Beyond NPS: Moving from Customer LTV to Network LTV

Post on 09-Jan-2017

361 views 2 download

Transcript of Beyond NPS: Moving from Customer LTV to Network LTV

Beyond NPS

Moving f rom Customer LTV to Network LTVB r i a n L e y : C E O a t A l p h a r a n k

How Does Word of Mouth Work?

Why Offline Influencers Matter

$4 Trillionis accredited to offline word of mouth

Why Offline Influencers Matter

92%B2B purchases are influenced by word of mouth

7% of WOM is Online

alpharankalpharank60% of B2B Word of Mouth is Offline

Contagious Inspiration

Our Invention

Person A Infected/Buys

Person BInfected/Buys

Small Chance A Influenced B(0.005%)

Person A Person B

Greater Chance25%

Person A Person B

Very Good Chance85%

We are able to infer that

Person A is Influencing Person B

1st

Time

2nd Time

3rd Time

Person A Person B

Clever Solution

You can’t track word of mouth directly but you can use proxy data to detect hidden patterns in payment and usage data to detect behavior driven by it.

Our Insight: Use purchase time as a proxy of contagion

influenceOur Insight: Use purchase time as a proxy of contagion

You can’t track word of mouth directly but you can use proxy data to detect hidden patterns in payment and usage data to detect behavior driven by it.

Offline Influencers Get Results

TOTAL SALES

42

WOM INFLUENCE

111

Emails sent

22

Sales

64

Opened Click

4x

$$$$$$$ $$$$$

v. Network LTV= $800

Spends $200No Influence

Meg Bree

Receptive Friends

Spends $100$700 of Influence

3x

LTV = $200

Valuable  vs.  Influential

BiddRocket  Inc.  Presentation  

Quantify Word of Mouth

Customers are connected.

Your Advantage Today