Net Promoter Score Romania Benchmark studies

Net Promoter Score Romania Benchmark studies July, 2009

of people who trust companies less in 2009 than in 2008 Source: Edelman Trust Barometer, 2009 When it comes to company information, a peer is as credible as an industry analyst and only preceeded by an expert Word-of-Mouth is the #1 influence on businessto-business buying decisions Nearly 70 of consumers surveyed thought that pharmaceutical information from peers was credible and believable, even if the peers were not experts. Source: Edelman Trust Barometer, 2009 Source: Keller Fay, 2006 Source: Keller Fay, July 2008 The Power of Recommendation

How can we measure the value of recommendation?

What is the Net Promoter Score (NPS)? The Net Promoter score allows you to categorize customers into three groups based on their willingness to recommend your company or product to a friend or colleague: Promoters (score 9 10) are loyal enthusiasts who will keep buying and refer others, fueling growth. Passives (score 7 8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings. Detractors (score 0 6) are unhappy customers who can damage your brand and impede growth through negative word-ofmouth. Calculating Your Net Promoter Score One question provides the best predictor of customer loyalty for the vast majority of businesses: How likely is it that you would recommend (Company/Product X) to a friend or colleague? Using a 0 to 10 scale, you can calculate your Net Promoter Score (NPS) by taking the percentage of Promoters, and subtracting the percentage of Detractors. NPS is a straightforward metric that holds companies and employees accountable for how they treat customers. When combined with appropriate diagnostics and follow-up actions, it drives improvements in customer loyalty and enables profitable growth. The Power of Recommendation

Promoters make you more money -They spend more -They negotiate less -They stay longer -They are easier to service -They upgrade quicker -... Slide: Bain & Company, official NPS(tm) presentation Fred Reichheld. Net Promoter Score is a registered trademark of Bain & Company, Satmetrix and Fred Reichheld The Power of Recommendation

What is? The Idea A simple but robust solution for communication efficiency evaluation Fast answer, diagnostic design Allows the pre & post evaluation approach after the campaign has been started Client can buy as much waves as needed Syndicated tool great value for money Methodology Telephone interviews, random sample Monthly collection 1,000 contacts for each market, only category users selected Urban, 14-65 (except alcohol, insurance and banking which is 18-65) Most Appropriate When Time pressure/quick results Rapid evaluation of a certain situation/movement in the market Past evolution assessment Needed benchmarks (not available yet) Low budgets/smaller brands Category Incidence Consumer Profile KPI s: Awareness (TOM, Spontaneous), Trial, Usage, Preference, Heard of, Intention to Buy Conversion Rates Targeting Evaluation Output Monitored Markets Plain Yogurt Fruit Yogurt Margarine Chocolate bars or chocolate wafers Chocolate (tablets) Coffee (R&G) Processed meat Cooking oil Still water Sparkling water ( carbonated water) Nectar and Natural Juice 100 Still drinks Tooth Paste Shower Gel Shampoo Dishwashing Detergent Gas station Banks Analgesics 6

Net Promoter Score Benchmarking Industry: Consumer Products Country: Romania Net Promoter Score Conducted by: The Net Promoter (tm) Score is a registered trademark of Fred Reichheld, Satmetrix and Bain & Company

Gas Station: Recommendation of the Used Brand Lukoil N = 200 35.0 29.5 35.5-0.5 Mol N = 182 48.9 26.9 24.2 24.7 OMV N = 259 52.9 29.0 18.1 34.7 Petrom N = 545 57.1 29.0 13.9 43.1 Rompetrol N = 246 51.6 30.9 17.5 34.5 48.4 28.9 22.7 P romo ters P assive Detractors 34.1 8

Plain Yoghurt: Recommendation of the Used Brand Activia N = 133 66.2 30.8 3.0 63.2 Danone Natural Nutriday N = 572 53.0 33.4 13.6 39.3 Milli N = 127 44.1 29.9 26.0 18.1 Napolact N = 172 51.2 32.6 16.3 34.9 Tnuva N = 120 50.0 30.0 20.0 30.0 49.0 30.9 21.4 25.4 Promoters Passive Detrac tors 9

Fruit Yoghurt: Recommendation of the Used Brand Activia N = 119 67.2 21.8 10.9 56.3 Danone (unspecified) N = 326 53.4 34.4 12.3 41.1 55.0 31.1 13.9 41.1 Promoters Passive Detract ors 10

Margarine: Recommendation of the Used Brand Delma N = 502 51.0 33.9 15.1 35.9 Linco N = 159 40.9 39.0 20.1 20.8 Rama N = 318 65.1 20.4 14.5 50.6 Wiesana N = 155 38.7 40.6 20.6 18.1 (mean of NPS of the brands 48.1 32.0 19.9 28.2 Promoters Passive Detrac tors 11

Still Water: Recommendation of the Used Brand Borsec N = 601 67.1 20.1 12.8 54.2 Bucovina N = 158 62.7 22.2 15.2 47.5 Izvorul Alb(Dorna) N = 563 59.3 29.7 11.0 48.3 Izvorul Minunilor N = 338 49.4 31.4 19.2 30.2 Perla Harghitei N = 113 61.1 21.2 17.7 43.4 Roua / Roua Muntilor N = 100 49.0 29.0 22.0 27.0 49.2 31.9 18.9 Promoters Passive Detrac tors 30.2 12

Sparkling Water: Recommendation of the Used Brand Borsec N = 642 67.9 22.6 9.5 58.4 Dorna N = 324 52.8 36.7 10.5 42.3 Izvorul Minunilor N = 354 51.7 28.2 20.1 31.6 Perla Harghitei N = 181 45.9 33.7 20.4 25.4 Poiana Negri N = 140 45.7 37.9 16.4 29.3 Tusnad N = 119 42.9 40.3 16.8 26.1 (mean of NPS of the brands 47.7 34.4 17.8 29.9 Promoters Passive Detrac tors 13

Nectar and Natural Juice 100: Recommendation of the Used Brand Cappy (nespecificat) N = 223 57.8 29.6 12.6 45.3 Prigat Nectar N = 422 61.6 27.0 11.4 50.2 Santal N = 202 65.8 23.3 10.9 55.0 Tymbark N = 101 52.5 28.7 18.8 33.7 (mean of NPS of the brands 59.2 28.2 12.6 46.6 Promoters Passive Det rac tors 14

Still Drink: Recommendation of the Used Brand Cappy (unspecified) N = 179 53.6 27.9 18.4 35.2 Giusto Natura N = 105 51.4 29.5 19.0 32.4 Prigat (unspecified) N = 227 59.9 26.4 13.7 46.3 53.7 30.4 15.8 37.9 Promoters Passive Detrac tors 15

Cough and cold meds: Recommendation of the Used Brand Nurofen Raceala&Gripa N = 175 70.9 21.1 8.0 62.9 Paracetamol N = 229 65.1 23.1 11.8 53.3 60.7 28.1 11.2 49.5 Promoters Passive Detract ors 16

Analgesics: Recommendation of the Used Brand Algocalmin N = 444 36.3 30.9 32.9 3.4 Antinevralgic P N = 99 27.3 35.4 37.4-10.1 Nurofen N = 293 60.8 25.3 14.0 46.8 Paracetamol N = 131 38.2 29.8 32.1 6.1 43.9 33.5 22.6 21.3 Promoters Passive Detrac tors 17

Banks: Recommendation of the Used Brand BCR - Banca Comerciala Romana N = 462 47.4 32.5 20.1 27.3 BRD - Banca Romana de Dezvoltare N = 475 40.2 36.8 22.9 17.3 Banca Transilvania N = 226 49.1 34.5 16.4 32.7 Bancpost N = 159 28.9 32.7 38.4-9.4 ING Bank N = 161 55.3 33.5 11.2 44.1 Raiffeisen Bank N = 309 48.5 41.4 32.7 36.2 18.8 22.4 Promot ers Passive Detract ors 29.8 19.0 18

Dishwashing detergent: Recommendation of the Used Brand Axion N = 640 64.7 26.1 9.2 55.5 Fairy N = 595 78.2 18.2 3.7 74.5 Pur N = 834 70.9 22.4 6.7 64.1 70.0 20.3 9.7 60.2 Promoters Passive Detract ors 19

Shampoo: Recommendation of the Used Brand Avon; N = 113 63.7 25.7 10.6 53.1 Clear; N = 192 72.4 20.8 6.8 65.6 Dove; N = 161 77.0 17.4 5.6 71.4 Elseve; N = 126 79.4 16.7 4.0 75.4 Garnier Fructis; N = 182 63.2 32.4 4.4 58.8 Head & Shoulders; N = 729 69.3 23.6 7.1 62.1 Nivea; N = 284 67.6 28.5 3.9 63.7 Palmolive; N = 121 51.2 36.4 12.4 38.8 Pantene; N = 229 65.5 26.6 7.9 57.6 Schauma; N = 126 49.2 34.9 15.9 33.3 Wash&Go; N = 362 57.5 32.6 9.9 47.5 67.4 24.7 Promoters Passive Detrac tors 7.9 59.5 20

Shower Gel: Recommendation of the Used Brand Avon N = 384 61.2 30.2 8.6 52.6 Adidas N = 143 65.0 25.2 9.8 55.2 Dove N = 397 81.4 15.4 3.3 78.1 Fa N = 152 46.7 39.5 13.8 32.9 Nivea N = 473 70.6 23.9 5.5 65.1 Palmolive N = 319 55.5 36.7 7.8 47.6 60.4 29.9 9.7 50.7 Promoters Passive Detract ors 21

Tooth Paste: Recommendation of the Used Brand Aquafresh N = 181 60.2 30.4 9.4 50.8 Blend A Med N = 640 67.5 26.3 6.3 61.3 Colgate N = 1560 74.7 19.0 6.3 68.3 Sensodyne N = 218 74.3 19.3 6.4 67.9 67.5 22.4 10.1 57.4 Promoters Passive Detrac tors 22

Cooking oil: Recommendation of the Used Brand Argus N = 178 53.4 32.0 14.6 38.8 Bunica N = 707 67.9 23.3 8.8 59.1 Floriol N = 481 60.7 25.6 13.7 47.0 Raza Soarelui N = 185 35.1 39.5 25.4 9.7 Unisol N = 388 57.7 29.1 13.1 44.6 Ulvex N = 182 50.0 31.3 18.7 31.3 47.2 34.8 18 Promot ers Passive Detract ors 29.2 23

Processed Meat : Recommendation of the Used Brand Aldis N = 202 34.2 44.6 21.3 12.9 Campofrio N = 308 45.5 38.0 16.6 28.9 Caroli N = 174 42.5 41.4 16.1 26.4 Cris Tim N = 395 54.7 33.7 11.6 43.0 Matache Macelarul N = 161 60.9 23.6 15.5 45.3 47.0 39.4 13.7 33.3 Promot ers Passive Detract ors 24

Chocolate (Tablets): Recommendation of the Used Brand Africana N = 217 27.6 35.9 36.4-8.8 Heidi N = 125 59.2 28.8 12.0 47.2 Kandia N = 160 55.6 30.6 13.8 41.9 Laura N = 136 24.3 39.0 36.8-12.5 Milka N = 479 76.2 18.0 5.8 70.4 Poiana N = 534 54.3 31.3 14.4 39.9 Primola N = 215 50.7 50.8 31.6 30.0 17.7 20.9 Promot ers Passive Detract ors 33.0 28.1 25

Chocolate Bars and wafers : Recommendation of the Used Brand Joe N = 171 71.9 22.2 5.8 66.1 Lion N = 133 66.9 26.3 6.8 60.2 Mars N = 134 66.4 24.6 9.0 57.5 Snickers N = 217 75.6 17.1 7.4 68.2 Twix N = 94 64.9 26.6 8.5 56.4 64.3 26.4 9.3 55.0 Promot ers Passive Detract ors 26

Coffee R&G: Recommendation of the Used Brand Amaroy N = 205 61.0 28.8 10.2 50.7 Elite unspecified N = 177 52.0 31.1 16.9 35.0 Doncafe unspecified N = 121 52.1 30.6 17.4 34.7 Jacobs (unspecified) N = 644 69.4 21.9 8.7 60.7 Jacobs Kronung (Green) N = 151 69.5 21.2 9.3 60.3 Lavazza N = 181 65.2 26.5 8.3 56.1 27.8 16.1 Promot ers Passive Detract ors 56.9 40.1 27

Key objectives for the NPS Simple measurement, benchmarking and prediction Deeper understanding and identification of focal points A way to balance short and long term

Want to know more about your NPS score? Call us to find out more about the Net Promoter Score, your results in the Romanian Benchmark Study and ways in which you can turn this data into sustainable business growth. Contact Ramona Pătrășcanu, Futurelab Associate Bucharest at: rpa@futurelab.net 0751229217 We assist Marketers to maximise the return on their marketing investment. Innovators to come up with meaningful propositions. CEO s to grow profits through customer-centricity. THE ARCHITECTS Athens Brussels Bucharest Hamburg Iasi Kiev Moscow Shanghai Some Credentials Astra Zeneca Deloitte Fortis Investments Heineken Hewlett Packard Lego Management Centre Europe Mobistar

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