Word of Mouth Index: How the Next Generation of Net Promoter Can Increase Sales and Drive Business Results
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The concept of Net Promoter Score (NPS) has been adopted by many companies during the last decade to assess their ability to provide customer satisfaction. But customer metrics have evolved over time and NPS’s one question approach—how likely is a customer to recommend a company?–is no longer accurate, precise or actionable. That is why it is time for companies to adapt the next generation of Net Promoter—the Word of Mouth Index, or WoMI, which measures both the likelihood to recommend and the likelihood to detract. WoMI has been tested on hundreds of companies and with hundreds of thousands of consumers over the last two years.
When WoMI is used within a comprehensive system of customer experience analytics, executives and business leaders can prioritize initiatives and allocate resources to maximize the customer experience, which is a primary method of achieving a competitive edge in the 21st century economy.
In Innovating Analytics: WoMI—The Next Generation of Net Promoter author Larry Freed makes a compelling case for the use of WoMI by looking closely at Net Promoter, both its strengths and weaknesses. He then details the improvement that WoMI provides within what he calls the Measurement Ecosystem. To support his claims he uses company examples, survey results and personal antidotes. He then goes on to look at three other drivers of customer satisfaction along with word of mouth: customer acquisition, customer retention or loyalty, and customer conversion. Lastly, he provides the Best Customer Satisfaction Practices from companies such as Amazon, Zappos, Eddie Bauer, Nutrisystem and ABC.
Larry Freed has been the president and CEO of ForeSee since its founding in 2001. He is a widely recognized expert in customer satisfaction analytics, strategy and technology. He speaks extensively on the topic at private and public sector industry events. Larry is regularly quoted in numerous publications including CNN, Marketplace, Dow Jones, the Wall Street Journal, the Washington Post, the New York Times, Investor’s Business Daily, Internet Retailer and Computerworld, among others. His is the author of the book Managing Forward (2011) and more than 100 articles, white papers and other research reports. Larry holds a B.S. in computer science from the University of Michigan and an M.B.A. from Wayne State University.
Praise for Innovating Analytics:
“Innovating analytics is critical in baseball, in politics, and in business. Larry Freed is at the forefront of developing useful new metrics that will help businesses succeed.” – Billy Beane, General Manager of the Oakland Athletics and the subject of the bestseller Moneyball
“Challenging conventional wisdom and building upon the wealth of knowledge derived from one of the most widely used customer experience measurement tools in business today, Innovating Analytics is an essential addition to any marketer’s library. Clearly Larry Freed is one of the leading minds in the customer experience industry, as he thoughtfully offers tested and practical strategies that businesses can implement immediately.” Bruce Rogers, Chief Insights Officer, Forbes Media
“Innovating Analytics is a natural extension of Larry’s career-long exploration of innovative business solutions.” Thomas H. Zurbuchen, Associate Dean of Entrepreneurial Programs at the University of Michigan
“Larry Freed and ForeSee are at the forefront of transforming business around the world with actionable, predictive metrics. Innovating Analytics contains critical information for any executive who wants to improve business outcomes.” Rick Snyder, Governor of the State of Michigan
“Innovating Analytics is a compelling exploration of the potential power of customer experience metrics in the modern age. Larry Freed’s combination of academic research with practical business implementation makes this book a must-read for any business leader.” Mark Mahaney, Managing Director at RBC
“Too many businesses are relying on metrics that are outdated and have no relationship to company growth and profit. Innovating Analytics is a must-read for any executive about the power of good metrics and the dangers of bad ones.” Claes Fornell, Founder and Chairman of the ACSI and author of The Satisfied Customer