Measuring Your Customer Feedback Program ROI

Transcription

1 Measuring Your Customer Feedback Program ROI Presented by: Chad Hortin, SVP, Business Insights David Ramdas, Director, Strategy & Development Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 1

2 The number one request that we hear is How can I prove the ROI on our customer feedback program? Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 2

3 What is worth more: a piano, a camera, or golf clubs? Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 3

4 What s the ROI of... a piano? Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 4

5 For most people... How much did your parents spend of piano lessons? Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 5

6 For Billy Joel? About $160 million. Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 6

7 What s the ROI of... a camera? Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 7

8 For Chad... its fun, but I haven t sold anything yet. Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 8

9 For Annie Leibovitz? Rumored to have a $100,000+ day rate, and has used cameras to amass a $20 million fortune. Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 9

10 What s the ROI of... Golf Clubs? Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 10

11 For Dave... About (-$1,000) Accepting the fact that this is not my game. Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 11

12 For Tiger Woods... Forbes reports that Tiger earned $61 Million in ($6.2 Million salary & $55 Million on endorsements). Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 12

13 While value starts with having the right tool, the real value comes in knowing how to use the tool, and then taking action. Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 13

14 The Ultimate Belief Is... Employees Customers Better Business Results Measuring Your Customer Feedback Program 14 ROI August 21, InMoment, Inc. 14

15 There is a problem with how you are thinking about ROI. Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 15

16 We Know That Location financial performance can be attributed to several factors including, but not limited to: Location Economic Conditions Management Competitive Environment Customer Satisfaction Time Lags Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 16

17 Who is your competition? Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 17

18 Lifecycle for generating value from customer feedback Engagement Wows Rescues Taking Action Sales Linkage Stage 1: Getting Started Stage 2: Gaining Momentum Stage 3: Continuing Growth Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 18

19 Stage 1 Gaining employee engagement in the program. Create a culture of feedback as a learning tool Insure that everyone understands the benefits Train on what is expected of all employees Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 19

20 Pilot Locations Outperformed Engagement (in 000) $1,600 $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 $900 $800 Sales Performance - Pilot Locations Customer Experience Program Implementation July '12 Aug '12 July '13 Aug '13 Month-over-Month Growth (Jul-Aug) Year-over-Year Growth (August) vs % 7% (in 000) $32,000 $30,000 $28,000 $26,000 $24,000 $22,000 $20,000 Sales Performance - Non-Pilot Locations July '12 Aug '12 July '13 Aug ' vs % 2% Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 20

21 Earn more business by Fully Engaging Employees Engagement Distribution 11% 8% 59% 22% Engagement Level Disengaged Semi-Engaged (Upsell/No WOW) Semi-Engaged (WOW/No Upsell) Fully Engaged Overall Satisfaction 54% 65% 73% 81% Purchased More Than Expected 56% 65% 64% 73% Average Spend $9.54 $10.22 $11.16 $11.99 Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 21

22 Engagement Impacts Satisfaction and Purchases Engagement Recommend Additional Products Purchased The Product No 36% Yes 64% No 81% Yes 19% No Yes No Yes 62% 75% +13% Overall Satisfaction 75% 76% 57% 70% +13% Likely to Recommend 69% 73% 59% 73% +14% Likely to Revisit 73% 76% +1% +4% +3% Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 22

23 WOW d Customers score higher Wows Went "above and beyond" expectations to make experience special She engaged in conversation like a real person, not fake or robotic like some service people...it was not fake, she was genuine. No 49% Yes 51% It was such a small thing but I didn't even have to say my name when I came in she already knew who I was and greeted me. It took me by surprise but it felt nice. No 59% 55% Overall Satisfaction Likely to Recommend Yes 80% 75% +21% +20% They took the time to answer my questions and asked if there was anything else i needed. 58% Likely to Revisit 78% +20% Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 23

24 Impact of a Dissatisfied Customer Rescues 85% 13% 2% of dissatisfied customers tell 9 people of dissatisfied customers tell 20 people of them tell you Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 24

25 Impact of a Dissatisfied Customer Rescues Each one of your customers has a circle of influence of 250 people or potential customers who hear bad things about you Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 25

26 Impact of a Dissatisfied Customer Rescues 90% of consumers who have a complaint resolved will actively promote your brand for you Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 26

27 Client Recovery Value Rescues What is the lifetime value of your customer? Per visit spend X Visits per year X Number of years How many of your customers request a call back? 1%, 2%, 3%? Thousands over the course of a year What percentage of these customers can be rescued? 80%... 60%... 40%... What is the value of these annual rescues? Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 27

28 Stage 2 Taking action Search for opportunities to learn from feedback Take actions that will have an impact on your customer s experience Share your results widely so that everyone knows Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 28

29 Insights Examples Taking Action Retail brand gains understanding about the impact of Friendliness on satisfaction and spend Made adjustments in training to include focus on friendliness. Restaurants leveraging menu item testing Quarterly evaluation of special menu items in test locations. Adjustments made to offerings prior to national rollout. Testing of new items with comparisons to previous new items. Adjustments made to offerings within days of implementation. QSR drive through speed with made to order food Added signage educating customers about made to order quality, no change in drive through times but satisfaction increased. Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 29

30 Insights Examples Taking Action Fleet management company recognized customer concerns with low fuel levels and huge negative impact on satisfaction Took immediate action to change fuel level at deliver. Self-serve drink dispensing in retail outlet learned the impact of flavor availability on satisfaction and spend Emphasis and actions taken to insure that core flavors are always available. Call center insight related to agent empowerment and care and concern Changed training and tracking metrics, result was dramatic improvement in satisfaction with very minimal call-time increase. Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 30

31 40% 35% 30% 25% 20% 15% 10% 5% 0% 26% 8% 7% 31% 13% 11% 28% 12% 8% Staff focused on serving me Server made me feel special Love knowledge & enthusiasm 27% 6% 30% 10% 10% 10% 25% 26% 9% 9% 8% 8% P01 P02 P03 P04 P05 P06 P07 P08 P09 P10 30% 12% 10% 35% 19% 17% 37% 21% 19% Result: 5M incremental guest visits $129.7M incremental sales Taking Action Elasticity of CSAT Loyalty On Traffic Delta in Loyalty For Significant Change at the Brand Level Incremental Traffic due to Delta in Loyalty Scores Incremental Sales due to Delta in Loyalty Scores Point Chg 5.3 Million customers $129.7 Million Sales 5MthsLag Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 31

32 5x score Locations using Coach improved their Overall Satisfaction by 5x more than control group Taking Action Overall Satisfaction change over 2 months InMoment Coach +5.5 Standard Reporting +0.9 Measuring Your Customer Feedback Program 32 ROI August 21, InMoment, Inc. 32

33 Stage 3 Continuing Growth Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 33

34 Simple Financial Linkage Sales Linkage Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 34

35 Advanced Financial Linkage Sales Linkage INPUT Sales Data Transaction Data Customer Data Loyalty Modeling Establish relationships among drivers Time-Series Modeling Investigate the time dependent behavior of sales data Segmentation Segment locations on sales history and growth $ OUTPUT Impact on Sales + - Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 35

36 As your program grows over time customer feedback can contribute in many ways to building your business. Engagement Wows Rescues Taking Action Sales Linkage Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 36

37 Thank you! Measuring Your Customer Feedback Program ROI August 21, InMoment, Inc. 37