CustomerGauge introduction: Automatic Continuous Customer Surveying
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1 CustomerGauge introduction: Automatic Continuous Customer Surveying Would you recommend us? Adam Dorrell, CEO CustomerGauge/Directness 15 Oct 2010
2 Simple concept: How was it for you?
3 Where we operate: B2b / Relationship Annual / ad-hoc B2c / Transactional Continuous / Daily Customer Relationships E-commerce online store Online Support Services Personnel Relationships Sales Invoicing HR Transactions Customer Service Delivery CustomerGauge is completely focused on retaining customers
4 What we do: Directness We provide technical solutions to help companies add strong metrics to marketing activities CustomerGauge: Automatically measure, understand and analyse customer sentiment, using Net Promoter Score. Identify and grow your most loyal customers. DemonstratorGauge: Collect and analyse field marketing events, demonstrators, mystery shoppers. Track activities and show ROI on budget Used by global organisations +1 million end-customers measured since ,000 marketing events tracked since 2008 Company background: hi-tech marketing: Sony, Dell, Compaq, HP, KPN etc Privately funded, based Amsterdam, NL Selected Clients B2b customers Field Marketing events Consumers
5 Points to cover today Automatic Customer Feedback Continuous Measurement with CustomerGauge Net Promoter Score Impact on Organisation Improve Operations Firefighting Fire Prevention Reduce $$$ Marketing Increase $$$ Change Management Get to C-Suite Six Sigma
6 Why do companies invest in measuring loyalty? Care about experience Understand that customer experience has impact on top/bottom line Customer Voice Feedback (no noise from channel) Measureable, becomes a KPI Track improvements Link to profits Bonus Net Promoter Score concept Industry standard KPI since 2003
7 Loyalty Measurement: Net Promoter Score Becoming a standard in Fortune 1000 companies Simple to implement and understand Ideal for surveying e-commerce transactions
8 Segmenting Customers by NPS Detractors cost money Promoters are profitable
9 Lesson in Inequalities 95% of Guinness consumed by 5% of customers 5% OF GUINNESS DRINKERS Pareto Principle (80-20 Rule) 80% of revenue from 20% of customers 95% GUINNESS volume Source: Malcolm McDonald, CIM
10 Finding the Value of Repeating Customers Take a sales report (last 6m or 12m), open in spreadsheet Group customers together by address (or customer number) Sum up the order values by customer 100% 90% Customers v. Revenue Sort total order value from high to low Divide customers into sensible segments: LOW/HIGH or 5/10/85% 80% 70% 60% 50% 40% 30% 20% 93% 50% 50% Repeating Customers New Customers 10% 0% 7% Number of customers Revenue Data Fact: Best Buy found that 7% of its customers accounted for 43% of its sales.
11 Segment by value Customer Segmentation Value (spend, profit) $$$ $ Hi-spending customers 7% of total, 50% revenue, 1500 customers AVE VALUE: 1150 LO-spending customers 93% of total, 50% revenue, 20,300 customers AVE VALUE: 163
12 Segment by Loyalty Customer Segmentation 20,000 surveyed 25% response DETRACTORS 20% TOTAL 1012 customers, 19 gave 0 score 459 comments promoters 45% of total, 2250 customers 1643 gave 10 score 833 comments Detractors Promoters LOYALTY (Net promoter score)
13 Value & Loyalty Matrix Customer Segmentation Value (spend, profit) RESCUE REWARD LOWER PRIORITY Detractors Promoters Take actions to Rescue Key customers IN DANGER OF defecting & Reward Key customers who can help grow sale LOYALTY (Net promoter score)
14 Becoming a customer focused organisation Best practices: Communicate to entire organisation Publish regular nps results - Weekly/ monthly updates Bonus managers on NPS improvements Delegate responsibility to departments Net Promoter Champion STructure for success Assistance in scoring and admin Logistics Champion Customer Service Champion Web Champion Product Champion Finance Champion KEY ISSUES: - Checkout - Help pages - merchandising
15 Acting on Comments Best practices: Get regular feedback so you can manage it: Daily/weekly is best! Classify comments to help prioritise issues GET COMMENts to the right people Act on customer feedback within 24 hours Logistics Problems! Service issues Logistics Returns etc Suggestions Service Improvements Praise Testimonials FINANCE WEB
16 A real Loyalty Robot: CustomerGauge CustomerGauge is a system that Plugs into your ecommerce system to automatically survey customers about their experience, every day Brings voice of customer feedback into your organisation Measures customer loyalty with industry standard Net Promoter Score Shows results on dashboard in realtime to help improve customer experience and retention sales Simple to use, quick to implement No hardware or software needed Optional extras: Workflow module to guide feedback to appropriate department Marketing Robot to help you segment and automatically target offers to most engaged customers Survey every transaction, automatically
17 Automatic Customer Feedback Management Invite by all customers to rate you on Every order Usually NO permission needed, but explain up Front AND add unsubscribe option WEB SURVEY: ASK NET PROMOTER QUESTION & ASK FOR COMMENT You can ask other questions about specific issues and ask if further action needed, but keep it short. Plot the results Lots of spreadsheet work! GRAPH, segment etc. GOAL IS TO IMPROVE OVER TIME ACT ON THE COMMENTS DISTRIBUTE COMMENTS to those who can use them. EXPECT 20 30% RESPONSE
18 Management to Maximise Response Data Clean Data, validation De-duplication Rules Engine Language Product/Service details Pictures/Logos etc Mail Merge Sending dates Rules Engine Response reporting Reminder Sending Rules Engine Bounce management Unsubscribe management system automatically deals with mail queue and sends at correct times (n days/hours after transaction) Optimises response: De-duplication Reminders Unsubscribe 25% average response b2c, 50%+ b2b
19 Customer Rescue: Fire-Fighting Automatic workflow rescue message SENT to call agent queue ATTN: THIS CUSTOMER REQUESTED HELP: WHERE IS MY SHIPMENT? I CALLED 3 TIMES! j.smith@... AGENT CAN IMMEDIATELY RESPOND, UPDATE CUSTOMERGAUGE SYSTEM You CAN check customer issues are being closed From survey to solution, CustomerGauge helps you solve customer problems one by one
20 Strategic Analysis - Root Cause: Fire-Prevention Waterfall chart: Company A: NPS 41 What is going wrong (and right?) Results from survey Promoters Detractors Overall NPS Level 1 & Level 2 reasons for detractors and prompters Waterfall chart: Company B: NPS -3
21 CustomerGauge Strategic change management SURVEY: CUSTOMER gives multi-choice feedback on likes/dislikes Understand root causes SURVEY: VOICE OF CUSTOMER comments To help make strategic change: Identify root causes of issues Put a value on impact of each issue Set up projects to Close the loop Track NPS improvement as a result Track NPS improvements Assign to project managers Understand value / NPS impact
22 Automatically segmenting returning customers Built in rules to help rescue and reward customers CustomerGauge helps you measure and understand your VIP customers Analyze the response history from your most prolific customers - J. Smith@directness.net Look at individual customer spending patterns, and past comments/scores
23 Marketing Output Loyal Customers Top 10% Testimonials
24 Dashboard Updated real-time with key metrics
25 Included Reports /1 Net Promoter Trend Segment reports Evolution of Promoters and Detractors Net Promoter Trend: Month/Week Net Promoter: Compare Segments Net Promoter Evolution of Promoters/Detractors Response from
26 Included Reports /2 Customer Comment analysis Comment and customer search Customer Details All comments, with filter Comment drill-down Google type search for customer information and comments Customer Detail screen
27 Included Reports 3 More analysis on root causes SKU listing and drill-down Self-Select Issues Root cause analysis Root-cause Waterfall Chart SKU listing with Net Promoter Score Individual SKU NPS trend
28 Survey Invitation Examples Multi-languages with merged fields Reminder example
29 Notification and integrations Monthly/Weekly/Daily reports ed to key people Outputs: Downloads, RSS feeds, XML output and Twitter feeds
30 Survey Branding Two-page survey (second page conditional) Single page Classic Net Promoter Survey
31 Survey Options Self-Select checkbox Conditional survey options (ie. Change on page 2 depending on Detractor, Passive or Promoter) Multiple-Level self-select checkbox OR multiple 0 10 Likert scales Multiple scales
32 Survey Options (2) Display of purchased products Social Media (Twitter, Facebook) for further promotion (conditionally shown)
33 BazaarVoice Hosted: CustomerGauge (last page of survey) Hosted: BazaarVoice Using CustomerGauge drove up BazaarVoice reviews 500% Info and image from ecommerce feed into CG CG forms correct URL and security sign-in to BV
34 NPS v Social Media Net Promoter Score concept Proactive you control Measureable Comments classified Meta-data attached you know the client
35 Root Cause Analysis Understand drivers of promoters and detractors Drilldown Multiple filter options
36 How CustomerGauge works (Direct Sales Example) 15 days later Within 14 days Customer Purchase Delivery to customer Data sent with Customer details, purchase history sent to customer after 15 days Customer Responds Workflow to categorise feedback Reply to customer Dashboards and reports CLOSED or OPEN reporting
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