The First 10 Metrics - Part II
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The First 10 Metrics - Part II

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The second in the metrics series - churn rate and customer satisfaction.

The second in the metrics series - churn rate and customer satisfaction.

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The First 10 Metrics - Part II The First 10 Metrics - Part II Presentation Transcript

  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The First 10 Metrics – Part II Where Intelligent Marketing Begins
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED In the last lecture, we started looking at the metrics that drive our marketing successes…
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED We learned about the modern purchasing funnel and why it fits today’s marketing scenario better than the original
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Then we started talking about the first three metrics – brand awareness, brand equity and the “test drive” – and how each effects our marketing
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED If you weren’t missed the previous lecture, please download and review it
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Metric 4 – Customer Satisfaction Customer Satisfaction Measured by Asking
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED CSAT is not the same as awareness and is more closely related to loyalty – loyalty feeds awareness in the behavioral impact model
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Brands have established customer bases and these customers have experiences with the product/service that defines their perception of the brand
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED For example, a major automaker measured CSAT and brand purchase intent finding a one-to-one connection between CSAT and repurchase intention
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED They found that customers who had problems with their car was more satisfied and had a higher repurchase intent than those who did not have any problems at all.
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Why?
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Excellent customer service if there was a problem with the new car measurably changed perception positively toward the brand
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Therefore, CSAT is the “golden” marketing metric that bridges both loyalty and brand awareness – and can be used as a leading indicator of future sales
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED So how do we measure it?
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED On a scale of 1 to 10, would you recommend this product/service to a friend or colleague?
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED In a CSAT environment, only the people who answer 9 or 10 matter, everyone doesn’t
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED So here is my question to you – What product or service would you recommend to a friend?
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED “Would you recommend to a friend?” is the essential question to define satisfied customers
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED But does that matter to us – how many people would recommend us?
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Fred Reichheld used this question to define another essential marketing metric known as – The Net Promoter Score
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The Net Promoter Score is a better metric than the CSAT because it is more accurate
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED To get the Net Promoter Score – we subtract the average number of detractors (score 0 – 6) from the number of promoters (9 – 10).
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The difference is one word in the question – recommend becomes satisfied
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Why is this a better metric?
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED For actionable metrics, it is better to ask a few simple questions that focus the consumer’s attention
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Let me give you a couple of examples
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED A major waste management company in the United States used to call up customers and ask a series of survey questions
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED These questions started with discussions about customer garbage, pickups, cleanliness of the garbage trucks, friendliness of the workers and ended with a question about satisfaction
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Not surprisingly, the detailed discussions made the customers neutral (5 – 7) in terms of satisfaction
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Had they started with the question – “How satisfied are you with your waste management?” – the satisfaction numbers would be much higher
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED DSW is a $1.4 billion discounted brand-name footwear retailer that focuses primarily on women, but also sells men’s shows
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED DSW offers more than 2,000 styles of dress, casual, and athletic shoes, and in addition sell handbags, hosiery, and accessories. DSW operates 300 stores in more than 35 states and also sells online
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED They are opening stores at a pace of 10 per year through 2010, and also operates more than 375 leased departments inside stores operated by other retailers
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED When DSW decided to measure their CSAT, they asked some interesting survey questions
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED How likely would you be to recommend.. All things considered, how satisfied..
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Then they checked future spending
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Thinking about the past 4 months, approximately how much have you spent on shoes for yourself at DSW and other stores?
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Now, thinking about the next 4 months, approximately how much do you plan to spend on shoes for yourself at DSW and other stores?
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED To the first question – 37% of DWS customers said they would highly recommend, while 45% said that they would recommend
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Why such high levels of satisfaction?
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED DSW has an award—winning rewards program which is offered free to all store and online shoppers. Customers build up points to get reward certificates giving them discounts on purchases.
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The DSW award program has a 68% satisfaction rate
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED More importantly, when customers were asked about future shopping, these same shoppers anticipated increasing their spending at DSW over the next 4 months
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The ultimate for a marketer is when your customers are so excited about your products/services that they recommend to friends or colleagues
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Customer evangelists and fans demonstrate their emotional connection to your brand, so they become the marketing department – everywhere! Their passion adds authenticity!
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED A customer’s recommendation is the best compliment your customer can ever give your brand
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED But customer satisfaction is a double-edged sword – ask this question instead
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED What product/service would you not recommend to a friend?
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED This question can elicit a strong response – simple maintenance issues, incorrect billing, and terrible customer service
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED When people talk more about bad experiences – customer satisfaction declines decreasing future sales and damaging the brand
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED We call this metric the golden marketing metric because it links brand and loyalty in the behavioral impact model
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED What do we learn?
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED CSAT is a leading indicator of future sales and is measured through a simple question. By adding related questions, we can also judge future purchasing intent
  • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED You have to manage CSAT as actively as you do sales revenue to have a successful brand and company