This document summarizes a presentation about linking customer experience to operational and business performance. The key points are: 1. Customer experience is becoming a top priority and competitive differentiator for companies as customers have more power and options. 2. To transform customer experience, companies must analyze the entire customer journey, gather customer feedback across all touchpoints, and measure operational metrics and business outcomes. 3. Analytics can quantify the business value of touchpoints, identify experience improvement initiatives, and generate insights from real-time customer data to continuously improve performance. 4. Taking action on customer voice data and testing initiatives will drive sustained value through a better customer experience.

1. 1
Linking Customer Experience to
Operational and Business Performance
Presented by: Niren Sirohi, Ph.D.

2. 2
Niren Sirohi, Ph.D.
VP, Predictive Analytics
iKnowtion
Niren leads
iKnowtion’s
Predictive Analytics
practice
Speaker IntroductionToday’s Presenter

3. 3
Apply Analytic and
Consultative Best Practices to:
 Identify customer-level
opportunities
 Inform customer-centric
strategies
 Maximize customer-
focused programs
 Measure customer-driven
impacts
iKnowtioniKnowtion
Leaders in Customer and Marketing Analytics

4. 4
 Commoditization pressure
 Explosion in channels with the digital revolution
 Shift in balance of power to customers
 Amplified Word of Mouth
 High customer expectations
Today’s World Reality For Marketers

5. 5
Competitive Advantages Are Changing
Competing On Product And Price Are Over
Differentiate on price
How low can you go?
Differentiate on product
Today’s innovation is
tomorrow’s knock off
The new differentiator
Differentiate on
customer experience

6. 6
Customer Experience
Becoming Top Priority
63%
see Customer Loyalty as the primary focus of the
contact center in five years
International Customer Management Institute (ICMI)
93%
customer
experience is a
strategic
priority
Forrester’s 2012 Global
Customer Experience Peer
Research Panel Survey
49%
companies are
focusing their
efforts on
customer
insights,
segmentation,
and targeting to
improve overall
performance
Minding Your Digital
Business, McKinsey Global
Survey, 2012

7. 7
Transforming the Customer Experience
Build
Foundation
Build
Foundation
AnalyzeAct
Customer

8. 8
Customer
Journey
Mapping
Customer
Feedback
Operational
and Business
Performance
Build
Foundation
Build
Foundation
Laying the Groundwork
Transformational Customer Experience
 Customer Segmentation
 Map customer activities and influencers
 Identify touch-points
 Customer perceptions
 Measure across touch-points
 Customer behavioral intentions
 Operational metrics across touch-points
 Customer transactional behavior
 Overall business performance
AnalyzeAct
Customer

9. 9
Touch-points: Opportunities to Influence Experience
Examine the Customer’s Entire
Journey, NOT Just Activities Which
You are Involved in Today

10. 10
Customer Feedback Is A Rich Source
It’s Varied and Comes in Many Forms
Structured
(Quantitative)
Unstructured
(Qualitative)
Company-Initiated Customer-Initiated
Illustrative for a Wireless Provider

11. 11
Measure Behavioral Intentions
Net Promoter Score Tracks Sentiment
Likelihood to Recommend

12. 12
Customer Feedback
In isolation is NOT Enough
Customer Feedback
Operational Metrics Customer Transactions

13. 13
Analyze
Analyze
Build
Foundation
Touch-point
Importance
Operational
Linkages
VOC Signal
Detection
Actionable Insights Transform
Customer Experience
 Determine critical touch-points
 Quantify business value of touch-points
 Build business case
 Link internal data to customer perceptions
 Impact of internal improvements
 Build business case
 Real-time monitoring
 Pattern analysis and signal detection
 Insight and business implications
Act
Customer

14. 14
Key Questions of Analytics
What is the expected
business impact of improving
customer perceptions by X%?
What operational and process
changes will be needed to improve
customer perceptions by X%?
How do we generate continuous insights from
real-time customer feedback across touch-points
and channels?

15. 15
In Order To Be Actionable
Focus Analytics on Linkages
Operational
Performance
VOC (Customer
perceptions,
feedback,
intentions)
Customer
Behavior
(Transactions,
Engagement)
Business
Performance

16. 16
Structural Equation Models
Used to Estimate Linkages
Customer
Perceptions
Information
Ticketing
Rides
Lines
Food
Grounds
Entertainment
Operational Metrics
Information
Ticketing
Rides
Lines
Food
Grounds
Entertainment
Return
Theme Park
Experience
Share of Wallet
Incremental people;
sooner (ticket revenue)
Incremental spending
on food, merchandise
(revenue)
Improve wait
time 5 minutes
Total cost to
improve
experience
NPV
Total incremental
revenue
Behavior Outcome Financial
Outcomes
5%
2%
10%
15%

17. 17
Touch-point Analytics
Identify Experience Improvement Initiatives
Loan Officer interaction and process improvement initiatives drive
$146M in incremental annual revenue for mortgage refinancer
Improvements in customer perceptions of Advocacy drives 15%
incremental market share for ISP
Improvements in service delivery drive $75M in incremental annual
revenue for mutual fund manufacturer
26 customer experience improvement initiatives drive incremental
$741M in revenue for an airline

18. 18
Analyzing and Taking Action on Real-Time VOC
Will Drive Positive Customer Experience
Aggregate Insights
 Identify unmet product and
service needs
 Identify experience pain
points
 Proactively identify potential
PR issues
Targeted Actions
 Send product offer to
specific individuals
 Inform specific customer
about fix of pain point
 Execute proactive save for
dissatisfied high-value
customers
Real-Time Big Data
Analytics Stack
Speech
Text
Machine Learning
Pattern Recognition
Trend Spotting
Log Analysis
+ CRM
Nick, 25 year
old gamer

19. 19
Ideation
Test and
Learn
VOC
Programs
Act
ActAnalyze
Sustained Value Generation
From Transformational Customer Experience
 Generate activation ideas
 Customer experience initiatives
 Experience process design
 Pilot initiatives in market
 Develop measurement plan
 Make go / no-go decisions
 Develop VOC strategy
 Develop VOC infrastructure
 Continuous learning process
Customer
Build
Foundation

20. Focus on customer experience as the
differentiator
Outside-in thinking necessary to
identify and fix key pain points
Commit to listening and analyzing the
Voice of your Customer (VOC)
Summary
Leverage Big Data analytics to detect
meaningful signals in VOC

21. Thank You
For questions, contact:
Niren Sirohi, Ph.D.
VP, Predictive Analytics
nsirohi@iKnowtion.com
781-494-9989 x201