Synovate Symmetrics

1
Synovate Symmetrics

• The experience and proven frameworks to help you
  answer your most difficult customer loyalty
  challenges.

2
Synovate Symmetrics

• Helps companies achieve their growth objectives
  through survey research and performance
  management systems that prioritize, communicate,
  refine and monitor customer loyalty initiatives
  and create a customer-centric organization.

3
Customer-centric Performance Management Systems

• After CEO engagement, a performance measurement
  and management system is the second biggest
  catalyst for creating a customer-centric
  organization.
• Kathy Armstrong
• Director
• Total Customer Experience Research
• Hewlett-Packard

4
Your Most Important Strategic Asset Is Your
Customer

• Customer Loyalty Strategic Asset Management
  provides an opportunity for significant leverage
  in achieving market and financial goals.

5
Achieving Market and Financial Goals
6
What Keeps You Up at Night?

• How can we create a differentiated customer
  experience?
• What are the strategic drivers of customer
  loyalty?
• What role does emotions have in building customer
  loyalty?
• How can we create a voice of the customer system
  that is science-based and consistent across the
  organization?
• How can we develop a customer loyalty index for
  our business scorecard?
• How can we set reliable and achievable customer
  loyalty goals?

• How can we identify and cascade our customer
  loyalty strategic priorities down through the
  organization to achieve alignment of departmental
  objectives and activities?
• How do we know our actions are impacting customer
  loyalty behaviours?
• How do we know that customer loyalty can impact
  my market and financial performance results?
• How can we develop an integrated measurement
  system that is practical and that management will
  buy into?
• How can we accelerate our change from a
  product-focused organization to customer-focused?

7
Sample Client Engagements

• Provides enterprise and consumer customers a full
  range of high-tech products, including personal
  computers, servers, storage products, printers,
  networking equipment, and software.
• Total Customer Experience corporate initiative.
• Global commercial customer relationship
  measurement.
• Consumer interviews conducted globally.
• Alignment of all data streams into cause/effect
  links.
• Revamped relationship strategy.
• Tied to performance compensation.

BB

• Makes washers, dryers, refrigerators, air
  conditioners, dishwashers, freezers, microwave
  ovens, ranges, trash compactors, air purifiers,
  and more.
• In addition to Whirlpool, the company sells its
  products under brand names including KitchenAid,
  Kenmore, Bauknecht, Roper, and Speed Queen.
• Move culture from product to customer focus.
• Consumer interviews conducted globally by brand
  and country.
• 1 point increase in CLI up to 5 potential
  increase in revenue.
• Sweeping strategic and tactical initiatives,
  including service enhancements and communications.

BC

• Leading, well-known maker of wood-clad windows
  and patio doors in the US.
• Competitive market pressures.
• Annual relationship assessment with
  dealers/trade.
• Revamped product portfolio.
• Revised service and communications strategies.
• 77 increase in revenue in 5 years after focusing
  on loyalty.

BBC
All information has been shared by the client
in public forums.
8
Sample Client Engagements

• Makes air conditioning, heating, and fireplace
  systems for residential and commercial uses, as
  well as commercial refrigeration equipment.
• Evolution to fact-based management.
• Core dealer relationship survey.
• Customer Value Index -- measure of estimated
  dealer value to Lennox.
• Customer Defection Index -- calculated
  probability of dealer risk.
• Foundation for business priority setting.

BB

• 3rd largest public utility in US serving greater
  Phoenix, AZ.
• Customer insights drive segmentation,
  positioning, integrated marketing plan,
  priorities, communication, management performance
  systems.
• Expanded Key Account Management program (largest
  industrial customers).
• Established Business Account Management program
  (mid-sized industrial customers).
• Revamped communications strategy with Spanish
  Language Dominant consumer segment.
• 53 increase in Customer Loyalty Index.

BC

• Canadas 2nd largest bank offers a range of
  consumer and business services.
• 5 ? employee commitment 3 ? customer loyalty
  3 ? shareholder value.
• Dynamic Simulator for what-if scenario planning.
• Developed best-in-class complaint handling
  process.

BC
All information has been shared by the client
in public forums.
9
THE LEADERSHIP CHALLENGE

• How to build an organizational competency of
  managing customer loyalty as a strategic asset?

10
Keys to Customer Loyalty Strategic Asset
Management
MEASURE
Customer Loyalty
MODEL
MANAGE
11
The Frameworks, Tools, and Processes Used to
Measure, Model and Manage Customer Loyalty
measure
model
manage

• Causal modeling
• Other decision sciences tools
• Linkage analysis
• Lifetime value analysis
• Financial impact analysis

• Readiness Assessments
• Migration Path Planning
• CL Goal Setting
• Simulators
• CL Strategy and Planning Workshops
• CL Initiative Development Testing
• CL Strategic Communications
• Infrastructure Embedment
• IMS Archive

• Integrated Measurement System
• CustomerSymmetryâ
• MarketSymmetryâ
• BrandSymmetryâ
• EmployeeSymmetryâ
• ExperienceSymmetryâ

12
Building a Customer-Centric Performance
Management System and Culture
Future State
Develop CLI Financial Simulators
Brainstorm, Test, Launch, Monitor
Measure
Begin To Align Infrastructure
IMS Statistical Linkage
New Measurement Framework
EMBEDMENT SUSTAINABILITY
BSC/KPI/Dashboard
Model
Determine Accountabilities
Qualitative Research
Conduct Loyalty Segmentation
Establish CL Goals
Manage
Research Audit
Cause-Effect Modeling
Conduct Priority Workshops
IMS Architecture Design
Calibrate Scorecard Metrics
Begin CL Communications
Create Embedment Plan
Current State
Readiness Assessment
TIME
13
Integrated Measurement System
Sets the strategic CL priorities for the brand
and provides direction for resource allocation.
Provides specific, actionable information for
improving and/or innovating the high priority
customer touchpoints.
Provides continuous real time customer feedback
on touchpoint performance.
Monitors the leading indicators for touchpoint
performance.
14
Building an Organizational Competency Measure,
Model, Manage
Causal research
Model
CL Research
Descriptive research
Measure
15
CustomerSymmetry
Causal pathways
Cognitive
Behavioral
Attitudinal
Emotional
Emotional motivation
16
Strategic Analysis and Interpretation

• The analysis of the data and interpretation of
  the model focuses on uncovering high impact
  strategic information and tactical direction to
  strengthen customer loyalty for optimal market
  and financial results.

17
Examples of Key Business Questions
Competitive Strength In terms of CLI, how strong are our brands relative to the competition?
Motivational Levers Do current brand strategies reflect the relative weight of emotional motivation and rational motivation?
Priorities Is the influence of the TPs on CL similar across brands? Are brands effectively addressing the critical TPs?
Global Brand Positioning Are there common denominators of BE for brands? Are these potential points of differentiation?
Repair vs. Product Quality Is it better to minimize product problems or effectively correct them after they occur? Is the net effect of repair performance a plus or minus today?
Social Responsibility What are customers SR expectations of the brand?
Product Leadership In which product categories do our brands exhibit competitive strength? Do some categories appear to pose a bigger challenge in terms of creating CL?
Loyalty Segmentation Who are the most/least loyal customers? What are they worth? Can customers be segmented by loyalty drivers? Which loyalty segments to target? What changes are needed to make the targets more loyal?
Sales Inoculation What types of experiences might inoculate loyal customers from sales pressures at the POP?
18
Examples of Key Business Questions (cont)
Multidimensional Loyalty In general, are there different levers for influencing the different loyalty behaviors?
Brand Influence on Channel To what extent does CL and its antecedents (EM, RM, BE and TP performance) influence loyalty to the store/retailer? Are buyers of our brands more store loyal?
Channel Influence on Brand Does CL vary by channel of acquisition? Do the influences on CL vary by channel? Does the purchase/sales experience shape future usage and ownership perceptions that drive CL?
TP Interdependencies Are there causal relationships among the touchpoints? Is there a temporal order? Do some TPs support other TPs? Are some TPs more generic/higher level?
Total Product Effect What is the net effect of product as a subtle influence on many aspects of loyalty?
Defection Analysis What is the role of the TPs in creating lost customers? What is the role of the TPs in helping to move customers up the Vulnerability Group ladder?
Platform Vs. Value-Add Which TPs and attributes represent minimum requirements and which afford the opportunity to add value and create competitive advantage? How good is good enough?
Universal Needs Are there universal needs across segments that the brands can use to create broader appeal?
Value Brand Migration What levers, appeals, positioning might be used to up-sell value brand customers and keep them at the higher price point?
19
Measure Model
Provide a common viewpoint and language within
the client organization.
20
From Awareness to Internalization
Awareness
Internalization
CL Management
21
Tools, Processes and Practices to Accelerate
Change

• Readiness Assessments
• Migration Path Planning
• CL Goal Setting
• CL Simulators
• CL Strategy and Planning Workshops
• CL Initiative Development Testing
• CL Strategic Communications
• Infrastructure Embedment
• IMS Archive

Business Planning and Execution
Acrobat Document
22
Building an Organizational Competency Measure,
Model, Manage

• MAXIMUM IMPACT
• Causal research
• Mature stages of CL competency culture
• Robust decision-support tools

• MARGINAL IMPACT
• Causal research
• Early stages of CL competency culture

model
CL research

• MINIMAL IMPACT
• Descriptive research
• Early stages of CL competency culture

• MARGINAL IMPACT
• Descriptive research
• Mature stages of CL competency culture
• Many important decision-support tools for
  management not available due to limitations of
  research

measure
awareness
internalization
CL manage
23
Why Synovate Symmetrics

• Our focus and deep experience in the customer
  loyalty field means tailoring your Measure,
  Model, Manage CL system to meet your unique
  needs.

• Makes explicit the cause and effect assumptions
  from organizational actions to customer loyalty
  behaviors.

• Addresses not only the traditional rational
  motivations of customer loyalty, but applies
  science to the emotional motivations as well.

• The frameworks and models are explicitly aligned
  to the companys market strategy. The Integrated
  Measurement System facilitates alignment
  cascading of strategy to departmental objectives
  and process metrics.

• Dynamic simulators show potential impact on
  market and financial results for what if
  scenario planning.

• Proven frameworks and models move the company
  faster up the learning curve and the change
  management curve to build and strengthen an
  organizational competency in customer loyalty
  strategic asset management.

24
Contact details
Panicos Christopoulos General Manager Alina
Socolov Senior Research Executive 20th Siriului
St. Bucharest Romania Tel [phone] Fax
21 20 80 100 Email panicos.christopoulos_at_synovat
e.com Email alina.socolov_at_synovate.com