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
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
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
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
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
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