CUSTOMER ENGAGEMENT/SATISFACTION
Customer Loyalty Optimization
Is your company creating competitive advantage by providing the best customer service experience possible? If you make improvements to your interactions with your customers, do the changes result in increased market share? How do you know? What if you could understand how much your competitor’s market share would change if they addressed their customer’s most significant problem experiences?
In an attempt to answer some of these questions, many companies conduct customer satisfaction research that most times does not result in significant improvements in customer retention, brand loyalty, or ROI. Indeed, many of these questions cannot be answered with traditional customer satisfaction research because of fundamental shortcomings including:
- The research is rarely linked to direct financial impact such as market share, revenue and profits
- No direction is given to tell the company where to invest to improve performance
- No indicators of how much to invest to increase market share or how much share will be gained from the investments
Savitz’s Customer Loyalty Optimization helps you understand and change the critical customer experiences that result in demonstrable customer retention, increased market share and revenue.
Savitz Research Solutions is a research based consultancy and a leading innovator in helping our clients improve their customer’s experience. Our consultants, along with leading academics from Wharton, pioneered the science of quantifying, managing, and optimizing the customer experience. Today, through our innovative research, technology and customer loyalty optimization models, we continue to set the standard to improve our clients’ customer service performance, customer value, and customer relationship management.
Our Innovative Customer Loyalty Optimization Models
Savitz takes an entirely different approach by understanding the customer experiences that result in increased brand loyalty and the most critical and prevalent problem experiences that customers encounter from your company as well as your competitors. We then identify the ideal set of experiences that customers are expecting from their interactions with your company, and your competitors, that will drive loyalty.
Called Customer Loyalty Optimization, these proprietary models were developed and validated by Drs. Green and Krieger, leading marketing professors at the Wharton School of The University of Pennsylvania in conjunction with top analysts from Savitz Research Solutions.
- Adapted from their groundbreaking work in Conjoint Analysis, these models provide explicit information about the impact of the firm’s actions on market share
- Utilizes both loyalty drivers and risk factors to measure changes in market share for all the key competitors
- Shows where the firm’s new business comes from if performance is improved, and to whom it loses if competitors improve their performance
The models have been designed specifically to help our clients realize significant improvements to their customer experiences before making major investments by answering the following:
- What are the problems creating defection and if we continue on our current path, how much business will we lose?
- What should we improve and by how much?
- What is the investment level needed?
- What is the shift in market share to our company based on these improvements and investments?
- What is the specific ROI and how long does it take to realize a positive return? What specific market share impact will we incur if the competition improves its quality? Lowers its price? Implements new services?
We Help You Understand and Optimize Your Customer Relationships
For the past 30 years, professionals at Savitz Research Solutions have studied customer behavior, and through that experience, developed our unique modeling approach. Our process tells you how to prioritize and fix the most significant customer problems to improve retention. Customer Loyalty Optimization also provides a predictive measure of customer behavior, details actionable insights, and links them to financial impact.
Strategic Advantages of Customer Loyalty Optimization
The Customer Loyalty Optimization models create sustainable strategic advantage for our clients with a six-step process:
- Identify the focused set of problems that when addressed will improve loyalty and retention.
- Provide a specific understanding of the levels of improvement needed for each of these problems to win market share from competitors.
- Identify the investment levels needed to address the identified problem areas.
- Prioritize these problems based on the ROI of addressing the solutions.
- Provide actual measures of increased revenue, ROI, profitability, increased customer retention.
- Identify the value of the customer relationships at risk if the competitors address the issues identified as their primary risk factors.
The simple fact is that our research provides better answers because our process tells you the investment levels needed to address problem areas as well as how much improvement is needed to win market share from the market leaders.