Walk a Mile in Your Customers Shoes

Transcription

1 Walk a Mile in Your Customers Shoes Customer Listening and Loyalty Modeling ebook

2 Follow the Trail of Touchpoints All brands deliver something. Top brands work to deliver an exceptional customer experience at every customer touchpoint. Other brands usually succeed only in delivering an experience ranging from tolerable to bad. We think you should be a top brand. Once you make the decision to deliver a consistently great customer experience, the next step is to figure out how you re going to do it. You can t fully comprehend your brand s customer experience until you take a proverbial walk in their shoes. One of the best ways to do this is to gather insights from customers who have recently had an experience with your brand. By listening to feedback gathered throughout the customer journey, your brand can begin to ask smarter questions and focus with precision on the details driving satisfaction.

3 A Two-Legged Approach to Customer Loyalty Begin focusing on loyalty drivers by creating a loyalty model based on customer behaviors and responses. Customer feedback can be used to systematically narrow brand attributes into subsets, allowing your brand to identify key drivers of satisfaction and pinpoint which aspects of your brand experience are keeping customers coming back for more. Before you start truly treading where your customers have trod, your brand will need to answer two vital questions: Store Ample & Accessible Parking Exterior Clean & Inviting Interior Clean Clean & Well Maintained Helpful Inviting Service Friendly Greeting Thanked for Coming Product Offering 1 2 How do customers experience your brand? What will make your customers loyal? Employee Engagement Loyalty Good Availability Good Variety These two questions will drive the entire loyalty modeling process and help your brand refine the information it s looking for every step of the way. Employees Enjoying Their Jobs Feel Valued Undivided Attention Efficient Service Helpful Quality Exceeded Expectations Overall Satisfied Recommendation Revisit Intent

4 1. How Do Customers Experience Your Brand? Your loyalty model should begin with an exploratory factor analysis, which identifies underlying variables and explains patterns of correlation within a set of observed variables (i.e. answers to survey questions). This helps accurately visualize the how of the customer experience using statistics rather than assumptions. For this, we recommend principal component analysis (PCA), a data reduction technique which groups attributes together based on similar customer scoring patterns. By tracking how an individual answers a particular item in a subset, loyalty models are able to predict that individual s response to other items within the subset. Geek Speak Translation: Map down beneath your surface-level drivers to outline supporting attributes. From there, the granular process of measuring, comparing, and eliminating can begin (reliability analysis). Following the initial PCA, it s time to conduct a reliability analysis within each subset of brand attributes: identifying the weakest attribute in a subset, removing it, and rerunning the PCA. This reduction process is repeated until a peak attribute value can be deduced.

5 2. What Will Make Your Customers Loyal? After identifying the how of your brand s customer experience, you re ready to move on to the what of customer loyalty. Good loyalty modeling uses advanced structural equation modeling (SEM) to discover how insights gathered from the PCA-reduction process (see previous section) predict causal relationships with customer loyalty. Geek Speak Translation: Structural equation modeling takes the information gathered from customers and predicts what will drive them to be more loyal. By using both analysis techniques, your loyalty model will account for consumer perceptions and attitudes more accurately and completely than other regressionbased techniques.

6 Application: Paving the Path to Loyalty Once you re using the Voice of the Customer (VoC) to understand the heart of the customer through loyalty modeling, you can accurately make changes to mindset, strategy, training, process, hiring everything, little and large, that matters to your customers. In the Age of the Customer, that is exactly the competitive advantage you need. With precision planning around every touchpoint, customer interactions with staff, products, and services can all contribute to an experience that entices customers to return with friends and with a willingness to spend. Walking a mile in your customers shoes only matters if you find ways to make their next mile worthwhile.

7 About InMoment InMoment is a cloud-based customer experience (CX) optimization platform that helps brands leverage customer stories to inform better business decisions and create more meaningful relationships with their customers. Through its Experience Hub, InMoment provides Voice of Customer (VoC), Social Reviews & Advocacy, and Employee Engagement solutions, as well as strategic guidance, support, and services to more than 350 brands in 95 countries. The company is the leading VoC vendor for the food services, retail, and contact center industries, with expertise in B2B, financial services, lodging, and numerous others. For more information, visit Contact Us sales@inmoment.com