Kathryn Saducas

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Are your Customers Satisfied?
Kathryn Saducas Partner marketing manager
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The importance of customer satisfaction to your
business
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Customer focused organisation
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Goals of Customer Focus
End goal of customer focused strategies is the
same Boosting retention and repurchase more
sales!!!
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Business Performance Factors Contribution to
Shareholder Value
Source Price Waterhouse Coopers, 2002
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Customer Satisfaction Profits

• Knowing what drives customer loyalty is important
  to your companys financial health
• Repeat customers and new customers from referrals
  ? continuous revenue streams
• Disloyal customers are expensive to replace

• Attracting NEW customer is 4 x cost of retaining
  existing customer
• 5 increase in customer retention ? 75 in
  aggregate lifetime profits from that customer

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What are your customers worth?
Customer Lifetime Value CLV

• Lifetime Value of Customer (CLV)
• (S-C)(VY)-A(AN)F
• OR
• Margin sales cost of acquisition savings
  from referrals correction factor

• S average revenue per customer sale
• C costs of servicing customer
• V expected sales per year
• Y expected years customer will use your
  services
• A cost of acquiring new customer
• N of referrals from customer
• F correction factor

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What are your customers worth?
Customer Lifetime Value CLV

• S 20,000
• C 5,000
• V 2
• Y 5
• A 1500
• N 4
• F 1.2
• CLV (20000-5000)(25)-1500(15004)1.2
• CLV 185,400

• S average revenue per customer per sale
• C costs of servicing customer
• V expected sales per year
• Y expected years customer will use your
  services
• A cost of acquiring new customer
• N of referrals from customer
• F correction factor

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Why Customer Sat. is important?
Study by Le Beouf the reasons why customers no
longer dealt with a particular supplier
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A customer satisfaction program
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Customer-Focused Initiatives
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The 6 Ps of Marketing
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Customer Feedback Program

• With a well constructed feedback program you can
  get key insights into customers to
• Identify key drivers of customer experience
• Glean insights into health of your company
• Detect early warnings of any erosion of your
  relationship or value proposition

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Customer Program Activities

• Assess internal root cause for customer
  perceptions satisfaction drivers
• Derive action plans to resolve most critical
  issues set your objectives
• Implement these actions
• Track your progress with ongoing customer
  research
• Link these customer metrics to your financial
  results staff incentives
• Tell your customers how you used their feedback

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Case Studies

• Rice University Case Study showed customer
  satisfaction improves customer retention and
  company profits

• Methodology
• 50 surveyed (group 1) and 50 not surveyed
  (group 2)
• Group 1 were twice as loyal to company
• Conclusion?
• Customers want to be coddled
• Surveys ? increase in auxiliary product sales
• Surveys create opinions

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At Microsoft

• Worldwide Survey Apr Oct
• Customer Escalation Tool
• RMTP Response Management Through Partner
• Feedback forms at events (9 point scale)
• Tactical Research Qualitative Quantitative
• Anecdotal feedback
• Roundtable sessions

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Understand Satisfaction Drivers
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Value Mapping
high
value
satisfaction
low
high
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Example of Value Mapping
Service Deployment Time 30 Reputation and
customer testimonials 25 Account Managers/
Sales experience 15 After Sales Support
10 Business Process 10 Market/Branding
5 Innovation 3 Strategic Direction 2
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Avoiding the Pitfalls

• Listening to the wrong customers
• Incorrectly identifying customer priorities
• Failing to consider strategic objectives
• Failing to align organisation around execution
• Failing to get paid by customers for new value
• Losing momentum campaign mentality

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Case Study GAP Clothing
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Ways to measure customer satisfaction
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Different forms of measurement
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Partner Program - CSAT Tool
http//www.microsoft.com/partner/media/csat/
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(No Transcript)
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Microsoft CSAT Points Awarded
Partners may only survey the same individual once
every six months. Only the first eight
individual responses per customer organisation
are eligible toward Partner Points calculations.
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Measurement Reporting

• Satisfaction can be measured on a scale
• Align business functions around a single
  customer-focused metric

NSAT (VSAT-DSAT) 100 VSAT 89 DAST 1 to 4
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Food for Thought The name of the game should be
about "giving customers a memory and experience
so great that they'll want to repeat it." The
game is not all about getting that scorethat
darned customer scoreany way possible.
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10 Golden Rules

• Believe customers possess good ideas
• Gather customer feedback at every opportunity
• Focus on continual improvement start with top
  10 issues bugging your customers
• Solicit good and bad feedback
• Seek real time feedback

• Dont spend vast sums of money
• Make it easy for customers to provide feedback
• Leverage technology to aid efforts
• Share feedback throughout the company
• Use feedback to make quick changes

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In Summary You cant move a mountain in a day,
but you can make it easier to climb by clearing a
path.
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Information Source

• Why track end to end customer experience? TNS
  Prognostics White paper
• Driving Customer-Focused Decision Making
  Marketing Leadership Council USA
• www.Marketingprofs.com