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Competitive Analytics that drive customer loyalty<br />Bob E. Hayes, PhD<br />Business Over Broadway<br />
Overview<br />Competitive Analytics and Benchmarking<br />Percentile Rank<br />Using only your customer survey to benchmar...
Benchmarking<br />Understand where you fit in the mix of competitors<br />Understand relative performance<br />Set standar...
Percentile Rank of a Score<br />Percentage of scores in the frequency distribution that are the same or lower than it<br /...
Distribution Properties<br />Percentile rank tells us our relative performance<br />5<br />50%<br />84%<br />16%<br />98%<...
Customer Perception ofPercentile Rank (C-PeRk)Example 1<br />6<br />
Estimating Percentile Ranking<br />Include competitive question(s) in survey<br />How do our products compare with the alt...
Competitive Ranking Estimates<br />How do our products compare with the alternatives?<br />(0 + 175 + 950 +2550 +3900) / 1...
Customer Experience Performance<br />9<br />1 Performance of each attribute is the  percent of positive responses 2 Impact...
Driver Matrix<br />10<br />Examine each business area’s performance and impact on loyalty simultaneously.<br />Key Drivers...
Driver Matrix<br />11<br />Comparative question<br />Just looking at the business attributes, there is no clear key driver...
Customer Perception ofPercentile Rank (C-PeRk) Example 2<br />12<br />
Estimating Percentile Ranking<br />Include competitive question(s) in survey<br />What competing products do you use?<br /...
Competitive Ranking Estimates<br />What best describes our performance compared to the competitors you use?<br />(0 + 400 ...
Competitive Ranking Estimates<br />Company’s Percentile Rankwhen competitors are present<br />Company’s percentile ranking...
Final Thoughts<br />Simple / Repeatable process<br />See changes in your competitive ranking over time<br />Are percentile...
For More Information<br />Bob E. Hayes, Ph.D.<br />Email: bob@businessoverbroadway.com<br />Web: www.businessoverbroadway....
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Competitive Analytics that Drive Customer Loyalty

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This presentation was given at the Score Conference in Boston in April 2011. I created a new index, C-PeRk (Customer Perceptions of Percentile Rank) to help companies understand how they rank relative to their competitors.

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Competitive Analytics that Drive Customer Loyalty

  1. 1. Competitive Analytics that drive customer loyalty<br />Bob E. Hayes, PhD<br />Business Over Broadway<br />
  2. 2. Overview<br />Competitive Analytics and Benchmarking<br />Percentile Rank<br />Using only your customer survey to benchmark your performance against your competitors<br />How can we use competitive benchmarking to drive improvement?<br />2<br />
  3. 3. Benchmarking<br />Understand where you fit in the mix of competitors<br />Understand relative performance<br />Set standards of performance and identify best practices<br />Among competitors<br />Across customer segments<br />Percentile rank is the key metric<br />Helps you clarify the interpretation of raw scores (in the context of your competitors)<br />3<br />
  4. 4. Percentile Rank of a Score<br />Percentage of scores in the frequency distribution that are the same or lower than it<br />If your score is at the 60th percentile, that means your score is higher than 60% of other scores<br />4<br />
  5. 5. Distribution Properties<br />Percentile rank tells us our relative performance<br />5<br />50%<br />84%<br />16%<br />98%<br />2%<br />.1%<br />99.9%<br />
  6. 6. Customer Perception ofPercentile Rank (C-PeRk)Example 1<br />6<br />
  7. 7. Estimating Percentile Ranking<br />Include competitive question(s) in survey<br />How do our products compare with the alternatives?<br />Assign percentile valuesto response options<br />Calculate average across respondents<br />7<br />
  8. 8. Competitive Ranking Estimates<br />How do our products compare with the alternatives?<br />(0 + 175 + 950 +2550 +3900) / 100 = 75.75<br />
  9. 9. Customer Experience Performance<br />9<br />1 Performance of each attribute is the percent of positive responses 2 Impact is the correlation between specific Business Attribute sand Customer Loyalty Index.<br />
  10. 10. Driver Matrix<br />10<br />Examine each business area’s performance and impact on loyalty simultaneously.<br />Key Drivers – Invest in areas to increase Customer Loyalty.<br />Hidden Drivers – Use features in marketing to grow customer base.<br />Visible Drivers – Consider features in marketing to grow customer base.<br />Weak Drivers – Monitor as lowest priority for investment.<br />
  11. 11. Driver Matrix<br />11<br />Comparative question<br />Just looking at the business attributes, there is no clear key driver of customer loyalty.<br />To improve customer loyalty, best bet would be to focus on competitive benchmarking<br />Customer Loyalty Index is the average of the following four questions (Overall, Satisfaction, Quality, Value, Recommend,).<br />
  12. 12. Customer Perception ofPercentile Rank (C-PeRk) Example 2<br />12<br />
  13. 13. Estimating Percentile Ranking<br />Include competitive question(s) in survey<br />What competing products do you use?<br />What best describes our performance compared to the competitors you use?<br />Assign percentile valuesto response options<br />Calculate average across respondents<br />13<br />
  14. 14. Competitive Ranking Estimates<br />What best describes our performance compared to the competitors you use?<br />(0 + 400 + 1850 + 3000 + 200) / 100 = 54.5<br />
  15. 15. Competitive Ranking Estimates<br />Company’s Percentile Rankwhen competitors are present<br />Company’s percentile ranking is not adversely impacted by presence of most competitors – Company’s ranking is comparable to most competitors.<br />Competitor H’s presence in Company’s Accounts has significant negative impact on customers’ perception of Company’s performance.<br />* Statistically significant difference between Company’s customers who are using Competitor H and those who are not using Competitor H.<br />
  16. 16. Final Thoughts<br />Simple / Repeatable process<br />See changes in your competitive ranking over time<br />Are percentile rank estimates related to actual percentile rankings?<br />Validation study to be completed in two months<br />Sales and Marketing<br />When customers’ perceptions do notmatch reality<br />Branding <br />comparing your customers who usecompetitors and those who do not<br />16<br />
  17. 17. For More Information<br />Bob E. Hayes, Ph.D.<br />Email: bob@businessoverbroadway.com<br />Web: www.businessoverbroadway.com<br />Blog: www.businessoverbroadway.com/blog<br />Twitter: www.twitter.com/bobehayes<br />

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