Evaluation Tools • Net Promoter Score • Member Satisfaction • Increased Recruitment and Retention
Net Promoter Score Would you recommend XYZ to a colleague or friend? Definitely Would Rated 5 X% Rated 4 X% Rated 3 X% Rated 2 X% Definitely Would Not Rated 1 X% Promoters X% Detractors X% Promoters – Detractors = Net Promoter Score X% – X% = X%
Why Positive WOM is Important • Only fourteen percent of people believe information passed to them by government and advertising. • Eighty-nine percent of consumers now recommend to others products or services they like. • Ninety percent of people believe information passed to them by friends and family. • Eighty percent of all consumer decisions are influenced by word-of mouth marketing. (Dichter) • Word-of-mouth is nine times as effective as advertising in converting unfavorable or neutral predispositions into positive attitudes. (Day) • Word-of-mouth is four times as effective as personal selling in influencing consumers to switch brands. (Lazarfeld) • Source: Grad Conn, iMedia Brand Summit, February 2004.
What impacts WOM Referrals? • Research and literature shows: • Satisfaction • Product involvement • A sense of belonging • Recent purchases
How Can We Increase Positive WOM? • Provide unique products and services designed to satisfy member needs. • Increase member awareness of what your Affiliate has to offer. • Stimulate knowledge and excitement about your products and services. • Develop and implement positive WOM offensive strategies. • Locate opinion leaders and identify the members who do the talking. • Use techniques to foster communication among members and prospective members (e.g., e-mail a friend and testimonials).
How Can We Decrease Negative WOM? • Proactively invite members to contact your Affiliate when they have questions and problems. • Satisfy all member inquiries and effectively deal with questions and problems. • Do not make them wait for an answer and follow-up to make sure that the issue is resolved. • Provide thorough explanations and also take the opportunity to suggest other products and services, when appropriate. • For the many members who do not contact your Affiliate about their questions/problems, provide fail-safe systems and proactive communications to guide them and “keep them out of trouble” (e.g. FAQ at the Web site).
Measuring Overall Satisfaction Overall, how satisfied are you with your ABC membership? • 5 point scale • Near end of survey (after ratings of more specific areas of service/benefits but before demographics) • “Top box scores” reveal most loyal members (don’t add 4’s and 5’s and declare victory) • Use to benchmark improvements and compare satisfaction among membership segments