CUSTOMER LOYALTY

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CUSTOMER LOYALTY Powered By Docstoc
					Synovate Symmetrics
The experience and proven frameworks to help you
answer your most difficult customer loyalty challenges.
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    Synovate Symmetrics…


          Helps companies achieve
          their growth objectives
          through survey research
          and performance
          management systems that
          prioritize, communicate,
          refine and monitor customer
          loyalty initiatives and create
          a customer-centric
          organization.




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    Customer-centric Performance Management Systems

              “After CEO engagement, a performance measurement and
             management system is the second biggest catalyst for creating a
                            customer-centric organization.”

                                                                   Kathy Armstrong
                                                                           Director
                                                Total Customer Experience Research
                                                                   Hewlett-Packard




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    Your Most Important Strategic Asset Is Your Customer


          Customer Loyalty Strategic
          Asset Management
          provides an opportunity for
          significant leverage in
          achieving market and
          financial goals.




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    Achieving Market and Financial Goals




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    What Keeps You Up at Night?

         How can we create a differentiated customer experience?
         What are the strategic drivers of customer loyalty?
         What role does emotions have in building customer
         loyalty?
         How can we create a voice of the customer system that
         is science-based and consistent across the organization?
         How can we develop a customer loyalty index for our
         business scorecard?
         How can we set reliable and achievable customer loyalty
         goals?
         How can we identify and cascade our customer loyalty strategic priorities down through the
         organization to achieve alignment of departmental objectives and activities?
         How do we know our actions are impacting customer loyalty behaviours?
         How do we know that customer loyalty can impact my market and financial performance
         results?
         How can we develop an integrated measurement system that is practical and that
         management will buy into?
         How can we accelerate our change from a product-focused organization to customer-focused?



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      Sample Client Engagements

                                       •   Provides enterprise and consumer customers a full range of high-tech products,
  B:B                                      including personal computers, servers, storage products, printers, networking
                                           equipment, and software.
                                       •   Total Customer Experience corporate initiative.
                                       •   Global commercial customer relationship measurement.
                                       •   Consumer interviews conducted globally.
                                       •   Alignment of all data streams into cause/effect links.
                                       •   Revamped relationship strategy.
                                       •   Tied to performance compensation.
                                       •   Makes washers, dryers, refrigerators, air conditioners, dishwashers, freezers,
                                           microwave ovens, ranges, trash compactors, air purifiers, and more.
  B:C                                  •   In addition to Whirlpool, the company sells its products under brand names
                                           including KitchenAid, Kenmore, Bauknecht, Roper, and Speed Queen.
                                       •   Move culture from product to customer focus.
                                       •   Consumer interviews conducted globally by brand and country.
                                       •   1 point increase in CLI = up to 5% potential increase in revenue.
                                       •   Sweeping strategic and tactical initiatives, including service enhancements and
                                           communications.

                                       •   Leading, well-known maker of wood-clad windows and patio doors in the US.
  B:B:C                                •   Competitive market pressures.
                                       •   Annual relationship assessment with dealers/trade.
                                       •   Revamped product portfolio.
                                       •   Revised service and communications strategies.
                                       •   77% increase in revenue in 5 years after focusing on loyalty.

**All information has been shared by the client in public forums.

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      Sample Client Engagements
  B:B                                       •   Makes air conditioning, heating, and fireplace systems for residential and
                                                commercial uses, as well as commercial refrigeration equipment.
                                            •   Evolution to fact-based management.
                                            •   Core dealer relationship survey.
                                            •   Customer Value Index -- measure of estimated dealer value to Lennox.
                                            •   Customer Defection Index -- calculated probability of dealer risk.
                                            •   Foundation for business priority setting.

                                            •   3rd largest public utility in US; serving greater Phoenix, AZ.
                                            •   Customer insights drive segmentation, positioning, integrated marketing plan,
  B:C                                           priorities, communication, management performance systems.
                                            •   Expanded Key Account Management program (largest industrial customers).
                                            •   Established Business Account Management program (mid-sized industrial
                                                customers).
                                            •   Revamped communications strategy with Spanish Language Dominant
                                                consumer segment.
                                            •   53% increase in Customer Loyalty Index.


  B:C                                       •   Canada’s 2nd largest bank; offers a range of consumer and business services.
                                            •   5%  employee commitment = 3%  customer loyalty = 3%  shareholder value.
                                            •   Dynamic Simulator for what-if scenario planning.
                                            •   Developed best-in-class complaint handling process.




**All information has been shared by the client in public forums.

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THE LEADERSHIP CHALLENGE
   How to build an organizational
 competency of managing customer
    loyalty as a strategic asset?
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    Keys to Customer Loyalty Strategic Asset Management




                             Custome
                                 r
                              Loyalty




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    The Frameworks, Tools, and Processes Used to Measure,
    Model and Manage Customer Loyalty

              measure                 model                        manage
                             Causal modeling
    Integrated Measurement                                   Readiness Assessments
    System                   Other decision sciences tools
                                                             Migration Path Planning
    CustomerSymmetry        Linkage analysis
                                                             CL Goal Setting
    MarketSymmetry          Lifetime value analysis
                                                             Simulators
    BrandSymmetry           Financial impact analysis
                                                             CL Strategy and Planning
    EmployeeSymmetry                                        Workshops
    ExperienceSymmetry                                      CL Initiative Development
                                                             & Testing
                                                             CL Strategic
                                                             Communications
                                                             Infrastructure Embedment
                                                             IMS Archive




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    Building a Customer-Centric Performance Management
    System and Culture
                                                                                                                              Future
                                                                                                                               State


                                                                                          Develop CLI & Financial
                                                                                                Simulators           Brainstorm, Test, Launch, Monitor
                  SUSTAINABILITY




                                                                                                                    Begin To Align Infrastructure
                   EMBEDMENT &




                                                                                  IMS Statistical Linkage
                                                  New Measurement
                                                                                                                     BSC/KPI/Dashboard
                                                     Framework

                                   Qualitative Research                                                        Determine Accountabilities

                                                              Conduct Loyalty Segmentation
                                                                                                            Establish CL Goals
                              Research Audit
                                                          Cause-Effect Modeling
                                                                                                 Conduct Priority Workshops

      IMS Architecture Design                      Calibrate                         Begin CL Communications
                                               Scorecard Metrics
                                                                           Create Embedment Plan

                                                     Readiness Assessment
                 Current
                  State
                                                                           TIME




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measure                                                                                        13

             Integrated Measurement System



                                   A                   Sets the strategic CL priorities for
                                 Total                 the brand and provides direction
                              Relationship             for resource allocation.


                                   B Price,
                          Brand, Product,
                                                       Provides specific, actionable
                                                       information for improving and/or
                          Communication, Repair,       innovating the high priority customer
                          Customer Service, etc.       touchpoints.

                                   C                   Provides continuous “real time”
                                                       customer feedback on touchpoint
                           Event Satisfaction          performance.


                                   D                   Monitors the leading indicators for
                                                       touchpoint performance.
                          Internal Metrics:
                   processes, practices, and culture




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             Building an Organizational Competency:            14
model


             Measure, Model, Manage


                              Model

                                        Causal research
                CL Research




                                        Descriptive research
                              Measure




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model


             CustomerSymmetry®

                                             Causal pathways
             Cognitive                       Attitudinal              Emotional                  Behavioral
            Experience Points                       overall
               (examples)                         experience satisfaction
                                                   & value                                         compliance
                 in-store
                experience
                                                          Rational                                 expansion
                                                          motivation                                                deepen
                 products                                                                                         relationship
                                                                                                   repurchase

               relationship                                          personality
               management                                                                           advocacy
                                Experience     Brand                  feelings         Loyalty
                 technical        points      essence                                                choice
                  support                                             images

                                                                                                   preference
                  repair                                                                                           establish
                                                                                                                  relationship
                                                          Emotional                               consideration
                 contact                                  motivation
                 center
                                                                                                   awareness
                information                   salience       under         image
                  sources                                   standing       appeal
                                             personality     social        Identifi-
                                               appeal       approval        cation
                                              internal-      trust        emotional
                                               ization                   attachment

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model


        Strategic Analysis and Interpretation

              The analysis of the data and interpretation of the model focuses on
              uncovering high impact strategic information and tactical direction to
              strengthen customer loyalty for optimal market and financial results.




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    Examples of Key Business Questions
         Competitive Strength       In terms of CLI, how strong are our brands relative to the competition?

         Motivational Levers        Do current brand strategies reflect the relative weight of emotional
                                    motivation and rational motivation?
         Priorities                 Is the influence of the TPs on CL similar across brands? Are brands
                                    effectively addressing the critical TPs?
         Global Brand Positioning   Are there common denominators of BE for brands? Are these potential
                                    points of differentiation?
         Repair vs. Product         Is it better to minimize product problems or effectively correct them after
         Quality                    they occur? Is the net effect of repair performance a plus or minus
                                    today?
         Social Responsibility      What are customers’ SR expectations of the brand?

         Product Leadership         In which product categories do our brands exhibit competitive strength?
                                    Do some categories appear to pose a bigger challenge in terms of
                                    creating CL?
         Loyalty Segmentation       Who are the most/least loyal customers? What are they worth? Can
                                    customers be segmented by loyalty drivers? Which loyalty segments to
                                    target? What changes are needed to make the targets more loyal?
         Sales Inoculation          What types of experiences might inoculate loyal customers from sales
                                    pressures at the POP?


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    Examples of Key Business Questions (cont)
         Multidimensional Loyalty     In general, are there different levers for influencing the different loyalty
                                      behaviors?
         Brand Influence on Channel   To what extent does CL and its antecedents (EM, RM, BE and TP
                                      performance) influence loyalty to the store/retailer? Are buyers of our brands
                                      more store loyal?
         Channel Influence on Brand   Does CL vary by channel of acquisition? Do the influences on CL vary by
                                      channel? Does the purchase/sales experience shape future usage and
                                      ownership perceptions that drive CL?
         TP Interdependencies         Are there causal relationships among the touchpoints? Is there a temporal
                                      order? Do some TP’s support other TP’s? Are some TP’s more
                                      generic/higher level?
         Total Product Effect         What is the net effect of “product” as a subtle influence on many aspects of
                                      loyalty?
         Defection Analysis           What is the role of the TPs in creating lost customers? What is the role of the
                                      TPs in helping to move customers up the Vulnerability Group ladder?
         Platform Vs. Value-Add       Which TPs and attributes represent “minimum requirements” and which
                                      afford the opportunity to add value and create competitive advantage? How
                                      “good” is “good enough”?
         Universal Needs              Are there “universal needs” across segments that the brands can use to
                                      create broader appeal?
         Value Brand Migration        What levers, appeals, positioning might be used to up-sell “value brand”
                                      customers and keep them at the higher price point?



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    Measure & Model

                         Provide a common viewpoint and language
                                within the client organization.

       INTEGRATED MEASUREMENT SYSTEMS


                                                                     Rational
                               A                                     motivation
                             Total
                          Relationship

                               B
                       Brand, Product, Price,
                      Communication, Repair,
                                                 Touchpoint     Brand
                                                               essence            Loyalty
                      Customer Service, etc.     experiences

                               C
                       Event Satisfaction

                                                                     Emotional
                               D                                     motivation
                    Internal Metrics:
             processes, practices, and culture




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         From Awareness to Internalization

                             High



                                                                                                  Internalization



                               COMMITMENT
                                                                                              Institutionalization




                                                                                     Adoption




                                                                        Positive Perception


                                                        Understanding

                             Low            Awareness


                                                              TIME

                         Awareness                                                                         Internalization
                                                        CL Management


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         Tools, Processes and Practices to Accelerate Change

               Readiness Assessments
               Migration Path Planning
                                                            Business
               CL Goal Setting                              Planning
                                                               and
               CL Simulators                                Execution

               CL Strategy and Planning
               Workshops
               CL Initiative Development &
               Testing                   Acrobat Document
               CL Strategic Communications
               Infrastructure Embedment
               IMS Archive




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    Building an Organizational Competency:
    Measure, Model, Manage

                                                                 MAXIMUM IMPACT
                                     MARGINAL IMPACT
                                                              •Causal research
                        model



                                  • Causal research           •Mature stages of CL
                                  • Early stages of CL        competency & culture
                                    competency & culture      •Robust decision-support
          CL research




                                                              tools


                                      MINIMAL IMPACT             MARGINAL IMPACT
                                                              •Descriptive research
                                  •Descriptive research       •Mature stages of CL
                                  •Early stages of CL         competency & culture
                        measure




                                  competency & culture        •Many important decision-
                                                              support tools for management
                                                              not available due to
                                                              limitations of research

                                  awareness                                         internalization
                                                           CL manage

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Why Synovate Symmetrics
                             • Our focus and deep experience in the customer
       CL Thought Partner      loyalty field means tailoring your Measure, Model,
                               Manage CL system to meet your unique needs.

                             • Makes explicit the cause and effect assumptions
                               from organizational actions to customer loyalty
         Cause & Effect        behaviors.

                             • Addresses not only the traditional rational
      Rational & Emotional     motivations of customer loyalty, but applies science
           Motivation          to the emotional motivations as well.

                             • The frameworks and models are explicitly aligned
                               to the company’s market strategy. The Integrated
                               Measurement System facilitates alignment &
           Alignment
                               cascading of strategy to departmental objectives
                               and process metrics.

                             • Dynamic simulators show potential impact on
        Linkages & Impact      market and financial results for “what if” scenario
                               planning.
                             • Proven frameworks and models move the company
                               faster up the learning curve and the change
          Acceleration         management curve to build and strengthen an
                               organizational competency in customer loyalty
                               strategic asset management.
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    Contact details

                      Panicos Christopoulos
                      General Manager

                      Alina Socolov
                      Senior Research Executive

                      20th Siriului St.
                      Bucharest
                      Romania

                      Tel: +21 20 80 101
                      Fax: +21 20 80 100
                      Email: panicos.christopoulos@synovate.com
                      Email: alina.socolov@synovate.com



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