Telling Five FriendsHarnessing Growth through Customer AdvocacyCustomer Advocacy

Joe AllanHead of Customer InsightStrategy and MarketingSeptember, 2011

Topics for discussion� Customer Advocacy, Degrees of Separation, Spheres of Influence

� Influence of family and friends

� Be your own restaurant critic

� Net Promoter® Score

� “Good Profits” vs “Bad Profits”

� Customer Advocacy Equation

� Who do you adovcate?

� “Fair Banking” agenda

� CUA’s advocacy position

� Low versus High Involvement Products

� Social Network Analysis

� Value opportunity

� In Conclusion

Customer Advocacy, Degrees of Separation &

Spheres of Influence

Influence of family and friends

�

Be your own restaurant critic

Net Promoter® Score

�“The one number you need to grow”

� The “Golden Rule” – treat others as you expect tobe treated

� The Question:“How likely is it that you would recommendCompany X to a friend or colleague?”

“Good Profits” vs “Bad Profits”

Detractors drive “Bad Profits”

� They cut back on purchases

� Switch to the competition

� Spread negative word of mouth over the Global PA System: the Internet

Promoters drive “Good Profits”

� They willingly come back for more� They willingly come back for more

� Tell family, friends and colleagues to do business with you

� Become part of your Marketing Department (for free!)

Understanding who are your Promoters and who are your Detractors is key

Companies seeking to grow must increase %Promoters and Decrease %Detractors

Customer Advocacy Equation

+ =+ =

Net Promoter Score – Fact, Fad or Fiction?

Net Promoter® Stars

Who, or what, do you advocate?

Fair Banking Agenda

CUA - uniquely positioned on customer advocacy

Marital Status• Married/De Facto: 75%• Single/ Never Married: 14%• Divorced/ Widowed: 11%

Average Age: 43

Gender:

F43% M57%

Product Holdings• Home loan• Personal Loan• Savings Account • Transaction Account• Insurance

Pen Portrait - Mutual Families

• Segment Share of CUA Customers: 20%• Segment contribution to CUA by value: 43%• Tenure : 11 Years

Low Involvement Product

High Involvement Product

The need for Social Network Analysis

Punching above our weight

Advantage for credit unions

Value opportunity

In Summary

To Harness growth through Customer Advocacy, need to consider:

� Who are your Promoters?

� Who are your Detractors?

� Understand how these are connected in Social Networks

� How to reward, recognise and/or incent your Promoters

� Measure results and continue to improve

Acknowledgements

� SAS Institute

� Datamonitor

� RFI

� Colmar Brunton research

� IBM

Questions?