Relevant Marketing Key Performance Indicators (KPIs) in Different Industries;

Xerox diversifying into the service division

Regine Bullon, Michael Gross, K. Navita Phifer, Alina Sachapow, Nadja Scheibler

contact: www.knavita.com

12.04.23

Student project in collaboration with Xeroxfor the B.A. International Business programHTW (University of Applied Sciences) Berlin

Aim of the project

• Xerox does not need to analyze or improve its current business

• Rather, Xerox should diversify in order to stay competitive in today‘s changing market

• Pointing out three important industries for Xerox

• Diversify the business model of Xerox to specialize in personalized white space marketing

• The focus is on an additional service offered to their clients

• Service can be measured through key performance indicators

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Overview: HTW & Xerox marketing project focusing on key performance indicators

I. Fundamentals of key performance indicators (KPIs)

II. Explanation of most important KPIs used in the following

industries:

a) Insurance industry

b) Airline industry

c) Telecommunication industry

III. Xerox, a new division concentrating on services

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Overview: HTW & Xerox marketing project focusing on key performance indicators

I. Fundamentals of key performance indicators (KPIs)

II. Explanation of most important KPIs as used in the following

industries:

a) Insurance industry

b) Airline industry

c) Telecommunication industry

III. Xerox, a new division concentrating on services

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I. KPIs are a tool to measure performance

• Definition: A key performanceiIndicator (KPI) is commonly used by

an organization to evaluate its success in reaching strategic goals

by measuring processes and performance toward a set goal or

comparing actual against past performance.

(AP Institute)

• Most data for KPIs can be found only through service, through

direct questionnaires, studies, data analyzation or similar

methods.

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I. There are literally thousands of KPIs and a formula for each; Some examples

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Customer Acquisition Rate & Cost

Customer Churn Rate

Customer Satisfaction Index

Brand Awareness Level

Customer Lifetime Value

Conversion Rate

Customer Significance Level

Customer Acquisition Rate

Customer Complaint Ratio

Customer Acquisition Cost

I. The focus is on the most importantkey performance indicators in 3 industries

1. Insurance industry

2. Airline industry

3. Telecommunication industry

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Overview: HTW & Xerox marketing project focusing on key performace indicators

I. Fundamentals of key performance indicators (KPIs)

II. Explanation of most important KPIs as used in the

following industries:

a) Insurance industry

b) Airline industry

c) Telecommunication industry

III. Xerox, a new division concentrating on services

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II. Three example KPIs for insurance companies

1. Number of policy sales

These numbers are compared against the previous quarter(s) and

against the forecasted amounts or target number

2. Number of years the clients stays with the company

In the insurance industry, this is measure through the customer

retention formula:

Source: http://ezinearticles.com/?Identifying-the-Most-Common-Insurance-KPI&id=1240969

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1. Customer lapse ratio

A lapse, or missed payment, can lead to undesirable incidents such

as foreclosure

The ratio is given as a percentage of the total policies sold

Overview: HTW & Xerox marketing project focusing on key performace indicators

I. Fundamentals of key performance indicators (KPIs)

II. Explanation of most important KPIs as used in the following

industries:

a) Insurance industry

b) Airline industry

c) Telecommunication industry

III. Xerox, a new division concentrating on services

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II. Three example KPIs for airline companies

1. Occupancy rate:

Formula:

2. Realized price

is the price paid for each seat sold per flight;

This can be measured on average, median, mean, or difference

between cheapest and most expensive seats sold

Formula:

3. Loyalty rate

is the number of customers staying with the company

Formula:

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Overview: HTW & Xerox marketing project focusing on key performace indicators

I. Fundamentals of key performance indicators (KPIs)

II. Explanation of most important KPIs as used in the following

industries:

a) Insurance industry

b) Airline industry

c) Telecommunication industry

III. Xerox, a new division concentrating on services

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II. Three example KPIs for telecommunication companies

1. Average revenue per user

shows the importance of a customer through revenue generated

Formula:

2. Subscriber acquisition rate:

Formula:

3. Average call time:

Shows the importance of a customer

Formula:

13

II. There are difficulties when using KPIs to measure business performance

• Measurement & data collection

• Analyzing

• Quantifiable performance measurement

• Risk to lose quality when focusing quantity, numbers & data

• No corrective action

Source:http://www.ap-institute.com/Key%20Performance%20Indicators.html

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II. Summary of KPIs used in the industries connected to Xerox

• Useful measurements even though large variety

• Industries own measurements and different interpretations,

• Analyzing data followed from actions of the company taken

• Relevant industries for Xerox: − insurances, airlines and Telco

• Example KPIs to be integrated in Xerox measurement

• Service division as diversified business model of Xerox following

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Overview: HTW & Xerox marketing project focusing on key performace indicators

I. Fundamentals of key performance indicators (KPIs)

II. Explanation of most important KPIs as used in the following

industries:

a) Insurance industry

b) Airline industry

c) Telecommunication industry

III. Xerox, a new division concentrating on services

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III. The current situation of Xerox

• Well-respected company

• One of the best printers and manufacturers worldwide

• Challenge: − shrinking market− saturated market

• Xerox should diversify its business portfolio

• Focus on service

• Consequently:− acting as a service platform − specializing in white space marketing− emphasizing on personalized content

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III. Xerox service platform offering personalized transpromo content

• Developing a platform offering B2B services

• Specialty: printed and digital personalized white space

marketing (WSM)

• Terms & definitions used:

These WSM „communications“ are called transpromo

Transpromo = transactional print + sales promotion

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III. Xerox provides the following services

• Connects Providers and Users

• Data management: receive, analyze and organize customer data provided by clients

• Creation, design and printing of transpromo content

• Response processing: organization and tracking of responses and evaluation of surveys

• Creation of KPIs and analysis of the service provision

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III. Defining terms for Xerox‘ new business; its partnerships and relations

• Xerox has two different kinds

of clients (B2B):

• Clients offering the space for

transpromo on their documents

are called “Providers“

• Clients who placing their

transpromo on the documents

of the Providers are called

“Users“

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III. Defining terms for Xerox‘ business partnerships and relations

• “Customers“ receive the

documents and see the

transpromo content.

• As we are acting on behalf

of our clients, their

customers become our B2C

contacts

• Transpromo content

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III. Business Model of Xerox service division

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B2B

B2C

XeroxProvider User

Customer

III. Information flow for setting up transpromo content

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B2B

B2C

ProviderPlus ++

UserAir BerlinXerox

CustomerMr. Steinbach

Information Information

Mr. Steinbach calls Miami 3 times a week

Advertisement for flights to Miami

Receives transpromo content on his phone bill

III. Future outlook: the possible role of Facebook as example for social networks

• Xerox develops apps for Facebook

• different apps are created for different segments in order to

reach as many customers as possible to gather their data, such

as:

• Birthday-tracking calendar

• News

• Games

• Horoscopes

• Data is received through the apps and is used to create

personalized transpromos

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III. Information flow for setting up transpromo content

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B2B

B2C

ProviderPlus ++

UserAir BerlinXerox

CustomerMr. Steinbach

Information Information

Mr. Steinbach calls Miami 3 times a week

Advertisement for flights to Miami

Receives transpromo content on his phone billInformation

FacebookApp

Information that aunt lives in Miami

III. At different points of the customer lifecycle Xerox uses KPIs to evaluate the success of its services

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Customer life cycle

1. Customer Response Rate:Is the reaction to transpromo WS marketing, for example:Formula:

2. Brand Awareness Level: Of business clients’ customers can be measured through surveys

Formula:

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Print Digitalcalling a certain telephone number clicking on the transpromo link

Accessing a specific transpromo QR code

Download Brochures/PDFs

Using vouchers or coupon codes

Accessing personalized website

Find

1. Customer Acquisition Rate:

Formula:

2. Customer Acquisition Cost:

Formula:

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Find Consider

1. Customer Significance Level: Shows dependence of the clients on their large customers

Formula:

2. Matching rate: Number of Users matched to ProvidersFormula Provider:

Formula User:

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Find Consider Purchase

1. Additional revenue for provider generated by selling WS

2. Effectiveness of the WS advert for the users:

measured by brand awareness or

measured by additional revenues

Formula: Revenues generated by transpromo - money spent for the service bought

3. Customer Satisfaction Index:

4. Customer Complaint Ratio:

How many customers complain relative to services delivered

Formula:

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Find Consider Purchase Develop

1. Re-purchase rate:

Formula:

2. Customer Churn Rate:

Determine the reasons for leaving (dissatisfaction, other

company’s better promotion campaign, personal reasons)

Formula:

3. Customer Lifetime Value:

Value of a customer throughout their customer life cycle

Formula:

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Find Consider Purchase Develop Retain

III. Summary to set up the service division

• Xerox sets up a new division connecting Providers and Users

specializing in personalized transpromo

• Data management and response processing is done by Xerox

• Measuring and analyzing performance of:

− service platform

− company’s advantages gained

• confusion and difficulties through key performance

measurements

• Xerox manages and prepares the data for the User and Provider

it offers each company the adequate action

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III. The recipe for success:

ervice = Xerox + Service

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III. Importance of using Facebook to access new customers

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Source: Facebook.com

III. Keeping up with the competition moo specialized in printing business cards

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little icon connects to moo.com

III. Ordering business cards on moo.com

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III. Thinking out of the box ervice offers photoalbum printing

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Click to print

III. Click on the icon connects to xervice.org

Referent · 12.04.2339

xervice

Thank you.

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