TrustArc Webinar - How to Build Consumer Trust Through Data Privacy
Customer Loyalty Measurement Program
1. Transform Customer Feedback Into
Customer Loyalty!
Lori Blandford
Marketing Manager
Ken Krawczyk
Sr. Manager, Predictive Analytics
2. Agenda
Dunn Solutions Group Overview
Predictive Analytics Overview
Customer Loyalty Overview
Measuring Customer Loyalty
The Customer Loyalty Measurement Program
Q&A
3. Full-service IT Consulting Firm
Founded in 1988
Offices
Chicago
Minneapolis
Raleigh
Fort Lauderdale
Bangalore, India
https://www.dunnsolutions.com/content/en/company
Overview
Raleigh
Ft. Lauderdale
Minneapolis
Bangalore
Chicago
4. Practice Areas
Application Development
Custom App Dev
Portals
Web Design
E-Commerce
End-to-End BI
Dashboards
Data Warehouse
DI + EIM/Quality
Business Intelligence Packaged Solutions
Vertical Solutions
Unique Solutions
Predictive Analytics
Managed Services
Map Intelligence
Budgeting & Planning
Training
On-Site + Custom
Open-Enrollment
Jumpstart/Mentoring
6. End-to-End Business Intelligence solutions
Data Warehousing
Dashboards & Performance Management
Enterprise Information Management + Data Quality
Business Intelligence Managed Services
Predictive Analytics
Business Intelligence Services
7. Agenda
Dunn Solutions Group Overview
Predictive Analytics Overview
Customer Loyalty Overview
Measuring Customer Loyalty
The Customer Loyalty Measurement Program
Q&A
8. Business Intelligence Value and Complexity
Source: The Data Warehouse Institute (TDWI)
LOW
HIGH
HIGHBUSINESS VALUE
COMPLEXITY
REPORTING
What happened?
ANALYSIS
Why did it happen?
MONITORING
What’s happening now?
PREDICTION
What might happen?
Predictive analytics
Dashboards, scorecards
OLAP and visualization tools
Query, reporting and search tools
BUSINESS INTELLIGENCE TECHNOLOGIES
Predictive Analytics is the
GPS of a BI system-
it provides guidance on
strategy and tactics using
advanced analytics
9. Predictive Analytics
Added Operational &
Strategic Value Fact-Based Solutions
Identify Future
Opportunities
Gain Competitive
Edge
Greatest
Business Value
10. Dunn Solutions Group Predictive Analytics Services
Complete Predictive Analytics Services
Data integration
Data cleansing
Model development
Deployment
Dashboards
Reporting
Support
Training
Software
12. Challenges with Measuring Customer Loyalty
Assumption that customers are satisfied
Belief that satisfied customers are also loyal customers
Loyalty is often measured by only analyzing transactions
Belief that loyalty is created by discounting
Loyalty programs are expensive and time consuming
Capability to analyze customer behaviors and identify
loyalty driver does not exist in the company
13. What is Customer Loyalty?
Satisfaction
Intention
Retention
Loyalty
14. Benefits of Loyal Customers
Unsolicited Referrals
Reduced Acquisition Cost
Increased Retention
Customers Are Less Price Sensitive
Higher Profit
Training & Empowerment Of Employees
Employee Satisfaction
Higher Level Of Quality
15. Agenda
Dunn Solutions Group Overview
Predictive Analytics Overview
Customer Loyalty Overview
Measuring Customer Loyalty
The Customer Loyalty Measurement Program
Q&A
18. What is a Method of Collecting VOC?
Implement a customer feedback program
All questions have rating: 0 = not at all likely, 10 = extremely likely, except satisfaction question is 0 =
extremely dissatisfied to 10 extremely satisfied
1. Overall satisfaction
2. Decision to recommend (Word of mouth, Word of mouse)
3. Decision to purchase again for the first time
4. Decision to continue purchasing same products/services
5. Decision to purchase different products/services
6. Decision to increase purchase amount
7. Decision to increase frequency of purchasing
8. Decision to switch to another provider
22. How Do We Analyze the VOC to Infer Loyalty Levels?
Factor
Analysis
Satisfied
Recommend
Choose
again
Purchase
Same
Purchase
different
Purchase
amount
Purchase
frequency
Switch
Provider
25. What Loyalty Dimensions Are Deduced By VOC?
• Feelings created from
human interactionsAffective
• Preferences from
examining product/service
quality
Cognitive
• Expectations are met and
the decision is to continueRetention
26. What Does Loyalty Correlate With?
Affective Cognitive Retention
0.75
0.6
0.53
0.66
0.76
0.5
0.72
0.6
0.84
Correlation between Loyalty and Goals
New Cust Growth YOY Revenue Churn%
27. Agenda
Dunn Solutions Group Overview
Predictive Analytics Overview
Customer Loyalty Overview
Measuring Customer Loyalty
The Customer Loyalty Measurement Program
Q&A
28. How Do We Get There?
Self-Enablement Option
Purchase the right software to enable the process: data
acquisition, data cleansing, predictive analytics, reporting
Do a pilot project
Work with Dunn Solutions to mentor internal personnel
Outsource Option
Partner with Dunn Solutions to run your loyalty program