《凯捷咨询为英国石油大数据客户忠诚度及客户全流程体验项目交付材料之8BP Loyalty KPIs.pptx》由会员分享，可在线阅读，更多相关《凯捷咨询为英国石油大数据客户忠诚度及客户全流程体验项目交付材料之8BP Loyalty KPIs.pptx（36页珍藏版）》请在三一文库上搜索。
1、BP Loyalty KPIs,February 2011,Objective of the document,Objectives of this document are to: Highlight the approach adopted to defining KPIs for the Customer Experience Provide recommendations on metrics for the BP Plus card program,Measurement in the context of Capgeminis Customer Experience Transfo
2、rmation The approach to Performance Measurement The “House of Quality” “Customer needs” based measures vs. “business efficiency” measures Recommendations on KPIs APPENDIX Loyalty KPIs leading practices summary House of Quality details,Table of Content,Measurement is an essential stage of the methodo
3、logy as it brings everything together by indicating the effectiveness of the previous steps of the CET,KPIs linked into customer insight and customer journey allow to monitor the effectiveness of the initiatives designed to deliver a superior customer experience,Building the performance management a
4、round the Customer Experience aligns a company operational model to its Customer Value Proposition,The measurement component provides a way to establish how successful the customer experience improvements are at achieving segment positioning priorities direct: Voice of the customer/ad hoc customer s
5、urveys/focus groups indirect: market share/cross sell up sell/share of the wallet Dashboards used by the BP Plus team should include KPIs that measure performance from both customer and operational view points, underpinned by a logic that connects the two e.g.: number/duration of calls (business mea
6、sure), fast turnaround time (customer need) The key benefit is the underlying customer centricity as the internal activities/processes are aligned with the expected desired outcome in terms of ability to address customers needs/wants the business model shifts from a “push we have this product offeri
7、ng for you ” to a “pull how can we best serve you ” proposition,The “House of Quality” is a structured approach to understanding a businesss ability to fulfil customer priorities,The House of Quality: Is a tool that links the needs of the customer with the services provided. It is used to identify w
8、hat value means to the customer (needs), how services are critical in addressing customers (business processes), their relationships and to determine the level of performance to deliver The benefits: Simple and intuitive framework Portrays relationships between measures Enables a deeper understandin
9、g of the service levels and offer characteristics which drive customer satisfaction Call for action (when needs are not satisfactorily addressed),The HoQ provides a strategy for developing operations that maximise customer value while allowing for an efficient use of resources,The HoQ can be impleme
10、nted in a staged approach, initially prioritising the relationship between needs and operational model, hence progressing with benchmarking and competitive assessment,The House of Quality has the following elements: Customer Needs define the customer primary and secondary needs Business Measures how
11、 BPs processes/ activities create customer value Inter-Relationships the qualitative relationship between customer and business X Priorities which process steps are critical based on how they contribute to customer needs X Targets the level of performance that BP aspires to on important process metr
12、ics X Correlation of Measures map the strength of correlation between targets and measures,X Not in Scope,An analysis of the “Customer needs” vs. “business operations” measures has been conducted to highlight gaps and recommendations for KPIs,Customer Needs indicates what value means to the customer
13、,Customer needs have been identified from the following outputs: BP workshop; Customer insight and Customer segmentation,A first set of recommendations on KPIs follows from mapping the 4As model against the customer journey and comparing it with leading practice KPIs for loyalty,Customer Experience
14、Design: KPIs identified against each stage of the customer journey,Leading Practice Industry KPIs: Capgemini analysis on leading practice KPIs against each stage of the customer journey,2010 C resolution times; customer satisfaction surveys,Tracking of behaviour changes (transactions, volumes, purch
15、ases, payment) Tracking of customer satisfaction,Tracking changes in customer behaviour Track customer who no longer use their cards Track customer satisfaction Loyalty Programme metrics (e.g. points accrual),Number of customers who re-open their account Number of comms to ex. customers Percentage o
16、f inactive members Attrition Rates of accounts,.whilst leading practice scan suggests that additional measures along the customer journey could be considered (1/3),.whilst leading practice scan suggests that additional measures along the customer journey could be considered (2/3),.whilst leading pra
17、ctice scan suggests that additional measures along the customer journey could be considered (3/3),A second set of recommendations stems from the analysis of the impacts of internal processes along the customer journey on customer needs.,Customer Journey,Customer Needs,Customer Experience,Pre-Sales:
18、is an influence on all the customer needs as the needs drive the sales offer and product offering. Apply and Welcome: is the primary influences on the needs of customer relating to Relationship Management and Brand Use: is a primary influence for a number of customer needs including Network, Reporti
19、ng, Product and Trade Business / Innovation Customer Service: although there are touch-points with all the customer needs the primary influence is on Efficiency (call handing) and Relationship Management Pay: the activity of paying influences Security, Credit Terms , Efficiency and “Relationship Man
20、agement Re-evaluate: for customers e-evaluating their account the effectiveness of BP in meeting all of the customer demands will influence their decision. Maintain: as per re-evaluate customers will be influenced by a range of customer needs as they maintain their account . Specific influences will
21、 be Relationship Management, and Product and Loyalty Programme. Exit: like Pre-Sales, the Exit stage is an influence on all the needs of the customer as it informs on the causes and reasons of people terminating their accounts.,Measuring the customer experience is often an aggregated measurement acr
22、oss a number of customer touch-points,DRAFT FOR DISCUSSION,. and from the review of the measures currently in place, looking at introducing a combination of leading and lagging indicators,Customer Journey,Customer Needs,Potential Measures,Pre-Sales: Application questionnaire to identify the reasons
23、for applying Comparison of offers / needs against competitors Apply and Welcome: Number of initiatives/reviews of application process Customer satisfaction with application process and welcome information Use: RFM analysis by geography/ network/ product/ segment Number and types of reports generated
24、 online Average value of cross-sell/up-sell per member Number of different offer by geography/sub-segment Customer Service: End to end call handling time and issue resolution Number of calls to Customer Service related to card / account security Training delivered to TS/CS resources Pay: Number of d
25、isputed transactions related to security Resolution timeframe for disputed transactions Re-evaluate / Maintain: Customer Satisfaction Survey: survey that tracks customer satisfaction across all the touch-points of the customer journey Loyalty Program - Accrual rate of points, points earning rate, po
26、ints burning rate, expiration rate, redemption velocity Exit: Standard exit interview, exploring the reasons provided for terminating accounts with leading questions across all customer needs.,DRAFT FOR DISCUSSION,Appendix,Leading practice KPIs (customer journey) Steps required to complete the House
27、 of Quality,Leading Practice KPIs (customer journey),This appendix identifies the leading practices for loyalty KPIs along the customer journey,Customer Journey,Pre Sale Advertising/ Research,Member acquisitions from referrals,Member acquisition from customer insight,Number of referrals per member;
28、Current number of members referring; Projected number of members referring; Percentage of referrals who buy the product/service.,Number of repeat customers: Total number of customers who have completed a repeat purchase / total number of customers. Frequency of purchases of existing customers; Custo
29、mer segmentation (focus on high value customers).,Enrollment Number of active members in the loyalty program - Participation Rate: The percentage of members who are “active” in a program (i.e. spending money); Example: 100 members are enrolled in a loyalty program but only 60% have made a purchase s
30、ince joining. The remaining 40% of members are not getting beyond enrolment and are not part of the program; Customer Loyalty Mix (advocate, supporter, client, customer, prospect); Customer Profitability Mix: Customers you want to retain (%, of your most profitable/valuable); Customers you want to g
31、row (%, high potential); Customer who are marginally profitable (%); Customers who are unprofitable (%).,Enrollment Growth Rate Number of new members to total members; Current value of new members; Projected value of new members; Projected incremental revenue.,Use/Order (1/2), Source: Measuring Resu
32、lts of Your Loyalty Program Investment Loyalty Works 2005 Source: Loyalty Analytics 7.9.6 Product Guide ORACLE - 2009,Transactions,Loyalty program enabled transactions (% of total transactions); Average value of cross-sell/ up-sell per member; RFM Analysis (analyses the Recency, Frequency and Moneta
33、ry Value of the members): Used to determine quantitatively which customers to target by examining how recently a customer has purchased (recency), how often they purchase (frequency), and how much the customer spends (monetary). Based on the marketing axiom that 80% of your business comes from 20% o
34、f your customers.,Promotions,Loyalty promotions by segment: Track the number and type of promotions that have targeted a given customer segment in the past. Creating control groups for loyalty promotions - Program Managers can hold certain locations / products out of specific loyalty promotions. Com
35、paring period results in locations where the loyalty promotion was executed to cohort locations in the control group can provide a good analysis of a programs ability to drive incremental sales. Top 5 influential promotions (based on the response rate): Response Rate = number responded / number targ
36、eted * 100.,Campaigns,Marketing campaign conversion rate: number of leads generated from a campaign as a % of total drops; Number of targeted e-mails/ SMS sent; Overall value of coupons redeemed (i.e. value given back to the customer); Coupon effectiveness (measured by uplift = Increase the spending
37、 of existing members ).,Use/Order (2/2), Source: Measuring Results of Your Loyalty Program Investment Loyalty Works - 2005,Program Impact Assessment,There are 3 ways to assess the Program impact: Member sales before and after they join the program: Member sales pre and post. How does a customers act
38、ivity compare before joining the program versus after joining the program? The difference is the lift the program generates. For example, if an average program member spends $500 a year before joining the program and $700 a year after joining the program, the program is generating a 40% lift in sale
39、s and $200 per year per member in incremental revenues. Member vs non-member customer value: How does average shopping basket size, average trips per year, and frequency of trips compare between members and non-members. This allows the Program Manager to understand and to demonstrate the difference
40、in customer value between members and non-members. Member vs non-member defection rates: What is the tenure of program members versus non-members. Consider an example where member churn is 5%, non-member churn is 20%, and the program has 1MM members. In this case, the program has delivered a benefit
41、 of 150,000 customers saved times the average annual spending per customer.,Customer Service,Customer Service Metrics,Member complaints rate Number of member complaints as % of total customers complaints; Frequency of members contact How often you contact each member, vary by customer segment; Call
42、handling time Length of time on the phone with a member; Channel used to contact customer service.,Billing,Metrics in credit and charge card reward programs (which are linked to a credit/charge card payment facility),Credit card debt rate to track customers who are not paying their monthly/ quarterl
43、y.bill on-time; Debtor days outstanding to calculate a companys efficiency in collecting monies owed; Credit risk - to calculate the risk of loss due to a debtors non-payment; Cash flow; Credit card discount rate targeted volume customers can receive a bigger fuel discount, for example.,Traditional
44、billing metrics,Billing enquiry rate number of billing related enquires for the loyalty program as a % of total enquiries; Time spent on billing enquiries,Reward, Source: Measuring A Loyalty Programs Performance? Size Doesnt Matter Bob Konsewicz 2010 Source: Loyalty Analytics 7.9.6 Product Guide ORA
45、CLE - 2009,Program Points Summary,It includes metrics to analyse the points issued by a loyalty program (if relevant). This analysis can be done globally (i.e. all members in the loyalty program) and then detailed by customer segment. Accrual and Breakage Rates: The accrual rate represents the perce
46、ntage of points issued that are expected to be redeemed prior to being expired or forfeited (points accrued); The breakage rate represents the percentage of points that are never expected to be redeemed. These metrics are crucial because they have an impact on program expenses and point liability Po
47、ints Earning Rate - number of points Accrued / number of points redeemed * 100; Points Burning Rate - number of points Redeemed / Member point balance * 100; Expiration Rate - number of points Expired / Member point balance * 100; Redemption Velocity - how fast the members are earning and burning th
48、eir points, expressed as burning rate trend.,Benchmark,Benchmark the customer reward offered against competitors offer,Exit, Source: Measuring A Loyalty Programs Performance? Size Doesnt Matter Bob Konsewicz - 2010,Inactivity/Resignation,Percentage of inactive members or percentage of resignations (
49、if relevant); Members almost never resign from a loyalty program. They commonly become inactive; Note that a member is tagged as inactive based on his/her last transaction date.,Retention,Percentage of customer retention Attrition Rate: Percentage rate at which something is lost, or is reduced by, over a period; Retaining customers is the objective of a loyalty program. Its a given that a goal must be set for this metric; For example, if the pre-program analytics indicate that the customer churn rate is 20% annually, a benchmark should be set for something less than that in t