customer loyalty measurement program
TRANSCRIPT
Transform Customer Feedback Into
Customer Loyalty!
Lori Blandford
Marketing Manager
Ken Krawczyk
Sr. Manager, Predictive Analytics
Agenda
Dunn Solutions Group Overview
Predictive Analytics Overview
Customer Loyalty Overview
Measuring Customer Loyalty
The Customer Loyalty Measurement Program
Q&A
Full-service IT Consulting Firm
Founded in 1988
Offices
Chicago
Minneapolis
Raleigh
Fort Lauderdale
Bangalore, India
https://www.dunnsolutions.com/content/en/company
Overview
Raleigh
Ft. Lauderdale
Minneapolis
Bangalore
Chicago
Practice Areas
Application Development
Custom App Dev
Portals
Web Design
E-Commerce
End-to-End BI
Dashboards
Data Warehouse
DI + EIM/Quality
Business Intelligence Packaged Solutions
Vertical Solutions
Unique Solutions
Predictive Analytics
Managed Services
Map Intelligence
Budgeting & Planning
Training
On-Site + Custom
Open-Enrollment
Jumpstart/Mentoring
Selected Clients
City of Chicago
End-to-End Business Intelligence solutions
Data Warehousing
Dashboards & Performance Management
Enterprise Information Management + Data Quality
Business Intelligence Managed Services
Predictive Analytics
Business Intelligence Services
Agenda
Dunn Solutions Group Overview
Predictive Analytics Overview
Customer Loyalty Overview
Measuring Customer Loyalty
The Customer Loyalty Measurement Program
Q&A
Business Intelligence Value and Complexity
Source: The Data Warehouse Institute (TDWI)
LOW
HIGH
HIGHBUSINESS VALUE
CO
MP
LE
XIT
Y
REPORTINGWhat happened?
ANALYSISWhy did it happen?
MONITORINGWhat’s happening now?
PREDICTIONWhat might happen?
Predictive analytics
Dashboards, scorecards
OLAP and visualization tools
Query, reporting and search tools
BUSINESS INTELLIGENCE TECHNOLOGIES
Predictive Analytics is the
GPS of a BI system-
it provides guidance on
strategy and tactics using
advanced analytics
Predictive Analytics
Added Operational & Strategic Value Fact-Based Solutions
Identify Future Opportunities
Gain Competitive Edge
Greatest Business Value
Dunn Solutions Group Predictive Analytics Services
Complete Predictive Analytics Services
Data integration
Data cleansing
Model development
Deployment
Dashboards
Reporting
Support
Training
Software
Predictive Analytics Solutions
Marketing Strategy and Planning
Customer Loyalty
Resource Planning
Demand Forecasting
Market Basket Analysis
Customer Churn
Credit Scoring
Fraud Detection
Crime Insight & Prevention
Challenges with Measuring Customer Loyalty
Assumption that customers are satisfied
Belief that satisfied customers are also loyal customers
Loyalty is often measured by only analyzing transactions
Belief that loyalty is created by discounting
Loyalty programs are expensive and time consuming
Capability to analyze customer behaviors and identify
loyalty driver does not exist in the company
Benefits of Loyal Customers
Unsolicited Referrals
Reduced Acquisition Cost
Increased Retention
Customers Are Less Price Sensitive
Higher Profit
Training & Empowerment Of Employees
Employee Satisfaction
Higher Level Of Quality
Agenda
Dunn Solutions Group Overview
Predictive Analytics Overview
Customer Loyalty Overview
Measuring Customer Loyalty
The Customer Loyalty Measurement Program
Q&A
What is a Method of Collecting VOC?
Implement a customer feedback program
All questions have rating: 0 = not at all likely, 10 = extremely likely, except satisfaction question is 0 =
extremely dissatisfied to 10 extremely satisfied
1. Overall satisfaction
2. Decision to recommend (Word of mouth, Word of mouse)
3. Decision to purchase again for the first time
4. Decision to continue purchasing same products/services
5. Decision to purchase different products/services
6. Decision to increase purchase amount
7. Decision to increase frequency of purchasing
8. Decision to switch to another provider
How Do We Analyze the VOC to Infer Loyalty Levels?
Factor Analysis
Satisfied
Recommend
Choose again
Purchase Same
Purchase different
Purchase amount
Purchase frequency
Switch Provider
Incorporate Loyalty Drivers into Sales, Marketing &
Operations Strategies
Products & Services
Availability
Variety
Functionality
Engagement
Professionalism
Friendliness
Handle Issues
Operations
Return Policy
Appearance
Business Hours
What Loyalty Dimensions Are Deduced By VOC?
• Feelings created from human interactionsAffective
• Preferences from examining product/service quality
Cognitive
• Expectations are met and the decision is to continueRetention
What Does Loyalty Correlate With?
Affective Cognitive Retention
0.75
0.60.53
0.66
0.76
0.5
0.72
0.6
0.84
Correlation between Loyalty and Goals
New Cust Growth YOY Revenue Churn%
Agenda
Dunn Solutions Group Overview
Predictive Analytics Overview
Customer Loyalty Overview
Measuring Customer Loyalty
The Customer Loyalty Measurement Program
Q&A
How Do We Get There?
Self-Enablement Option
Purchase the right software to enable the process: data
acquisition, data cleansing, predictive analytics, reporting
Do a pilot project
Work with Dunn Solutions to mentor internal personnel
Outsource Option
Partner with Dunn Solutions to run your loyalty program
DSG Customer Loyalty Measurement Program
VOC
Product Quality
Services Quality
Automated survey tools
Hosted database
Web-based reporting
Analytical models
DSG Customer Loyalty Measurement Program Results
Higher Customer Advocacy
Increase in New Customers
Higher Customer Retention Rates
Higher Profits
Higher Employee Satisfaction
Agenda
Dunn Solutions Group Overview
Predictive Analytics Overview
Customer Loyalty Overview
Measuring Customer Loyalty
The Customer Loyalty Measurement Program
Q&A
Questions & Answers
Questions?
Ken Krawczyk
Sr. Manager, Predictive Analytics
Dunn Solutions Group