Measuring Advertising Efficiency
August 20th, 2009With ad budgets reduced and high performance expectations remain from top management marketers find themselves creatively looking for channels that would offer programs with maximized exposure on a shoestring. Determining which channel and program, traditional or emerging media would have the best impact is part of the delicate process. Here’s where Net Promoter Score can help. This guest post is written by my good friend, Simon Pioche, CEO, GN Research, Paris France.
~ jessica valenzuela ~
How can NPS* measure advertising efficiency?
Nowadays the buzz, whether on the internet or word of mouth, is everything. Long the time where companies could talk freely to their (passive) customers on TV, meaning without opponent and without interaction.
Now customers can respond, react, interact, create a movement, inspire a brand, make you rich, ruin your marketing, help your creativity, and enhance your products.
Thanks to the new media world, not only we can participate to the global communication but we are a part of it as a daily actor, customer and proud to speak out loud.
Forums, blogs, social networks, buzz, newspapers, friends, how many of us use one of these when we need to buy something?
This is where the Net Promoter Score comes in. As a market researcher I always try to measure how people think when they face a new product or a new advertising campaign. I try to understand the promises, the services, the products, the brands but also the whole environment behind words, colours and logos.
The NPS is a very simple score which comes from a very simple question: “How likely would you recommend this brand to your friends, your family or colleagues?”
From this question you can at ease understand if someone is someone that hates your brand and will make sure that everyone he knows won’t buy your products or on the reverse if this person will push other people to get your products as fast as possible.
This simple question can be applied to any kind of products, services, marketing campaigns (do you wish to recommend this brand after seeing this new website or TV Ad..), any kind of offices, call centers, etc..
What is very important is to split the “detractors” from the “promoters”. The promoters love your brand, but more important they will fight for you in a dinner or in front of their colleagues. The detractors will do the opposite so make sure the difference between promoters and detractors is the highest possible. This is the principle of NPS.
There are some very interesting developments to add because the score is not everything. Once identified you have to act and defend your brand among detractors but also push the promoters to help you. This is why a weekly measure is so important when launching a new campaign, you have to make sure people follow you and that you didn’t create a negative buzz.
You can’t control anymore but you can measure and react. Be reactive as customers are. Learn more about NPS write jessica@mavindigital.com.
* NPS, net promoter and net promoter score are TM of Fred Reichheld, Satmetrix et Bain & Co.
~ Simon Pioche ~
Tags: Advertising, Emerging New Media, GN Research, Metrics, Net Promoter Score, NPS, Performance, Research
