 10 scale, where 0 means “I wouldn’t recommend” and 10 means “I would recommend for sure” 26
63. Amaroy N = 205 50.7 Elite unspecified N = 177 35.0 Doncafe unspecified N = 121 34.7 Jacobs (unspecified) N = 644 60.7 Jacobs Kronung (Green) N = 151 60.3 Lavazza N = 181 56.9 Market Average (mean of NPS of the brands measured) 40.1 Coffee R&G: Recommendation of the Used Brand % NPS* *Net Promoter Score = Promoters (10+9) – Detractors(6+…+0) Q. Would you recommend ...[SHOW EACH BRAND USED IN THE PAST 12 MONTHS] to a colleague or a friend ? Please use a 0 to 10 scale, where 0 means “I wouldn’t recommend” and 10 means “I would recommend for sure” 27
64. Key objectives for the NPS Simple measurement, benchmarking and prediction Deeper understanding and identification of focal points A way to balance short and long term
78. The group has been set up in order to provide two major advantages to its clients:
79. High degree of specialisation and high professional standards are ensured through the existence of separate group entities
80. Clients benefit from significant savings obtained through integrating complementary services
81. Vertical integration of research, business intelligence and consulting is the group’s competitive advantage when it comes to complex projects. On one side, the companies within the group have predefined interfaces between them, assuring thus time saving, better communication and higher integration of the project objectives. On the other hand, coordination of the activities is provided internally, eliminating wasting of resources and additional costs
82.
Editor's Notes
Yes, I know, the one hot potato that keeps going around. How can we measure all this.Well, first of all – the way you measure TV is pretty meaningless, while those bits of online we CAN measure, are damn accurate.Secondary, we have to rethink our whole system anyway, and stop looking at ‘OTS’, and start looking at what really matters.Tomorrow we will look into this further, and discuss some methods we have for this.
