Make Money with Big Data (TCELab)

3,945 views

Published on

Make money with big data by organizing your company around your customers. I presented this deck at the Cybera Big Data #cybersummit 2012 in Banff, Canada. In it, I talk about customer loyalty, how to use driver and linkage analysis to sort out both what's important to your customers and what will drive sustainable revenue for your business. Case studies include a SaaS software company, and U.S. Hospital patient experience data based on HCAHPS patient surveys from 4,610 health care facilities nationwide.

Published in: Business
0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
3,945
On SlideShare
0
From Embeds
0
Number of Embeds
2,324
Actions
Shares
0
Downloads
40
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide

Make Money with Big Data (TCELab)

  1. 1. MAKING MONEYWITH BIG DATAStephen KingCEO, TCELab.comPresident, Stephdokin.com@tcelab @stephdokin © 2012 TCELab LLC. All rights reserved. Unauthorized duplication or distribution is prohibited.
  2. 2. 2Some context: I am not THAT Stephen King TCE LabThen: Driven over $500M in revenue and participated in over 50 product and program launches / lifecycles; a combination of strategic leadership, branding/marketing, deep technical background, product and customer experience management (CEM).Now: Stephdokin STRATEGIC EXECUTIVE CONSULTING “Customer-centric, Data driven Leadership”
  3. 3. 4Disparate business data sources TCE Lab Customer Operational Product Quality, Feedback Software Use, Financial 1.  Call  handling  ,me   1.  Customer  Loyalty   Adoption 2.  Number  of  calls  un,l   2.  Rela,onship   resolu,on   Sa,sfac,on   3.  Response  ,me   3.  Transac,on  Sat.  1.  Frequency  of  use   1.  Revenue   4.  Sources:  phone,     4.  Sen,ment  2.  Dura,on  of  use   email,  social   2.  Number  of  products  3.  Frequented  areas   purchased  4.  Crash  &  bug  reports   3.  Customer  tenure  5.  Region   4.  Service  contract  6.  Customer  type   Partner Employee renewal  7.  Customer  profile;   Feedback Feedback 5.  Number  of  sales   Demographics  like   transac,ons   gender,  age   1.  Partner  Loyalty   1.  Employee  Loyalty   6.  Frequency  of  8.  SaaS  ,ers   2.  Sa,sfac,on  with   2.  Sa,sfac,on  with     purchases   partnering     business  areas   rela,onship  
  4. 4. … but … mostbig data aregarbage
  5. 5. 6… so … be careful TCE Lab “Big data doesnt inherently lead to better results … too many organizations dont quite grasp that being ‘big data-driven’ requires more qualified human judgment than cloud-enabled machine learning.” http://blogs.hbr.org/schrage/2012/09/what-executives-dont-understan.html
  6. 6. Research & Surveys, Linkage Analysis & Audit Measurement & Predictive Analytics Driver AnalysisMake money by organizing big data around the customer
  7. 7. 1. Customer Customer Business Renews Acquisition (Retention Loyalty) Programs Business Product Programs development 2. New Customer Customer Customers Firm Development Lifetime Marketing (Acquire through Value (cross/up -sell) Advocacy Loyalty) Value Sales Sales Service Service 3. Customer Customer Buys More Infrastructure Retention (cross/up-sell through Purchasing loyalty)Three dimensions of Customer Loyalty based on thethree ways companies make moneyRAPID LOYALTY Based on Dr. Bob Hayes, Ph.D. research, science and published books, articles and speaking. “Dr. Bob” is the Chief Customer Officer at TCELab.com @bobehayes www.businessoverbroadway.com © 2012 TCELab.com @TCELab
  8. 8. TCE LabWe combine Big Data and Voice of Customer“VOC” metrics and apply predictive analytics toidentify correlates of customer loyalty andsustained revenue growth. Create brand fans.Optimize your ROI.
  9. 9. TCE 10TCELab Customer Experience Management Roadmap Lab -  Proactive vs. Reactive (Trend Analysis) Financials -  Customer Impact Analysis -  Risk Awareness -  New revenue growth -  Churn reduction Voice of -  Increased ARPU Employee -  Closed loop client feedback Competitive Advantage -  Social and verbatim sentiment analysis -  Business Intelligence Voice of Partner Dashboards -  Customer centric customer and employee goals Voice of Customer -  Establish VOC practices Product Quality -  Establish satisfaction / loyalty measurement; typically either NPS or RAPID -  Create “Single Source of Truth” data set -  Establish Big Data technical architecture -  Customer KPI’s Operational Metrics -  Recognize trends -  Root cause and driver analysis Sophistication of Business Intelligence
  10. 10. SaaS #1 iPad Accounting App & Cloud Software CompanyCRD: Customer Relationship DiagnosticDRIVER ANALYSISCASE STUDY
  11. 11. •  SaaS Software CompanyCase study
  12. 12. 13 “CRD Customer Survey” Driver Matrix TCE Lab Key Drivers Hidden Drivers Driver Matrix helps INVEST in these areas. FIX LEVERAGE as strengths in us prioritize and IMPROVE these product order to keep current investments High attributes. Improvement in customers loyal these areas are predicted to ADVERTISE as strengths in attract new customers marketing collateral and sales 1.  Key Drivers – Fix and (advocacy), increase presentations in order to improve these product purchasing behavior attract new customers attributes.Impact (purchasing) or retain (advocacy), increase customers (retention) purchasing behavior 2.  Hidden Drivers – Focus (purchasing) or retain on these features in customers (retention) marketing to grow customer base. Weak Drivers Visible Drivers 3.  Visible Drivers – DISREGARD as lowest CONSIDER as strengths in Consider features in priority for investment. marketing collateral and sales marketing to grow Low These areas have relatively presentations in order to customer base. low impact on improving attract new customers customer loyalty EVALUATE as areas of 4.  Weak Drivers – potential over-investment Disregard as priority for investment. Low High Performance
  13. 13. 14Driver Chart: Predicting Retention Loyalty TCE Lab   Predic,ng  Reten,on  Loyalty   0.30 0.25 To improve retention loyalty, you may consider(correlation between business attributes Impact on Retention Loyalty focusing on following and Retention Loyalty Index) 0.20 areas: 0.15 1.  Reports 2.  Future Product / 0.10 Company Direction 3.  Banking / Bank 0.05 Reconciliation 0.00 6.00 6.50 7.00 7.50 8.00 Performance on Business Attribute (Customer Rating) •  Different drivers for Advocacy and Purchasing Loyalty •  Different analysis for “Paid vs. Trial,” “Active, non-active, dormant” & “iPad, iPhone, Android, Web”, type of customer / business
  14. 14. HospitalsPXM: Patient Experience ManagementLINKAGE ANALYSISCASE STUDY
  15. 15. 16 What is Linkage Analysis? TCE Lab•  Linkage analysis between customer loyalty and disparate data sets answers the questions: –  Which operational metrics have the biggest impact on customer satisfaction/loyalty? –  Which employee/partner factors have the biggest impact on customer satisfaction/loyalty? –  Does medical spending improve patient experience?•  And, ultimately, “predictive analytics”: –  What is the $ revenue value of improving customer satisfaction/loyalty? Opera,onal   Transac,onal   Metrics   Sa,sfac,on   Rela,onship   Financial   Sa,sfac,on/   Business   Product,   Loyalty   Metrics   Cons,tuency   internet  and   Sa,sfac,on/   intranet   Loyalty   usage  
  16. 16. TCE 17 HCAHPS (Hospital Consumer Assessment of Healthcare Providers and Systems) Lab •  U.S. CTO released 6 big data sets of 2.8M surveys from 4,610 hospitals that Dr. Bob analyzed over summer, 2012 •  Our free report can be found at www.tcelab.com/ hcahps.•  Patience Experience Ratings for each hospital in the U.S. from surveys over the last few years•  Starting in 2013, the higher the rating, the more Medicare $ they will receive.•  Green = Best Patience Experience Yellow = Average Patience Experience Red = Bad Patience Experience Blue = No data Areas with the highest Medicare spending per patient Interactive map available at http://bit.ly/S5kK1H
  17. 17. 18Linkage Analysis TCE Lab A Good Patient Experience Does Not Start With Medicare Spending •  Valley General Hospital in Monroe, Washington has average patient satisfaction •  But, the hospital has one of the highest per patience spend of Medicare in WA $$$ •  From public financial statements, hospital lost $950K in 2010 on $47M gross revenue. •  If medical spending is not related to patient satisfaction … what is? •  Linkage analysis correlates the hospital’s customer satisfaction with operational, financial, employee, etc… big data sets to understand its unique challenges •  Outcomes: •  Focus time and $$$ on the things that matter most to patience experience •  Optimize Medicare spend per patient •  Make patient experience better •  Increase total Medicare reimbursementMore insights at: http://businessoverbroadway.com/big-data-provides-big-insights-for-u-s-hospitals
  18. 18. 19TCELab Products and Services TCE Lab CEM Audit CEM Audit offers a thorough review and evaluation of your VOC program, including big data sources and organization as well survey data available and required, The CEM Audit provides a snapshot of “starting Point A,” what “Point B” could look like, and recommendations on how to get from Point A to Point B. PXM Audit For hospitals and health care facilities that participate in HCAHPS surveys, PXM Audit helpsResearch & you understand the raw data produced from HCAHPS, and evaluate the current Voice of Patient program at the hospital; from both a Big Data perspective as well as PatientAudit Experience. It will help you understand which dimensions of the patient experience have the biggest impact on HCAHPS rankings, giving your health care facility focus on the most important things that drive PX loyalty and optimize Medicare spend. CRD Customer Relationship Diagnostic is a survey providing deep insight into key areas of customer relationship: 1) Customer Loyalty (RAPID), 2) Customer Experience. 3) Driver Chart on how to best improve loyalty, 4) Competitive Benchmarking (C-PeRK). Loyalty Loyalty Widget is a transactional survey; i.e. small ongoing web or mobile surveys that customers complete after an interaction with your company (purchase, service call, retail Widget shopping experience, etc…); it provides a steady stream of VOC data used for measurementSurveys, and trend analysis. QR Code for geo-location mobile surveys available.Measurement & End User Diagnostic survey is used to understand how the end user experience impacts their EUDDriver Analysis acceptance and adoption of product/software. The end user is not always the buying “customer.” PRD Partner Relationship Diagnostic survey dives into partner loyalty to optimize relationships with vendors who work with you; suppliers, sales & distribution channels. ERD Employee Relationship Diagnostic survey evaluates the employee experience to ensure you provide the right environment, tools and resources for your employees; great employees do great things for customers. PXD For hospitals that don’t participate in HCAHPS, Patient Experience Diagnostic is a great alternative to create your Voice of Patience surveys to optimize / organize patient data for key driver analysis.LinkageAnalysis & CEM Linkage helps you build your company around your customer. Following Big Data CEMPredictive Linkage principles, we collect, integrate and analyze disparate data sources like customer feedback, operational metrics and financial metrics. We use predictive analytics to help you improve theAnalytics customer experience.
  19. 19. Thanks! stephen@tcelab.com stephen@stephdokin.comQuestions? @tcelab @stephdokinThoughts?

×