We have been talking to a number of companies in the consumer durables sector whose primary means of sales distribution is via third party dealer networks. So, customer engagement programmes need to drive consumers back to their retailer, which means ROI measurement is a challenge.
One way is to do this is to use the programme to measure and improve your Net Promoter Score (NPS).
Net Promoter Score evaluates on a score of 0-10 the degree to which customers would recommend your company/product. Your audience can then be segmented by their score into the following categories: 9-10 are “Promoters”, 8-7 are “Passives” and 6-0 are “Detractors”. To calculate NPS you subtract the percentage of “detractors” from the percentage of “promoters”.
For more details see: http://www.bain.com/publications/articles/creating-a-reliable-metric-loyalty-insights.aspx
The Net Promoter Score provides a benchmark against which you can measure the loyalty of your customers and because satisfied customers are deemed more likely to promote your company NPS can also be used as an indicator of business growth.
The process can help you discover what you are doing well and what you need to improve. For example it can help you identify and address issues with specific products or services. It can provide customer testimonials and even product suggestions that can be fed into the R&D department.
You can also tailor your messages according to your audience’s NPS score e.g “Promoters” can be given information to share, “Passives” convinced of why you’re great and “Detractors” given answers to their concerns.
A company in the consumer durables sector that has found monitoring NPS can improve sales is Phillips. Check out this video for a light hearted look at how it worked for them.
For more information on this and other ways of using email marketing to improve your customer relationships contact David Hearn at Anderson Hearn Keene on 44(0)208 541 4222.