July 18, 2013 | by Beth Schultz
Some companies are starting to turn away from or at least reduce their reliance on the highly popular decade-old customer loyalty metric that measures likelihood to recommend. This metric, which predates the advent of the social web and its instant Like-ability, is culled from the responses to one basic question: “What is the likelihood that you would recommend Company X to a friend or colleague?” Respondents answer on a scale of 0-10, landing themselves in one of three categories. Promoters (10 and 9) are “loyal enthusiasts who keep buying from a company and urge their friends to do the same.” Passives (8 and 7) are “satisfied but enthusiastic.” Detractors (6 and lower) are unhappy customers. The score is derived by subtracting the percentage of detractors from the percentage of promoters.
Simple, right? It’s too simple, Jason Faria, director of customer service at the flash online retailer Ideeli, said in a press release. Ideeli now uses the Word-of-Mouth Index (WoMI). Read the full article »