linking customer experience to operational and business performance
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Linking Customer Experience to Operational and Business Performance
Presented by: Niren Sirohi, Ph.D.
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Niren Sirohi, Ph.D.VP, Predictive Analytics
iKnowtion
Niren leads iKnowtion’s Predictive Analytics practice
Speaker Introduction Today’s Presenter
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Apply Analytic and Consultative Best Practices
to:
Identify customer-level opportunities
Inform customer-centric strategies
Maximize customer-focused programs
Measure customer-driven impacts
iKnowtioniKnowtion
Leaders in Customer and Marketing Analytics
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Commoditization pressure
Explosion in channels with the digital revolution
Shift in balance of power to customers
Amplified Word of Mouth
High customer expectations
Today’s World Reality For Marketers
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Competitive Advantages Are Changing
Competing On Product And Price Are Over
Differentiate on price
How low can you go?
Differentiate on product
Today’s innovation is tomorrow’s knock off
The new differentiator
Differentiate on customer experience
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Customer Experience
Becoming Top Priority
63% see Customer Loyalty as the primary focus of the contact center in five yearsInternational Customer Management Institute (ICMI)
93% customer
experience is a strategic priority
Forrester’s 2012 Global Customer Experience Peer
Research Panel Survey
49% companies are focusing their efforts on customer insights, segmentation, and targeting to improve overall performance
Minding Your Digital Business, McKinsey Global Survey, 2012
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Transforming the Customer Experience
Build FoundationBuild Foundation
AnalyzeAct
Customer
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Customer Journey Mapping
Customer Feedback
Operational and Business Performance
Build FoundationBuild Foundation
Laying the Groundwork
Transformational Customer Experience
Customer Segmentation Map customer activities and influencers Identify touch-points
Customer perceptions Measure across touch-points Customer behavioral intentions
Operational metrics across touch-points Customer transactional behavior Overall business performance
AnalyzeAct
Customer
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Touch-points: Opportunities to Influence Experience
Examine the Customer’s Entire Journey, NOT Just Activities Which
You are Involved in Today
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Customer Feedback Is A Rich Source
It’s Varied and Comes in Many Forms
Structured(Quantitative)
Unstructured(Qualitative)
Company-Initiated Customer-Initiated
Illustrative for a Wireless Provider
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Measure Behavioral Intentions
Net Promoter Score Tracks Sentiment
Likelihood to Recommend
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Customer Feedback
In isolation is NOT Enough
Customer Feedback
Operational Metrics Customer Transactions
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AnalyzeBuild
Foundation
Touch-point Importance
Operational Linkages
VOC Signal Detection
Actionable Insights Transform
Customer Experience
Determine critical touch-points Quantify business value of touch-points Build business case
Link internal data to customer perceptions Impact of internal improvements Build business case
Real-time monitoring Pattern analysis and signal detection Insight and business implications
Act
Customer
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Key Questions of Analytics
What is the expected business impact of improving customer perceptions by X%?
What operational and process changes will be needed to improve customer perceptions by X%?
How do we generate continuous insights from real-time customer feedback across touch-points and channels?
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In Order To Be Actionable
Focus Analytics on Linkages
Operational Performance
VOC (Customer perceptions,
feedback, intentions)
Customer Behavior
(Transactions, Engagement)
Business Performance
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Structural Equation Models
Used to Estimate Linkages
Customer Perceptions
Information
Ticketing
Rides
Lines
Food
Grounds
Entertainment
Operational Metrics
Information
Ticketing
Rides
Lines
Food
Grounds
Entertainment
Return
Theme Park Experience
Share of Wallet
Incremental people; sooner (ticket revenue)
Incremental spending on food, merchandise (revenue)
Improve wait time 5 minutes
Total cost to improve
experienceNPV
Total incremental revenue
Behavior Outcome Financial Outcomes
5%2%
10%
15%
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Touch-point Analytics
Identify Experience Improvement Initiatives
Loan Officer interaction and process improvement initiatives drive $146M in incremental annual revenue for mortgage refinancer
Improvements in customer perceptions of Advocacy drives 15% incremental market share for ISP
Improvements in service delivery drive $75M in incremental annual revenue for mutual fund manufacturer
26 customer experience improvement initiatives drive incremental $741M in revenue for an airline
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Analyzing and Taking Action on Real-Time VOC
Will Drive Positive Customer Experience
Aggregate Insights Identify unmet product and
service needs Identify experience pain
points Proactively identify potential
PR issues
Targeted Actions Send product offer to
specific individuals Inform specific customer
about fix of pain point Execute proactive save for
dissatisfied high-value customers
Real-Time Big Data Analytics Stack
Speech
Text
Machine Learning
Pattern Recognition
Trend Spotting
Log Analysis
+ CRM
Nick, 25 year old gamer
Research
Buy
Use
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Ideation
Test and Learn
VOC Programs
Act
ActAnalyze
Sustained Value Generation
From Transformational Customer Experience
Generate activation ideas Customer experience initiatives Experience process design
Pilot initiatives in market Develop measurement plan Make go / no-go decisions
Develop VOC strategy Develop VOC infrastructure Continuous learning process
Customer
Build Foundation
Focus on customer experience as the differentiator
Outside-in thinking necessary to identify and fix key pain points
Commit to listening and analyzing the Voice of your Customer (VOC)
Summary
Leverage Big Data analytics to detect meaningful signals in VOC
