Lezioni Customer relationshipmanagement and customer analytics

Segmentazione dei clienti per quota di portafoglio e dimensione del portafoglio

Stiamo confrontando la quota di portafoglio e la dimensione del portafoglio. Se abbiamo una quota di portafoglio elevata e una grande dimensione del portafoglio, la situazione è perfetta (mantenere e proteggere) perché significa che il cliente spende molto e l'azienda sta prendendo una grande parte dei suoi soldi.

Se la dimensione del portafoglio è grande ma la quota di portafoglio è bassa, la situazione non è perfetta, dobbiamo aumentare l'importo di denaro speso con noi (obiettivo per la vendita aggiuntiva).

La situazione peggiore è quando si ha una quota di portafoglio bassa e una piccola dimensione del portafoglio. Il potenziale è basso e l'azienda non deve investire denaro (non fare nulla).

Se la dimensione del portafoglio è piccola e la quota di portafoglio è alta, significa che l'azienda deve mantenere questi clienti e aspettare, perché la loro situazione economica potrebbe cambiare (aspettare).

4 MISURE BASATE SULLA PERCEZIONE DELL'ESPERIENZA DEL CLIENTE

Soddisfazione del cliente (scala da 1 a 7)

In che misura sei d'accordo con quanto segue:

statements (1= completely disagree, 7=completely agree): 1. I truly enjoyed coming to the store 2. I am satisfied with the store 3. Coiche to come to the store was a good one 1. I was satisfied with the service provided 2. I was delighted with the service provided 3. I was unhappy with the service provided. Then you have to compute the average of the customer satisfaction. If you have different segments of customer, you can compute the customer satisfaction for each segment. It's a survey-based measure. One problem of this metric is that few customers answer the survey. Customer satisfaction is a scale that you can use to compute the satisfaction with the store or with a particular item. The Net promoter score The net promoter score is still employed, it is a metric to compute the word of mouth. - Was introduced in 2003 with an article - It is employed by many innovative companies Lego, Apple, Facebook, American Express, Allianz, Philips etc - Employed to track loyalty, word of mouth and the

customer experience overall- It is a survey-based measure- "How likely is it that you would recommend [company X] to a friend or colleague?" Scale from 0 to 10 where ten means "extremely likely" to recommend, five means neutral, and zero means "not at all likely".

When the authors examined customer referral and repurchase behaviours along this scale, they found three logical clusters:

• Promoters: the customers with the highest rates of repurchase and referral, gave ratings of nine or ten to the question
• The Passively satisfied logged a seven or an eight
• Detractors scored from zero to six

They find a correlation between a high net promoter score and the sales growth.

Promoters: Their lives have been enriched by the relationship with the company. They behave like loyal customers typically making repeat purchases and giving the company a large share of their spending (share of wallet).

Any company should want to maintain their enthusiasm and to convert more

customers to be promoters.

Passives: Passively satisfied customers not loyal ones. They make few referrals not enthusiastic referrals. They are more likely to switch - than Promoters - if a competitor is going to offer them a discount. The goal of the company is to push these customers towards the Promoter level.

Detractors: Their lives have been diminished by their dealings with the company. They are dissatisfied and disaffected by how they were treated. If they cannot easily switch, they make multiple complaints driving up the cost of dealing with them. Their behaviour might destroy employee motivation and pride. Companies dealing with detractors should detect the root cause for this attitude apologize and then determine ways to solve the problem. If there is not feasible solution the company might want to learn how to avoid acquiring these customers in the first place.

How to compute the net promoter score:

NET PROMOTER SCORE = % PROMOTERS - % DETRACTORS

You have to compute the difference between

The proportion of promoters and the proportion of detractors. The number could vary between -100 to +1000.

Suggestion to compute the net promoter score:

• Aim for high response rates from the right customers
• Report and discuss NPS frequently (some employees ask customers to give a high rate, and they can obtain a coupon)
• Refer NPS to a specific interaction and to the overall company
• Ensure accuracy and freedom from biases
• Link NPS with purchase behavior

There are benchmarks (which is the average score for the industry) for NPS, if you perform under the benchmark you have to increase NPS. Tesla (97 NPS), Chevrolet (85 NPS), KFC (53 NPS), Starbucks (77 NPS).

There are companies in Italy and all over the world that make their business in the computing of NPS.

The NPS and customer satisfaction are correlated, and they are linked with high sales.

DIGITAL ANALYTICS

Main digital touchpoints:

1. Email marketing
2. Website
3. Social media
4. Mobile apps
5. Online ads (Search ads, Display ads, Social adv)

Organic search results Each touchpoint has a specific metric.

FUNNEL

In online marketing, we consider the customer journey as a funnel. You start from the awareness stage, which means that the customer knows a given brand and all the advertising is aimed to increase brand awareness. The second stage of the funnel is consideration, which means that I am starting to interact with a brand (visit the store, interact in the social media). I'm engaged with the brand, which means that this brand will be a part of my consideration set, made by all the brands which I consider. The third step is conversion, which has to do with purchases. The final step is advocacy, which means that after the purchase, the customers do/make a positive word of mouth, they talk positively about the brand, develop a relationship with the brand, and recommend it to others. The funnel scheme today is changing and is becoming more complex.

WHAT IS A CONVERSION?

A conversion is a completed activity, online or offline, that is important to the success.

of your business. Examples include a completed sign-up for your email newsletter (a goal conversion) and a purchase (a transaction, sometimes called an Ecommerce conversion).

- MACRO CONVERSIONS are key actions that users take on websites that fulfill your business objectives like making a purchase (It's a purchase)

- MICRO CONVERSIONS are smaller goals that bring users closer to your main objectives such as signing up for an email coupon or a new product notification

DIGITAL ANALYTICS: by using digital analytics, we can track what online behaviour led to purchases and use that data to make informed decision about how to reach new and existing customers.

Metrics related to:

• GOOGLE ANALYTICS
• EMAIL MARKETING
• SOCIAL MEDIA MARKETING

GOOGLE ANALYTICS

Google Analytics can collect behavioural data from a variety of systems such as websites, mobile applications, online point of sales systems, video game consoles, customer relationship management systems or other internet-connected platforms.

How it works?

A small piece of JavaScript tracking code is included in each page on your site. You have a first part that is the same for each application and then you have several lines of customized programming code. Few lines of code are sufficient to track the different behaviour and obtain information.

Each webpage uses a code. Every time a page loads, the tracking code will collect and send updated information about the user's activity. Google Analytics groups this activity into a period of time called a "session". You can think of the session as a visit.

SESSIONS: a session is a group of user interactions with your website that take place within a given time frame. For example, a single session can contain multiple pageviews, events, social interactions, and ecommerce transactions.

This is an example of session. These operations could be part of the same session.

A single user can open multiple sessions. Those sessions (belong to the user) can occur on the same day. As soon as one

sessions ends, there is then an opportunity to start a new session.

When does a session end?

There are two methods by which a session ends:

• Time-based expiration (after 30 minutes of inactivity or at midnight). If you are inactive for 30 minutes, Google Analytics considers a new session of the same user). You can personalize this limitation if there are some reasons to do so.
• Campaign-based expirations: then you enter another time with another source, Google Analytics consider two different sessions. Occur when a user enters your site via one source (a search engine, for example) then leaves and returns via another source (an ad, for example). Each time a user's campaign source changes, Google Analytics opens a new session. This is another example. In analytics you can find the indication of lending page (which is the arrival page), as the first page of the session. In this case you have 2 different lending pages because you have 2.

y new users and divide it by the total number of sessions. Bounce rate It is the percentage of single-page sessions, where the user leaves the site without interacting with any other page. A high bounce rate indicates that users are not finding what they are looking for on your site. Conversion rate It is the percentage of users who complete a desired action, such as making a purchase or filling out a form, out of the total number of users. A high conversion rate indicates that your website is effective in achieving its goals. Exit rate It is the percentage of sessions that end on a specific page. It indicates which pages are causing users to leave your site. A high exit rate on a particular page may indicate that there is an issue with that page. These metrics can provide valuable insights into the performance of your website and help you make informed decisions to improve user experience and achieve your goals.