Constant Improvement: The Shaw Industries Customer Loyalty Research Program. Brenda Knowles Vice President of Commercial Marketing Shaw Industries

Transcription

1 Constant Improvement: The Shaw Industries Customer Loyalty Research Program Brenda Knowles Vice President of Commercial Marketing Shaw Industries 1

2 About Shaw World s largest carpet and carpet fiber manufacturer Produces carpet, rugs, ceramic, hardwood and laminate flooring Services the residential and commercial market Over 60 manufacturing plants in seven states 31,000 employees largest manufacturing employer in Georgia Wholly owned by Berkshire Hathaway 2

3 Strengths Set Shaw Apart Financial strength Vertical integration Long-term accountability Consistent investment and execution Committed to sustainable design for the future 3

4 Shaw seeks to continually exceed the expectations of our customers in quality, service and value. We promote a climate of innovation that encourages new ideas and fresh perspectives. With our emphasis on constant improvement touching all areas and divisions throughout the company, Shaw will continue to lead the flooring industry in products, customer service and environmental commitment. -- Vance Bell Shaw Industries, CEO 4

5 Continual Improvement Mindset Initiates Survey Understand the voice and needs of our customers Previous survey efforts only targeted existing customers 5

6 Program Objectives A comprehensive Customer Loyalty Measurement Program addresses multiple aspects of the customer-company experience. The overall relationship Evaluations of products, services and related support Experiences with various types of transactions or customer touch points - Sales, Customer Service, Financial Services, other specific touch points Analyzed by segment - Business unit, Geography, Channel type (dealer, A&D, end user), Dealer type (Aligned, Non-Aligned, Buying Group) 6

7 Customer Loyalty Program Management Process Data Collection Core Team Analysis Business Team Interpretation Management Action What So What So What, Again Now What The facts, raw data, statistical summaries, and customer open-ended comments Analysis, based on subject matter knowledge Interpretation of analysis, based on knowledge or customers and business issues Roadmap for action Accountability and communication plan Follow-up with customers Follow-through with internal functions and teams 7

8 Executive Buy In Key to Success Executive Improve financial, operational and manufacturing performance Commercial Building annuity relationships with key accounts, penetrating new markets, training of sales force Residential Increase sales, develop planning tools 8

9 Challenges Voiced During Employee Roundtables Large size can turn customers away Shaw brands in competition with each other Manufacturing short ships and yarn issues Claims and credit issues No formal complaint tracking system 9

10 Survey Differed from Past Efforts Only purchasing customers were surveyed previously Key influencers of purchasing decisions included Questions were revamped and updated from previous efforts Customer lists compiled from different areas of company Internet survey was not an option 10

11 Sampling Plan Residential Aligned Dealers 402 Residential Non-Aligned Dealers 531 Residential Buying Group 321 Commercial - Shaw Contract Group: Commercial - Promotional Goods: 123 Total Shaw Industries (100 Dealers, 185 End-users, 150 A&D) 11

12 Overall Satisfaction Likelihood to Repurchase Secure Customer Index Likelihood to Recommend Deserves Loyalty Preferred Company 12

13 Secure Customer Index Points: Total Points Possible Overall Satisfaction Very Dissatisfied Somewhat Dissatisfied Neither Somewhat Satisfied Very Satisfied 4 Likelihood to Recommend Definitely Will Not Probably Will Not Might or Might Not Probably Will Definitely Will 4 Likelihood to Repurchase Definitely Will Not Probably Will Not Might or Might Not Probably Will Definitely Will 4 Deserves Loyalty Disagree Completely Disagree Somewhat Neither Agree Somewhat Agree Completely 4 Preferred Company Disagree Completely Disagree Somewhat Neither Agree Somewhat Agree Completely 4 Maximum Number of Points That Can be Attained per Respondent: 20 13

14 Individual Respondent Example Overall Satisfaction: Somewhat Satisfied 3 Likelihood to Recommend: Probably Will 3 Likelihood to Repurchase: Might or Might Not 2 Deserves Loyalty: Neither 2 Preferred Company: Disagree Somewhat 1 Total Points: 11 Respondent s SCI (11/20): 55 14

15 The Secure Customer Segments Secure Customers Favorable Customers Vulnerable Customers Wavering Customers At Risk Customers Less than 30 Customers are evaluated by relevant segments in terms of their degree of security 15

16 Survey Methodology 15 minute telephone interview Shaw supplied contact lists - Deep-dive sampling plan - Conducted annually Communications plan - Alert letters to customers - FAQs for sales and customer-contact personnel Survey results hosted in Digital Dashboard on-line reporting portal Shaw business teams to analyze results and make recommendations for action 16

17 17

18 11 other categories rated head-to-head Shaw performance slightly better than competition in total Less than 30% rated Shaw better than Mohawk on Sales Representation, Advertising, Environmental Performance, 18 and Incentives

19 Verbatim Comments Offer a Wealth of Insight 19

20 Share of Wallet and Loyalty Share of Wallet 20

21 What Was Learned Customer satisfaction measurement program reinforced current practices at Shaw and programs currently being implemented Shaw customers are loyal and are generally pleased with the company s products and services Customers unsatisfied with how issues were resolved when they existed High Secured Customer + Satisfied Customer %; Very low At Risk Customers 21

22 Action Plan Presentations Survey results presented to Executive Team Participating groups given time to develop Action Plans to present to Executive Team Groups report back to Executive Team to tell what has been accomplished from Action Plans 22

23 Red Alerts Capture Immediate Needs Each customer asked about pressing issues that need attention Shaw followed up on Red Alerts within 24 hours Notification of issues led to resolution 23

24 Findings - Financial Services Confirmed strategic initiatives currently in place or in implementation phase Training program implemented to improve claims administrators - Communication skills classes - Installation training - Plant tours - Transitioned from an Hourly to a Salaried position Dated claims system reprogrammed and reengineered Claims administrators concentrate on products or warranties 24

25 Findings - Residential Sales and Marketing Voice of Customer scorecard distributed monthly to gauge customer feedback Insights can help Shaw move from customer satisfaction to customer loyalty Additional marketing resources around environmental initiatives 25

26 Findings - Commercial Sales and Marketing Smaller regions would increase effectiveness of RVPs Need for a catalog-type resource to view all products Improved website functionality Additional marketing resources around environmental initiatives 26

27 Going Forward Phase II of the Customer Loyalty Research Program beginning this fall Focused survey will contain more detailed questions on pertinent issues, such as environmental Rugs, Hard Surfaces and Shaw Hospitality Group will participate 27

28 Questions? Constant Improvement: The Shaw Industries Customer Loyalty Research Program Brenda Knowles Vice President of Commercial Marketing Shaw Industries 28