Managing Customer Loyalty - Micro and Macro ApproachPresentation Transcript
Managing Customer Loyalty Micro and Macro Approach Bob E. Hayes, Ph.D.
Overview Customer Loyalty and Business Growth Micro Approach to Improving Loyalty Macro Approach to Improving Loyalty Summary
The degree to which customers experience positive feelings for, possess allegiance to, and exhibit positive behaviors toward a company Customer Loyalty
Research shows companies with higher customer loyalty experience accelerated business growth Customer Loyalty Key to Business Growth 1 Retention, Advocacy, Purchasing, Renewal rate, Churn rate
Micro Level Approach to Increase Customer Loyalty Understand the customer relationship for a specific survey respondent Individual survey respondents Identify customers who indicate they are disloyal Threatened customer relationship Use individual loyalty questions Target improvements on disloyal customers to address specific needs immediately Action plan directed at impacting individual customers
Proactive Follow-up – Notification Distribute completedsurvey response tothe Account team Highlight issues around loyaltyquestions or specificbusiness attributequestions Distribute survey responses to all business units with an identified satisfaction or loyalty problem
Proactive Follow-up – Customer Contact Account team coordinates follow up with the customer to address all identified issues All business units with issues participate in follow-up Sales Product Services Use CRM system,if available, tomanage andmonitor thefollow up processand track follow-up activities
Integrate with Account Planning Provide the Account team with tools and access to customer satisfaction data for their accounts Include customersatisfaction objectivesin the account plan Minimize surprisesbefore visiting anaccount
Business Unit Review Each business unit takes ownership for their area Link specific questions to each business unit Identify Customer Satisfaction Officers in each business unit Manage the process Leverage reporting tools Engage the rest of the business unit Develop and execute action plans to address issues Example: Vertical Industry Product Marketing Customer Satisfaction Officer for each industry Receives trigger emails for product target gaps of 2 or higher Contacts customers to understand product issues Identifies Product Marketing follow up items Reports quarterly to management on PM specific metrics and actions
Macro Level Approach to Increase Customer Loyalty Understand the customer relationship across all customers Analyze entire customer base Identify systemic reasons causing loyalty/disloyalty Software quality, technical support, staff knowledge Target company-wide improvement programs directed at all customers Help improve the service delivery system Impacts how the work gets done
Business Areas Performance and Impact on Customer Loyalty
Performance in Business Areas Performance (average satisfaction with business areas)
Impact on Customer Loyalty Impact is correlation between business areas and customer loyalty If you can perform well in these areas, customers will likely have high loyalty.
Driver Matrix Helps Prioritize Investments For each business area, examine its 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.
To improve customer loyalty, you may consider focusing on following areas: Perceived Customer Value Perceived Customer Centricity Account Management Global Customer Support Where to begin improvements
To focus marketing message, you may consider leveraging following areas: Saas CRM Product Effectiveness Advanced Customer Services SaaS Partner Satisfaction Marketing Messages
Marketing/Improving Your App 1 Business area ratings range from 0 (Extremely Dissatisfied) to 10 (Extremely Satisfied; 2 Impact is the correlation between Business Area sand Customer Loyalty. Consider Improve Leverage
Outcomes of Two Approaches Micro level approach Addresses special causes of disloyalty Focuses on changing individual issues Customer-specific improvements Short-term Macro level approach Addresses common causes of disloyalty Focuses on improving systemic issues Organization-wide improvements Long-term Both approaches impact customer loyalty Addresses specific customer’s concerns Improves the service delivery system
Managing Customer Disloyalty Both approaches (micro and macro) needed to manage customer loyalty
For More Information Business Over Broadway Business growth through customer insight Bob E. Hayes, Ph.D. Email: email@example.com Web: www.businessoverbroadway.com Blog: www.businessoverbroadway.blogspot.com Twitter: www.twitter.com/bobehayes