Posted by David McMurray on March 4th, 2014
HCD has continuously promoted the use of three questions to measure the engagement or loyalty of customers. We attempt to include these three questions on all customer-facing surveys and have created benchmarks on them. They are also the basis of our Key Driver Analysis, which allows us to attribute importance to other survey variables and to determine their impact on the three loyalty questions. The three questions are:
- Satisfaction: Overall satisfaction with the relationship
- Loyalty: Will you come to us first for additional products and services?
- Advocacy: Willingness to recommend us to family and friends
We also accept the concept of the Net Promoter Score (NPS), but see that as a variation of the Advocacy Question. We do not believe that any one question provides all the insight necessary to fully assess customer engagement.
I belong to a number of professional groups that are in ongoing dialogue about best practices and procedures regarding loyalty research. One recent LinkedIn® post from the Customer Research Professionals group really caught my attention and I would like to share it in this blog. It has to do with the Customer Effort Score (CES). Here’s an excerpt from that post1:
Customer Effort Score
[…] there’s a new measurement on the block that once again has marketers divided – the Customer Effort Score (CES). Behind the measurement is US research and advisory firm Corporate Executive Board (CEB), which began its research back in 2008. Lara Ponomareff, research director at the CEB’s Customer Contact Council (CCC), who undertook the five-year study alongside Anastasia Milgramm and Matthew Dixon, explains that as products became more commoditized, customer service emerged as the differentiator.
Therefore to examine the link between customer service and loyalty, Ponomareff and her team conducted a large scale study of contact center and self-service interactions. Respondents were asked if their expectations were not met, met or exceeded to determine future loyalty. “We found that in the difference between meeting and exceeding expectations there was no discernible increase in loyalty behavior.” […]
The research concluded that what customers really want is simply a satisfactory solution to the service issue rather than to be “delighted” by over-the-top customer service experiences, as previous measurements assumed. The study surveyed more than 100 customer service heads – 89 of which said that their main strategy was to exceed expectations – and found that a staggering 84% of customers who had experienced over-the-top interactions claimed their expectations had not been exceeded.
Additionally, the report revealed that such excessive levels of customer service levels (such as offering free products or services) will only make customers slightly more loyal to the brand. In a move away from CSAT, which bases customer loyalty on satisfaction, Ponomareff explains that the research revealed the smallest link between satisfaction and loyalty. The study showed that 20% of the ‘satisfied’ customers intended to leave the company in question while 28% of the ‘dissatisfied’ customers intended to stay.
So to achieve customer loyalty, rather than exceeding expectations organizations must reduce the effort that customers exert to get their problem solved. Simply, companies must remove obstacles.
The research identified several common customer complaints relating to effort […]. In comparison to NPS and CSAT, Ponomareff argues that although NPS is a great relationship level metric and a great compliment to CES (in terms of how the customer feels overall and their willingness to recommend), and the same with CSAT and customer satisfaction, neither are as strong a prediction of loyalty over time as CES.
Despite this, Ponomareff is not advocating that CES as a measurement tool is used in isolation but that it should be integrated with existing company strategies and continued to measure over time. “A low effort company insisting on a low effort approach doesn’t mean dumping your current approach,” she says. “What it does mean is effort needs to be at the centre of everything you do and you need to refocus your current initiative around low effort – you want to think ‘What’s the impact on customer effort here?’”
Do you include questions about “ease of doing business with us” in your customer surveys? I’m interested in your ideas and experience about this topic and welcome your comments. Perhaps, over time, we will introduce a benchmarked Customer Effort Score along with Key Driver Analysis, in addition to our current benchmarks and Key Driver analysis of Satisfaction, Loyalty and Advocacy.
1 Customer Effort Score
Posted by Kavita Jaswal on February 28th, 2014
The Super Bowl®. The Golden Globe Awards®. The Grammy Awards®. The Olympics®. What do all of these big time events have in common? In addition to being televised in millions of houses (over 5 billion collectively), they all provide companies with an opportunity to make their brands part of the event through Real-Time Marketing (RTM). RTM is marketing performed “on-the-fly” utilizing a current event to incorporate brand awareness and targeted promotions.
RTM allows for companies to personally engage consumers on the event they are viewing while interjecting promotional brand information. In the 2014 woman’s Olympic hockey game, Oreo® contended with other brands to promote their product at tense moments during the game. Oreo continued to change their strategy as the game fluctuated, staying up-to-date on the game while embedding their brand into the viral message. Oreo is by no means a rookie to RTM. Their 2013 Super Bowl blackout campaign resulted in their “you can still dunk in the dark” tweet being retweeted 15,000 times, increasing their Twitter® followers to 8,000. The message gained 20,000 likes on Facebook® and increased their Instagram followers from 2,000 – 36,000.
While many companies have had great success in using RTM, others may not have utilized this strategy to its fullest potential. In order to gain the competitive edge RTM offers, experts suggest being prepared with several messages in the queue before an event even begins. This ensures constant, targeted messages that can be adapted into play-by-play plugs of information for a particular brand. As social media has already opened the marketing door with infinite possibilities, RTM offers a unique way to capitalize brand exposure and awareness. This “second screen” trend is here to stay and poses limitless marketing potential.
Real-Time at the Oscars
Oreo Real-Time Super Bowl
Posted by Tina Young on February 24th, 2014
According to Bing®, the word innovation means “new idea or method: a new invention or way of doing something,” while Wikipedia® says “it is the application of better solutions that meet new requirements, unarticulated needs, or existing market needs.” When you think innovation, what’s the first thing that comes to mind? You think Apple®, Nike®, Google® , Microsoft® (in their day), but I doubt many would list a bank. An article I recently read in America Banker entitled “First Look: U.S. Bank Developing Mobile Shopping Software,” makes me think we will soon be thinking of banks like U.S. Bank as being innovative. U.S. Bank is working with Montise PLC, a British technology company, on a shopping-related app. According to Dominc Venture, Chief Innovation Office of Payments (CIOP, now that is new): “Don’t think of us as bank. Think of us as commerce, we are experts in payment and enable commerce.”
The app, called peri adds a new twist to merchandise/clothing you see in print, T.V. or hear about on the radio—allowing the consumer make the purchase when they see something they like through digital watermarking. A digital watermark is a series of numbers a digital device can detect but the human eye can’t see. The “wow” factor comes with holding your phone up to an item you might see in a magazine ad, at which point the app recognizes the item and allow you to complete the purchase right there on the spot. That’s innovation and instant gratification!
U.S Bank will be partnering with retailers and the fashion industry to be the payment processor behind their app. The payment works like any other online shopping does today with U.S. Bank processing the payment, but allows the consumer to avoid having to reenter data.
So, when you think innovation, maybe banks will enter the discussion. I believe we will be equating more banks with innovation as they look at new bank designs, mobile capabilities and digital wallet movement….more to come. In the meantime, go to YouTube to see the U.S. Bank video on peri.
Posted by Bill Leming on February 24th, 2014
We all know that temptation is a powerful force in our personal lives. It’s also a powerful force in our professional marketing lives, particularly when one begins to look at distributions of the number of services per household, the number of individual sales per customer, or the number of sales dollars per customer. In Financial Services and many retail services sectors, the number of single service households is far greater than the number of two service households which, in turn, is far greater than the number of three service households, etc. And that’s where temptation rears its insidious head.
As marketers and as managers we focus on that great big, juicy opportunity of selling a second service to all those single service households. And why wouldn’t we? The number and percentage are typically much larger than any other segment so the opportunity is a huge, ripe plum just waiting to be eaten. By definition they are customers who somehow chose to do business with you, so while they might not be advocates, they’re still customers who must have additional service needs that marketers just haven’t yet satisfied. And then the “numbers” temptation…if we could just get ⅓ or even ¼ of those single service households to use a second service, look at the positive impact on our customer retention rates, our retail asset base, and our bottom line.
The problem is that the cost to sell these single service customers a second service is generally pretty steep (you can quantify exactly how steep it is in any number of ways). What we all know to be true is that the cost to do so is comparatively steep especially when compared to the cost of selling an eight-service household a ninth service.
And that’s exactly where we should begin the up-selling effort; namely where it is most cost effective — and that’s not at the single-service level but rather at the eight-service household or the highest level within your organization. Almost no one has all the services or products you offer, so begin from the top down. Eventually if you follow this process, you’ll get to the single service household, which is what everyone wanted at the outset.
By avoiding the temptation to begin with that juicy single service plum, you’ll have done so with not only an eye toward efficiency but also with the knowledge that we can get to them largely because your cost per service sold was well below what you were willing to pay at the single service household level. You’ll have spent your marketing dollars where the cost per new service sold is lowest first, followed by the next lowest and so on until your cumulative cost per new service/product sold is where you want it to be. In effect you’ll be able to go deeper into the customer file, ultimately down to the single-service customer level because you were so successful at the higher services per customer tiers, because the cost per new service sold at the highest number of services per customer was so low.
But temptation is what it is…tempting.
Posted by Alex Wolski on February 19th, 2014
The Forms+Surveys tool from HCD offers an easy way to set up custom notification emails from your surveys and forms. When integrated with the SubscriberMail® email platform, this tool provides the capability to trigger internal notifications as well as email messaging from survey and form responses.
Here are some different types of notifications:
A notification that a new response has been submitted: This is the simplest form of notification. If you have an email opt-in form, for example, you can receive a message when a new subscriber has joined.
A form submission notification: The entire response can be included in the email notification. This can be especially useful if the form is a request for a product or service. Instead of having to view the reports periodically to look for new responses, you can have each response emailed to someone immediately upon submission. Recipients can be anyone within your organization, not just Forms+Surveys users. So a request for a mortgage quote could go directly to the lending department, an internal request for marketing resources can go directly to a traffic coordinator, etc.
Conditional alerts: A notification can be triggered based on how the respondent answers certain questions. An example would be a notification that is triggered when a respondent marks that they were dissatisfied with something.
Using the push/pull integration with SubscriberMail, you can pull data from your mailing list into the survey responses. This data can then be piped into an email notification. So if a customer submits an unhappy response, this can trigger a notification that includes their full response plus their name and contact information. In a retail scenario, you can include salesperson and transaction information. This lets an organization address customer concerns in a very timely manner. It also gives the notification recipient all of the information they need to act without having to access the platform and pull down data. Different conditions can trigger emails to different recipients, based on the response. This can also be useful for routing responses from a “contact us” form.
Advanced workflows using SubscriberMail Campaigns
The SubscriberMail integration can also be used to push data into SubscriberMail. This data can be used to trigger automated campaigns inside SubscriberMail. Some examples of advanced workflow are:
- A form that allows a customer to request a series of emails on a particular topic
- A confirmation email triggered by someone accepting an offer inside a form
- An RSVP form for an event that triggers reminder emails as the event date nears
- A positive survey response that triggers an email thanking the respondent and inviting them to submit a review online
- Survey reminder emails sent to those who did not respond after a specific amount of time
If you’d like to learn more about the Forms+Surveys product, or would like to explore some of the advanced features available, contact us today.