Measurement Matters
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The document discusses the importance of measuring customer experience through various metrics in order to improve customer satisfaction and loyalty. It explains that only 11% of marketers' decisions are currently based on data, despite customers now controlling information flow. The document outlines three key reasons for measurement: return on investment, optimizing key performance indicators, and gaining strategic insights. It then provides a framework for implementing a measurement process through defining objectives, metrics, analytics, and continuous improvement. The impacts of effective measurement include becoming more customer-centric, leveraging big data and technologies like gamification to enhance engagement.
Measurement Matters
- 1. Prepared by Supavadee Tantiyanon Director of Digital Services - Minor International Group & General Manager - mysale.co.th @Minor ! MATTERS MEASUREMENT
- 3. THE FUTURE OF CUSTOMER ENGAGEMENT - EXPERIENCE RELATIONSHIP Credited: RightNow Technology
- 5. Where are we now? What do we think? Scatter Measurement Still ad-hoc and not yet integrated Don’t know how Not sure how to show the impact to business Big gaps on definitionNo clear policy
- 6. THE SAD TRUTH ONLY 11%OF MARKETERS’ DECISIONS ARE MADE BASED ON DATA
- 7. THE SAD TRUTH:INFLUENCE ON MARKETERS’ DECISIONS Past Experience & Intuition Colleague Recommenda tion Conversations with Experts One-off Customer Interactions Data Source: CEB 2012
- 9. MEASURE WHY ?We need to measure customer experience to improve satisfaction and loyalty…which will also reflect on the brand’s profitability in the long run.
- 10. SHIFT TO A CONNECTED WORLD Shift in media landscape & Technology 1.0 One-way Communication TRADITIONAL CONSUMER 2.0 2-ways Communication with more dialogue ONLINE CONSUMER 3.0 Always-on Always Connected CONNECTED CONSUMERSpeedy & Holistic Shift
- 11. Customers are now in control of the information and messaging, not brands. 11 UNDERSTANDING
- 13. 95% of employees don’t fully understand their organisation’s strategy. ! Norton/Kaplan Balanced Scorecard 50% of the people surveyed said that agents failed to answer their questions ! ! Harris 10% increase in customer retention results in a 30% increase in the value of the company Bain & Co. Nearly 70% of consumers said, they had ended a relationship due to poor customer service alone ! Datamonitor/Ovum 2009 ! Dissatified customers whose complaints are taken care of, are more likely to remain loyal , and become advocates, as those that are “just” customers ! 70-90% of what happens with customers is driven by human nature and nothing to do with technology ! ! McKinsey
- 14. Similar experience?What are the actions
- 15. 95% 45% 35% 10% 5% 0 10 20 30 40 50 60 70 80 90 100 Collect Feedback Alert Staff Use Insight Deploy and Improve Tell Customers Percent of companies that…
- 17. 3 WAYS MEASUREMENT MATTERS 1. ROI 2. KPI 3. INSIGHT Measuring success and returns Optimization engines Context for planning
- 18. Return on Investment A simple equation Business Value: Opportunity value Incremental value of the investment
- 19. Key Performance Indicators: An Optimisation Engine
- 20. Key Performance Indicators: An Optimisation Engine
- 21. Insights:
- 25. Process Framework Set Targets, Reporting Points and Reporting Audience Customer management Planning Trial Strategy and KPIs Implement Technology Apply Analytics Relate KPIs to market and Strategic Objectives Adjustment Strategy According to Learning 4. Interpretation 3. a) Testing b) Tracking c) Analytics 2. Establish Success Metrics (KPIs) 1. Establish Strategic Objectives 5. Action Planning Continuous Improvement
- 26. Knowing your Customers Available data • Gender • Data of Birth • Occupation • Residential address • Delivery address • Purchase history Customer segmentation RFV Recency, Frequency, Value Deliverable Phase 1 • Customer segmentation • Identify groups of established customers who represent highest value • Identify groups of new customers with the greatest future potential Phase 2 • Market basket analysis
- 27. Customer Engagement KPIs (Examples) Program Effectiveness & ROI • Customer satisfaction • Cost effectiveness per channel of acquisition or communications • Participation rate • Program contents • Brand preference overtime against market index • Incremental sales for up-sell, cross-sell, replacement and digital services • Referral’s rate (How likely would you recommend to your friends?) • Incremental sales of the programVs. regular sales
- 29. 29 So don’t forget the golden rule What they give us>=What we give them THE EXPERIENCE ...
- 30. THE IMPACT 4
- 31. Impacts to the organization Gamification Utility apps Video QR Code rich media realtime InteractiveCONTENTS more platforms more rich medias not ownable by brand “Data is the new oil or the internal “gold mine” that can’t be ignore. BIG DATA Customer Database SalesData Behavioral tracking Contextual Buying pattern preferences location social ROIdialog UX CUSTOMER CENTRICS • Listen more to consumers via social listening • Adopt more of CRM practices across all functions using digital as channel
- 32. Final thoughts… • “Success” with Customer Engagement Program will depend upon having clear, measurable objectives which are implemented and followed regularly • This requires more than a scorecard approach -- findings must be analyzed and changes implemented to continuously optimize the process • Short-term and Long-term “wins” are always possible • but…most of all, you have to love your customers and understand them enough to engage with them with great passion.