The Net Promoter Score (NPS) is a loyalty metric developed by Fred Reichheld. In his book ‘The Ultimate Question’, NPS is presented as the most important metric for business. Developed for consumer marketing, the Net Promoter Score tracks how customers represent a company to their friends and associates.
Working with some of our clients, Competitive Advantage has developed a process which uses the Net Promoter Score concept to measure specifiers’ loyalty to leading brands.
We ask the specifier how likely they are to specify a brand for a project. This can then be scored in the way described by Reichheld. By matching the results against the environment the specifier works in we can then give our clients a feel for their brand strength in various sectors. By repeating the research regularly our clients can track their performance comparing it with communication initiatives.
One of the brands we measure is Celcon Blocks, a masonry building block made from aircrete and manufactured by H+H. In this blog we talk to Jenny Smith-Andrews about how regular research and the Net Promoter Score benefit their decision making.
Q. How important is the architect’s opinion of your brand to H+H and why?
Although there are a number of professionals in the building process who can influence specification decisions, an architect who understands the benefits of using H+H product is a hugely valuable ally in any project. Their opinion of our product and our brand will be critical to winning, and keeping, the specification.
Q. The NPS research also gives an indication of how architects specify – nominated, performance, generic. Is this useful information for you?
Architects are extremely important customers so the more we understand about how they specify the better. This area of the research allows us to track trends in specification and understand better the importance of brands in the architect’s decision making.
Q. With our research we also allow you to benchmark against competitors. How important is this feature?
This is very useful information. We collect data and market intelligence from a number of different sources to get an understanding of where we sit in the market and this is one good resource.
Q. How will the findings of the Net Promoter Score research influence your marketing strategy?
The main advantage of the Net Promoter Score is that it allows us to track changes in the attitudes of the key specifiers. We need to be able to compare year-on-year in order to investigate the success of our marketing activity. Net Promoter is one of the sources of this information.
H+H have a strong commitment to their customer base and as such conduct regular surveys to gauge and benchmark customer satisfaction. The Net Promoter Score provides them with a valuable dimension to this regular research.
The nature of a Net Promoter Score is that it provides an impartial benchmark, providing an understanding of specification trends and how your product relates to your competitors. Participating in regular NPS surveys is a valuable complement, as it can verify your findings from your market data intelligence gathering and regular customer surveys.
If you would like to find out more about the Net Promoter Score conducted by Competitive Advantage then call us on 01276 503539.
Or if you have any other customer research you would like to conduct then we would be happy to discuss this with you, at no obligation.