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Information Excellence 2015 Spring Summit Business Analytics
Dr. Bindu Narayan, Strategic Projects, HP Global Analytics
Me...
Information Excellence 2015 Spring Summit Business Analytics
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without n...
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without n...
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without n...
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without n...
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without n...
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without n...
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without n...
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without n...
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without n...
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without n...
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without n...
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without n...
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without n...
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without n...
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without n...
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without n...
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without n...
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without n...
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without n...
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without n...
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without n...
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without n...
Information Excellence 2015 Spring Summit Business Analytics
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201503 ieg preso_bindu narayan_hp_publish

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Measuring Loyalty, Real Time: An HP Case Study

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201503 ieg preso_bindu narayan_hp_publish

  1. 1. Information Excellence 2015 Spring Summit Business Analytics Dr. Bindu Narayan, Strategic Projects, HP Global Analytics Measuring Loyalty, Real Time: An HP Case Study
  2. 2. Information Excellence 2015 Spring Summit Business Analytics
  3. 3. © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Measuring Loyalty Real Time An HP Case Study Bindu Narayan HP Global Analytics
  4. 4. © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.2 Agenda Loyalty and Net Promoter Score (NPS) Measuring NPS real time – The genesis NPS Real Time Solution – The journey
  5. 5. © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.3 Loyalty… Willingness of a person ( a customer/ an employee/ a friend) to make an investment or personal sacrifice in order to strengthen the relationship (Reichheld, 2003). Usage of a product/service Satisfaction Continued patronage Dissatisfaction Exit Decreased Revenue Increased Revenue
  6. 6. © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.4 Measuring loyalty Loyalty Repurchase Intention to repurchase Intention to recommend Price Tolerance Preference
  7. 7. © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.5 Fred Reichheld and Net Promoter Score (NPS) "One Number You Need to Grow". Harvard Business Review, December 2003 “Intention to recommend is the best proxy for Loyalty”
  8. 8. © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.6 A 10-point scaled single question on intention to recommend What is NPS? 0 1 2 3 4 5 6 7 8 9 10Not at all likely Extremely likely Based on your experience, how likely is it you would recommend HP to a friend?
  9. 9. © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.7 How is NPS calculated? 0 1 2 3 4 5 6 7 8 9 10Not at all likely Extremely likely Based on your experience, how likely is it you would recommend HP to a friend?
  10. 10. © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.8 NPS Stars by Industry Source: Satmetrix 2010 NPS Benchmark Study of US Consumers
  11. 11. © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.9 Net Promoter Score… …is a clarion call within our company … NPS is the single greatest predictor of whether they will return and promote our company, or defect to a competitor and detract from it.
  12. 12. © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.10 • NPS survey has an annual cadence • BUT, markets and consumer preferences keep changing fast • NPS survey doesn’t capture customer loyalty in real time Is something missing?
  13. 13. © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.11 • Unstructured data from various online sources • There is a global coverage • Accessible anytime • Real time reflection of consumer preferences • Survey NPS vs. Social NPS Is there an alternative?
  14. 14. © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.12 Developing a POC… Objective: To develop a tool which can leverage unstructured data and estimate NPS on a real time basis, without dependency on surveys Proof Of Concept Scope Country | United States Business Group | Personal and Printing Systems Customer Segment | Consumers Platform | Big Data Platform of HP Quality Office Data Type | Customer Review comments Language | English
  15. 15. © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.13 Analytical Journey POC developed for US Consumer using customer review comments Exploration of algorithms Exploration of data sources Initial success in modeling Deep dive on data sources (US) Monthly & Product level analysis Calibration We are here
  16. 16. © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.14 It makes an inference on the author’s propensity to recommend by reading a text How does the algorithm work? Text data Will he/she recommend HP’s products?
  17. 17. © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.15 Words are interconnected through meaning and semantic similarity Leveraging Wordnet published by Princeton Product Technology Science Learning Knowledge Skills Perception Conceive Aware Industry Sale buy purchase Re-purchase Value Service assistance Resource Need Satisfaction help Contribution Effort Usage Preference Like Suggest • Project started in mid-1980s at Princeton University • Large lexical database of English. Nouns, verbs, adjectives and adverbs grouped into sets of cognitive synonyms. • Tree structures on Pedagogical relation, Product relation , Animal relation, Disease Ontology, Historical Ontology available • Used mostly by researchers who work in linguistics and NLP. • Sun Microsystem Labs & Laboratory Informatics Nantes Atlantique among users Ontology – “A set of concepts within a domain, using a shared vocabulary to denote the types, properties and interrelationships of those concepts”
  18. 18. © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.16 Exploration of Data Sources Social NPS Call Centre Linked in Forums Blogs Social Media (FB, Twitter) e-Commerce websites Challenges with data • Social Media Grammar • Twitter word limit • Only queries on forums • Complaint bias in call centers
  19. 19. © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.17 List Detractors List Passives List Promoters Algorithm Comments Text Review Modeling hp.com Reviewer classification Rules Model Development Model Validation Classification Rules Algorithm Review Comments Hp.com Compare with self classification from hp.com Reviewer classification
  20. 20. © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.18 US Consumer PPS Model Initial results in modeling 24 30 38 40 0 5 10 15 20 25 30 35 40 45 FY 12 FY 13 Survey NPS vs. Social NPS (US Consumer PPS) Survey NPS Real Time NPS Online Store No of review Comments (FY12) Amazon 4517 Best buy 4811 e-bay 1002 Hewlett-Packard 320 Total 10650 Online Store No of review Comments (FY13) Amazon 9322 Best buy 9735 e-bay 1191 Hewlett-Packard 867 Total 21115
  21. 21. © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.19 Monthly & Product Level Sample Size Analyses • Annually viewed NPS is a culmination of monthly trends • Extreme values can have an impact • Product lines with <100 review comments not be considered Sample Size Laptops Desktop computers PhotoSmart DeskJet OfficeJet Laser 272 80 10 9 51 108 390 173 24 27 45 124 435 175 30 29 69 143 402 129 25 20 55 161 458 912 15 18 72 158 473 240 17 17 53 131 352 118 4 18 49 131 392 132 7 18 79 111 392 120 12 18 61 119 479 231 16 18 66 145 487 118 7 9 56 171 613 206 11 14 74 186 5145 2634 178 215 730 1688 Social NPS Laptops Desktop computers PhotoSmart DeskJet OfficeJet Laser Adj NPS(All sample sizes considered) Adj NPS(Sample Size>100 Considered) Nov-12 26.10 18.75 0.00 22.22 25.49 25.93 14.95 26.09 Dec-12 23.08 11.56 4.17 25.93 22.22 28.23 15.85 19.08 Jan-13 22.30 24.57 6.67 3.45 31.88 40.56 20.28 23.96 Feb-13 20.40 34.11 40.00 35.00 27.27 28.57 30.18 26.80 Mar-13 22.93 39.69 33.33 44.44 23.61 41.14 29.36 25.71 Apr-13 31.29 29.58 17.65 11.76 26.42 28.24 24.82 30.58 May-13 22.44 37.29 25.00 11.11 28.57 35.11 26.37 29.38 Jun-13 22.19 26.52 0.00 55.56 24.05 30.63 11.56 24.41 Jul-13 25.00 33.33 0.00 -5.56 31.15 21.85 17.14 28.66 Aug-13 28.60 29.87 0.00 -27.78 6.06 26.21 13.93 28.94 Sep-13 27.31 19.49 -28.57 22.22 17.86 29.82 -5.15 23.40 Oct-13 27.73 36.41 27.27 -7.14 14.86 34.41 27.39 31.76 Yearly 25.21 31.93 12.92 15.81 23.01 31.28 21.11 27.72 Std Dev 3.13 8.19 18.16 22.41 7.03 5.61 9.52 3.41 Survey NPS (2013): 30
  22. 22. © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.20 Calibration • Only product lines considered in survey to be included • Only product lines with >100 monthly review comments considered • Sample sizes adjusted to reflect market reality 24 30 2929 28 27 0 10 20 30 40 FY 12 FY 13 FY14 (YTD) Survey NPS vs. Social NPS (US Consumer PPS) Survey NPS Real Time NPS Minimum Sample Size Survey Alignment Market Size correction Social NPS -6.9%-6.7%+20.8% Calibration Factors
  23. 23. © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.21 Platforms Architecture CXA Big Data Platform
  24. 24. © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Thank you
  25. 25. Information Excellence 2015 Spring Summit Business Analytics
  26. 26. Community Focused Volunteer Driven Knowledge Share Accelerated Learning Collective Excellence DistilledKnowledge Shared, Non Conflicting Goals Validation/ Brainstormplatform Mentor,Guide, Coach Satisfied,Empowered Professional Richer Industry and Academia About Information Excellence Group Progress Information Excellence Towards an Enriched Profession, Business and Society
  27. 27. About Information Excellence Group Reach us at: blog: http://informationexcellence.wordpress.com/ linked in: http://www.linkedin.com/groups/Information- Excellence-3893869 Facebook: http://www.facebook.com/pages/Information- excellence-group/171892096247159 presentations: http://www.slideshare.net/informationexcellence twitter: #infoexcel email: informationexcellence@compegence.com informationexcellencegroup@gmail.com Have you enriched yourself by contributingto the community Knowledge Share..

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