Synovate Symmetrics The experience and proven frameworks to

Synovate Symmetrics The experience and proven frameworks to help you answer your most difficult customer loyalty challenges.

2 Synovate Symmetrics… Helps companies achieve their growth objectives through survey research and performance management systems that prioritize, communicate, refine and monitor customer loyalty initiatives and create a customer-centric organization. Synovate Symmetrics

3 Customer-centric Performance Management Systems “After CEO engagement, a performance measurement and management system is the second biggest catalyst for creating a customer-centric organization. ” Kathy Armstrong Director Total Customer Experience Research Hewlett-Packard Synovate Symmetrics

4 Your Most Important Strategic Asset Is Your Customer Loyalty Strategic Asset Management provides an opportunity for significant leverage in achieving market and financial goals. Synovate Symmetrics

5 Achieving Market and Financial Goals Synovate Symmetrics

6 What Keeps You Up at Night? How can we create a differentiated customer experience? What are the strategic drivers of customer loyalty? What role does emotions have in building customer loyalty? How can we create a voice of the customer system that is science-based and consistent across the organization? How can we develop a customer loyalty index for our business scorecard? How can we set reliable and achievable customer loyalty goals? How can we identify and cascade our customer loyalty strategic priorities down through the organization to achieve alignment of departmental objectives and activities? How do we know our actions are impacting customer loyalty behaviours? How do we know that customer loyalty can impact my market and financial performance results? How can we develop an integrated measurement system that is practical and that management will buy into? How can we accelerate our change from a product-focused organization to customer-focused? Synovate Symmetrics

7 Sample Client Engagements B: B • • B: C • • • B: B: C • • • Provides enterprise and consumer customers a full range of high-tech products, including personal computers, servers, storage products, printers, networking equipment, and software. Total Customer Experience corporate initiative. Global commercial customer relationship measurement. Consumer interviews conducted globally. Alignment of all data streams into cause/effect links. Revamped relationship strategy. Tied to performance compensation. Makes washers, dryers, refrigerators, air conditioners, dishwashers, freezers, microwave ovens, ranges, trash compactors, air purifiers, and more. In addition to Whirlpool, the company sells its products under brand names including Kitchen. Aid, Kenmore, Bauknecht, Roper, and Speed Queen. Move culture from product to customer focus. Consumer interviews conducted globally by brand country. 1 point increase in CLI = up to 5% potential increase in revenue. Sweeping strategic and tactical initiatives, including service enhancements and communications. Leading, well-known maker of wood-clad windows and patio doors in the US. Competitive market pressures. Annual relationship assessment with dealers/trade. Revamped product portfolio. Revised service and communications strategies. 77% increase in revenue in 5 years after focusing on loyalty. **All information has been shared by the client in public forums. Synovate Symmetrics

8 Sample Client Engagements B: B • • Makes air conditioning, heating, and fireplace systems for residential and commercial uses, as well as commercial refrigeration equipment. Evolution to fact-based management. Core dealer relationship survey. Customer Value Index -- measure of estimated dealer value to Lennox. Customer Defection Index -- calculated probability of dealer risk. Foundation for business priority setting. • B: C 3 rd largest public utility in US; serving greater Phoenix, AZ. Customer insights drive segmentation, positioning, integrated marketing plan, priorities, communication, management performance systems. Expanded Key Account Management program (largest industrial customers). Established Business Account Management program (mid-sized industrial customers). Revamped communications strategy with Spanish Language Dominant consumer segment. 53% increase in Customer Loyalty Index. • • Canada’s 2 nd largest bank; offers a range of consumer and business services. 5% employee commitment = 3% customer loyalty = 3% shareholder value. Dynamic Simulator for what-if scenario planning. Developed best-in-class complaint handling process. • • • B: C **All information has been shared by the client in public forums. Synovate Symmetrics

THE LEADERSHIP CHALLENGE How to build an organizational competency of managing customer loyalty as a strategic asset?

10 M MANAGE Synovate Symmetrics L Custome r Loyalty DE O EA M SU R E Keys to Customer Loyalty Strategic Asset Management

The Frameworks, Tools, and Processes Used to Measure, Model and Manage Customer Loyalty measure Integrated Measurement System Customer. Symmetryâ Market. Symmetryâ Brand. Symmetryâ Employee. Symmetryâ Experience. Symmetryâ Synovate Symmetrics model Causal modeling Other decision sciences tools Linkage analysis Lifetime value analysis Financial impact analysis 11 manage Readiness Assessments Migration Path Planning CL Goal Setting Simulators CL Strategy and Planning Workshops CL Initiative Development & Testing CL Strategic Communications Infrastructure Embedment IMS Archive

12 Building a Customer-Centric Performance Management System and Culture EMBEDMENT & SUSTAINABILITY Future State Develop CLI & Financial Simulators re su a Me Begin To Align Infrastructure IMS Statistical Linkage New Measurement Framework BSC/KPI/Dashboard el d Mo Qualitative Research Determine Accountabilities Conduct Loyalty Segmentation Research Audit Cause-Effect Modeling IMS Architecture Design Calibrate Scorecard Metrics ge a an Conduct Priority Workshops Begin CL Communications Readiness Assessment TIME Synovate Symmetrics Establish CL Goals M Create Embedment Plan Current State Brainstorm, Test, Launch, Monitor

13 Integrated Measurement System A Total Relationship B Price, Brand, Product, Communication, Repair, Customer Service, etc. C Event Satisfaction D Internal Metrics: processes, practices, and culture Synovate Symmetrics Sets the strategic CL priorities for the brand provides direction for resource allocation. Provides specific, actionable information for improving and/or innovating the high priority customer touchpoints. Provides continuous “real time” customer feedback on touchpoint performance. Monitors the leading indicators for touchpoint performance.

CL Research Model Building an Organizational Competency: Measure, Model, Manage Descriptive research Measure Synovate Symmetrics Causal research 14

15 Customer. Symmetry® Causal pathways Cognitive Attitudinal Experience Points (examples) Behavioral Emotional overall experience satisfaction & value in-store experience compliance expansion Rational motivation products repurchase relationship management technical support personality Experience points Brand essence feelings images advocacy Loyalty choice preference repair Emotional motivation contact center consideration awareness image appeal social approval Identification internalization Synovate Symmetrics salience under standing personality appeal information sources trust emotional attachment deepen relationship establish relationship

16 Strategic Analysis and Interpretation The analysis of the data and interpretation of the model focuses on uncovering high impact strategic information and tactical direction to strengthen customer loyalty for optimal market and financial results. Synovate Symmetrics

17 Examples of Key Business Questions Competitive Strength In terms of CLI, how strong are our brands relative to the competition? Motivational Levers Do current brand strategies reflect the relative weight of emotional motivation and rational motivation? Priorities Is the influence of the TPs on CL similar across brands? Are brands effectively addressing the critical TPs? Global Brand Positioning Are there common denominators of BE for brands? Are these potential points of differentiation? Repair vs. Product Quality Is it better to minimize product problems or effectively correct them after they occur? Is the net effect of repair performance a plus or minus today? Social Responsibility What are customers’ SR expectations of the brand? Product Leadership In which product categories do our brands exhibit competitive strength? Do some categories appear to pose a bigger challenge in terms of creating CL? Loyalty Segmentation Who are the most/least loyal customers? What are they worth? Can customers be segmented by loyalty drivers? Which loyalty segments to target? What changes are needed to make the targets more loyal? Sales Inoculation What types of experiences might inoculate loyal customers from sales pressures at the POP? Synovate Symmetrics

18 Examples of Key Business Questions (cont) Multidimensional Loyalty In general, are there different levers for influencing the different loyalty behaviors? Brand Influence on Channel To what extent does CL and its antecedents (EM, RM, BE and TP performance) influence loyalty to the store/retailer? Are buyers of our brands more store loyal? Channel Influence on Brand Does CL vary by channel of acquisition? Do the influences on CL vary by channel? Does the purchase/sales experience shape future usage and ownership perceptions that drive CL? TP Interdependencies Are there causal relationships among the touchpoints? Is there a temporal order? Do some TP’s support other TP’s? Are some TP’s more generic/higher level? Total Product Effect What is the net effect of “product” as a subtle influence on many aspects of loyalty? Defection Analysis What is the role of the TPs in creating lost customers? What is the role of the TPs in helping to move customers up the Vulnerability Group ladder? Platform Vs. Value-Add Which TPs and attributes represent “minimum requirements” and which afford the opportunity to add value and create competitive advantage? How “good” is “good enough”? Universal Needs Are there “universal needs” across segments that the brands can use to create broader appeal? Value Brand Migration What levers, appeals, positioning might be used to up-sell “value brand” customers and keep them at the higher price point? Synovate Symmetrics

19 Measure & Model Provide a common viewpoint and language within the client organization. INTEGRATED MEASUREMENT SYSTEMS Rational motivation Touchpoint experiences Brand essence Emotional motivation Synovate Symmetrics Loyalty

20 From Awareness to Internalization Awareness Synovate Symmetrics CL Management Internalization

21 Tools, Processes and Practices to Accelerate Change Readiness Assessments Migration Path Planning CL Goal Setting CL Simulators CL Strategy and Planning Workshops CL Initiative Development & Acrobat Testing CL Strategic Communications Infrastructure Embedment IMS Archive Synovate Symmetrics Business Planning and Execution Document

22 Building an Organizational Competency: Measure, Model, Manage CL research model MAXIMUM IMPACT MARGINAL IMPACT • Causal research • Early stages of CL competency & culture measure MINIMAL IMPACT • Descriptive research • Early stages of CL competency & culture awareness Synovate Symmetrics • Causal research • Mature stages of CL competency & culture • Robust decision-support tools MARGINAL IMPACT • Descriptive research • Mature stages of CL competency & culture • Many important decisionsupport tools for management not available due to limitations of research CL manage internalization

23 Why Synovate Symmetrics CL Thought Partner Cause & Effect Rational & Emotional Motivation Alignment Linkages & Impact Acceleration • Our focus and deep experience in the customer loyalty field means tailoring your Measure, Model, Manage CL system to meet your unique needs. • Makes explicit the cause and effect assumptions from organizational actions to customer loyalty behaviors. • Addresses not only the traditional rational motivations of customer loyalty, but applies science to the emotional motivations as well. • The frameworks and models are explicitly aligned to the company’s market strategy. The Integrated Measurement System facilitates alignment & cascading of strategy to departmental objectives and process metrics. • Dynamic simulators show potential impact on market and financial results for “what if” scenario planning. • Proven frameworks and models move the company faster up the learning curve and the change management curve to build and strengthen an organizational competency in customer loyalty strategic asset management.

24 Contact details Panicos Christopoulos General Manager Alina Socolov Senior Research Executive 20 th Siriului St. Bucharest Romania Tel: +21 20 80 101 Fax: +21 20 80 100 Email: panicos. christopoulos@synovate. com Email: alina. socolov@synovate. com Synovate Symmetrics