Watt Case Study[1]
- 1. Case Study Andrew W. Watt Growing Share and Customer Satisfaction A case study for Integrating Customer Analytics, Research, and CRM SITUATION A leading CE and PC manufacturer was losing share in the rapidly encroaching “digital world.” The company was mired in deeply seeded product silos, with silo-oriented processes and thinking forged in the analog world. Further, the company’s successful launch into the PC market was creating great strain on their customer service resources—resources built to serve the less complex needs of an analog CE world. This strain was creating customer satisfaction issues resulting in a black-eye for the prestigious brand while threatening repurchase intentions across the brand (TVs, stereos, digital cameras). Compounding the problem was the fact that the brand’s best customers were the early adopters of the company’s new PC products, the very products creating the customer service issues. Unabated, the current customer service strategy and recent success in selling PC’s would: Decay brand preference among highly valued customers, Generate negative word-of-mouth by tech early adopters, traditional opinion leaders for the category, and Threaten future purchase intent among this highly valued and influential customer base. SOLUTION Discovery of this enterprise-level issue came through VOC research, designed to better understand the emerging needs of the early adopter, high-value customer segment. Based on discovery of this issue, we executed a high-level proforma threat-assessment in order to obtain funding to execute a comprehensive customer segmentation strategy, as well as a customer satisfaction study. The first project, a customer-segmentation strategy was executed employing the company’s 10MM+ customer database. An innovative Size and Share of Wallet Method was chosen as it best aligned with the company’s goals. • • • VOC The process starts with listening to customers... then examining industry trends in a classic SWOT framework. Market Share Risk
- 2. Andrew W. Watt Case Study Based on accurately identifying customers with large CE wallets, we further divided this high-value segment into High Share and Low Share buckets. Next, we implemented a comprehensive Customer Satisfaction study. This study helped us understand the following key metrics at a segment-level: Customer Sat Net Promoter Score Future Purchase Intentions Root Causes of dissatisfaction and drivers of satisfaction. To help further assess risk, we built a statistically valid sub-sample for this research of PC, early adopters (e.g., customers most likely to have large CE wallets and giving the company a high share). ACTIONS RESULTS Armed with the Size and Share Segmentation and the findings from the Customer Satisfaction Study, we took three direct courses of action and one opportunistic action. First we built an integrated CRM program designed to grow share by targeting the Large Wallet High Share and Large Wallet Low Share segments. Second, we used the findings from the Customer Sat study, focusing on the retention driver and repurchase intentions analysis to create a new enterprise-wide customer service strategy. • • • • • • Grow Share B Share Growth Approx. 1.36 MM HHs Est. 20% Defend A Priority Retain Approx. 680K HHs Est. 10% D Target Learn Approx. 2.72 MM HHs Est. 40% C Retain 2 Approx. 2.04 MM HHs Est. 30% Share of Wallet SizeofWallet Low High LowHigh
- 3. Case Study Andrew W. Watt Third, we integrated CRM e-newsletters and enhanced website customer service assets to proactively provide customer service content to our best customers. Finally and opportunistically, working with our media team we implemented a more targeted media buy based on the Size and Share of Wallet segmentation strategy. The measurable results of these efforts are as follows: Led the company in revising their customer service strategy, moving them from #4 in their industry to #1 in two-years. Profitably grew market share by 11% in year one from best customers with the integrated CRM program and service-oriented e-newsletters. Note: measuring the impact of our revised media buy was not obtainable with existing resources. • • 1. 2.