1. Your Customers Are Talking About You! Are You Harnessing That Power? March, 2011
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3. What is the best measure to manage your customer base? Is it …… . . . The best measure: Should best reflect the current reality of your customers Should lead to new customers and organic growth Customer
4. Customer Involvement In today’s marketplace, it is just not enough to have very satisfied customers to drive business growth; a business needs very satisfied customers who will frequently and consistently speak in favor of the brand, both online and offline. As Professor Philip Kotler says, “ Let your advocates do the marketing for you.”
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6. Market Probe’s Advocacy Framework is built on two key constructs: Advocacy Constructs Worth Repeating Customer Communications Advocacy Attitudes Customers hold long-term attitudes based on both rational and emotional reactions of their experiences with your company’s various performances over time. Expressions of Support From Existing Customers How do existing clients of your company speak of their experiences with their peer group both online and off-line? This communication happens all the time in a variety of settings.
7. What is Market Probe’s Advocacy Ladder? Market Probe’s Advocacy Ladder is a pictorial representation of a customer base into Advocacy segments. Advocate Allegiant Ambivalent Alienated The best customers of your brand. Your need to engage them. Implement customer experience improvements to move them to Advocates. Implement customer experience improvements to move them up the Advocacy Ladder. Implement customer experience improvements to reduce the Alienated group. Move up the Advocacy Ladder
8. Primary Bank Customers are Telling Others Positive Things About Their Bank! Express Positive Things Past 6 Months 66% told others at least once something positive about their bank!
9. Customers Varied in How Much They Talked About Their Primary Bank to Other People We used both actual behavior and attitudes to segment customers by involvement with their bank. Advocate Allegiant Ambivalent Alienated Advocates, 22% of an average customer base, made a positive statement about their bank 6.3 times to a friend or colleague in the past few months. Segment Size Top 15 Bank Average Number Recent Positive Expressions 22% 6.3 Times 30% 4.1 30% 0.9 17% 0.0
10. Banks Vary in the Proportion of Their Customer Base Who are Advocates Percentages of Advocates Source: 2010 Bank Customer Advocacy Monitor
11. Impact of Advocacy on Positive Buzz: Two Regional Banks Best-in-Class Bank reaps 9,400,000 additional instances of customers talking positively about their bank over competitor! Best-in-Class Bank B Primary Bank Customers (DDA Plus 1+ Products) 2.6 Mil 2.0 Mil Percentage of Advocates 37% 19% Number of Advocates 962,000 380,000 Annual Number of Instances Talking About Bank (Positive Buzz) 7.6 5.2 Annual Instances of Positive Buzz from Customers 19.8 Mil 10.4 Mil
12. Impact of Raising Advocacy Levels at Bank C Yield Substantial Incremental Amounts of Positive Buzz from Customers Bank C Current Bank C to Best-in-Class Primary Bank Customers 3.7 Mil 3.7 Mil Percentage of Advocates 21% 37% Number of Advocates 777,000 1,370,000 Annual Instances of Positive Buzz from Customer Base 23.5 Mil 29.6 Mil Bank C would reap 6,000,000 instances of their customers talking positively about their bank to others!
13. Share-of-Wallet Averaged Across All Segments Retention Intent Averaged Across All Segments Impact of Raised Advocacy Levels at Bank C Also Yields Incremental Gains in Share-of-Recent Purchases and Retention Intent 3.6 point or 9.2% increase 10.4 point or 21% increase Translates into incremental 133,000 products purchased per year Translates into incremental 385,000 households that will definitely remain with Bank C
14. Advocacy Driver Analysis Swing up and swing down analysis identifies the attributes that drive customers from Alienated to Ambivalent, Ambivalent to Allegiant, Allegiant to Advocate. Analysis repeated for brand, product and key touchpoint attributes for input into an overall improvement action plan. Quality of Staff Services