evaluating customer satisfaction means answering these questions:
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Are you getting all you can from your customer satisfaction data? Introducing: ICSS The Integrated Customer Satisfaction System from. Evaluating Customer Satisfaction Means Answering These Questions:. What benefits are important to customers? - PowerPoint PPT PresentationTRANSCRIPT
Are you getting all you can from your customer satisfaction data?
Introducing:
ICSS
The Integrated Customer Satisfaction Systemfrom
Evaluating Customer Satisfaction Means Answering These Questions:
• What benefits are important to customers?
• How do you deliver on important benefits? How do your competitors?
• Does your brand have equity that goes beyond its performance? How about the competition?
• Do all customers want the same things? If not, who wants what?
• Do all customers see you and your customers the same way?
• How can you find customers with different needs?
Using a system of customer satisfaction techniques, ICSS can help you answer ALL
these questions….
And presents them in convenient spreadsheet form!
ICSS Analytic Techniques
• RenSat+ identifies what issues determine brand preference -- and how:– “Basic” needs that are costs of entry into the market– Key drivers with constant ROI– “Exciters” that can set a brand apart from the competition
• BEE (Brand Equity Estimate) shows whether your brand – or the competition – is more preferred than its performance would suggest (or less)
• Gap Analysis shows how your brand stacks up against the competition on each issue
• DRIVESEG Derived Importance Segmentation finds groups with different needs, expectations, and perceptions
• TARGET FINDER identifies needs groups for advertising and direct mail
How an ICSS Analysis is Conducted
Step 1: Determine the Variables
The most important step is the first – making sure you’re examining what’s important and actionable
• Dependent variable should be as closely related to consumer performance as possible (brand preference or choice)
• Predictor items should cover every relevant aspect of needs and expectations in category
We will work with you in developing a list of items to make sure you “cover the territory”
Step 2: Find the Underlying Benefit Factors
The most well thought-out set of items will not necessarily capture the way the consumer views the category– The items as asked are only approximate measures of
the way the consumer sees the brands
– Factor Analysis identifies the categories the consumer uses, and how they relate to the questions you asked
Factor Analysis of Benefit Items
ATTRIBUTE ITEMS SERVICE PRICE/ VALUEPRODUCT
AVAILABILITY CONVENIENCE TRUST
Responsive customer service 0.82 0.10 0.36 0.32 0.36Quick response time 0.78 0.26 0.38 0.21 0.24
Low price 0.12 0.75 0.19 0.09 0.12Good value for money 0.35 0.70 0.27 0.25 0.29Competitive price 0.20 0.66 0.09 0.14 0.13
Wide selection 0.05 0.21 0.72 0.36 0.14Brand I want available 0.22 0.20 0.61 0.34 0.22
Convenient locations 0.39 0.09 0.36 0.68 0.31
Name I trust 0.32 0.25 0.30 0.42 0.59
ATTRIBUTE FACTORS
The numbers show the relationship between the factors and the items. The higher the number, the more the item contributes to the factor’s meaning.
Step 3: RenSat+: Derive Importance of Factors
Factors are important to the extent they drive preference:• For instance, if the preferred brand is consistently rated
higher on value than the non-preferred brand, then value is important
• Drivers of preference can be very different from what consumers say is important
Step 3: RenSat+: Derive Importance of Factors
But all factors don’t influence preference in the same way:
•Traditional Key Drivers act in a straight-line fashion: the better your brand does on them, the more it’s preferred
•Basic factors are “costs of entry” into the market: a brand is rejected if it lags the competition, but isn’t necessarily preferred for doing better
•Exciters are “bonuses”: a brand is not penalized for not having them, but an advantage over the competition can translate into brand preference
PERFORMANCE
HighLow
PR
EF
ER
EN
CE
Low
Hig
h
Basic Feature
Exciter
Key Driver
EF
FE
CT
OF
PE
RF
OR
MA
NC
E F
AC
TO
RS
ON
PR
EF
ER
EN
CE
Step 3: RenSat+: Derive Importance of Factors
RenSat+ uses linear and non-linear regression techniques to:
•Identify what type of effect each factor has•Key Driver
•Basic
•Exciter
•Evaluate the importance of each factor•Expressed as a percentage of total influence on preference
Relative Derived Importance of Factors
TRUST58%
SERVICE26%
PRICE/VALUE8%
PRODUCT AVAILABILITY
3%CONVENIENCE
5%
Key Driver
Basic
Exciter
Tru
st is
th
e m
ost
po
we
rfu
l driv
er
by
far
Pro
du
ct A
vaila
bili
ty is
a b
asi
c co
st o
f e
ntr
y in
to t
he
ma
rke
t
Go
od
Se
rvic
e is
an
“E
xcite
r” t
ha
t ca
n d
istin
gu
ish
a b
ran
d f
rom
th
e c
om
pe
titio
n
Step 4: Evaluate Competitors on Important Benefits
Gap Analysis shows advantages and disadvantages of each brand at a glance• Listed in descending order of importance
• Shows where you’re strong and weak
• Shows your biggest threats and opportunities
•Brand A is the most trusted brand – the most important factor
•On Service, a competitive advantage, Brand A and Brand B compete for dominance.
•Product Availability is a “cost of entry”. Brand A is at parity with its competitors – and that’s enough (as long as another competitor with better distribution doesn’t come in!)
GAP ANALYSIS
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%T
RU
ST
PR
ICE
/ V
ALU
E
CO
NV
EN
IEN
CE
SE
RV
ICE
PR
OD
UC
TA
VA
ILA
BIL
ITY
KEY DRIVERS EXCITER BASIC
FACTORS
DE
RIV
ED
IM
PO
RT
AN
CE
(% o
f V
aria
nce
Exp
lain
ed)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%Name I trust Low price
Good value formoney
Competitiveprice
Convenientlocations
Responsivecustomerservice
Quick responsetime Wide selection
Brand I wantavailable
Attributes
PE
RF
OR
MA
NC
E
(To
p 2
Bo
x %
)
LEVERAGE PREMIUM PENALTY Brand A Brand B Brand C
Step 5: Assess Brand Equity
Is a brand’s overall impression more than the sum of its parts? Is it less?• BEE (Brand Equity Estimator) uses the RenSat+
model to find out which brands do better (or worse) than their performance predicts
• Preference for each brand is predicted using the RenSat+ factors, then compared with actual preference levels
– Brands that exceed predicted levels have a positive brand equity: they outperform expectations
– Brands significantly lower than predicted levels have negative brand equity: they are less preferred than might be expected by their performance on attributes
Brand Equity Estimate
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Predicted Preference
Act
ual P
refe
renc
e
Underperforming
Outperforming Brand ABrand B
Brand C
Bra
nd
A, e
ven
thou
gh it
’s th
e ca
tego
ry le
ader
, und
erpe
rfor
ms
its
expe
ctat
ions
In c
ontr
ast,
Bra
nd
B h
as p
osit
ive
bran
d eq
uity
: it
’s m
ore
pref
erre
d th
an it
s pe
rfor
man
ce o
n at
trib
utes
pre
dict
s
Step 6:Find Derived Needs Segments
It’s important to know the needs and attitudes of the market as a whole – but that’s not the whole story
• Sometimes the total market’s opinion is only an average of two or more segments with contrasting needs and evaluations
• DRIVESEG, our unique Derived Importance Segmentation method, can find and identify those segments
•Segment I, the largest segment, values Trust and Service
•Segment II values Convenience and Availability
•Segment III is the Price/Value segment
Derived Importance by DRIVESEG Segment
0%
10%
20%
30%
40%
50%
60%
70%
80%
TRUST SERVICE PRICE/ VALUE CONVENIENCE PRODUCTAVAILABILITY
Attribute Factors
Imp
ort
ance
(S
har
e o
f D
eter
min
atio
n)
Segment I (58%) Segment II (26%) Segment III (26%)
Step 7:Analyze Brands By Segment
Customers form segments with unique sets of expectations. Do they also view the brands differently?• Repeating the Gap Analysis and BEE within each
DRIVESEG segment will answer that question
•Segment I, the largest, buys based on Trust and Service
•Brand A has Trust advantage
•Brand B has the advantage on Service, but Brand A can compete by improving response time
GAP ANALYSISSegment I
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
KEY DRIVER EXCITER BASIC INDIFFERENT
FACTORS
DE
RIV
ED
IM
PO
RT
AN
CE
(% o
f V
ari
an
ce E
xp
lain
ed
)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%Name I trust
Responsivecustomerservice
Quickresponse
timeWide
selection
Brand Iwant
available Low priceGood valuefor money
Competitiveprice
Convenientlocations
Attributes
PE
RF
OR
MA
NC
E
(To
p 2
Bo
x %
)
LEVERAGE PREMIUM PENALTY Delivery - Brand A Delivery - Brand B Delivery - Brand C
•Segment II is the Convenience/Availability Segment
•Brand B has the advantage for Convenience
•Product Availability is seen as a parity benefit (which is all it needs to be); however, Brand A may have an out-of-stock problem
GAP ANALYSISSegment II
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
CO
NV
EN
IEN
CE
TR
US
T
PR
ICE
/ VA
LUE
SE
RV
ICE
PR
OD
UC
TA
VA
ILA
BIL
ITY
KEY DRIVERS EXCITER BASIC
FACTORS
DE
RIV
ED
IMP
OR
TA
NC
E(%
of
Var
ian
ce E
xpla
ined
)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Convenientlocations Name I trust Low price
Good value formoney
Competitiveprice
Responsivecustomer
service
Quickresponse
timeWide
selectionBrand I want
available
Attributes
PE
RF
OR
MA
NC
E
(To
p 2
Bo
x %
)
LEVERAGE PREMIUM PENALTY Brand A Brand B Brand C
•Segment III cares only about Price/Value
•For them, Brand C is the clear winner
GAP ANALYSIS:Segment III
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
PR
ICE
/ VA
LUE
CO
NV
EN
IEN
CE
TRU
ST
PR
OD
UC
TA
VA
ILA
BIL
ITY
SE
RV
ICE
KEY DRIVERS BASIC EXCITER
FACTORS
DE
RIV
ED
IMP
OR
TAN
CE
(% o
f Var
ianc
e E
xpla
ined
)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%Low price
Good valuefor money
Competitiveprice
Convenientlocations Name I trust
Wideselection
Brand Iwant
available
Responsivecustomerservice
Quickresponse
time
Attributes
PE
RFO
RM
AN
CE
(T
op 2
Box
%)
LEVERAGE PREMIUM PENALTY Brand A Brand B Brand C
Step 7:Analyze Brands by Segment
We can also apply Brand Equity Estimation within segments• Do brands appeal to (or repel) customers in a given
segment to a greater extent than their performance on attributes would suggest?
Brand Equity Estimate By Segment
-20%
-15%
-10%
-5%
0
5%
10%
15%
20%
Segment I Segment II Segment III
Bra
nd
Eq
uit
y (P
erce
nta
ge)
Brand A Brand B Brand C
• In
the
Tru
st/S
ervi
ce s
egm
ent (
Seg
men
t I),
Bra
nd B
out
perf
orm
s it
s at
trib
utes
• By
cont
rast
, Bra
nd A
doe
s co
nsid
erab
ly w
orse
am
ong
the
Con
veni
ence
seg
men
t tha
n it
s pe
rfor
man
ce s
ugge
sts
• And
, eve
n th
ough
Bra
nd C
is th
e “p
rice
bra
nd”,
it u
nder
perf
orm
s it
s at
trib
ute
rati
ngs
in th
e P
rice
seg
men
t
Summary:Segmented Gap and BEE Analysis
• If you’re Brand A, maintain availability and improve response time to leverage trust advantage and make inroads in the mainstream segment (Segment I)
• Brand B is a strong competitor on two fronts – it holds Segment II with its convenience advantage, and competes with Brand A in Segment I by superior service
• Brand C, the price brand, would have trouble breaking out of its niche in Segment III. Though Segment III consumers trust it, Segment I consumers, for whom Trust is most important, don’t. And even in Segment III, Brand C has little inherent equity; consumers choose it mainly because it’s cheap
Step 8:Identify and Target Needs Segments
Needs segments don’t do the marketer any good if they can’t be identified so that marketing messages can be addressed to them
• Target Finder identifies the demographic and behavioral groups in which each segment is most likely to be found– Finds compound definitions that can’t be identified “with the
naked eye”
TARGET FINDER RESULTS
TOTAL SAMPLE (100%)Segment I (48%)Segment II (26%)Segment III (26%)||--------------------------------------------------------------------------------| |Women (51%) Men (49%)Segment I (60%) Segment I (36%)Segment II (14%) Segment II (38%)Segment III (26%) Segment III (26%)| ||---------------------------------------- |----------------------------------------| | | |HHI Under $35K (35%) HHI $35K or Over (16%) No Children (25%) Have 1+ Children (24%)Segment I (55%) Segment I (71%) Segment I (27%) Segment I (45%)Segment II (10%) Segment II (23%) Segment II (54%) Segment II (21%)Segment III (35%) Segment III (6%) Segment III (19%) Segment III (33%)
TARGET FINDER SUMMARY
• Segment I is most likely to be found among women, particularly with household incomes over $35,000
• Segment II is most likely to be found among men, particularly those with no children
• Segment III is most likely to be found:– among women with household incomes under $35,000
– Among men with children
ADVANTAGES OF ICSS• Unified system maximizes the value of customer
satisfaction data– Modular – use the whole system, or conduct specific analyses
• Factor model allows discrimination among benefits– You can really tell which issues drive preference
• Derived Importance model avoids self-report bias– RenSat+ distinguishes types of influence
• DRIVESEG segmentation avoids marketing errors due to non-discrimination of subgroups
• TARGET FINDER increases actionability by making it easier to find segments
To discuss performing an ICSS analysis, contact Paul M. Gurwitz, Ph.D.
At (212) 319-1833
or by e-mail at:[email protected]