If you think social media data is a good source for understanding the customer-brand-experience, here is a case study that proves that. In this case, we measure and model the CX from an algorithm we developed that converts social text into a dymamic metric that links to sales. This case is a Mexican restaurant and they learned how their CX fell short in terms of their product quality and menu. By identifying these short falls, this company was able to develop an effective strategy which helped them reverse sales declines.
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About Us
Bottom-Line Analytics is a full-service consulting group
focused on marketing effectiveness and brand performance analytics
We are dedicated to the principles of innovation, excellence, and
uncompromising customer service
Everything we do is geared toward improving the commercial performance
of our clients
Our experts have a total of more than 100 years of direct experience in
research, insights, and ROI measurement
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What is Customer Experience(CX) ?
• Social Media brand comments represent a large and valuable source for CX insights.
• CX are internal and personal responses of customers to a brand or service either
through direct usage or relationships with brand representativesand communications
• CX is customers positive or negative feedback regarding how well the brand’s promise
is fulfilled through this experience.
• CX often contains reviews of
– Productor brand performance
– The satisfactionwith services and itsdelivery
– Other aspectsof the brand promise,includingvalue,reliability, brand loyaltyand the degree of
personalattachmentto a brand.
4. 4
Measuring the customer experience is imperative
“You’ve got to start
with the customer experience
and work back toward the technology
– not the other way around.”
~ Steve Jobs
5. 5
Customer Experience Leaders Outperform the Market
CX Leaders
100.3%
Your Category?
77.5%
CX Laggards
28.9%
0%
20%
40%
60%
80%
100%
120%
CumulativeTotalReturn
Eight-year Stock Performance of Customer
Experience Leaders vs. Laggards vs. S&P 500
(2007-2014)
CX Laggards
In addition to posting a total return
that was 74 points lower than CX
leaders, laggards also had higher
customer frustration, increased
attrition, more negative word-of
mouth, and higher operating
expenses
CX Leaders
Over 8 years, the leaders of
Forrester’s CX Index enjoyed a higher
total return, higher revenues from
better retention, less price sensitivity,
greater wallet share and positive word-
of-mouth) and lower expenses from
reduced acquisition costs, and fewer
complaints,
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We use a linguistics/language-basedsystem to “score” social media textual brand
comments. We convert these texts to a metric called the SEItm
7
8. 8C
Case Study: Alpha Total Retail Sales and SEItm
Alpha is Mexican Restaurant
-
1.00
2.00
3.00
4.00
-
50,000
100,000
150,000
200,000
250,000
TotalSEI
Sales
Weeks
Retail Sales 000 SEI Ratio
Alpha’s overall SEI demonstrated strong predictive capability with a correlation to sales of 80 percent.
8
9. 9
Measuring CX through a holistic media mix model
Sales
Seasonality
Operational
Business
Drivers
Digital MediaOffline Media
We incorporate our trended SEI and
CX Drivers into a holistic media mix
model.
1. Service
2. Delivery
3. Convenience
4. Value
5. Food Quality
6. The Menu
SEItm /CX Drivers
10. 10
Sales Contributions
52.6%
4.5%
1.3%
2.2%
0.8% 5.6% 3.1%2.2%
1.1%
0.8%
7.8%
1.0%
1.7%
5.7%
1.3%
6.3%
1.9%
18.0%
Alpha Sales Contributions
Baseline Competitive.Media Digital.Display.Media Digital.Search.Media
Digital.Email Direct.Mail Media.Cable.TV Media.Network.TV
Media.Radio Media.Magazines Consumer.Promotion SEI.Service
SEI.Delivery SEI.Value SEI.Food Quality SEI.Convenience
SEI.The Menu
• Shows incremental contribution
toward total revenue from all
drivers.
• Digital & traditional media
contributes 16%, promotions
7.8% and direct marketing 5.6%.
• The six SEI/CX drivers account for
18 percent of total sales, the
largest contributor among the
groups.
• The SEI values here represent the
monetization of Alpha’s CX.
• Embedded within the SEI/CX is
the essence and value of Alpha’s
“brand promise” to customers.
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Marketing Variance Business Drivers versus Last Year
-3.0%
-2.2%
-2.0%
-1.3%
-1.1%
-1.0%
-0.2%
-0.2%
-0.1%
0.0%
0.0%
0.1%
0.1%
0.1%
0.1%
0.3%
0.4%
0.4%
0.7%
3.7%
-4.0% -2.0% 0.0% 2.0% 4.0% 6.0%
SEI.The Menu
Retail Pricing
SEI.Food Quality
SEI.Service
SEI.Delivery
Baseline
Direct.Mail
Media.Network.TV
Media.Magazines
Digital.Email
Media.Radio
Digital.Search.Media
Media.Cable.TV
Consumer.Promotion
Digital.Display.Media
Economy**
Competitive.Media
SEI.Value
SEI.Convenience
Store.Penetration
Alpha Marketing Variance v. YA• Alpha’s overall retail sales
declined -5.2% versus last year
• While Alpha’s strong values of
Convenience and Value showed
positive year-over-year gains,
the remaining were
substantially negative.
• Menu and Food Quality are
clearly the weakest factors and
must be a priority for resolution
in the next year.
11Total % Volume Variance v. YA
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SEItm (CX)Amplifies ROI of all Media
12
$0.62
$1.07
$1.14
$1.26
$1.59
$1.59
$1.94
$3.16
$3.58
$1.07
$1.85
$1.97
$2.18
$2.73
$2.74
$3.35
$5.44
$6.17
$- $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00
MEDIA.NETWORK.TV
MEDIA.MAGAZINES
MEDIA.RADIO
MEDIA.CABLE.TV
DIRECT.MAIL
CONSUMER.PROMOTION
DIGITAL.EMAIL
DIGITAL.DISPLAY.MEDIA
DIGITAL.SEARCH.MEDIA
Alpha Marketing ROI per Dollar Spend
ROI per Dollar Spend w/SEI Amplified ROI per Dollar Spend
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CX content volume-drivers forAlpha over Time
13
• While “Convenience” and “Value” are the largest drivers and growing, all others are
declining, especially “Food Quality” & Alpha’s “Menu”.
0.53
0.23
0.52
0.32
0.79
0.85
0.70
0.28
0.80
0.91
1.08
0.42
LAST YEAR CURRENT
Alpha Customer Experience (SEI) Trends
Service Delivery Value Food Quality Convenience The Menu
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(4.00) (2.00) - 2.00 4.00 6.00 8.00 10.00
Menu
Service
Food Quality
Value
Convenience
Delivery
Negative SEI Net SEI Positive SEI
14
SEItm Ratings of ContentAttributes forAlpha
• SEItm also has a positive and negative component. Net is the difference. While
convenience is Alpha’s strengths, food quality and the menu have the highest
relative negative ratings and clearly signal an area in which Alpha needs to
improve.
Net SEI
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Mexican Restaurants Competitive Positioning & Image
Great tasting
Food
Personable Friendly
employees
Treats you like a valued
customer
Authentic Mexican
Food
High Quality
Ingredients
Food from
scratch
Chain 4
Chain 3
Clean/comfortable
atmosphere
Food prepared how
you want it
Modern up to
date
Has large
portions
Healthy nutritious
items
Gets order right
Chain 5
Chain 6
Chain 7
Chain 12
Chain 2
Simple Menu
Good value for
money
Low
prices
Open late night/24
hours
Chain
10
Chain
11
Alpha
Crave menu
items
Food
timely/fast
Convenient nearby
location
Variety of menu
items
Chain 9
Has drive-thru
Chain 8
Food
Quality
Service &
Delivery
The
Menu
Convenience
Value
• We can map detailed SEI content into a competitive map to see where Alpha
compares to key competitors. We see that, in the words of customers, Alpha’s
advantage is in convenience but not so much on food-quality, service and
delivery.
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Measuring the Customer-Brand Experience with SEItm reveals this to
be a significant driver across many businesses
Lesson: Brands can not ignore the
importance of measuring and tracking
the customer-experience
It is central to a firm’s aspiration to be
customer centric” & explains why
business is underperforming and what
needs to be done when things go wrong
for Alpha Corporation case
What if these companies had this tool?
• Chipotle
• Auto Air-Bag Recalls
• Toyota Acceleration problems
18. 18BLA global leadership team
Michael Wolfe is CEO of Bottom-Line Analytics (US). Michael has 30 years of direct experience in marketing
science and analytics both on the client and consulting side. On the former, Michael has worked for Coca-Cola, Kraft
Foods, Kellogg’s and Fisher-Price. He has also consulted with such blue-chip firms as AT&T, McDonald’s, Coca-Cola,
Hyatt Corp., L’Oreal and Starbucks. Michael has broad experience in marketing analytics covering marketing ROI
modelling, social media analytics, pricing research and brand strategy.
E: mjw@bottomlineanalytics.com
Masood Akhtar is the Bottom-Line Analytics managing partner (EMEA). Masood is former Director of Analytics for
McCann Erickson and has also worked on brands such as; Mintel International Group, Kraft Foods, American Airlines,
Costa Coffee, Coca Cola and Hyatt Hotels Corp. He is an accomplished econometrician with extensive experience in
marketing ROI analytics, marketing research, market segmentation, social media analytics and marketing KPI
dashboards.
E: ma@bottomlineanalytics.com
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