Which Companies Do Consumers Recommend The Most?

I recently published a research report called Consumers’ Likelihood To Recommend 133 Firms that examines how loyal consumers are to 133 firms across 14 industries (the same firms that are in the 2010 Customer Experience Index). Based on surveying more than 4,600 US consumers, I created a metric called Net Recommendations*.

Here are the top 10 firms and their Net Recommendations rates:

  • Barnes & Noble (86%)
  • Amazon (81%)
  • eBay (81%)
  • Vanguard (79%)
  • Kohl’s (79%)
  • USAA (78%)
  • Apple (77%)
  • BJs Wholesale Club (76%)
  • Marriott Hotels & Resorts (75%)
  • Costco (75%)

To get a more complete picture of which firms are generating loyal customers, I compared the Net Recommendations score for each company to its industry average. The top five on the list are credit unions, Sun Trust Bank, JetBlue, Vanguard, and Kaiser.  Here are the 25 firms that were 10 points or more above their peers:

 

 

*Net Recommendations: We asked consumers how likely they were to recommend firms to a friend or colleague on a 5-point scale from (1) not at all likely to (5) very likely. To create the Net Recommendations score, we took the percentage of consumers who gave the company a “4″ or “5″ and subtracted the percentage of consumers that gave the company a “1″ or “2.”

The bottom line: Does your business generate enough recommendations?

About Bruce Temkin, CCXP
I am a customer experience transformist, helping large organizations improve business results by changing how they deal with customers. As part of this focus, I examine strategy, culture, interaction design, customer service, branding and leadership practices. I am also a fanatical student of business, so this blog provides an outlet for sharing insights from my ongoing educational journey. Simply put, I am passionate about spotting emerging best practices and helping companies master them. And, as many people know, I love to speak about these topics in almost any forum. My “title” is Managing Partner of the Temkin Group, a customer experience research and consulting firm that helps organizations become more customer-centric. Our goal is simple: accelerate the path to delighting customers. I am also the co-founder and Emeritus Chair of the Customer Experience Professionals Association (CXPA.org), a non-profit organization dedicated to the success of CX professionals.

9 Responses to Which Companies Do Consumers Recommend The Most?

  1. Pingback: uberVU - social comments

  2. Very strange that you should say that “I created a metric called Net recommendations”. Seems pretty much similar to Net Promoter Score to me.

  3. Bruce Temkin says:

    Hi Karthikeyan: Good observation. This is a similar metric to the Net Promoter Score (NPS), but it isn’t quite on the same scale. I just needed to describe the analysis and give the metric I was comparing a name so that people would understand what I did. I wasn’t trying to promote it as a replacement for NPS.

  4. GaryTell says:

    Very interesting. It’s always nice to take a look at those companies that work a little bit harder to get their customer’s recommendations. Thanks.

  5. Kobus says:

    Net Recommendations: It really gets under my skin when companies or people use a different scale and calculation as the original Net Promoter Score (I think it was first published in the December 2003 Harvard Business Review), but still call it a Net Promoter Score. I really appreciate your sensitivity to accuracy and hope that some “offenders” will realize that when it comes to names, scales and calculations, there is a difference that matters.

  6. Mauricio C says:

    I frankly consider this metrics a publicity tool. Using the old “we are the best because people say so” a very USA way of view success.
    Recommendations based on what? which was the question for computers lets say:

    “Which brand would you recommend to a related one, when buying a computer”

    The amount of things which could be happening inside the customer head makes the survey useless:

    1) First brand to my head is…(answer)
    2) Biased because the amount of publicity, advertisement, past experience, etc. but he cannot make an opinion because doesn’t know nothing about the subject.
    3) When asked that it is for a related he could be thinking in his 65 year old mom who cannot tell the difference between a monitor and a microwave oven. (answers the easier to use brand, but then again he cannot make the exception)

    In the end (or bottom line as the blog would say): We have learned that the world is not your market, when referring to people we are not talking about “customers” these are a differentiated group of people for each brand. So when doing a survey which ask “people” which brand they recommend for other “people” we should ask ourselves, what are the results showing me?

  7. Pingback: What is the influence of friends on our purchasing decisions? Results « Iterative Path

  8. Bruce Temkin says:

    GaryTell and Kobus: Thanks for your feedback

    Mauricio: The question is actually stated differently than you show it — and it’s a meaningful difference. If it was asked the way that you show “Which company would you recommend…” then it would have some of the problems you highlight. The question is asked about a specific brand, like this “Would you recommend BRANDNAME to a friend or a colleague?” So the response provides a scale of loyalty to a specific brand. It’s fair to ask, even in this form, if it’s overly simplistic. Take a look at my posts about Net Promoter.

  9. Pingback: Is your brand dying? Are we in a ‘Brand Bubble’? | Beyond Philosophy

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: