Driving strategy through customer insights.

1. Case Study Andrew W. Watt
Growing Share and
Customer Satisfaction
A case study for Integrating Customer Analytics,
Research, and CRM
SITUATION
A leading CE and PC manufacturer was losing share in the rapidly encroaching
“digital world.” The company was mired in deeply seeded product silos, with
silo-oriented processes and thinking forged in the analog world. Further, the
company’s successful launch into the PC market was creating great strain on
their customer service resources­—resources built to serve the less complex
needs of an analog CE world. This strain was creating customer satisfaction
issues resulting in a black-eye for the prestigious brand while threatening
repurchase intentions across the brand (TVs, stereos, digital cameras).
Compounding the problem was the fact that the brand’s best customers were
the early adopters of the company’s new PC products, the very products
creating the customer service issues.
Unabated, the current customer service strategy and recent success in selling
PC’s would:
Decay brand preference among highly
valued customers,
Generate negative word-of-mouth by tech early adopters, traditional
opinion leaders for the category, and
Threaten future purchase intent among this highly valued and
influential customer base.
SOLUTION
Discovery of this enterprise-level issue came through VOC research, designed
to better understand the emerging needs of the early adopter, high-value
customer segment. Based on discovery of this issue, we executed a high-level
proforma threat-assessment in order to obtain
funding to execute a comprehensive customer
segmentation strategy, as well as a customer
satisfaction study.
The first project, a customer-segmentation strategy
was executed employing the company’s 10MM+
customer database. An innovative Size and Share
of Wallet Method was chosen as it best aligned
with the company’s goals.
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VOC
The process starts with
listening to customers...
then examining industry
trends in a classic SWOT
framework.
Market Share Risk

2. Andrew W. Watt Case Study
Based on accurately identifying customers with large CE wallets, we further
divided this high-value segment into High Share and Low Share buckets. Next,
we implemented a comprehensive Customer Satisfaction study. This study
helped us understand the following key metrics at a segment-level:
Customer Sat
Net Promoter Score
Future Purchase Intentions
Root Causes of dissatisfaction and drivers of satisfaction.
To help further assess risk, we built a statistically valid sub-sample for this
research of PC, early adopters (e.g., customers most likely to have large CE
wallets and giving the company a high share).
ACTIONS RESULTS
Armed with the Size and Share Segmentation and the findings from the
Customer Satisfaction Study, we took three direct courses of action and one
opportunistic action.
First we built an integrated CRM program designed to grow share by
targeting the Large Wallet High Share and Large Wallet Low Share
segments.
Second, we used the findings from the Customer Sat study, focusing on
the retention driver and repurchase intentions analysis to create a new
enterprise-wide customer service strategy.
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Grow Share
B
Share Growth
Approx. 1.36 MM HHs
Est. 20%
Defend
A
Priority Retain
Approx. 680K HHs
Est. 10%
D
Target Learn
Approx. 2.72 MM HHs
Est. 40%
C
Retain 2
Approx. 2.04 MM HHs
Est. 30%
Share of Wallet
SizeofWallet
Low High
LowHigh

3. Case Study Andrew W. Watt
Third, we integrated CRM e-newsletters and enhanced website
customer service assets to proactively provide customer service content
to our best customers.
Finally and opportunistically, working with our media team we
implemented a more targeted media buy based on the Size and Share
of Wallet segmentation strategy.
The measurable results of these efforts are as follows:
Led the company in revising their customer service strategy, moving them
from #4 in their industry to #1 in two-years.
Profitably grew market share by 11% in year one from best customers with
the integrated CRM program and service-oriented e-newsletters.
Note: measuring the impact of our revised media buy was not obtainable with
existing resources.
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