This document discusses how companies can use customer feedback and predictive analytics to increase customer loyalty. It provides an overview of Dunn Solutions Group, a consulting firm that offers predictive analytics services. The presentation then covers measuring customer loyalty, developing a customer loyalty measurement program that collects voice of the customer (VOC) data through surveys, analyzes the data to identify loyalty drivers, and incorporates insights into business strategies. The goal is to increase customer advocacy, growth, retention and profits through better understanding customers.

1. Transform Customer Feedback Into
Customer Loyalty!
Lori Blandford
Marketing Manager
Ken Krawczyk
Sr. Manager, Predictive Analytics

2. Agenda
 Dunn Solutions Group Overview
 Predictive Analytics Overview
 Customer Loyalty Overview
 Measuring Customer Loyalty
 The Customer Loyalty Measurement Program
 Q&A

3. Full-service IT Consulting Firm
Founded in 1988
Offices
 Chicago
 Minneapolis
 Raleigh
 Fort Lauderdale
 Bangalore, India
https://www.dunnsolutions.com/content/en/company
Overview
Raleigh
Ft. Lauderdale
Minneapolis
Bangalore
Chicago

4. Practice Areas
Application Development
Custom App Dev
Portals
Web Design
E-Commerce
End-to-End BI
Dashboards
Data Warehouse
DI + EIM/Quality
Business Intelligence Packaged Solutions
Vertical Solutions
Unique Solutions
Predictive Analytics
Managed Services
Map Intelligence
Budgeting & Planning
Training
On-Site + Custom
Open-Enrollment
Jumpstart/Mentoring

5. Selected Clients
City of Chicago

6. End-to-End Business Intelligence solutions
Data Warehousing
Dashboards & Performance Management
Enterprise Information Management + Data Quality
Business Intelligence Managed Services
Predictive Analytics
Business Intelligence Services

7. Agenda
 Dunn Solutions Group Overview
 Predictive Analytics Overview
 Customer Loyalty Overview
 Measuring Customer Loyalty
 The Customer Loyalty Measurement Program
 Q&A

8. Business Intelligence Value and Complexity
Source: The Data Warehouse Institute (TDWI)
LOW
HIGH
HIGHBUSINESS VALUE
COMPLEXITY
REPORTING
What happened?
ANALYSIS
Why did it happen?
MONITORING
What’s happening now?
PREDICTION
What might happen?
Predictive analytics
Dashboards, scorecards
OLAP and visualization tools
Query, reporting and search tools
BUSINESS INTELLIGENCE TECHNOLOGIES
Predictive Analytics is the
GPS of a BI system-
it provides guidance on
strategy and tactics using
advanced analytics

9. Predictive Analytics
Added Operational &
Strategic Value Fact-Based Solutions
Identify Future
Opportunities
Gain Competitive
Edge
Greatest
Business Value

10. Dunn Solutions Group Predictive Analytics Services
Complete Predictive Analytics Services
 Data integration
 Data cleansing
 Model development
 Deployment
 Dashboards
 Reporting
 Support
 Training
 Software

11. Predictive Analytics Solutions
Marketing Strategy and Planning
Customer Loyalty
Resource Planning
Demand Forecasting
Market Basket Analysis
Customer Churn
Credit Scoring
Fraud Detection
Crime Insight & Prevention

12. Challenges with Measuring Customer Loyalty
 Assumption that customers are satisfied
 Belief that satisfied customers are also loyal customers
 Loyalty is often measured by only analyzing transactions
 Belief that loyalty is created by discounting
 Loyalty programs are expensive and time consuming
 Capability to analyze customer behaviors and identify
loyalty driver does not exist in the company

13. What is Customer Loyalty?
Satisfaction
Intention
Retention
Loyalty

14. Benefits of Loyal Customers
Unsolicited Referrals
Reduced Acquisition Cost
Increased Retention
Customers Are Less Price Sensitive
Higher Profit
Training & Empowerment Of Employees
Employee Satisfaction
Higher Level Of Quality

15. Agenda
 Dunn Solutions Group Overview
 Predictive Analytics Overview
 Customer Loyalty Overview
 Measuring Customer Loyalty
 The Customer Loyalty Measurement Program
 Q&A

16. Loyalty Analytics Program
Survey
Design
Collect
VOC
ReportingAnalytics
Action

17. Loyalty Analytics Program
Survey
Design
Collect
VOC
ReportingAnalytics
Action

18. What is a Method of Collecting VOC?
Implement a customer feedback program
All questions have rating: 0 = not at all likely, 10 = extremely likely, except satisfaction question is 0 =
extremely dissatisfied to 10 extremely satisfied
1. Overall satisfaction
2. Decision to recommend (Word of mouth, Word of mouse)
3. Decision to purchase again for the first time
4. Decision to continue purchasing same products/services
5. Decision to purchase different products/services
6. Decision to increase purchase amount
7. Decision to increase frequency of purchasing
8. Decision to switch to another provider

19. Loyalty Analytics Program
Survey
Design
Collect
VOC
ReportingAnalytics
Action

20. Loyalty Analytics Program
Survey
Design
Collect
VOC
ReportingAnalytics
Action

21. Loyalty Analytics Program
Survey
Design
Collect
VOC
ReportingAnalytics
Action

22. How Do We Analyze the VOC to Infer Loyalty Levels?
Factor
Analysis
Satisfied
Recommend
Choose
again
Purchase
Same
Purchase
different
Purchase
amount
Purchase
frequency
Switch
Provider

23. Loyalty Analytics Program
Survey
Design
Collect
VOC
ReportingAnalytics
Action

24. Incorporate Loyalty Drivers into Sales, Marketing &
Operations Strategies
Products &
Services
Availability
Variety
Functionality
Engagement
Professionalism
Friendliness
Handle Issues
Operations
Return Policy
Appearance
Business Hours

25. What Loyalty Dimensions Are Deduced By VOC?
• Feelings created from
human interactionsAffective
• Preferences from
examining product/service
quality
Cognitive
• Expectations are met and
the decision is to continueRetention

26. What Does Loyalty Correlate With?
Affective Cognitive Retention
0.75
0.6
0.53
0.66
0.76
0.5
0.72
0.6
0.84
Correlation between Loyalty and Goals
New Cust Growth YOY Revenue Churn%

27. Agenda
 Dunn Solutions Group Overview
 Predictive Analytics Overview
 Customer Loyalty Overview
 Measuring Customer Loyalty
 The Customer Loyalty Measurement Program
 Q&A

28. How Do We Get There?
Self-Enablement Option
 Purchase the right software to enable the process: data
acquisition, data cleansing, predictive analytics, reporting
 Do a pilot project
 Work with Dunn Solutions to mentor internal personnel
Outsource Option
 Partner with Dunn Solutions to run your loyalty program

29. DSG Customer Loyalty Measurement Program
VOC
Product
Quality
Services
Quality
 Automated survey tools
 Hosted database
 Web-based reporting
 Analytical models

30. DSG Customer Loyalty Measurement Program Results
 Higher Customer Advocacy
 Increase in New Customers
 Higher Customer Retention Rates
 Higher Profits
 Higher Employee Satisfaction

31. Agenda
 Dunn Solutions Group Overview
 Predictive Analytics Overview
 Customer Loyalty Overview
 Measuring Customer Loyalty
 The Customer Loyalty Measurement Program
 Q&A

32. Questions & Answers
Questions?
Ken Krawczyk
Sr. Manager, Predictive Analytics
Dunn Solutions Group
kkrawczyk@dunnsolutions.com
bhopkins@dunnsolutions.com