We recently worked with a client to develop a business case for increasing their investment spend in capturing the voice of their customer. The goal of the CMO was to drive retention and repurchase. Using the Net Promoter methodology, we were first able to identify their Promoter, Passive, and Detractor accounts. We then took this account data and correlated the financial value of each of these accounts. The results were amazing. We learned that our client’s Promoter accounts were spending, on average, two to three times more in various services categories than were Detractors.

The question quickly became what actions they could take to convert Detractors into Promoters – who are both loyal and spend more on our products and services – and what revenue growth they could expect. A study of companies in the client’s industry showed that converting detractors to promoters yielded an average of 17% annual revenue growth. Based upon this data, our client was able to assess the impact of their voice of customer program and recalibrate their investment spend in the systems and processes that would create more Promoter accounts.

David Ambler, Vice President of Client Services David.Ambler@phelongroup.com