Here's a summary of an article that was published in B2B magazine - written by Martin Green at Net Promoter company Satmetrix. It provides some practical advice on how to build revenue by segmenting according to customer loyalty.
'As the recession takes its toll, marketers are increasingly expected to do more with less. So what can you do? One answer is to segement your customers by the experience they have with you so that you can focus on the most loyal, lucrative and infludential customers.
According to research, loyal customers exhibit four key behaviours that drive growth and profitability:
1. Repurchase
2. Increased purchase - thanks to upselling and cross-selling
3. Refer you - wom recomms drives both new business and reduces the cost per sale
4. Provides feedback - insight on product and service
So how do you identify customers who behave in this way?
Net Promoter helpd you identify the strategic value of a customer base as it segments by the level of loyalty. The answers to the NP Questions (How likely are you to recommend product/service x to a colleague or friend) segments customers into three groups based on whether you have missed (detractors), met (passives) or exceeded (promoters) their expectations.
As a result, you can importantly take the following action:
1. Activate your promoters to positively refer your business more often - passives are most open to competitor offers; detractor accounts can cost your business by feeding the marketplace with negative comments about your business. Take the most profitable detractor accounts first and see if you can turn around the relationship
2. Obtain NPS at multiple levels of the account - ensure you capture feedback from decision-makers, influencers and end-users of your product and service. Use the feedback as a catalyst to drive a strategic review of the account
3. Overlay account-level NPS feedback on sales pipeline data. One benchmarking study showed that each promoter customer in the software industry generated an additional £400k of revenue through +ve recommendations; whilst each detractor customer created a loss of £500k through negative recommendations.
Using NP as an integral part of your segmentation and strategic account management will help you to prioritise and focus marketing action on delighting the most loyal, influential and lucrative customer segments'.
There's this great new Adsense alternative cpa program called, Prosperent. You should check it out. It will display highly relevant product ads where you place the code. You get paid when a visitor clicks an ad and makes a purchase!