Axioms of the LRC approach
Relationships, or lack thereof, contribute significantly to explaining critical behaviors.
Experiences, strong or weak, determine those relationships.
Individuals place higher priorities on some experiences.
Perceptions of performance on those high priority experiences contribute to making the relationship strong or weak.
Segments vary in experience priorities and/or the performance perceptions.
Organizations that understand and use that information have a strong competitive advantage in the market.
How the LRC increases the power of customer information
1. The immediate use of VOC information is at the individual respondent level. Based on the responses, the LRC determines which accounts appear to be opportunities for growth and which accounts appear to be at risk. The client then develops an action plan to address those accounts based on their specific responses.
2. The second step is to look for themes or patterns that are shared across the respondents. This takes the form of identifying drivers of the relationship. If the respondents are representative of the customer population, then by addressing those themes the organization can impact not only the respondents, but the remainder of the customer population. This step significantly increases the potential return on the information – it increases its power.
3. The third step is to recognize that segments have significantly different themes. That recognition allows for fine tuning of both the solution and its implementation. These tailored solutions generate a larger response from each subset of the customer population.
4. Finally, by utilizing descriptors and other CRM information, the results can be projected onto the entire population of customers. This enables solutions to be customized to individuals or individual accounts. It takes the process back to individual level interaction – the difference being that the individual interaction is at the entire customer population level instead of only the respondents to the survey.