Kathryn Saducas Partner marketing manager Are your Customers Satisfied?
The importance of  customer satisfaction  to your business
Customer focused  organisation
Goals of Customer Focus: End goal of customer focused strategies is the same: Boosting retention and repurchase = more sal...
Business Performance Factors Contribution to Shareholder Value Source: Price Waterhouse Coopers, 2002
Customer Satisfaction = Profits <ul><li>Knowing what drives customer loyalty is important to your company’s financial heal...
What are your customers worth? <ul><li>S  = average revenue per customer sale </li></ul><ul><li>C  = costs of servicing cu...
What are your customers worth? <ul><li>S  = average revenue per customer per sale </li></ul><ul><li>C  = costs of servicin...
Why Customer Sat. is important? Study by Le Beouf:  “ the reasons why customers no longer dealt with a particular supplier”
A customer satisfaction program
Customer-Focused Initiatives Customer Value Attache Nokia product engineer goes on-site with customer for up to 1 month to...
The 6 Ps of Marketing
Customer Feedback Program <ul><li>With a well constructed feedback program you can get key insights into customers to: </l...
Customer Program Activities <ul><li>Assess internal root cause for customer perceptions – satisfaction drivers </li></ul><...
Case Studies <ul><li>Rice University Case Study showed customer satisfaction improves customer retention and company profi...
At Microsoft <ul><li>Worldwide Survey Apr & Oct </li></ul><ul><li>Customer Escalation Tool </li></ul><ul><li>RMTP – Respon...
Understand Satisfaction Drivers Customer  Satisfaction Access to products & Services Emotional Factor Service  Quality Pri...
Value Mapping low high high satisfaction value support product reputation Sales staff Brand service Easy to do bus with Bu...
Example of Value Mapping Service Deployment Time [30%] Reputation and customer testimonials [25%] Account Managers/ Sales ...
Avoiding the Pitfalls <ul><li>Listening to the wrong customers </li></ul><ul><li>Incorrectly identifying customer prioriti...
Case Study – GAP Clothing
Ways to  measure  customer satisfaction
Different forms of measurement Annual Customer Satisfaction Surveys Focus Groups (Formal/ informal) Online Questionnaires ...
Partner Program - CSAT Tool http://www.microsoft.com/partner/media/ csat /
 
Microsoft CSAT – Points Awarded Partners may only survey the same individual once every six months. Only the first eight i...
Measurement & Reporting <ul><li>“ Satisfaction” can be measured on a scale </li></ul><ul><li>Align business functions arou...
Food for Thought The name of the game should be about  &quot;giving customers a memory and experience so great that they'l...
10 Golden Rules <ul><li>Believe customers  possess good ideas </li></ul><ul><li>Gather customer feedback at every opportun...
In Summary “ You can’t move a mountain in a day, but you can make it easier to climb by clearing a path.”
Information Source: <ul><li>“ Why track end to end customer experience?”  TNS Prognostics White paper </li></ul><ul><li>“ ...
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  • Hello! I congratulate you for your excellent presentation. It’s really interesting. Here is a related presentation that you might find it to be useful. http://www.slideshare.net/CommLab/steps-to-retain-existing-customers
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Are Your Customers Satisfied?

  1. 1. Kathryn Saducas Partner marketing manager Are your Customers Satisfied?
  2. 2. The importance of customer satisfaction to your business
  3. 3. Customer focused organisation
  4. 4. Goals of Customer Focus: End goal of customer focused strategies is the same: Boosting retention and repurchase = more sales!!! Creating Better Products or Services Offering compelling customer experience Building deeper customer relationships
  5. 5. Business Performance Factors Contribution to Shareholder Value Source: Price Waterhouse Coopers, 2002
  6. 6. Customer Satisfaction = Profits <ul><li>Knowing what drives customer loyalty is important to your company’s financial health </li></ul><ul><li>Repeat customers and new customers from referrals  continuous revenue streams </li></ul><ul><li>Disloyal customers are expensive to replace </li></ul><ul><li>Attracting NEW customer is 4 x cost of retaining existing customer </li></ul><ul><li>5% increase in customer retention  75% in aggregate lifetime profits from that customer </li></ul>
  7. 7. What are your customers worth? <ul><li>S = average revenue per customer sale </li></ul><ul><li>C = costs of servicing customer </li></ul><ul><li>V = expected # sales per year </li></ul><ul><li>Y = expected # years customer will use your services </li></ul><ul><li>A = cost of acquiring new customer </li></ul><ul><li>N = # of referrals from customer </li></ul><ul><li>F = correction factor </li></ul><ul><li>Lifetime Value of Customer (CLV) </li></ul><ul><li>= </li></ul><ul><li>[(S-C)*(V*Y)-A+(A*N)]*F </li></ul><ul><li>OR </li></ul><ul><li>Margin * # sales – cost of acquisition + savings from referrals * correction factor </li></ul>Customer Lifetime Value = CLV
  8. 8. What are your customers worth? <ul><li>S = average revenue per customer per sale </li></ul><ul><li>C = costs of servicing customer </li></ul><ul><li>V = expected # sales per year </li></ul><ul><li>Y = expected # years customer will use your services </li></ul><ul><li>A = cost of acquiring new customer </li></ul><ul><li>N = # of referrals from customer </li></ul><ul><li>F = correction factor </li></ul><ul><ul><li>S = $20,000 </li></ul></ul><ul><ul><li>C = $5,000 </li></ul></ul><ul><ul><li>V = 2 </li></ul></ul><ul><ul><li>Y = 5 </li></ul></ul><ul><ul><li>A = $1500 </li></ul></ul><ul><ul><li>N = 4 </li></ul></ul><ul><ul><li>F = 1.2 </li></ul></ul><ul><li>CLV = [($20000-$5000)*(2*5)-$1500+(1500*4)]*1.2 </li></ul><ul><li>CLV = $185,400 </li></ul>Customer Lifetime Value = CLV
  9. 9. Why Customer Sat. is important? Study by Le Beouf: “ the reasons why customers no longer dealt with a particular supplier”
  10. 10. A customer satisfaction program
  11. 11. Customer-Focused Initiatives Customer Value Attache Nokia product engineer goes on-site with customer for up to 1 month to learn about challenges and show how Nokia can add value Customer Champion Create a customer champion Director who is responsible for championing the voice of the customer through the organisation. Customer Success Engineer Team Centralised group that diagnoses root causes of complex customer problems and implements solutions across business Everyday Life Observation To gain deeper understanding of customer, send video crews & TV cameras into 80 households around world to capture customer daily routines Customer Charter & Advocate Independent customer advocate whose role is to resolve particularly difficult customer and business problems. Customer charter to improve customer experience with service. Customer Partner Experience Organisation-wide customer and partner satisfaction index to provide a holistic view of business health and trigger specific corrective actions where necessary.
  12. 12. The 6 Ps of Marketing
  13. 13. Customer Feedback Program <ul><li>With a well constructed feedback program you can get key insights into customers to: </li></ul><ul><ul><li>Identify key drivers of customer experience </li></ul></ul><ul><ul><li>Glean insights into health of your company </li></ul></ul><ul><ul><li>Detect early warnings of any erosion of your relationship or value proposition </li></ul></ul>
  14. 14. Customer Program Activities <ul><li>Assess internal root cause for customer perceptions – satisfaction drivers </li></ul><ul><li>Derive action plans to resolve most critical issues – set your objectives </li></ul><ul><li>Implement these actions </li></ul><ul><li>Track your progress with ongoing customer research </li></ul><ul><li>Link these customer metrics to your financial results & staff incentives </li></ul><ul><li>Tell your customers how you used their feedback </li></ul>2 1 3 4 5 6
  15. 15. Case Studies <ul><li>Rice University Case Study showed customer satisfaction improves customer retention and company profits </li></ul><ul><li>Methodology: </li></ul><ul><ul><li>50% surveyed (group 1) and 50% not surveyed (group 2) </li></ul></ul><ul><ul><li>Group 1 were twice as loyal to company </li></ul></ul><ul><li>Conclusion? </li></ul><ul><ul><li>Customers want to be coddled </li></ul></ul><ul><ul><li>Surveys  increase in auxiliary product sales </li></ul></ul><ul><ul><li>Surveys create opinions </li></ul></ul>
  16. 16. At Microsoft <ul><li>Worldwide Survey Apr & Oct </li></ul><ul><li>Customer Escalation Tool </li></ul><ul><li>RMTP – Response Management Through Partner </li></ul><ul><li>Feedback forms at events (9 point scale) </li></ul><ul><li>Tactical Research – Qualitative & Quantitative </li></ul><ul><li>Anecdotal feedback </li></ul><ul><li>Roundtable sessions </li></ul>
  17. 17. Understand Satisfaction Drivers Customer Satisfaction Access to products & Services Emotional Factor Service Quality Price Product Quality
  18. 18. Value Mapping low high high satisfaction value support product reputation Sales staff Brand service Easy to do bus with Bus expertise
  19. 19. Example of Value Mapping Service Deployment Time [30%] Reputation and customer testimonials [25%] Account Managers/ Sales experience [15%] After Sales Support [10%] Business Process [10%] Market/Branding [5%] Innovation [3%] Strategic Direction [2%] low high high satisfaction 1 2 3 4 5 6 7 8 9
  20. 20. Avoiding the Pitfalls <ul><li>Listening to the wrong customers </li></ul><ul><li>Incorrectly identifying customer priorities </li></ul><ul><li>Failing to consider strategic objectives </li></ul><ul><li>Failing to align organisation around execution </li></ul><ul><li>Failing to ‘get paid’ by customers for new value </li></ul><ul><li>Losing momentum – “campaign mentality” </li></ul>
  21. 21. Case Study – GAP Clothing
  22. 22. Ways to measure customer satisfaction
  23. 23. Different forms of measurement Annual Customer Satisfaction Surveys Focus Groups (Formal/ informal) Online Questionnaires Phone or Fax Surveys Feedback Forms Online Polls Customer Service Feedback CRM Software Other Surveys (Benchmarking, Employee, Org Alignment)
  24. 24. Partner Program - CSAT Tool http://www.microsoft.com/partner/media/ csat /
  25. 26. Microsoft CSAT – Points Awarded Partners may only survey the same individual once every six months. Only the first eight individual responses per customer organisation are eligible toward Partner Points calculations. 20 185-200                 15 175-184                 10 165-174                 Points NSAT Score     Net Satisfaction (20+ responses required) 20 100+ 15 50-99 10 25-49 5 10-24 Points Individual Customer Responses   Participation
  26. 27. Measurement & Reporting <ul><li>“ Satisfaction” can be measured on a scale </li></ul><ul><li>Align business functions around a single customer-focused metric </li></ul>NSAT = (VSAT-DSAT) +100 VSAT = 8+9 DAST = 1 to 4
  27. 28. Food for Thought The name of the game should be about &quot;giving customers a memory and experience so great that they'll want to repeat it.&quot; The game is not all about getting that score—that darned customer score—any way possible.
  28. 29. 10 Golden Rules <ul><li>Believe customers possess good ideas </li></ul><ul><li>Gather customer feedback at every opportunity </li></ul><ul><li>Focus on continual improvement – start with top 10 issues bugging your customers </li></ul><ul><li>Solicit good and bad feedback </li></ul><ul><li>Seek real time feedback </li></ul><ul><li>Don’t spend vast sums of money </li></ul><ul><li>Make it easy for customers to provide feedback </li></ul><ul><li>Leverage technology to aid efforts </li></ul><ul><li>Share feedback throughout the company </li></ul><ul><li>Use feedback to make quick changes </li></ul>1 2 3 4 5 6 7 8 9 10
  29. 30. In Summary “ You can’t move a mountain in a day, but you can make it easier to climb by clearing a path.”
  30. 31. Information Source: <ul><li>“ Why track end to end customer experience?” TNS Prognostics White paper </li></ul><ul><li>“ Driving Customer-Focused Decision Making” – Marketing Leadership Council USA </li></ul><ul><li>www.Marketingprofs.com </li></ul>
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