Customer Loyalty Programs – Increasing Customer Loyalty throughout the customer base!
description
Transcript of Customer Loyalty Programs – Increasing Customer Loyalty throughout the customer base!
Customer Loyalty Programs – Increasing Customer Loyalty throughout the customer base!
Paul Knott– Customer Services Director
EMEA Response Center
Why Customer Loyalty?
Why should we care?
What’s at stake?
Customer Loyalty Vs. Customer Satisfaction
Promoters and Detractors
The Big Picture
Companies With Satisfied, Loyal Customers Enjoy Higher Margins, Greater Profits – And Consequently, Higher Stock Price-earnings Multiples.
Customer Loyalty: Return to Investors
05
10
15202530
3540
19.5223.42 23.62
6.12 7.14 7.65 8.01 9.03
Customer Loyalty CLI Score
35.40
AverageP/E
Ratio
Current Market Trends
What Customers are doing differently Experience matters
Positive experience means repeat action Vendor selection criteria
Commitment, not loyalty? The “Trust Factor” “A 5% increase in customer retention yields a 75%
increase in customer net present value.” -Fred Reichheld
Incentive driven model Loyalty rewards
Main Customer Loyalty Business Objectives
1. Measure, monitor and improve overall customer satisfaction within major product, service, and geographical areas
2. Increase software revenue through retention and growth of profitable customers
3. Measure against the Customer Loyalty Index (CLI)
4. Use key drivers of customer loyalty to develop company-wide cross-functional prioritized action plans
Customer Loyalty Focus
Working with and complementing the efforts and initiatives of each organization at FileNet
Teaming internally to enable us to partner externally with our customers
Re-focusing on the requirements of our customers Managing our customers' expectations Building relationships and communicating with our customers
at various levels Placing highest emphasis on our performance - at all levels Creating cross-organizational partnerships
Keys to successful Customer Loyalty Program
Create Customer Loyalty Program goals
Contract third party organization to conduct Customer Relationship surveys
Agree upon measurement model (CLI)
Create Tactical and Strategic plans to address immediate and future goals
Tie compensation of all employees to Customer Loyalty improvement
Company Culture and Focus
Drive to total “satisfaction” to build Loyalty
Customer Loyalty must be a core value
Gain Top Executive sponsorship CEO includes program as top initiative
Weave through the corporate/management fabric
Tie compensation to Loyalty goals
Measuring Customer Loyalty
What is the Customer Loyalty Index?
Measurements? Why its important?
Components of the Customer Loyalty Index?
Overall Satisfaction Continue to Buy Recommend Choose Again
Customer Loyalty Program
Strategic: Form Executive Customer Loyalty Council -
Stakeholders Senior representation from all organizations to
collaborate and breakdown internal and external barriers preventing our company from achieving total customer satisfaction
Tactical: Form a cross-functional team to resolve major tactical
issues identified from surveys Address “Trigger” Issues identified through surveys
Key Customer Loyalty Program Activities
Quarterly Customer Relationship Surveys Survey Data connected to CRM Application
Allow Sales and Field personnel to have access to Customer Survey data for their particular accounts
Global Partner Relationship Survey North America, EMEA and Asia Pacific
Sample Customer / Partner Loyalty Plan
Define Roles for MembersCharter for CouncilCompany wide Engagement Strategy
Performance Metrics for CL related projectsUnique/connected CLOs across company
Monthly Company wide CL communiquéMonthly CL Employee Roundtables
CL Road show – Visits to US District and International officesCustomer VisitsCL Collateral GenerationCL Quarterly Workshops for ManagementCL information on FileNet.com
Customer/Partner Loyalty Plan
2005 Customer/Partner Loyalty Council
CLOs for FileNetOrganizations
CL Customer/Field Outreach Plan
Communication Initiative for 2005
Customer Loyalty
Quarterly Surveys
Quarterly surveysContacts pre-definedReporting methodology pre-defined
Customer Loyalty Projects
Knowledgebase ProjectReference Project
Key Customer Loyalty Drivers
Understand Key drivers Overall Business Value Product Overall Sales Relationship
– Responsiveness– Follow-through
Calculate Gap scores (Stated importance) - (satisfaction) = gap score
Common Key Customer Loyalty Drivers
Relationship
Product Knowledge
Expectation Management
Understanding Needs
Change In Satisfaction
How has our customers’ satisfaction level changed?
Good gauge to monitor performance of changes you implemented
Loyalty Scoreboard
What is the Loyalty Scoreboard?
Significance of the Loyalty Scoreboard?
Incentives/Rewards
Why should our customers participate?
Incentive programs
What Works Do Incentive models have to be financially driven?
Keeping the Customer Interested
Measure Response Rates Offer Incentives to survey respondents
Special seminars Thought leader forums Executive involvement SLA discounts Points
Other Focus Areas
Creating a reference program Leveraging customer feedback
Turning satisfied customers into references
Creating a knowledgebase Best practices Case studies
Thank You