© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
For Internal Use
Maximizing Your Customer Experience Management Metrics
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
Customer Experience Is The New Brand Image
Other people’s experiences influence everyone
Good and bad experiences impact non-customers as well as customers
© Ipsos Hong Kong
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
Customer Experience Management
NOT
Attract, retain and grow profitable
customers.
Maximise Optimise
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
Optimising …
You don’t have to WOW people all the time …
… consistently “acceptable” service also builds strong customer relationships
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
Optimising …
Work out which moments of truth make a difference
… and what levels of service are good enough
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
Yet, metrics are always debated!
VALUE FOR MONEY
RETENTION SATISFACTION
LOYALTY
RECOMMEND
NPS
CROSS SELL
SHARE OF WALLET
COMMITMENT
PERFORMANCE UP SELL
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
Leverage on Enterprise Feedback Management
Where’s The Magic Number?
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
There is no Magic Number • All measures are highly correlated • Every program is different
Answer…
Transactional v Relationship v Brand
The way customers make decisions
What your company has bought in to...
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
Different Programs Require Different Metrics
Relationship (strategic) Transactional (tactical)
Brand level Event driven
Cumulative experiences Single experience
Multi-channel/multi-event Recent & timely
Key Driver analysis Reported to “units”
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
Different Programs Require Different Metrics
Relationship (strategic) Transactional (tactical)
Brand level Event driven
Cumulative experiences Single experience
Multi-channel/multi-event Recent & timely
Key Driver analysis Reported to “units”
Loyalty Satisfaction
Recommend Performance
Share of Wallet Critical Incidence
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
When Can People “Spread Their Behaviour”?
Share of Wallet
Frequent Flyers
All
Nothing
Supermarkets
Savings & Investments
B2B
Retail
Hotels
Airlines
Insurance
Mobile Phone Service
Auto
Current Accounts
Laptops
Share of Mind
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
Competitive Performance Is Paramount
Share of Wallet Switch or stay
Which direction?
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
There Are Only Two Fundamental Ways To Grow A Business…
“MORE YIELD” (More $ from existing customers/existing
markets)
“MORE FIELD” (Add new customers/
New markets)
AND
The focus of Wallet Allocation Optimizer is more yield.
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
WAO! Focuses On “More Yield”
WAO! Increase
Retention?
Increase Customer
Satisfaction
Increase NPS score
Inward context Outward competitive context
Increase Share of Wallet
Which competitors are we most likely to
take business from?
How do we compete head-
to-head with our competitors?
What can we do to get our customers
to spend more with us – and less
with others?
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
YOUR BRAND
Janet, 32, married, 3 children
John, 45, divorced, no children
9
9
YOUR CUSTOMER
Customer performance ratings do not tell enough of the story.
Rank Matters…
It looks like Janet & John are equally satisfied … they would be “Promoters” …and equally ‘good’ customers…
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
9
7
10
8
COMPETITORS
A B YOUR
BRAND
Janet, 32, married, 3 children
John, 45, divorced, no children
9
9
YOUR CUSTOMER
…until we look at the competitive context – other brands they are using as well as you:
Rank Matters…
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
9
7
10
8
COMPETITORS
A B YOUR
BRAND
Janet, 32, married, 3 children
John, 45, divorced, no children
9
9
YOUR CUSTOMER
Equal last
Clear first
… and start to look at the Rankings …
Rank Matters…
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
9
7
10
8
COMPETITORS
A B YOUR
BRAND
Janet, 32, married, 3 children
John, 45, divorced, no children
9
9
YOUR CUSTOMER
WAO! SHARE OF WALLET
25%
50%
Equal last
Clear first
Instead of focusing on a single “inward” looking measure We need to focus on competitive rank
Rank Matters…
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
Rank Matters…
We Know Market shares follow a company’s rank
The Problem If you can’t improve your rank, you can’t improve your share
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
0%
100%
0% 100%
Sh
are
of
Wa
lle
t
Wallet Allocation
R=.92
Recommend Intention
0%
100%
0% 100%
Sh
are
of
Wa
lle
t
Wallet Allocation
R=.91 Net Promoter
0%
100%
0% 100%
Sh
are
of
Wa
lle
t
Wallet Allocation
R=.92
Purchase Intention
0%
100%
0% 100%
Sh
are
of
Wa
lle
t
Wallet Allocation
R=.90 Satisfaction
Rank Works Across Different Metrics
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
The “Best” Metric?
It’s not that the metrics we use are wrong
Satisfaction, Purchase Intention,
Recommend Intention, Net Promoter
It’s that we don’t take them
far enough
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
Our WAO! Analysis Follows A Simple Process
Capture customer metrics and convert to ranks
Convert ranks into shares (WAO! scores) using the Wallet Allocation Rule
Derive drivers of WAO! scores
Connect drivers to $$
1
3
2
4
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
The Drivers of WAO! Are Different
21%
18%
15%
12%
12%
12%
6%
3%
3%
0%
0%
Fees + Charges
Financial Advice
Branches
Financial Products
Account Management
Banking Services
Call Centres
Resolution of…
Internet Banking
Loyalty Rewards
ATM Network
Drivers of WAO!
21%
14%
13%
12%
12%
11%
7%
4%
4%
1%
0%
Branches
Banking Services
Account…
Financial Products
Financial Advice
Fees + Charges
Internet Banking
Resolution of…
Call Centres
ATM Network
Loyalty Rewards
Drivers of SAT
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Detractors Passives Promoters
1st
Equal
Worse
65%
52%
15%
Rank and NPS categories
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
WAO! What it can tell you (example deliverables)
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
Sainsbury’s Ratings
C-SAT Mean C-SAT
8.3
Top 3 box
Top 2 box
Top box
72%
39%
87%
Recommend
NPS
+14 9-10
7-8
0-6
56%
15%
29%
Competitive Performance
40% Sainsbury’s WAO! score
$1.5 Competitive spend index
$30 billion Competitive spend
86% Competitive usage
1st Choice Profile Sainsbury's 1st Sainsbury’s equal Competitor 1st
55 % 16% 29%
KPI Dashboard
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
Sainsbury’s Lost Revenue To Competitors
$7,884M
$4,029M
$3,763M $4,408M $2,568M
$2,942M
$2,189M
$1,928M
$1,754M $122M
$299M
$243M Tesco
Asda
Morrisons
MarksSpencer
Coop
Waitrose
Aldi
Lidl
Iceland
Other
FarmFoods
Other
• Client revenue: $20 billion
• Client customers’ spend with competitors: $30 billion
• Share of competitor spend shown in pie chart
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
Impact and Competitive Performance – Sainsbury’s
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
Head-To-Head Performance
0%
25%
50%
75%
Store location
Store environment
Parking facilities
Competitive prices
Offering promotionsand discounts
Rewards programme
Quality of products
Suitable productrange
Products being instock
Stocks brands I like
Customer service
Check-out'
Online shopping
Complaints handling
Sainsbury's Tesco
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
Key Findings
29%
40%
$30b
use other brands 86% 56% Prefer a
competitor
Your WAO! Share of wallet
Spend with competitors
Where is the $30 billion going?
$3,942M
$2,015M
$1,877M $1,750M
$1,284M
$1,471M
$900M
$890M $490M
$389M
Top Drivers and Potential Revenue
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
How WAO! Helps You Grow
• Correlates to real business results
• Quantifies the $$$ you lose to competition
• Delivers drivers of spend
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
So What About All Or Nothing Situations?
All
Nothing
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
All Or Nothing Situations
But share of mind is still important! All
Nothing
Traditional loyalty questions are relevant
Likelihood to continue
Share of past behaviour
Barriers to Switching
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
Traditional Measures + Share Of Mind
Combining approaches leads to valuable information
• Share of mind (how they would spread their behaviour if they could)
• + traditional switch/stay analysis
LIKELIHOOD TO SWITCH – “RISK CATEGORIES”
• Loyal/Average/At Risk • + where they will go if they do
switch – Customer Flow Models
DIAGNOSTICS
• Key Driver Analysis • Priorities for
improvement
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
Transactional Programs
• Focused on recent experience
• Much shorter questionnaires
• What do we NEED to know? “Moments of Truth”
“Event”
“Touch point”
“Critical Incidents”
Experience Optimizer
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
What We Need to Know ...
INTERACTION OUTCOME
If negative, what can we
do to fix things?
OVERALL RATING (relationship level)
In-coming opinion
Impact of Experience
Out-going experience
Did you experience anything eventful
in this interaction?
If eventful,
how do you feel?
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
REMEMBER …
It’s what you do with it that really matters !
© Ipsos Hong Kong
Maximizing Your Customer Experience Management Metrics
For Internal Use
Thank You Roger Sant
+44 7899 067696