The document outlines the importance of competitive analytics and benchmarking for enhancing customer loyalty by utilizing percentile rankings derived from customer surveys. It discusses how to measure relative performance against competitors, identify key drivers of customer loyalty, and analyze the impact of business attributes on loyalty metrics. Additionally, it emphasizes the need for validation studies to ensure accuracy in percentile rank estimates and suggests a systematic approach for tracking changes in competitive ranking over time.

1. Competitive Analytics that drive customer loyaltyBob E. Hayes, PhDBusiness Over Broadway

2. OverviewCompetitive Analytics and BenchmarkingPercentile RankUsing only your customer survey to benchmark your performance against your competitorsHow can we use competitive benchmarking to drive improvement?2

3. BenchmarkingUnderstand where you fit in the mix of competitorsUnderstand relative performanceSet standards of performance and identify best practicesAmong competitorsAcross customer segmentsPercentile rank is the key metricHelps you clarify the interpretation of raw scores (in the context of your competitors)3

4. Percentile Rank of a ScorePercentage of scores in the frequency distribution that are the same or lower than itIf your score is at the 60th percentile, that means your score is higher than 60% of other scores4

5. Distribution PropertiesPercentile rank tells us our relative performance550%84%16%98%2%.1%99.9%

6. Customer Perception ofPercentile Rank (C-PeRk)Example 16

7. Estimating Percentile RankingInclude competitive question(s) in surveyHow do our products compare with the alternatives?Assign percentile valuesto response optionsCalculate average across respondents7

8. Competitive Ranking EstimatesHow do our products compare with the alternatives?(0 + 175 + 950 +2550 +3900) / 100 = 75.75

9. Customer Experience Performance91 Performance of each attribute is the percent of positive responses 2 Impact is the correlation between specific Business Attribute sand Customer Loyalty Index.

10. Driver Matrix10Examine each business area’s performance and impact on loyalty simultaneously.Key Drivers – Invest in areas to increase Customer Loyalty.Hidden Drivers – Use features in marketing to grow customer base.Visible Drivers – Consider features in marketing to grow customer base.Weak Drivers – Monitor as lowest priority for investment.

11. Driver Matrix11Comparative questionJust looking at the business attributes, there is no clear key driver of customer loyalty.To improve customer loyalty, best bet would be to focus on competitive benchmarkingCustomer Loyalty Index is the average of the following four questions (Overall, Satisfaction, Quality, Value, Recommend,).

12. Customer Perception ofPercentile Rank (C-PeRk) Example 212

13. Estimating Percentile RankingInclude competitive question(s) in surveyWhat competing products do you use?What best describes our performance compared to the competitors you use?Assign percentile valuesto response optionsCalculate average across respondents13

14. Competitive Ranking EstimatesWhat best describes our performance compared to the competitors you use?(0 + 400 + 1850 + 3000 + 200) / 100 = 54.5

15. Competitive Ranking EstimatesCompany’s Percentile Rankwhen competitors are presentCompany’s percentile ranking is not adversely impacted by presence of most competitors – Company’s ranking is comparable to most competitors.Competitor H’s presence in Company’s Accounts has significant negative impact on customers’ perception of Company’s performance.* Statistically significant difference between Company’s customers who are using Competitor H and those who are not using Competitor H.

16. Final ThoughtsSimple / Repeatable processSee changes in your competitive ranking over timeAre percentile rank estimates related to actual percentile rankings?Validation study to be completed in two monthsSales and MarketingWhen customers’ perceptions do notmatch realityBranding comparing your customers who usecompetitors and those who do not16

17. For More InformationBob E. Hayes, Ph.D.Email: bob@businessoverbroadway.comWeb: www.businessoverbroadway.comBlog: www.businessoverbroadway.com/blogTwitter: www.twitter.com/bobehayes