Customer insight

Dr Emma Macdonald

Istanbul Technical University

Air Transportation Management, M.Sc. Program

Airline Marketing

Module 8

28th January 2014

Customer Insight

Service

Experience

Product

Quick recap

Goal 1

Goal 2

Goal 3

Value-in-use

USE PROCESS

Embedded Value

Market Penetration Product Development

Market Extension Diversification

Present NewPRODUCTS

Present

New

MARKETS

Product, service & experience quality

Value and value-in-use

Product decisions

SegmentationHygiene Factors

Motivators

Critical success factors3© Cranfield University 2013

Insight and research

Business Insight

Value Perceptions Segmentation

Critical Success Factors

Quality Perceptions

Product Decisions

CUSTOMER RESEARCH

4© Cranfield University 2013

Methods & techniques

• Brand tracker survey• Satisfaction tracker

survey • Real time experience tracking

• Social media tracking• Transactional data

• Clickstream data• Market mix modelling

• Customer interviews• Focus groups• Mystery shopping

• Ethnography• Netnography• Customer network

research

Partial Holistic

Quantitative

& Qualitative

Quantitative

Qualitative

VIEW OF THE CUSTOMER JOURNEY

RE

SE

AR

CH

AP

PR

OA

CH

5© Cranfield University 2013

6

•Based on Kelly’s (1955) Personal Construct theory.

•Uncovers an individual’s mental model.

..1..Su

pp

lier

A

Sup

plie

r B

Sup

plie

r C

Sup

plie

r D

Sup

plie

r E

Sup

plie

r F

..5..

Buying power - high 1 5 2 Buying power - low

In what ways

are two of these

suppliers similar to

each other and different

from the third

…in terms of the

outcomes

you get?

Method: Repertory Grid Technique

•Based on Kelly’s (1955) Personal Construct theory.

•Uncovers an individual’s mental model.

..1..Su

pp

lier

A

Sup

plie

r B

Sup

plie

r C

Sup

plie

r D

Sup

plie

r E

Sup

plie

r F

..5..

Buying power - high 1 5 2 4 3 2 Buying power - low

…and how would you rate these other suppliers?

Method: Repertory Grid Technique

8

Enables comparison of the mental maps of individuals to identify:

(a) sources of individually perceived value, and

(b) their perceptions of each brand on these dimensions.

..1..Su

pp

lier

1

Sup

plie

r 2

Sup

plie

r 3

Sup

plie

r 4

Sup

plie

r 5

Sup

plie

r 6

..5..

Buying power - high 1 5 2 4 3 2 Buying power - low

Technical knowledge -

good1 3 3 1 2 2

Technical knowledge

- poor

Keeps me informed 3 1 1 1 5 2Does not keep me

informed

Makes my job easier 1 5 3 2 4 2Makes my job more

difficult

Method: Repertory Grid Technique

An immersive technique.

Walk in our customers’ shoes:

Customers buy value (as they see it)

not ‘our products’ (as we view them)

Ethnography

Netnography

Ethnography in online communities.

Analysis of content in blogs or forums.

Coffee “Aficionados”

Elitist

Class-conscious

Reject ‘basic’ home/ office

coffeeStarbucks:

‘demeaning’ to the movement

Enjoy creating great coffee (‘The

God Shot’)

Invest in high quality

paraphernalia• Segment Analysis:

10© Cranfield University 2013 Research Source: Kozinets, 2001

Experiences are influenced by relationships.

Moving from ‘me’ to ‘we’…

Families

Social groups

Business groups

A broader context of social reality

Unique techniques

Customer network

research

© Cranfield University 2013 11

Customer network

research

Value-in-use from TV consumption experiences,

within family networks

Value-in-use

Entertainment

Comfort

Control

Household Harmony

Relationship Support

Altruistic Gratification

Status

Others

12© Cranfield University 2013

Social Media Tracking

“Buzz mining”

Capture Tweets• Use of #Hashtags or text

search

Analyze Content• Build study specific

‘dictionaries’

Identify Key Themes

• E.g. usage, purchase, experience

Monitor Tweets and key metrics

over time

• E.g. sales, retention

13© Cranfield University 2013

Case study: Value-in-use

Excitement of new and rare foods

Value for money

For reasons of self-esteem and social recognition

Ease of access

Shopping experience

Fulfil ethical, altruistic or patriotic motives

For a ‘treat’ or for delicious, ready-made food

“I like your style Waitrose – “essential” choco pops indeed. #nomnom”

“Would just like to say that the Waitrose Formby staff are so pleasant. Shopping

in Waitrose is never a chore, it’s a pleasure”

Case study: Supermarkets

Social Media Tracking

Brand personality as a predictor of supermarket

sales.

Competence

Sincerity

Excitement

Sophistication

Ruggedness

High Sales

• Critical success factors ExcitementCompetence

16© Cranfield University 2013

Case study: Value-in-use

Real Time Experience

Tracking

Uses SMS/Text Message Technology to capture holistic

customer experience in real time

Participants complete an online survey prior to commencement of the study.

Participants receive a weeklyreminder email.

Participants send a brief 4

digit text message each

time they encounter the

brands

Every other day participants are required to visit their SMS diary to embellish the encounters they have already texted about.

After 7-28 days of texting and a final visit to the diary participants complete a Future Brand Direction questionnaire before exiting the study.

Pre-study onlinequestionnaire and weeklyreminder emails Real-time experience

Final diary entry and future measures questionnaire

© Cranfield University 2013 18

Real Time Experience

Tracking

• Data captured via 4 character text message:

19© Cranfield University 2013

Real Time Experience

Tracking

Multichannel customer segmentation

• Multiple relational contexts (e.g. ‘my bank’, ‘my telco’, etc)

• Clusters based on behaviours, profiled attitudinally

20© Cranfield University 2013

Harvard Business Review

How good is your

customer insight?

Action points:

22© Cranfield University 2013

Customer Insight