Transform Customer Feedback Into

Customer Loyalty!
Lori Blandford
Marketing Manager
Ken Krawczyk
Sr. Manager, Predictive Analytics

Agenda

Dunn Solutions Group Overview

Predictive Analytics Overview
Customer Loyalty Overview
Measuring Customer Loyalty
The Customer Loyalty Measurement Program
Q&A

Overview

Raleigh

Full-service IT Consulting Firm

Founded in 1988
Offices
Chicago
Minneapolis
Raleigh
Fort Lauderdale
Bangalore, India

Ft. Lauderdale

Minneapolis
Chicago

https://www.dunnsolutions.com/content/en/company
Bangalore

Practice Areas

Application Development

Business Intelligence

Packaged Solutions

Custom App Dev

End-to-End BI

Vertical Solutions

E-Commerce

Data Warehouse

Unique Solutions

Portals

Dashboards

Web Design

DI + EIM/Quality
Training
Predictive Analytics
Open-Enrollment
Map Intelligence
On-Site + Custom
Managed Services
Jumpstart/Mentoring
Budgeting & Planning

Selected Clients

City of Chicago

Business Intelligence Services

End-to-End Business Intelligence solutions

Data Warehousing
Dashboards & Performance Management
Enterprise Information Management + Data Quality

Business Intelligence Managed Services

Predictive Analytics

Agenda

Dunn Solutions Group Overview

Predictive Analytics Overview
Customer Loyalty Overview
Measuring Customer Loyalty
The Customer Loyalty Measurement Program
Q&A

Business Intelligence Value and Complexity

HIGH

Predictive Analytics is the

GPS of a BI systemit provides guidance on
strategy and tactics using
advanced analytics

PREDICTION
What might happen?

COMPLEXITY

MONITORING
Whats happening now?

BUSINESS INTELLIGENCE TECHNOLOGIES

ANALYSIS
Why did it happen?

Predictive analytics
Dashboards, scorecards
OLAP and visualization tools

REPORTING
What happened?

Query, reporting and search tools

LOW

BUSINESS VALUE

Source: The Data Warehouse Institute (TDWI)

HIGH

Predictive Analytics

Added Operational &

Strategic Value

Fact-Based Solutions

Greatest
Business Value

Identify Future
Opportunities

Gain Competitive
Edge

Dunn Solutions Group Predictive Analytics Services

Complete Predictive Analytics Services

Data integration
Data cleansing
Model development
Deployment
Dashboards
Reporting
Support
Training
Software

Predictive Analytics Solutions

Marketing Strategy and Planning
Customer Loyalty
Resource Planning
Demand Forecasting
Market Basket Analysis

Customer Churn
Credit Scoring
Fraud Detection
Crime Insight & Prevention

Challenges with Measuring Customer Loyalty

Assumption that customers are satisfied

Belief that satisfied customers are also loyal customers
Loyalty is often measured by only analyzing transactions
Belief that loyalty is created by discounting

Loyalty programs are expensive and time consuming

Capability to analyze customer behaviors and identify
loyalty driver does not exist in the company

What is Customer Loyalty?

Satisfaction

Intention

Retention

Loyalty

Benefits of Loyal Customers

Unsolicited Referrals
Reduced Acquisition Cost
Increased Retention
Customers Are Less Price Sensitive
Higher Profit
Training & Empowerment Of Employees
Employee Satisfaction
Higher Level Of Quality

Agenda

Dunn Solutions Group Overview

Predictive Analytics Overview
Customer Loyalty Overview
Measuring Customer Loyalty
The Customer Loyalty Measurement Program
Q&A

Loyalty Analytics Program

Survey
Design

Action

Analytics

Collect
VOC

Reporting

Loyalty Analytics Program

Survey
Design

Action

Analytics

Collect
VOC

Reporting

What is a Method of Collecting VOC?

Implement a customer feedback program
1. Overall satisfaction
2. Decision to recommend (Word of mouth, Word of mouse)
3. Decision to purchase again for the first time

4. Decision to continue purchasing same products/services

5. Decision to purchase different products/services
6. Decision to increase purchase amount

7. Decision to increase frequency of purchasing

8. Decision to switch to another provider
All questions have rating: 0 = not at all likely, 10 = extremely likely, except satisfaction question is 0 =
extremely dissatisfied to 10 extremely satisfied

Loyalty Analytics Program

Survey
Design

Action

Analytics

Collect
VOC

Reporting

Loyalty Analytics Program

Survey
Design

Action

Analytics

Collect
VOC

Reporting

Loyalty Analytics Program

Survey
Design

Action

Analytics

Collect
VOC

Reporting

How Do We Analyze the VOC to Infer Loyalty Levels?

Purchase
Same

Purchase
different

Choose
again

Purchase
amount

Purchase
frequency

Recommend

Satisfied

Factor
Analysis

Switch
Provider

Loyalty Analytics Program

Survey
Design

Action

Analytics

Collect
VOC

Reporting

Incorporate Loyalty Drivers into Sales, Marketing &

Operations Strategies

Products &
Services

Engagement

Operations

Availability

Professionalism

Return Policy

Variety

Friendliness

Appearance

Functionality

Handle Issues

Business Hours

What Loyalty Dimensions Are Deduced By VOC?

Affective

Feelings created from

human interactions

Cognitive

Preferences from
examining product/service
quality

Retention

Expectations are met and

the decision is to continue

What Does Loyalty Correlate With?

Correlation between Loyalty and Goals

New Cust Growth

YOY Revenue

Churn%
0.84

0.75
0.72
0.66

0.76
0.6

0.6
0.53 0.5

Affective

Cognitive

Retention

Agenda

Dunn Solutions Group Overview

Predictive Analytics Overview
Customer Loyalty Overview
Measuring Customer Loyalty
The Customer Loyalty Measurement Program
Q&A

How Do We Get There?

Self-Enablement Option
Purchase the right software to enable the process: data
acquisition, data cleansing, predictive analytics, reporting
Do a pilot project
Work with Dunn Solutions to mentor internal personnel

Outsource Option
Partner with Dunn Solutions to run your loyalty program

DSG Customer Loyalty Measurement Program

Automated survey tools

Hosted database
Web-based reporting
Analytical models

Services
Quality

Product
Quality

VOC

DSG Customer Loyalty Measurement Program Results

Higher Customer Advocacy

Increase in New Customers

Higher Customer Retention Rates
Higher Profits

Higher Employee Satisfaction

Agenda

Dunn Solutions Group Overview

Predictive Analytics Overview
Customer Loyalty Overview
Measuring Customer Loyalty
The Customer Loyalty Measurement Program
Q&A

Questions & Answers

Questions?
Ken Krawczyk
Sr. Manager, Predictive Analytics
Dunn Solutions Group
kkrawczyk@dunnsolutions.com
bhopkins@dunnsolutions.com