Customer Experience Optimization
Why Is Customer Experience Optimization the Goal?Decision Analyst's Customer Experience Optimization helps companies maximize long-term profitability through reaping the lifetime value of their customers. The goal is not to maximize customer satisfaction or the customer experience; maximization of customer satisfaction (unlimited service, lowest prices) often leads to bankruptcy. Rather, the goal is to seek an optimal level of customer satisfaction that maximizes long-term profitability.
Helpful in determining strengths and weaknesses of corporate customer satisfaction and customer loyalty programs, qualitative research is usually an introductory step in developing an integrated customer satisfaction and loyalty program.
Our qualitative experts conduct in-depth motivational research interviews with both employees and customers to develop a deep understanding of the factors and dynamics involved in customer satisfaction. Hypotheses about how to improve customer satisfaction and loyalty are derived from this motivational research.
Studies repeated at specified intervals give organizations a history of information about customer or employee satisfaction, revealing trends in both satisfaction and loyalty. Tracking studies are especially useful in determining and monitoring key variables that influence satisfaction and loyalty—which in turn can influence company profitability. Tracking studies may be conducted using any of the following methods:
- Interactive voice-response (IVR) systems
Transaction Monitoring (POS)
These studies provide a measurement of customer satisfaction at different points of customer contact. For example, customers who call a customer care center might complete a satisfaction survey soon after their call-center experience. Other customers who purchase a product in a retail operation might receive a point-of-sale (POS) invitation to complete a questionnaire requesting information on that experience.
Transaction monitoring focuses on increasing customer satisfaction at particular stages or in specific places. Such a micro-examination of customer experiences allows companies to improve customer satisfaction through streamlining processes and reducing customer problems at specific stages or points. Transaction monitoring may be conducted using any of the following methods:
- IVR systems
The exception-system concept offers an economical way to monitor quality, systems, and processes. Customers are encouraged to “cry out” if they experience a problem or are unhappy for any reason. Happy customers are largely ignored in this approach. By tracking those who are unhappy enough to respond in some way, overall trends and patterns of dissatisfaction can be inferred and tracked. Problem areas are pinpointed for remedial actions. Exception systems may use any of the following methods:
- On-package or in-package invitations
- IVR systems
- Quality-assurance panels
- Comment cards
- Online systems
Customer Value Analysis
What is the lifetime value of different groups and types of customers? How can you focus more resources on the most profitable customers and fewer resources on the least profitable? In-depth analyses of customer records and purchasing patterns, plus extensive survey research, are components of a comprehensive customer-value analysis.
Customer satisfaction is determined not only by the quality of a company’s service and products, but also by its positioning, branding, advertising, promotions, and pricing. Decision Analyst strives to integrate all of these elements to truly optimize customer satisfaction and loyalty. Importantly, the goal of these analyses is not simply to maximize customer satisfaction but, rather, to optimize it. The ultimate goal is to maximize strategic profitability. Customer satisfaction and loyalty are components in the strategic equation, but they are not the only important variables.
Employee-satisfaction evaluation and measurement are crucial parts of corporate satisfaction and loyalty programs. Employees are the contact points between the corporate brand and customers. Dissatisfied employees often lead to dissatisfied customers. Employee satisfaction can help improve long-term profitability in four ways:
- Happy employees tend to do higher-quality work.
- Happy employees tend to be more productive.
- Happy employees are more likely to stay with your company.
- Happy employees tend to create happy customers.
Dealer Satisfaction Research
Among automotive OEMs, managing expectations of new vehicle dealers is a critical component in optimizing business relationships and managing long-term profitability. Satisfaction with financing, service promotion, parts delivery, and product issues are some of the essential types of information required to effectively manage dealer relations. We use both qualitative and quantitative techniques to help OEMs diagnose problems and track satisfaction among their dealer body.
Customer Loyalty Simulator™
Companies can drive customer satisfaction and loyalty higher and higher by improving quality, reducing prices, and improving service—but this road can lead to bankruptcy. The goal should not be higher and higher levels of satisfaction but, rather, a level of a satisfaction that optimizes a firm’s long-term profitability. The goal is to understand how customers’ experiences and perceptions of brands lead to future outcomes, such as:
- Brand purchase
- Customer retention and brand loyalty
- Share of market
- Sales revenue
Open-Ended Coding of Customer and Employee Satisfaction Studies
Verbatim coding is not just for questionnaires; CRM systems, customer-feedback systems, customer records, transactions (POS) surveys, competitive websites, etc., can also create verbatim text to code and analyze. Decision Analyst's Coders have experience with different types of research surveys and customer feedback systems. Decision Analyst codes in more than 30 different languages.
Customer Experience Optimization Services
If you would like more information on Customer Experience Optimization services, please contact Jerry W. Thomas, President/CEO, by emailing him at email@example.com, or by calling 1-800-ANALYSIS (262-5974) or 1-817-640-6166.