Competitive Analytics that Drive Customer Loyalty

Competitive Analytics that drive customer loyalty
Bob E. Hayes, PhD
Business Over Broadway

Overview
Competitive Analytics and Benchmarking
Percentile Rank
Using only your customer survey to benchmark your performance against your competitors
How can we use competitive benchmarking to drive improvement?
2

Benchmarking
Understand where you fit in the mix of competitors
Understand relative performance
Set standards of performance and identify best practices
Among competitors
Across customer segments
Percentile rank is the key metric
Helps you clarify the interpretation of raw scores (in the context of your competitors)
3

Percentile Rank of a Score
Percentage of scores in the frequency distribution that are the same or lower than it
If your score is at the 60th percentile, that means your score is higher than 60% of other scores
4

Distribution Properties
Percentile rank tells us our relative performance
5
50%
84%
16%
98%
2%
.1%
99.9%

Customer Perception ofPercentile Rank (C-PeRk)Example 1
6

Estimating Percentile Ranking
Include competitive question(s) in survey
How do our products compare with the alternatives?
Assign percentile valuesto response options
Calculate average across respondents
7

Competitive Ranking Estimates
How do our products compare with the alternatives?
(0 + 175 + 950 +2550 +3900) / 100 = 75.75

Customer Experience Performance
9
1 Performance of each attribute is the percent of positive responses 2 Impact is the correlation between specific Business Attribute sand Customer Loyalty Index.

Driver Matrix
10
Examine each business area’s performance and impact on loyalty simultaneously.
Key Drivers – Invest in areas to increase Customer Loyalty.
Hidden Drivers – Use features in marketing to grow customer base.
Visible Drivers – Consider features in marketing to grow customer base.
Weak Drivers – Monitor as lowest priority for investment.

Driver Matrix
11
Comparative question
Just looking at the business attributes, there is no clear key driver of customer loyalty.
To improve customer loyalty, best bet would be to focus on competitive benchmarking
Customer Loyalty Index is the average of the following four questions (Overall, Satisfaction, Quality, Value, Recommend,).

Customer Perception ofPercentile Rank (C-PeRk) Example 2
12

Estimating Percentile Ranking
Include competitive question(s) in survey
What competing products do you use?
What best describes our performance compared to the competitors you use?
Assign percentile valuesto response options
Calculate average across respondents
13

What best describes our performance compared to the competitors you use?
(0 + 400 + 1850 + 3000 + 200) / 100 = 54.5

Company’s Percentile Rankwhen competitors are present
Company’s percentile ranking is not adversely impacted by presence of most competitors – Company’s ranking is comparable to most competitors.
Competitor H’s presence in Company’s Accounts has significant negative impact on customers’ perception of Company’s performance.
* Statistically significant difference between Company’s customers who are using Competitor H and those who are not using Competitor H.

Final Thoughts
Simple / Repeatable process
See changes in your competitive ranking over time
Are percentile rank estimates related to actual percentile rankings?
Validation study to be completed in two months
Sales and Marketing
When customers’ perceptions do notmatch reality
Branding
comparing your customers who usecompetitors and those who do not
16

For More Information
Bob E. Hayes, Ph.D.
Email: bob@businessoverbroadway.com
Web: www.businessoverbroadway.com
Blog: www.businessoverbroadway.com/blog
Twitter: www.twitter.com/bobehayes

Competitive Analytics that Drive Customer Loyalty

by Business Over Broadway on May 06, 2011

Accessibility

Categories

Tags

Upload Details

Usage Rights

1 Embed 275

Statistics

Competitive Analytics that Drive Customer Loyalty — Presentation Transcript