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customers obtained through referrals and who likely refer others. This allowed
us to approximate the number of referrals necessary to acquire one new cus-
tomer (see
Figure 10.4
). Data used to derive this number are proprietary. For
the purpose of this chapter, we use the number eight: we need eight referrals to
acquire one new customer. In the NPS model, it is
promoters
who refer a product
actively. But we didn't want to assume that every respondent who answered 9 or
10 to the
likelihood to recommend
question, that is, every promoter, had referred
our product actively. The actual percentage of promoters who referred our prod-
uct actively within the last year was 63%. From this, we derived that the total
number of promoters needed to acquire one new customer was 13.
Figure 10.4 How many promoters are necessary to acquire one new customer?
10.1.5
Conclusion
By calculating the number of promoters required to acquire a new customer, we
were able to connect the proverbial dots in the software business: a good user
experience design drives our users to recommend our products and product rec-
ommendations increase customer acquisition, which increases revenue growth.
Through multivariate analysis, we have shown that experience design contrib-
utes 36% to motivating users to recommend our product. Since we know the
average sales price of our product, we were able to estimate the revenue gains
associated with improving the user experience of our software. We quantified
the value of a good user experience. By tying user experience to customer acqui-
sition, we are able to prioritize design investment in ease of use and in research
to improve the user experience of our products.
In summary, this case study shows:
•
Multivariateanalysisofuserexperienceattributescanbeusedtopriori-
tize investment in user experience design and research.
•
Userexperienceattributes,suchaseaseofuse,contributesignificantlyto
customer loyalty.
•
Knowingtheaveragesalespriceofourproductsandthenumberofpro-
moters needed to acquire one new customer, we can quantify the return
on investment of a good user experience.
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