Willingness to recommend is a metric related to
customer satisfaction
Customer satisfaction (often abbreviated as CSAT) is a term frequently used in marketing. It is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of c ...
. When a
customer
In sales, commerce, and economics, a customer (sometimes known as a client, buyer, or purchaser) is the recipient of a good, service, product or an idea - obtained from a seller, vendor, or supplier via a financial transaction or exchange for ...
is satisfied with a
product
Product may refer to:
Business
* Product (business), an item that serves as a solution to a specific consumer problem.
* Product (project management), a deliverable or set of deliverables that contribute to a business solution
Mathematics
* Produ ...
, he or she might recommend it to friends, relatives and colleagues. This ''willingness to recommend'' can be a powerful marketing advantage. In a survey of nearly 200 senior marketing managers, 57 percent responded that they found the "willingness to recommend" metric very useful.
[Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein (2010). ''Marketing Metrics: The Definitive Guide to Measuring Marketing Performance.'' Upper Saddle River, New Jersey: Pearson Education, Inc. . The ]Marketing Accountability Standards Board (MASB)
The Marketing Accountability Standards Board (MASB), authorized by the Marketing Accountability Foundation,MASB''Marketing Accountability Foundation (MAF)''. ited 8 December 2010/ref> is an independent, private sector, self-governing group of acad ...
endorses the definitions, purposes, and constructs of classes of measures that appear in ''Marketing Metrics'' as part of its ongoin
Common Language in Marketing Project
Purpose
Although
sales
Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale.
The seller, or the provider of the goods or services, completes a sale in r ...
or
market share
Market share is the percentage of the total revenue or sales in a market that a company's business makes up. For example, if there are 50,000 units sold per year in a given industry, a company whose sales were 5,000 of those units would have a ...
can indicate how well a firm is performing ''currently'', satisfaction is perhaps the best indicator of how likely it is that the firm’s customers will make further purchases ''in the future''. ''Willingness to recommend'' is a key metric relating to
customer satisfaction
Customer satisfaction (often abbreviated as CSAT) is a term frequently used in marketing. It is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of c ...
.
Construction
Willingness to recommend is calculated as the percentage of surveyed customers who indicate that they would recommend a brand to friends,
or as the average strength of their willingness if the survey allows for a range of degrees of willingness.
The usual measures of willingness to recommend involve a
survey
Survey may refer to:
Statistics and human research
* Statistical survey, a method for collecting quantitative information about items in a population
* Survey (human research), including opinion polls
Spatial measurement
* Surveying, the techniq ...
with a set of statements using a
Likert Technique or scale. The customer is asked to indicate how willing they are to make a recommendation (of a brand, service, etc.) to others. Their willingness is generally measured on a five-point scale.
Both the wording of the question and the wording of the scale item responses may vary widely among surveyors. Willingness data can also be collected on a 7-point or 10-point scale.
Methodologies
Perhaps the best known measure of willingness to recommend is the
Net Promoter Score
Net promoter score (NPS) is a widely used market research metric that is based on a single survey question asking respondents to rate the likelihood that they would recommend a company, product, or a service to a friend or colleague. The NPS is a ...
(NPS) first introduced by
Fred Reichheld
Fred may refer to:
People
* Fred (name), including a list of people and characters with the name
Mononym
* Fred (cartoonist) (1931–2013), pen name of Fred Othon Aristidès, French
* Fred (footballer, born 1949) (1949–2022), Frederico Rod ...
.
No ''willingness to recommend'' methodology has been independently audited by the
Marketing Accountability Standards Board (MASB)
The Marketing Accountability Standards Board (MASB), authorized by the Marketing Accountability Foundation,MASB''Marketing Accountability Foundation (MAF)''. ited 8 December 2010/ref> is an independent, private sector, self-governing group of acad ...
according to
MMAP (Marketing Metric Audit Protocol) * Marketing Metric Audit Protocol (MMAP)
* Memory map
* mmap
In computing, mmap(2) is a POSIX-compliant Unix system call that maps files or devices into memory. It is a method of memory-mapped file I/O. It implements demand paging because file con ...
.
See also
*
Willingness to accept
In economics, willingness to accept (WTA) is the minimum monetary amount that а person is willing to accept to sell a good or service, or to bear a negative externality, such as pollution. This is in contrast to ''willingness to pay'' (''WTP''), ...
*
Willingness to pay
In behavioral economics, willingness to pay (WTP) is the maximum price at or below which a consumer will definitely buy one unit of a product.Varian, Hal R. (1992), Microeconomic Analysis, Vol. 3. New York: W.W. Norton. This corresponds to the st ...
References
{{reflist
External links
Products Buying GuideGadgets Suggestion
Consumer behaviour