Value of Promoter calculation and Word of Mouth Economics modelling.
A programme that helps you to find a solid financial and business ground for your customer efforts
Happy customers have higher value for the company. This is what you told to business a hundred times, and the business just did not seem to get the message. How do you get everyone to really care about the customer? By showing them the money.
This programme is about turning an abstract concept of “customer-centricity” into hard currency in your company. It does it by finding what exactly is the financial value of your customers – the loyal ones and the haters, those who bring you new clients, and those who bleed you out of thousands in service costs. Within several weeks we will help you to gather necessary information, analyse it, and package the results so that they look easy to understand and buy into.
Value of Promoter calculation
Our quick 4-step programme helps you discover the actual financial value of each segment of your customers: the amounts your Promoters earn you in a lifetime, and the sums your Detractors lose you. The programme is a combination of research and modelling techniques, with some input from our general industry expertise, and understanding of the demands of business.
Step 1: Discovery
At this stage, we will gather existing data about your customers. The minimal data wish list comprises:
- Tenure and churn
Apart from that, it is highly advisable to include the following data points into the model as well:
- Actual recommendation behaviour
- The impact of recommendation on decision making
- Number of conversations for each NPS segment
Unless they are already available, we can acquire them with the help of small additional survey of your customers (budgeted separately).
Step 2: Analysis & Modelling
This is the step when we lock up in our ivory tower, analyse all the data that we have collected at the previous step, and create the first draft model of WoM for your company. This is what you should expect from us:
- Analysis of the NPS results
- Calculation the value of the NPS segments
- Model the Word-of-Mouth Economics, ultimately resulting in:
- The value of a Promoter, Passive and Detractor.
- Impact of Promoters, Passives and Detractors in terms of revenue.
- The impact on revenue when the NPS would improve.
Step 3: Validation
While we think that our analyses and models are quite universal and intuitive, there may still be a necessity to fine-tune them to the realities of your business. This is why we find it important to check what we are doing with your people, who know exactly how the company operates, and have deeper industry knowledge. So we go on and conduct:
- Stakeholder conversations
- Face-to-face meetings for validation of the Word-of-Mouth Economics outcomes in order to:
- Fine-tune the details
- Capture additional feedback
- Gain more insight
Step 4: Finalisation
After we have incorporated your feedback, we can finalise our work, and deliver to you the following documents:
- Value of customer segments calculation
- Word-Of-Mouth-model to enter data
- Instructions manual on data capture, survey questions and sample sizes, guidelines for model usage
We will also conduct a one-day activation workshop, where we will help your team plan out the next steps, and decide how to convert the calculation into the business case, that creates buy-in both for the top management, and for the rest of the company.
Questions? Please do not hesitate to contact us.
- What is Net Promoter Score (NPS)?
- What is Customer-Centricity?
- Can NPS make my business more profitable?
- Why should I be using NPS instead of my regular customer satisfaction research?
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