Rachel Eng Use this word of mouth metric to create customer fanatics

September 1st, 2010 by Rachel Eng Social Analyst

The Ultimate Question book imageIn his groundbreaking book, The Ultimate Question, Fred Reichheld introduced the Net Promoter Score (NPS).  It’s based on one simple question: “Would you recommend our company to a colleague or friend?” The NPS gives businesses a loyalty metric to conduct customer sentiment analysis, while tracking their promoters and detractors.

  • Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth.
  • Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
  • Detractors (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.

How to measure your NPS

To calculate your company’s Net Promoter Score, take the percentage of customers who are Promoters and subtract the percentage who are Detractors. Here’s a graphic that helps illustrate the simple calculation.

How to calculate your score

From http://www.netpromoter.com/np/calculate.jsp

How does your industry stack up?

By aggregating data from 3.2 million customer-contributors for Bazaarvoice clients across 18 different industries, we’re able to establish insightful benchmarks for each.

NPS rankings

5 Industries with highest Net Promoter Scores plus loyal and influential client base:

  • Health/Beauty
  • Jewelry
  • Food/Drug
  • Sporting Goods
  • Apparel/Accessories

Generally these industries tend to have more loyal followers and probably less complaints than, say, most service industries. However, all companies have an opportunity to use their NPS feedback, improve their customer experience, and gain a competitive advantage over their rivals.

For example, take health care. The Cancer Treatment Centers of America uses NPS as a trigger to action and has experienced great results. The CTCA has standard monthly reports for all staff and management, and even the Board of Directors is updated quarterly. In order to improve their NPS, they contact patients and caregivers to identify their needs and build stronger relationships, as well as incorporate “Patient Loyalty” topics in regular staff meetings.

In the telecommunication industry, Verizon leads the pack with 41% NPS, as they take their customer feedback seriously and are all about building customer loyalty. Since 2008, “Verizon Wireless has heard feedback from over two million customers, with employees throughout the organization involved in more than 750,000 follow up calls.” They have made it their business to create promoters and at a conference, they stated, “Management has demonstrated a willingness to take clear action based on customer feedback. That motivates employees and delights customers.” Verizon has figured it out and shared several keys to NPS success, including, the right executive sponsor, dedicated program leadership, and cultural DNA.

In the FinServ category, USAA stands out. They come in at #1 in customer loyalty for 2010 US Net Promoter rankings, banking category. With 81% NPS, USAA has been collecting reviews, asking and answering questions, and requesting customer stories since 2009. They’ve also worked with us to launch a brand new Financial Advice community.  So far, they’ve been getting about 25 questions a day.

Just Ask Cott

"Just ask Scott" is a hit with USAA customers.

How to use NPS data to improve your business

  • Collect your NPS and comments. Be prepared for criticism.
  • Reach out to your most dissatisfied and vocal detractors. Think: “What would make this customer give us another chance?”  When you have your answer, do it!
  • Reach out to your most loyal and happy promoters. Give them opportunities to share their favorite products with their social networks. Some options include:
    • Feature them as a “top contributor” on your website
    • Ask them if they’d like to write a guest piece for your blog
    • Make sure they’re able to share their experiences with your products and brand through Facebook

Why should I do anything about the NPS?

  • Prevent Negative WOM
  • Lower Cost to Serve
  • Retain customers
  • Create better profit margins.
  • Create competitive advantage.

How do you use the NPS to create customer fanatics?

Other Resources and Benchmarks:

The Ultimate Question

Use Net Promote Scores to Identify Solid Influencers

Net Promoter Score Website

Ian Greenleigh Corporations get big on blogging, but why do so many still fail?

August 30th, 2010 by Ian Greenleigh Social Media Manager

You might expect marketers to have serious “shiny object syndrome” when it comes to social media platforms, throwing the most time and money at whatever they perceive to be on the bleeding edge of social. Some interesting new data shows this is not entirely the case.

US Companies Using Blogs for Marketing Purposes 2007-2012An eMarketer study points out that corporate use of social media isn’t mirroring that of consumers, who are favoring Twitter and Facebook over the blogosphere:

“This year, eMarketer estimates just over one in three companies have a public-facing blog used for marketing, a proportion that will rise to 43% by 2012.”

Corporate bloggers certainly think highly of their own efforts, according to a 2009 Technorati survey:

technorati-logo“71% of all respondents who maintain blogs for a business – their own or one they work for – report that they have increased their visibility within their industries through their blogs. 56% say that their blog has helped their company establish a positioning as a thought leader within the industry.”

Feedback on corporate blogs from consumers, however, is mixed: Of active social media users, 36% trust them “completely” or “somewhat” as a “source of information”, while 42% “neither trust nor distrust” them, and 21% either “distrust [them] somewhat” or “don’t trust [them] at all.”

Despite this accelerated adoption, many, if not most, corporate blogs still end up failing. To piece together why, I asked a well-known expert, looked at some additional data, and finally went to the consumers themselves via Twitter:

Our tweet

Jay Baer is a top social media strategy consultant, and the man behind one of the web’s most popular blogs, Convince and Convert.  In an email, I asked him:

“Why do corporate blogs typically fail?”

In his reply:

There are several tactical and operational components that can lead to corporate blog failure: Content inconsistency; lack of humanization; insufficient interaction with potential audiences in other places (i.e. not commenting on other people’s blogs). But I find the biggest problem to be expectation management.

Too few corporate blogs really understand at a core level WHY they are blogging, and what success looks like mathematically. To try to “engage with customers” or some other form of fuzzy rationalization will not pass scrutiny when it’s inevitably discovered how much time it takes to produce a corporate blog. Before the theme is designed or the first word is written, corporate blog teams must lay out a robust argument for why the blog makes sense, for whom it is intended, how blog success will be measured, and by whom.”

Got that? Set realistic goals and have realistic expectations before you start, or else you’ll end up with a ghost town.

Twitter user Neil Lynch echoes Jay’s sentiment:

"@Bazaarvoice - Lack of clear purpose"

What about posting frequency? How often does a corporation need to publish to their blog to achieve success? There’s no magic number, but it appears that freshness wins:

“When looking at bloggers by Technorati Authority, higher Authority bloggers are much more prolific content creators, posting nearly 300 times more than lower ranked bloggers.”

This certainly doesn’t bode well for Fortune 100 companies, of which only 11% had posted any updates in the three months prior to the release of the study.

Jay’s point about a distinct “lack of humanization” among corporate blogs that fail rings true to Lisa Baehr, who tweeted:

"@Bazaarvoice Too stiff and formal? All business and no levity?"

Talk to both consumers and experts on corporate blogging, and you’ll often hear variations of this, by blogger Stephen Gacheru:

“If all you do is talk about how awesome your company is, how great your product/service is or how many awards your company has won, then it won’t be long before your visitors take off and never return.”

And yet, by and large, companies fail to understand that their blogs shouldn’t be about them. Just think about it: Do your customers buy your products and services to support you, or to help them? I’m not buying a shovel because I really, really love ShovelCo; I’m buying it because I need to dig a hole. So why would I read a blog all about your company instead of a blog addressing problems I have or ideas which I personally find interesting? Remember, in one way or another, we’re all competing for mindshare when blogging.

An informal survey of our blog’s readers bore this out—only a combined 13% of our readers come to our blog for company updates and product info:

Elio Camey isn’t interested in that self-promotional content, either:

"@Bazaarvoice they fail to connect because they only focus on promoting their own prod/service. Blogs r abt connctng with people!"

The people within your organization aren’t just experts on your products, they’re industry experts. This type of content, knowledge sharing and thought leadership, is what will make your blog stand out to people like Nazima Salleh:

"Knowledge sharing on a corporate's areas of expertise would generate more interest & create buzz around the blog @Bazaarvoice #in #marketing"

What other tips for corporate blogging success do you have? Share them with other readers by leaving a comment below.

Tara DeMarco How to use social media to get in front of your biggest prospects

August 26th, 2010 by Tara DeMarco Marketing Writer

What started as a well-executed social media plan led to an incredible strategic partnership with Domino’s Pizza, the first quick-service restaurant in our community of 850 brands across 17 verticals. Here’s how it happened.

We have an unofficial slogan at Bazaarvoice – “Be the conversation.” The relatively-level playing field of social media is both a blessing and a curse. You now have unparalleled access to high-level prospects – potential clients, investors, employers, even C-Suiters – but so does everyone else. In the information overload that is social media, how do you keep your voice from getting lost in the noise? Instead of just participating in the conversation, how can you “be the conversation”?

Last December, Domino’s Pizza began their “Pizza Turnaround” campaign, which told the story of how negative feedback from customers led the company to change its 50-year-old recipe. There’s a good chance you saw this video:

YouTube Preview Image

Naturally, the campaign caught our attention at Bazaarvoice. Here was a company acting on feedback, embracing their customers’ negative reviews to improve their product. We began brainstorming ways to join this national conversation, and eventually created a video and blog post around our unofficial taste test – the Bazaarvoice “Pizza Throwdown.”

YouTube Preview Image

Here’s what we learned from the success we had.

Stay relevant to your larger audience. Make sure your content appeals to more than just the prospect. If your message doesn’t get noticed or end up influencing a sale, it should still benefit your overall communications strategy. Whether or not Domino’s noticed us, Pizza Turnaround carried a powerful message that we knew the market needed to hear – that negative feedback should be embraced and acted upon, not feared.

Talk about what they care about. The more a prospect is already paying attention to a subject, the more likely they are to listen to what you have to say. Monitor Twitter for @replies to the company; see what they’re blogging about, etc. Join the conversation they’re already having rather than attempting to start from scratch.

Play to your strengths. Ask yourself – where do we execute most strongly? Capitalize on your best resources. We had a strong and genuine interest in the story, and knew from our history of B2B videos that our in-house video team could deliver.

Take your message multichannel. Use multiple channels to make sure your message gets through to your prospect in the right way. We told the full story behind our taste test with a blog post, but also made sure the video told a complete story on its own. We then used Twitter and Facebook to drive traffic to these pieces.

Get your network behind sharing your work. Self-promotion in social media can be tricky – see these tips on how to avoid becoming a salesman at the social media cocktail party. When done right, though, sharing through your company’s network is the best way to spread your message. We have a high rate of sharing from Bazaarvoice employees on personal profiles, but it’s always 100% voluntary. Through emails to “All”, we encouraged employees to share the story with their networks on LinkedIn, Twitter and Facebook. Employees like our CMO, Sam Decker (nearly 7,000 followers on Twitter) helped the message spread far and wide (and eventually, to Dominos).

Don’t be afraid to approach the prospect directly. Don’t just talk from the sidelines and hope your prospect notices – reach out to them directly with your message. Employees tweeted our blog post and video at the Domino’s corporate account, which got the blog on their radar. Domino’s eventually included the video on their own official Pizza Turnaround blog.

Your potential customers, partners, employers, and investors are talking to each other online – about your brand and products, about your industry, about your competitors, and about topics related to you. What steps are you taking to “be the conversation”?

Get the full story of the Pizza Throwdown.

Check out our entry for the 2010 Forrester Groundswell Awards, and leave a quick rating or review while you’re at it!

Sam Decker User-Generated Content Becomes Front and Center With Google

August 25th, 2010 by Sam Decker Chief Marketing Officer

This article was originally published in ClickZ.

It makes sense that consistently adding customer reviews, stories, questions, and answers helps people find the right products on a site. However, there are subtleties to make the content even more impactful – especially now, with the advent of fairly recent features by Google: Google Caffeine and Rich Snippets.

While search engine providers have talked about fresh content for years, Google Caffeine’s enormous and costly infrastructure update centered on freshness gives user-generated content a lot more weight. Maintaining a good SERP (define) ranking now requires that at least some of the page’s content is fresh and dynamic, which indicates to Google that the page is still relevant.

Adding customer reviews or user-generated Q&A can obviously help provide fresh content, and to make sure Google can easily find it, make sure that at least a few reviews are included in your primary page for each product or service. A handful of fresh reviews or Q&A content can make a significant impact on how Google perceives that page’s freshness.

“Integrated blogging” or adding snippets of customer stories on product pages can also help improve search results. Each time the snippets change, Google Caffeine will see those updates and once again consider your page fresh, and thus more relevant.

Even before Google introduced Caffeine, OpenTable changed the way it displays reviews on its site and saw a measurable increase in search results. OpenTable.com provides real-time online restaurant reservations for diners and reservation and guest management for more than 13,000 restaurants worldwide. Rather than requiring the restaurants to continuously rewrite their content (which just isn’t scalable), customer reviews create a ready stream of fresh content for search engines to crawl.

In 2009, OpenTable began placing the content of the first four reviews for each restaurant directly into the pages’ code. Since implementing, each restaurant profile page receives updated content as often as once a day. Only three days after making this change, OpenTable noticed an uptick in natural search traffic to the restaurant profile pages and to the overall site, as well as an increase in the number of keywords driving traffic to their pages.

Over the next four months, the total search engine traffic to the restaurant pages on OpenTable.com increased by 10 percent, as compared to the same months in the previous year, and 17 percent from Jan. 2009 to Jan. 2010. The number of unique search terms for these pages ranked also increased by 100-plus percent year over year.

Google Rich Snippets has also improved the impact user-generated content can have on sites, by displaying star ratings and review “snippets” in search results.

droolingdog

Google says its own experiments have shown that users find the new data valuable – if they see useful and relevant information from the page, they are more likely to click through. Google’s Rich Snippets show a summary of review information, and pages with more reviews will appear more favorable, so it’s important that products get as many reviews as possible.

By paying close attention to how user-generated content is arranged and displayed, its impact can have an even bigger impact on Google search results. Take note of these details and make the most of your users’ contributions.

Ian Greenleigh How companies can learn from competing blogs to improve their own

August 23rd, 2010 by Ian Greenleigh Social Media Manager

That’s right: Your blog is competing with others for the attention of your readers.

Competition. (Photo: flickr.com/anniemole)

It doesn’t matter if they’re in your commercial space or not, other blogs are competitors to one extent or another. At any given moment, your readers could be reading something better suited to them, more engaging, more thought provoking or more aesthetically pleasing. But for the most part, it’s a friendly competition, among many highly talented and social bloggers , for mindshare. If they’re passionate about what they do, this competition thrills every single one of them.

The following are just some of the blogs that were submitted by our visitors as answers to the question:

“Which other blogs do you read regularly?”

radian6 logoRadian6 PowerShift

Focus: “Social Media Monitoring and Engagement”

Lesson: If it won’t help, it doesn’t fit.

Contributors like Teresa Basich address common pain-points and concerns, as in “Social Media Engagement for Regulated Industries.” Guides, checklists and the occasional thought piece are all packed full of actionable content. The number of comments per post is higher than I see on most company blogs, and speaks to the overall usefulness of the content Radian6 delivers here.

AlmostSavvyAlmost Savvy logo

Focus: “Helping you get started with social media”

Lesson: Opinions are currency.

Social media consultant Irene Koehler isn’t exactly shy. Her thoughts may ruffle the occasional feather, but they’re coherent and make for good discussion. Not coincidentally, discussion is what many blog readers are after. Thoughts, after all, are the key ingredient to thought leadership. Companies large and small need to have opinions on the things that matter to their customers. Well-formed opinions demonstrate expertise.

Get Elastic

Focus: ecommerce

Lesson: Curate and build.

You know those blogs that only link back to their own content, like a self-contained labyrinth of bad SEO? Get Elastic is not one of them. In fact, much of what is covered and discussed on the blog comes from the world outside Elastic Path Software. Posts like, “Top 10 Things Customers Expect from Your Online Store” take interesting findings and build on them. External content is always credited, and each post ends up being a more robust exploration of topics relevant to the ecommerce space. Perhaps that’s why it’s the “#1 subscribed ecommerce blog”.

Mack Collier

Focus: “Helping companies understand the ‘social’ part of social media”.

Lesson: Find the time.

Collier’s blog is no ghost town. In August alone, he’s already written 10 posts, with an average of 19 comments per post (that’s a lot). Last August, when his blog had only been up for a few months, he only published five posts, with an average of 3.4 comments each. In a tweet to me, Mack said:

“Yes, I think freq of posting increases traffic BUT more posting simply makes one a better blogger, practice makes perfect”.

Uncrate

Focus: “The buyer’s guide for men”

Lesson: Add a big picture to those thousand words.

Uncrate gives people what they want: large, beautiful photographs of really cool stuff that they can buy. Oh, and they review the products, too (we like reviews). Some things look so much better than they sound, and this is true of nearly everything you can write. There is an image, somewhere, that will make your post irresistible. Buy them from somewhere like iStockphoto, get them for free from Flickr Creative Commons (attribute!), or create your own—just don’t serve up a pile of plain-text boringness.

What blogs do YOU read? Let us know in the comments!