Maximizing Your Customer Experience Management Metrics · © Ipsos Hong Kong Maximizing Your Customer Experience Management Metrics Sainsbury’s Lost Revenue To ompetitors $7,884M

© Ipsos Hong Kong

Maximizing Your Customer Experience Management Metrics

For Internal Use


© Ipsos Hong Kong


Customer Experience Is The New Brand Image

Other people’s experiences influence everyone

Good and bad experiences impact non-customers as well as customers

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© Ipsos Hong Kong


Customer Experience Management

NOT

Attract, retain and grow profitable

customers.

Maximise Optimise

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Optimising …

You don’t have to WOW people all the time …

… consistently “acceptable” service also builds strong customer relationships

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Optimising …

Work out which moments of truth make a difference

… and what levels of service are good enough

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Yet, metrics are always debated!

VALUE FOR MONEY

RETENTION SATISFACTION

LOYALTY

RECOMMEND

NPS

CROSS SELL

SHARE OF WALLET

COMMITMENT

PERFORMANCE UP SELL

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Leverage on Enterprise Feedback Management

Where’s The Magic Number?

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There is no Magic Number • All measures are highly correlated • Every program is different

Answer…

Transactional v Relationship v Brand

The way customers make decisions

What your company has bought in to...

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Different Programs Require Different Metrics

Relationship (strategic) Transactional (tactical)

Brand level Event driven

Cumulative experiences Single experience

Multi-channel/multi-event Recent & timely

Key Driver analysis Reported to “units”

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Different Programs Require Different Metrics

Relationship (strategic) Transactional (tactical)

Brand level Event driven

Cumulative experiences Single experience

Multi-channel/multi-event Recent & timely

Key Driver analysis Reported to “units”

Loyalty Satisfaction

Recommend Performance

Share of Wallet Critical Incidence

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When Can People “Spread Their Behaviour”?

Share of Wallet

Frequent Flyers

All

Nothing

Supermarkets

Savings & Investments

B2B

Retail

Hotels

Airlines

Insurance

Mobile Phone Service

Auto

Current Accounts

Laptops

Share of Mind

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Competitive Performance Is Paramount

Share of Wallet Switch or stay

Which direction?

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There Are Only Two Fundamental Ways To Grow A Business…

“MORE YIELD” (More $ from existing customers/existing

markets)

“MORE FIELD” (Add new customers/

New markets)

AND

The focus of Wallet Allocation Optimizer is more yield.

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WAO! Focuses On “More Yield”

WAO! Increase

Retention?

Increase Customer

Satisfaction

Increase NPS score

Inward context Outward competitive context

Increase Share of Wallet

Which competitors are we most likely to

take business from?

How do we compete head-

to-head with our competitors?

What can we do to get our customers

to spend more with us – and less

with others?

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YOUR BRAND

Janet, 32, married, 3 children

John, 45, divorced, no children

9

9

YOUR CUSTOMER

Customer performance ratings do not tell enough of the story.

Rank Matters…

It looks like Janet & John are equally satisfied … they would be “Promoters” …and equally ‘good’ customers…

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9

7

10

8

COMPETITORS

A B YOUR

BRAND



9

9

YOUR CUSTOMER

…until we look at the competitive context – other brands they are using as well as you:

Rank Matters…

© Ipsos Hong Kong


9

7

10

8

COMPETITORS

A B YOUR

BRAND



9

9

YOUR CUSTOMER

Equal last

Clear first

… and start to look at the Rankings …

Rank Matters…

© Ipsos Hong Kong


9

7

10

8

COMPETITORS

A B YOUR

BRAND



9

9

YOUR CUSTOMER

WAO! SHARE OF WALLET

25%

50%

Equal last

Clear first

Instead of focusing on a single “inward” looking measure We need to focus on competitive rank

Rank Matters…

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Rank Matters…

We Know Market shares follow a company’s rank

The Problem If you can’t improve your rank, you can’t improve your share

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0%

100%

0% 100%

Sh

are

of

Wa

lle

t

Wallet Allocation

R=.92

Recommend Intention

0%

100%

0% 100%

Sh

are

of

Wa

lle

t

Wallet Allocation

R=.91 Net Promoter

0%

100%

0% 100%

Sh

are

of

Wa

lle

t

Wallet Allocation

R=.92

Purchase Intention

0%

100%

0% 100%

Sh

are

of

Wa

lle

t

Wallet Allocation

R=.90 Satisfaction

Rank Works Across Different Metrics

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The “Best” Metric?

It’s not that the metrics we use are wrong

Satisfaction, Purchase Intention,

Recommend Intention, Net Promoter

It’s that we don’t take them

far enough

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Our WAO! Analysis Follows A Simple Process

Capture customer metrics and convert to ranks

Convert ranks into shares (WAO! scores) using the Wallet Allocation Rule

Derive drivers of WAO! scores

Connect drivers to $$

1

3

2

4

© Ipsos Hong Kong


The Drivers of WAO! Are Different

21%

18%

15%

12%

12%

12%

6%

3%

3%

0%

0%

Fees + Charges

Financial Advice

Branches

Financial Products

Account Management

Banking Services

Call Centres

Resolution of…

Internet Banking

Loyalty Rewards

ATM Network

Drivers of WAO!

21%

14%

13%

12%

12%

11%

7%

4%

4%

1%

0%

Branches

Banking Services

Account…

Financial Products

Financial Advice

Fees + Charges

Internet Banking

Resolution of…

Call Centres

ATM Network

Loyalty Rewards

Drivers of SAT

© Ipsos Hong Kong


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Detractors Passives Promoters

1st

Equal

Worse

65%

52%

15%

Rank and NPS categories

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WAO! What it can tell you (example deliverables)

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Sainsbury’s Ratings

C-SAT Mean C-SAT

8.3

Top 3 box

Top 2 box

Top box

72%

39%

87%

Recommend

NPS

+14 9-10

7-8

0-6

56%

15%

29%

Competitive Performance

40% Sainsbury’s WAO! score

$1.5 Competitive spend index

$30 billion Competitive spend

86% Competitive usage

1st Choice Profile Sainsbury's 1st Sainsbury’s equal Competitor 1st

55 % 16% 29%

KPI Dashboard

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Sainsbury’s Lost Revenue To Competitors

$7,884M

$4,029M

$3,763M $4,408M $2,568M

$2,942M

$2,189M

$1,928M

$1,754M $122M

$299M

$243M Tesco

Asda

Morrisons

MarksSpencer

Coop

Waitrose

Aldi

Lidl

Iceland

Other

FarmFoods

Other

• Client revenue: $20 billion

• Client customers’ spend with competitors: $30 billion

• Share of competitor spend shown in pie chart

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Impact and Competitive Performance – Sainsbury’s

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Head-To-Head Performance

0%

25%

50%

75%

Store location

Store environment

Parking facilities

Competitive prices

Offering promotionsand discounts

Rewards programme

Quality of products

Suitable productrange

Products being instock

Stocks brands I like

Customer service

Check-out'

Online shopping

Complaints handling

Sainsbury's Tesco

© Ipsos Hong Kong


Key Findings

29%

40%

$30b

use other brands 86% 56% Prefer a

competitor

Your WAO! Share of wallet

Spend with competitors

Where is the $30 billion going?

$3,942M

$2,015M

$1,877M $1,750M

$1,284M

$1,471M

$900M

$890M $490M

$389M

Top Drivers and Potential Revenue

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How WAO! Helps You Grow

• Correlates to real business results

• Quantifies the $$$ you lose to competition

• Delivers drivers of spend

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So What About All Or Nothing Situations?

All

Nothing

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All Or Nothing Situations

But share of mind is still important! All

Nothing

Traditional loyalty questions are relevant

Likelihood to continue

Share of past behaviour

Barriers to Switching

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Traditional Measures + Share Of Mind

Combining approaches leads to valuable information

• Share of mind (how they would spread their behaviour if they could)

• + traditional switch/stay analysis

LIKELIHOOD TO SWITCH – “RISK CATEGORIES”

• Loyal/Average/At Risk • + where they will go if they do

switch – Customer Flow Models

DIAGNOSTICS

• Key Driver Analysis • Priorities for

improvement

© Ipsos Hong Kong


Transactional Programs

• Focused on recent experience

• Much shorter questionnaires

• What do we NEED to know? “Moments of Truth”

“Event”

“Touch point”

“Critical Incidents”

Experience Optimizer

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What We Need to Know ...

INTERACTION OUTCOME

If negative, what can we

do to fix things?

OVERALL RATING (relationship level)

In-coming opinion

Impact of Experience

Out-going experience

Did you experience anything eventful

in this interaction?

If eventful,

how do you feel?

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REMEMBER …

It’s what you do with it that really matters !

© Ipsos Hong Kong


For Internal Use

Thank You Roger Sant

[email protected]

+44 7899 067696

Documents

Maximizing Your Customer Experience Management Metrics · © Ipsos Hong Kong Maximizing Your Customer Experience Management Metrics Sainsbury’s Lost Revenue To ompetitors $7,884M