Net Promoter London Conference Blog 2007

Scott Smith: Building the Net Promoter Discipline in Four Steps

Are there economic benefits for Net Promoter? Yes, according to Satmetrix's Dr. Laura Brooks, one of the co-developers of Net Promoter. So what is the economics of Net Promoter?

Well, first, there is measurable economic impact from promoters as well as detractors. Straight to the punch line: On average, the relative economic impact of promoters who recommend is that they bring in additional $565 in revenue and while detractors are responsible for $701 in lost revenue. This is from a sample of B2B software companies. This data was calculated by understanding the number of referrals or negative comments these folks gave.

Suhail Khan: Goal Setting to Drive Action and Business Improvement

The second session was by Satmetrix's James Young, Managing Consulting - Europe. James discussed goal setting and best practices for actioning business improvement by setting appropriate goals. I think this is a very important topic, and one that I’ve heard much discussion and debate, especially when wanting to tie compensation to these targets.

Suhail Khan: The Methodology of Who, What, and When

The first presentation is by Dr. Vince Nowinski, the Principal Methodologist at Satmetrix (co-developer of Net Promoter). He is the guy who works to maintain sound methodological standards with Satmetrix and based on my observations, it appears he is succeeding. His presentation today is entitled “Measuring What Matters – Capturing the Voice of Your Most Important Customers.” Vince’s approach to the discussion is to cover the "who," "what," and "when," as it relates to sampling strategies, response rates and general survey design. This is a hotly debated subject and has brought much discussion thus far at the conference.

Scott Smith: Best Practices for Making Net Promoter Operational

In the Net Promoter community, 68% of companies aspire to be customer centric but only 15% achieve this goal based upon research Satmetrix (co-developer of Net Promoter with Fred Reichheld and Bain & Company) recently conducted with over 100 companies in the community. This aspiration is why there is so much interest in the Net Promoter conferences, stated Henry Jones, Satmetrix's Director of Business Consulting, EMEA, in his talk.

Scott Smith: "Driving NP into Your Organization" - Fred Reichheld

The room is still full for the last session for today. To end the day, we are hearing from Fred Reichheld, with his talk on Loyalty and Net Promoter. Fred makes the point - relationships worthy of loyalty should be a top priority – but that in most business it is still a joke. This is why Fred has stated that he is no longer the high priest of loyalty but is now the godfather of growth.

Loyalty leaders are growing at 2.6x their competitor averages.

Scott Smith: Net Promoter and the Value to Your Business

Richard Owen, CEO of Satmetrix, the co-developer of Net Promoter, kicked off the presentations by talking about Net Promoter and the value to your business. He talked about why Net Promoter is taking off.

Richard presented four reasons that are driving the adoption of NP:

1. Shift to service economies
2. Shortcomings in public accounting
3. The high rate of CRM failure, and
4. The Reinvention of marketing.

(And all in 45 minutes)

The first big topic that Richard covered is the shift to service economies.

Scott Smith: Conference Opening - Martin Green

We are kicking off the Net Promoter Conference here in London at the Park Lane Hotel with introductions from Satmetrix's Martin Green, Managing Director - EMEA. He kicked off the meeting with the one big feedback item from the first NP conference in New York in January: more information about how to implement a successful NP program.