Percentage of customers who would recommend product/service to family/friends

This measure calculates the percentage of customers who say they would recommend a product or service to family and friends. It is part of a set of Process Efficiency measures that help companies optimize the performance of their "develop marketing strategy" process by minimizing waste and refining resource consumption.

Benchmark Data

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Measure Category:
Process Efficiency
Measure Id:
101929
Total Sample Size:
1,084 All Companies
Performers:
25th
Median
75th

Compute this Measure

Units for this measure are percent. Higher values are better.

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Percentage of customers who would recommend your business entity's product/service to family/friends

Key Terms

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Process efficiency

Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.

Median

The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.

Measure Scope

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Cross Industry (7.2.1)

  • 3.2.1 - Define offering and customer value proposition (11168) - Refining the attributes of organizational offerings to define their value proposition for the customer. Clearly define the suite of offerings in terms of the value delivered, from the perspective of what the customer desires. Validate the benefits delivered to the customers against target market segments, using techniques such as minimum viable product. Position brands for the respective products/services, in line with their unique value proposition and aligned with customers needs.
    • 3.2.1.1 - Define offering and positioning (11169) - Defining problem(s) that the organization's products/services solve for the customers, thereby determining how they are positioned in the market. Refine the product/service concepts from the perspective of customers. Succinctly outline the problem the organization's offerings solves for the customers, making a case for why the customer should buy a product or use a service. Define the offering's unique value.
    • 3.2.1.2 - Develop value proposition including brand positioning for target segments (11170) - Boosting the attractiveness of products/services to the targeted customers, and creating a unique brand projection around these features. Identify and enhance those product/service features that reinforce the attractiveness of these offerings, for these segment of customers. Underscore the perceived value delivered to the customers by clearly specifying the relevance and desirability of these products/services. Once it has been clarified how the organization's offerings meet the customer's expectations or deliver specific benefits, position the brands around these benefits.
    • 3.2.1.3 - Validate value proposition with target segments (11171) - Validating the desirability of the perceived value delivered by the organization's offerings, to the targeted customer segment. Substantiate the value of the benefits accrued to the customers through the organization's offerings. Justify the value proposition in light of the targeted segments by gathering feedback (using teaser demonstrations, surveys, interviews, primary research studies, and customer case studies). Corroborate the benefits of the organization's offerings.
    • 3.2.1.4 - Develop new branding (11172) - Creating branding collaterals and campaigns that carve a significant and differentiated presence for the organization's offerings. Create new collaterals, which include names, designs, and symbols, for their products/services. Ensure collaterals reflect the unique value proposition of the respective offerings through a consistent theme. Create advertising and promotion campaigns.
  • 3.2.2 - Define pricing strategy (10123) - Creating a pricing strategy and mechanism that aligns with the benefits of the products/services, as perceived by customers. Chart a strategic course and a methodology that can guide the pricing of products/services. Draw heavily from the customer value proposition, and balance the expectations of different divisions inside the organization, while delivering the maximum ROI.
    • 3.2.2.1 - Conduct pricing analysis (13169) - Analyzing marketing objectives, consumer demand, product attributes, competitors' pricing, and economic trends to determine optimum prices for the set of products and services that the company offers or intends to offer by delivering maximum ROI.
    • 3.2.2.2 - Establish guidelines for applying pricing and discounting of products/services (10124) - Creating a framework that allows for a uniform methodology while determining the price of individual offerings. Devise a blueprint for establishing the pricing of specific products/services. Create guidelines that factor in the cost of production/servicing, price sensitivity, product lifecycle, and the price of competing/substitute products.
    • 3.2.2.3 - Establish pricing targets (19999) - Determining optimum prices for individual products or services on the basis of the cost of producing, distributing and marketing the offerings, pricing analysis and general pricing strategy.
    • 3.2.2.4 - Approve pricing strategies/policies and targets (10125) - Confirming the strategy and specifications developed for pricing the organization's products/services. Approve pricing guidelines by vetting the soundness of the methodology and the guidelines' alignment with the value proposition.
  • 3.2.3 - Define and manage channel strategy (20000) - Establishing all the activities needed to identify the appropriate channels to market to different customer segments as defined in Determine target segments [10117]. This involves finding channel partners, ensuring that the channels align with organizational strategy for each segment, and the final channel selection process.
    • 3.2.3.1 - Determine channels to be supported (20001) - Deciding which distributors, wholesalers and retailers the company will use to promote its offerings and to distribute its products and services to the target market. Narrowing down which intermediaries the company will use will affect retail prices of individual products, and should therefore be included in the pricing analysis.
    • 3.2.3.2 - Establish channel objectives (20002) - Identifying the role that each chosen marketing channels plays in the larger distribution network with respect to the organizational marketing strategy. Determine intermediary costs for shipping, handling, transporting, warehousing, insurance and marketing that incur and accumulate in the distribution channel.
    • 3.2.3.3 - Determine channel role and fit with target segments (10127) - Analyze the various channels for their relevance to the targeted segments. Identify the channel that can effectively market to the targeted customers in regard to the drives, desires, and characteristics of these populations, their uptake, extent of engagement, frequency of use, and effectiveness in communicating.
    • 3.2.3.4 - Select channels for target segments (10128) - Choose the most pertinent marketing channel for the targeted segments (based on Determine channel fit with target segments [10127]).
    • 3.2.3.5 - Identify required channel capabilities (20003) - Determining the maximum output rate required from a distribution channel to optimally market and deliver the products and services the company offers or would like to offer. Ideally, a channel should be able to adapt to a certain degree of variability in the demand for the offerings, and able scale up if needed.
    • 3.2.3.6 - Evaluate channel attributes and potential partners (10126) - Assessing the attributes of all marketing channels, and evaluating the key partners in those channels. Closely examine the various characteristics of all available marketing channels such as the cost of using them, durability of impact, applicability to the organization's products/services, turn-around time, involvement of middlemen, and conversion rate. Analyze key partners in the marketing channels including those who have been associated with the organization; evaluate their capabilities, the scale and scope of their operations, quality of support provided, etc.
    • 3.2.3.7 - Orchestrate seamless customer experience across supported channels (20004) - Coordinating marketing and distribution efforts across different channels that integrate well with each other, are in conformance with company values, visual identity and branding, and offer uniform customer service experience that drives customer loyalty and repeat business.
      • 3.2.3.7.1 - Define omni-channel strategy (16590) - Devising a strategy to market company's products or services seamlessly through all or most channels that are in widespread use among the target market. This may mean cross-channel access to customer preferences and purchasing history to accept returned merchandise, provide refunds, resolve payment issues or to provide technical support.
      • 3.2.3.7.2 - Define omni-channel requirements (16591) - Identifying necessary preconditions that a channel should fulfill in order to be included as one of the adopted channels, such as required throughput capacities, service capabilities, competitive pricing, and alignment with organizational marketing strategies.
      • 3.2.3.7.3 - Develop omni-channel policies and procedures (16592) - Determining the detailed policies and procedures that each of the channels needs to follow in order to conform to the organizational marketing strategy and to provide seamless customer service experience.
    • 3.2.3.8 - Develop and manage execution roadmap (20005) - Determining the actions that need to be taken for successful multichannel marketing, the ordering, timing and dependencies of the steps, and the governance mechanism for reviewing and changing the protocol, if needed.
  • 3.2.4 - Analyze and manage channel performance (20006) - Monitoring marketing and distribution efforts of all channels individually and as a network. Re-distribute or add resources to channels that perform better than expected. Purge or consolidate under-performing channels, and find more promising replacements.
    • 3.2.4.1 - Establish channel-specific metrics and targets (16573) - Determining measurable parameters to be used for comparing the performance of different marketing channels. Decide on benchmarks and values for optimum or desired performance.
    • 3.2.4.2 - Monitor and report performance (16574) - Tracking trends and changes in performance inside individual marketing channels and in channels collectively. Summarize and document results. Alert relevant parties about significant or unexpected deviations from expected behaviors.
    • 3.2.4.3 - Monitor and report events influencing factors (16575) - Analyzing the factors and circumstances that influence desired outcomes. Communicate core findings to relevant parties.
    • 3.2.4.4 - Analyze performance (16500) - Conducting an analysis to review channel performance with respect to chosen metrics, benchmarks and performance targets [16573]. Compare to past performance and forecasts for the channel.
    • 3.2.4.5 - Develop plan for improvements (16501) - Devising a course of action to be taken to improve under-performing channels and to promote or expand channels that surpass expectations.
  • 3.2.5 - Develop marketing communication strategy (16848) - Establishing marketing communications that deliver promotional messages, in a coordinated way, through multiple marketing channels, such as print, radio, television, direct mail, online or mobile advertising, email, social media or personal selling.
    • 3.2.5.1 - Develop customer communication calendar (16849) - Timing and scheduling the delivery of marketing messages to maximize their impact on customer purchasing behavior. Integrate individual messages to larger marketing campaigns and to seasonal purchasing patterns.
    • 3.2.5.2 - Define public relations (PR) strategy (16850) - Deciding how to promote and maintain a favorable public image of the company in the eyes of its employees, customers, investors, suppliers, politicians or the general public. This may involve various means but is frequently conducted through publicity, education, corporate social responsibility, charitable causes or civic engagements.
    • 3.2.5.3 - Define direct marketing strategy (16851) - Devising a master plan how to select potential customers or qualified clients for customized offers, and contact them on one-to-one basis through chat, phone, email or regular mail. The strategy would need to take into account that personalizing offers and contacting customers individually is an effective but resource-intensive marketing technique, and that ill-targeted offers risk at angering and alienating the contactees.
    • 3.2.5.4 - Define internal marketing communication strategy (16852) - Developing a program to promote the objectives, values, products and services of the company to its employees by treating them as potential customers, in order to extend company client base, increase employee engagement or to foster brand advocacy.
    • 3.2.5.5 - Identify new media for marketing communication (16853) - Finding emerging media based on digital or other technologies that would enable the company to increase the speed and volume of marketing communications, to make communications more interactive and to customize promotional messages more easily to the target audience, thus rendering them more effective.
    • 3.2.5.6 - Define new media communication strategy (16854) - Developing a marketing strategy that is maximally effective in a new or emerging media channel by capitalizing on its novel attributes and capabilities.
    • 3.2.5.7 - Define point of sale (POS) communication strategy (16855) - Establishing a framework for coordinated marketing to increase the profitability and increase brand awareness at the point of sale. This may include promotional posters on product shelves or island displays, advertisements in shopping carts, stickers on the floor that lead consumers to the promoted product, multi-buy promotions, coupons on sales receipts, etc.
    • 3.2.5.8 - Define communication guidelines and mechanisms (18627) - Establishing standardized procedures for effective communication that maximizes ROI, promotes brand awareness and respects customers. In its simplest form, it includes a message (what is to be said), a target (to whom the message is reaching) and a medium or a channel (where the message is to be said).
  • 3.2.6 - Design and manage customer loyalty program (18924) - Creating and managing a customer loyalty program. The loyalty program is a key part of marketing, with an elaborate strategy and process for acquiring, retaining, and engaging with members. Members are engaged and acquainted to the loyalty program, thus growing relationship and adding value through the program.
    • 3.2.6.1 - Define customer loyalty program (20007) - Devising procedures and mechanisms to retain existing customers, promote repeat business and increase the likelihood that previous customers to continue to buy products or services from the company. This may be achieved by rewarding customers for repeat business by means of gifts, discounts, redeemable "points", or prioritized access to new products, events or services.
    • 3.2.6.2 - Acquire members to customer loyalty program (18925) - Convincing customers to register their personal information with the company and be assigned a unique identifier that they use when making purchases. The identifier makes it easier for the company to track customer purchases. Customers are rewarded by various incentives that encourage repeat business [20007].
    • 3.2.6.3 - Build engagement and relationship with members (18926) - Building deeper relationships between a customer and a brand in order to promote customer loyalty and derive repeat business. Besides making frequent purchases, highly engaged customers refer family, friends and colleagues to make purchases as well, consume and re-broadcast promotional materials, provide feedback to the purchases they make and do not support competing brands.
    • 3.2.6.4 - Monitor customer loyalty program benefits to the enterprise and the customer (16633) - Surveying and tracking the benefits of customer loyalty programs both for the company and for customers. Compare with comparable loyalty programs instituted in competitor companies. Propose changes as needed to keep up with market trends.
    • 3.2.6.5 - Optimize loyalty program value to both the enterprise and the customer (18927) - Enhancing the customer loyalty program so that it will yield maximum value both for the company and for the patrons enrolled in the program, increasing customer retention and continued engagement.