Devlop a Customer Loyalty Measurement Program

Transform Customer Feedback Into Customer Loyalty!

Lori Blandford Marketing Manager Ken Krawczyk Sr. Manager, Predictive Analytics

Agenda

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Dunn Solutions Group Overview Predictive Analytics Overview Customer Loyalty Overview Measuring Customer Loyalty The Customer Loyalty Measurement Program Q&A

Overview

Raleigh

Full-service IT Consulting Firm Founded in 1988 Offices  Chicago  Minneapolis  Raleigh  Fort Lauderdale  Bangalore, India

Ft. Lauderdale

Minneapolis Chicago

https://www.dunnsolutions.com/content/en/company Bangalore

Practice Areas

Application Development

Business Intelligence

Packaged Solutions

Custom App Dev

End-to-End BI

Vertical Solutions

E-Commerce

Data Warehouse

Unique Solutions

Portals

Dashboards

Web Design

DI + EIM/Quality Training Predictive Analytics Open-Enrollment Map Intelligence On-Site + Custom Managed Services Jumpstart/Mentoring Budgeting & Planning

Selected Clients

City of Chicago

Business Intelligence Services

End-to-End Business Intelligence solutions

Data Warehousing Dashboards & Performance Management Enterprise Information Management + Data Quality

Business Intelligence Managed Services Predictive Analytics

Agenda

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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

HIGH

Predictive Analytics is the GPS of a BI systemit provides guidance on strategy and tactics using advanced analytics

PREDICTION What might happen?

COMPLEXITY

MONITORING What’s happening now?

BUSINESS INTELLIGENCE TECHNOLOGIES

ANALYSIS Why did it happen?

Predictive analytics Dashboards, scorecards OLAP and visualization tools

REPORTING What happened?

Query, reporting and search tools LOW

BUSINESS VALUE

Source: The Data Warehouse Institute (TDWI)

HIGH

Predictive Analytics

Added Operational & Strategic Value

Fact-Based Solutions

Greatest Business Value

Identify Future Opportunities

Gain Competitive Edge

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

What is Customer Loyalty?

Satisfaction

Intention

Retention

Loyalty

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

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Dunn Solutions Group Overview Predictive Analytics Overview Customer Loyalty Overview Measuring Customer Loyalty The Customer Loyalty Measurement Program Q&A

Loyalty Analytics Program

Survey Design

Action

Analytics

Collect VOC

Reporting

Loyalty Analytics Program

Survey Design

Action

Analytics

Collect VOC

Reporting

What is a Method of Collecting VOC? Implement a customer feedback program 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 All questions have rating: 0 = not at all likely, 10 = extremely likely, except satisfaction question is 0 = extremely dissatisfied to 10 extremely satisfied

Loyalty Analytics Program

Survey Design

Action

Analytics

Collect VOC

Reporting

Loyalty Analytics Program

Survey Design

Action

Analytics

Collect VOC

Reporting

Loyalty Analytics Program

Survey Design

Action

Analytics

Collect VOC

Reporting

How Do We Analyze the VOC to Infer Loyalty Levels?

Purchase Same

Purchase different

Choose again

Purchase amount

Purchase frequency

Recommend

Satisfied

Factor Analysis

Switch Provider

Loyalty Analytics Program

Survey Design

Action

Analytics

Collect VOC

Reporting

Incorporate Loyalty Drivers into Sales, Marketing & Operations Strategies

Products & Services

Engagement

Operations

Availability

Professionalism

Return Policy

Variety

Friendliness

Appearance

Functionality

Handle Issues

Business Hours

What Loyalty Dimensions Are Deduced By VOC?

Affective

• Feelings created from human interactions

Cognitive

• Preferences from examining product/service quality

Retention

• Expectations are met and the decision is to continue

What Does Loyalty Correlate With?

Correlation between Loyalty and Goals New Cust Growth

YOY Revenue

Churn% 0.84

0.75 0.72 0.66

0.76 0.6

0.6 0.53 0.5

Affective

Cognitive

Retention

Agenda

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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

   

Automated survey tools Hosted database Web-based reporting Analytical models

Services Quality

Product Quality

VOC

DSG Customer Loyalty Measurement Program Results

 Higher Customer Advocacy

 Increase in New Customers  Higher Customer Retention Rates  Higher Profits

 Higher Employee Satisfaction

Agenda

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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 kkrawczyk@dunnsolutions.com bhopkins@dunnsolutions.com