Key Performance Indicators - Marketing Project HTW & Xerox

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Key Performance Indicators - Marketing Project HTW & Xerox. Michael Gross, Kasey Navita Phifer, Alina Sachapow, Nadja Scheibler, Regine Bullon

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  • MICHA Add HTW logo 23.01.12
  • MICHA 23.01.12
  • MICHA successful performance ensured by specific KPIs developed for a service company 23.01.12
  • MICHA successful performance ensured by specific KPIs developed for a service company 23.01.12
  • MICHA 23.01.12
  • MICHA 23.01.12
  • MICHA 23.01.12
  • MICHA successful performance ensured by specific KPIs developed for a service company 23.01.12
  • MICHA 23.01.12
  • MICHA successful performance ensured by specific KPIs developed for a service company 23.01.12
  • MICHA 23.01.12
  • MICHA successful performance ensured by specific KPIs developed for a service company 23.01.12
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  • Regine Source, readable 23.01.12
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  • Regine überleitung nadja successful performance ensured by specific KPIs developed for a service company 23.01.12
  • NADJA erste slide 23.01.12
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  • NADJA Use logo from xerox 23.01.12
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  • MICHA 23.01.12
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  • Key Performance Indicators - Marketing Project HTW & Xerox

    1. 1. Relevant Marketing Key Performance Indicators (KPIs) in Different Industries; Xerox diversifying into the service division Regine Bullon, Michael Gross, K. Navita Phifer, Alina Sachapow, Nadja Scheibler contact: www.knavita.com 23.01.12 Student project in collaboration with Xerox for the B.A. International Business program HTW (University of Applied Sciences) Berlin
    2. 2. Aim of the project <ul><li>Xerox does not need to analyze or improve its current business </li></ul><ul><li>Rather, Xerox should diversify in order to stay competitive in today ‘ s changing market </li></ul><ul><li>Pointing out three important industries for Xerox </li></ul><ul><li>Diversify the business model of Xerox to specialize in personalized white space marketing </li></ul><ul><li>The focus is on an additional service offered to their clients </li></ul><ul><li>Service can be measured through key performance indicators </li></ul>23.01.12 2
    3. 3. Overview: HTW & Xerox marketing project focusing on key performance indicators <ul><li>Fundamentals of key performance indicators (KPIs) </li></ul><ul><li>Explanation of most important KPI s used in the following industries: </li></ul><ul><ul><li>Insurance industry </li></ul></ul><ul><ul><li>Airline industry </li></ul></ul><ul><ul><li>Telecommunication industry </li></ul></ul><ul><li>Xerox, a new division concentrating on services </li></ul>23.01.12 3
    4. 4. Overview: HTW & Xerox marketing project focusing on key performance indicators <ul><li>Fundamentals of key performance indicators (KPIs) </li></ul><ul><li>Explanation of most important KPI s as used in the following industries: </li></ul><ul><ul><li>Insurance industry </li></ul></ul><ul><ul><li>Airline industry </li></ul></ul><ul><ul><li>Telecommunication industry </li></ul></ul><ul><li>Xerox, a new division concentrating on services </li></ul>23.01.12 4
    5. 5. I. KPIs are a tool to measure performance <ul><li>Definition: A key performanceiIndicator (KPI) is commonly used by an organization to evaluate its success in reaching strategic goals by measuring processes and performance toward a set goal or comparing actual against past performance. (AP Institute) </li></ul><ul><li>Most data for KPIs can be found only through service, through direct questionnaires, studies, data analyzation or similar methods. </li></ul>23.01.12
    6. 6. <ul><li>There are literally thousands of KPIs and a formula for each; Some examples </li></ul>23.01.12 Customer Acquisition Rate & Cost Customer Churn Rate Customer Satisfaction Index Brand Awareness Level Customer Lifetime Value Conversion Rate Customer Significance Level Customer Acquisition Rate Customer Complaint Ratio Customer Acquisition Cost
    7. 7. <ul><li>The focus is on the most important key performance indicators in 3 industries </li></ul><ul><li>Insurance industry </li></ul><ul><li>Airline industry </li></ul><ul><li>Telecommunication industry </li></ul>23.01.12
    8. 8. Overview: HTW & Xerox marketing project focusing on key performace indicators <ul><li>Fundamentals of key performance indicators (KPIs) </li></ul><ul><li>Explanation of most important KPI s as used in the following industries: </li></ul><ul><ul><li>Insurance industry </li></ul></ul><ul><ul><li>Airline industry </li></ul></ul><ul><ul><li>Telecommunication industry </li></ul></ul><ul><li>Xerox, a new division concentrating on services </li></ul>23.01.12
    9. 9. <ul><li>Three example KPIs for insurance companies </li></ul><ul><li>Number of policy sales These numbers are compared against the previous quarter(s) and against the forecasted amounts or target number </li></ul><ul><li>Number of years the clients stays with the company In the insurance industry, this is measure through the customer retention formula: </li></ul><ul><li>Source: http://ezinearticles.com/?Identifying-the-Most-Common-Insurance-KPI&id=1240969 </li></ul>23.01.12 <ul><li>Customer lapse ratio A lapse, or missed payment, can lead to undesirable incidents such as foreclosure The ratio is given as a percentage of the total policies sold </li></ul>
    10. 10. Overview: HTW & Xerox marketing project focusing on key performace indicators <ul><li>Fundamentals of key performance indicators (KPIs) </li></ul><ul><li>Explanation of most important KPI s as used in the following industries: </li></ul><ul><ul><li>Insurance industry </li></ul></ul><ul><ul><li>Airline industry </li></ul></ul><ul><ul><li>Telecommunication industry </li></ul></ul><ul><li>Xerox, a new division concentrating on services </li></ul>23.01.12
    11. 11. II. Three example KPIs for airline companies <ul><li>Occupancy rate: Formula: </li></ul><ul><li>Realized price is the price paid for each seat sold per flight; This can be measured on average, median, mean, or difference between cheapest and most expensive seats sold </li></ul><ul><ul><li>Formula: </li></ul></ul><ul><li>Loyalty rate is the number of customers staying with the company Formula: </li></ul>23.01.12
    12. 12. Overview: HTW & Xerox marketing project focusing on key performace indicators <ul><li>Fundamentals of key performance indicators (KPIs) </li></ul><ul><li>Explanation of most important KPI s as used in the following industries: </li></ul><ul><ul><li>Insurance industry </li></ul></ul><ul><ul><li>Airline industry </li></ul></ul><ul><ul><li>Telecommunication industry </li></ul></ul><ul><li>Xerox, a new division concentrating on services </li></ul>23.01.12
    13. 13. <ul><li>Three example KPIs for telecommunication companies </li></ul><ul><li>Average revenue per user shows the importance of a customer through revenue generated Formula: </li></ul><ul><li>Subscriber acquisition rate: Formula: </li></ul><ul><li>Average call time: </li></ul><ul><li>Shows the importance of a customer </li></ul><ul><li>Formula: </li></ul>13
    14. 14. <ul><li>There are difficulties when using KPIs to measure business performance </li></ul><ul><li>Measurement & data collection </li></ul><ul><li>Analyzing </li></ul><ul><li>Quantifiable performance measurement </li></ul><ul><li>Risk to lose quality when focusing quantity, numbers & data </li></ul><ul><li>No corrective action </li></ul><ul><li>Source: </li></ul><ul><li>http://www.ap-institute.com/Key%20Performance%20Indicators.html </li></ul>23.01.12
    15. 15. <ul><li>Summary of KPIs used in the industries connected to Xerox </li></ul><ul><li>Useful measurements even though large variety </li></ul><ul><li>Industries own measurements and different interpretations, </li></ul><ul><li>Analyzing data followed from actions of the company taken </li></ul><ul><li>Relevant industries for Xerox: </li></ul><ul><ul><li>insurances , airlines and Telco </li></ul></ul><ul><li>Example KPIs to be integrated in Xerox measurement </li></ul><ul><li>Service division as diversified business model of Xerox following </li></ul>23.01.12
    16. 16. Overview: HTW & Xerox marketing project focusing on key performace indicators <ul><li>Fundamentals of key performance indicators (KPIs) </li></ul><ul><li>Explanation of most important KPI s as used in the following industries: </li></ul><ul><ul><li>Insurance industry </li></ul></ul><ul><ul><li>Airline industry </li></ul></ul><ul><ul><li>Telecommunication industry </li></ul></ul><ul><li>Xerox, a new division concentrating on services </li></ul>23.01.12
    17. 17. III. The current situation of Xerox <ul><li>Well-respected company </li></ul><ul><li>One of the best printers and manufacturers worldwide </li></ul><ul><li>Challenge: </li></ul><ul><ul><li>shrinking market </li></ul></ul><ul><ul><li>saturated market </li></ul></ul><ul><li>Xerox should diversify its business portfolio </li></ul><ul><li>Focus on service </li></ul><ul><li>Consequently: </li></ul><ul><ul><li>acting as a service platform </li></ul></ul><ul><ul><li>specializing in white space marketing </li></ul></ul><ul><ul><li>emphasizing on personalized content </li></ul></ul>23.01.12
    18. 18. <ul><li>Xerox service platform offering personalized transpromo content </li></ul><ul><li>Developing a platform offering B2B services </li></ul><ul><li>Specialty: printed and digital personalized white space marketing (WSM) </li></ul><ul><li>Terms & definitions used: </li></ul><ul><li>These WSM „communications “ are called transpromo </li></ul><ul><li>Transpromo = trans actional print + sales promo tion </li></ul>23.01.12
    19. 19. <ul><li>Xerox provides the following services </li></ul><ul><li>Connects Providers and Users </li></ul><ul><li>Data management: receive, analyze and organize customer data provided by clients </li></ul><ul><li>Creation, design and printing of transpromo content </li></ul><ul><li>Response processing: organization and tracking of responses and evaluation of surveys </li></ul><ul><li>Creation of KPIs and analysis of the service provision </li></ul>23.01.12
    20. 20. <ul><li>Defining terms for Xerox ‘ new business; its partnerships and relations </li></ul><ul><li>Xerox has two different kinds </li></ul><ul><li>of clients (B2B): </li></ul><ul><li>Clients offering the space for transpromo on their documents are called “ Providers “ </li></ul><ul><li>Clients who placing their transpromo on the documents of the Providers are called “ Users “ </li></ul>23.01.12
    21. 21. <ul><li>Defining terms for Xerox ‘ business partnerships and relations </li></ul><ul><li>“ Customers “ receive the documents and see the transpromo content. </li></ul><ul><li>As we are acting on behalf of our clients, their customers become our B2C contacts </li></ul><ul><li>Transpromo content </li></ul>23.01.12
    22. 22. <ul><li>Business Model of Xerox service division </li></ul>23.01.12 B2B B2C Xerox Provider User Customer
    23. 23. <ul><li>Information flow for setting up transpromo content </li></ul>23.01.12 B2B B2C Provider Plus ++ User Air Berlin Xerox Customer Mr. Steinbach Information Information Mr. Steinbach calls Miami 3 times a week Advertisement for flights to Miami Receives transpromo content on his phone bill
    24. 24. <ul><li>Future outlook: the possible role of Facebook as example for social networks </li></ul><ul><li>Xerox develops apps for Facebook </li></ul><ul><li>different apps are created for different segments in order to reach as many customers as possible to gather their data, such as: </li></ul><ul><ul><li>Birthday -tracking calendar </li></ul></ul><ul><ul><li>News </li></ul></ul><ul><ul><li>Games </li></ul></ul><ul><ul><li>Horoscopes </li></ul></ul><ul><li>Data is received through the apps and is used to create personalized transpromos </li></ul>23.01.12
    25. 25. <ul><li>Information flow for setting up transpromo content </li></ul>23.01.12 B2B B2C Provider Plus ++ User Air Berlin Xerox Customer Mr. Steinbach Information Information Mr. Steinbach calls Miami 3 times a week Advertisement for flights to Miami Receives transpromo content on his phone bill Information Facebook App Information that aunt lives in Miami
    26. 26. <ul><li>At different points of the customer lifecycle Xerox uses KPIs to evaluate the success of its services </li></ul>23.01.12 Customer life cycle
    27. 27. <ul><ul><li>Customer Response Rate: Is the reaction to transpromo WS marketing, for example: Formula: </li></ul></ul><ul><ul><li>Brand Awareness Level: </li></ul></ul><ul><ul><li>Of business clients ’ customers can be measured through surveys </li></ul></ul><ul><ul><ul><li>Formula: </li></ul></ul></ul>23.01.12 Print Digital calling a certain telephone number clicking on the transpromo link Accessing a specific transpromo QR code Download Brochures/PDFs Using vouchers or coupon codes Accessing personalized website Find
    28. 28. <ul><ul><li>Customer Acquisition Rate: </li></ul></ul><ul><ul><ul><li>Formula: </li></ul></ul></ul><ul><ul><li>Customer Acquisition Cost: </li></ul></ul><ul><ul><li>Formula: </li></ul></ul>23.01.12 Find Consider
    29. 29. <ul><ul><li>Customer Significance Level: </li></ul></ul><ul><ul><li>Shows dependence of the clients on their large customers </li></ul></ul><ul><ul><ul><li>Formula: </li></ul></ul></ul><ul><ul><li>Matching rate: </li></ul></ul><ul><ul><ul><li>Number of Users matched to Providers </li></ul></ul></ul><ul><ul><ul><li>Formula Provider: </li></ul></ul></ul><ul><ul><ul><li>Formula User: </li></ul></ul></ul>23.01.12 Find Consider Purchase
    30. 30. <ul><ul><li>Additional revenue for provider generated by selling WS </li></ul></ul><ul><ul><li>Effectiveness of the WS advert for the users: </li></ul></ul><ul><ul><ul><li>measured by brand awareness or </li></ul></ul></ul><ul><ul><ul><li>measured by additional revenues </li></ul></ul></ul><ul><ul><ul><li>Formula: Revenues generated by transpromo - money spent for the service bought </li></ul></ul></ul><ul><ul><li>Customer Satisfaction Index: </li></ul></ul><ul><ul><li>Customer Complaint Ratio: </li></ul></ul><ul><ul><li>How many customers complain relative to services delivered </li></ul></ul><ul><ul><ul><li>Formula: </li></ul></ul></ul>23.01.12 Find Consider Purchase Develop
    31. 31. <ul><ul><li>Re-purchase rate: </li></ul></ul><ul><ul><li>Formula: </li></ul></ul><ul><ul><li>Customer Churn Rate: </li></ul></ul><ul><ul><ul><li>Determine the reasons for leaving (dissatisfaction, other company ’ s better promotion campaign, personal reasons) </li></ul></ul></ul><ul><ul><ul><li>Formula: </li></ul></ul></ul><ul><ul><li>Customer Lifetime Value: </li></ul></ul><ul><ul><ul><li>Value of a customer throughout their customer life cycle </li></ul></ul></ul><ul><ul><li>Formula: </li></ul></ul>23.01.12 Find Consider Purchase Develop Retain
    32. 32. <ul><li>Summary to set up the service division </li></ul><ul><li>Xerox sets up a new division connecting Providers and Users specializing in personalized transpromo </li></ul><ul><li>Data management and response processing is done by Xerox </li></ul><ul><li>Measuring and analyzing performance of: </li></ul><ul><ul><li>service platform </li></ul></ul><ul><ul><li>company ’ s advantages gained </li></ul></ul><ul><li>confusion and difficulties through key performance measurements </li></ul><ul><li>Xerox manages and prepares the data for the User and Provider it offers each company the adequate action </li></ul>23.01.12
    33. 33. <ul><li>The recipe for success: </li></ul><ul><li>ervice = Xer ox + Ser vice </li></ul>23.01.12
    34. 34. <ul><li>Importance of using Facebook to access new customers </li></ul>23.01.12 Source: Facebook.com
    35. 35. <ul><li>Keeping up with the competition moo specialized in printing business cards </li></ul>23.01.12 little icon connects to moo.com
    36. 36. <ul><li>Ordering business cards on moo.com </li></ul>23.01.12
    37. 37. <ul><li>Thinking out of the box ervice offers photoalbum printing </li></ul>23.01.12
    38. 38. <ul><li>Click on the icon connects to xervice.org </li></ul>23.01.12 Click to print
    39. 39. Referent · 23.01.12 xervice
    40. 40. Thank you. Referent · 23.01.12 von xx Seiten www.xervice.org

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