What Drives Customer Propensity to Recommend a Brand?

Fiserova, J., Pugh, G. T., Stephenson, A., & Dimos, C. (2017)

The authors examined data from DFS, a leader in the UK retail upholstery market. They examined NPS survey data and monthly store sales. The surveys also contain typical driver questions (e.g., satisfaction with the product, installation, delivery) and were conducted between August 2014 and June 2016.

They looked at customers that responded to all three phases of the survey, resulting in 2,773 responses (from 188,219 who responded at least once). Using logistic regression to predict promoters, they found that the more satisfied the customers were, the more likely they were to become a promoter (again showing a hierarchy between satisfaction and loyalty). They found that the most significant factors behind customers becoming promoters were satisfaction with product quality, satisfaction with the sales experience, and the ability of the company to exceed customers’ expectations.

While the authors helped understand the key drivers of promoters, they did not attempt to link promoting behavior to sales growth.

Takeaway: The authors found that the more satisfied the customers were, the more likely they were to become a promoter (again showing a hierarchy between satisfaction and loyalty).

Reference

Fiserova, J., Pugh, G. T., Stephenson, A., & Dimos, C. (2017). What drives customer propensity to recommend a brand? British Academy of Management Annual Conference, September 5–7. University of Warwick. External File Link