Promoters and Detractors
Grow stronger with
Net Promoter puts your customers into three groups — Promoters, Passives, and Detractors — providing a simple, intuitive framework that accurately predicts customer behavior and provides a path to strong, profitable growth. But it’s more than a framework – it’s a system that embraces and demands action – action that is the centerpiece of Net Promoter in the Cloud from Satmetrix.
Frontline managers and customer-focused teams can grasp the idea of increasing the number of Promoters and reducing the number of Detractors far more readily than other, more complex methods. Net Promoter is an approach that your whole company will want to get behind.
|The numbers speak for themselves.
Loyal customers don’t just stay with your company; they also help you succeed by referring friends and colleagues. We call these customers Promoters because they exhibit behaviors that contribute directly to your growth. Conversely, Detractors behave in ways that can take away from your bottom line. The success of your business depends on knowing all you can about how these customers behave and empowering your team to respond to them appropriately.
Margins: Promoters are usually less price-sensitive than other customers because they believe they are getting good value overall from the company. The opposite is true for Detractors: they’re more price-sensitive.
Annual Spend: Promoters increase their purchases more rapidly than Detractors. They tend to consolidate more of their category purchases with their favorite supplier. Promoters’ interest in new product offerings and brand extensions exceeds that of Detractors or Passives.
Cost Efficiencies: Detractors complain more frequently, thereby consuming customer-service resources. By contrast, Promoters help bring down your customer-acquisition costs by staying longer and helping to generate new referrals.
Word-of-Mouth: What’s the proportion of new customers who selected your firm because of reputation or referral? The lifetime value of these new customers, including any savings in sales or marketing expense, should be allocated to Promoters. Between 80 and 90% of positive referrals come from Promoters.
The recommended way forward.
So your business goal isn’t merely to delight customers, it’s to turn them into Promoters — customers who buy more, and who actively refer friends and colleagues. That’s the behavior that contributes to growth. So it’s very important to give each member of your team the information and tools needed to respond effectively to customers. A company seeking growth must increase the percentage of Promoters and decrease the percentage of Detractors. These are two distinct processes that must be managed, and Net Promoter captures both.
Power to the Promoters!
Promoters generate profits and fuel true growth. They become, in effect, part of a company’s marketing department – perhaps even the most powerful marketing around – not only increasing their own purchases but also providing enthusiastic referrals.
Down with Detractors!
The “flip side” of building your Promoter base – and building your profits – is the need to minimize the impact Detractors can have on your business. You’ll profit from closing the loop with them and better addressing the issues that drive negative customer perceptions.
That’s why Detractor recovery is a fundamental aspect of any Net Promoter program. Net Promoter in the Cloud has robust features allowing you to Recover Detractors, bringing at-risk customers back home with fast attention and issue resolution. You’ll transform customer opinion by uncovering root causes and acting effectively to surprise and delight – even converting Detractors into Promoters.
Our consulting experts can also help you design your optimal Closed Loop process, ensuring that you can engage Detractors and turn them around even more successfully.
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