People who are highly likely to recommend a company and/or its products are worth $2,634 in the computer hardware industry according to a Satmetrix Systems study, Net Promoter Economics: The Impact of Word of Mouth.
The study is based on Satmetrix’s Net Promoter WOM Economic Framework, which determines total customer value based on buyer and referral economics. Buyer economics refers to how much a customer spends over a given period of time, while referral economics refers to the amount of new business that is gained or lost as a function of what the customer shares with others.
By categorizing customers into “promoters” (those who are highly likely to recommend a company and/or its products), and “detractors” (those who are unlikely to recommend a company and/or products), the result is a single metric that serves as an indicator of customer loyalty and long-term growth.
Other findings include:
- Computer hardware promoters spend $203 more than the industry average of $1,615
- Promoters account for roughly 50% of new customers acquired through positive word of mouth
- While Detractors spend only $158 less than promoters, their negative word of mouth behavior results in a net customer value of just over $100 — about $2,500 less than a promoter
Learn More:
- Net Promoter Economics: Exploring the Relationship Between Net Promoter and Word of Mouth in the Credit Card Industry
- Net Promoter Economics: Exploring the Relationship Between Net Promoter and Word of Mouth in the Wireless Industry
