LOYALTY MANAGEMENT SOLUTIONS
LMS consists of measurement and analysis of information to provide the management team with diagnostics relevant to their business model and how it relates to the market.
Obtaining feedback from customers is a vital process for any organization. Customer relationships determine their behaviors and resulting financial performance for the organization. Information about those relationships is critical to managing the key functions of the enterprise more effectively.
How many of your customers have strong relationships with your organization? Weak relationships? Who are they? How are they different? Can any of the weaker customers be migrated to a stronger relationship? What will it take to change their perceptions and attitudes – for better or worse?
The Loyalty Assessment Program, the LRC’s core program, is conducted with a cross-section of your customers to generate the answers to these questions – and more. Deliverables include:
- Current behaviors, like share of spend and total category spend
- The Loyalty Profile of your customer base
- The priorities your customers place on different transactions and/or experiences with your organization
- Evaluation of your experiences and those of key competitors
The results of this program are used by our clients as input into their strategic planning effort, construction of their marketing strategies and plans, relationship management strategies, growth initiatives, operations process evaluation and more.
An ongoing customer loyalty measure should be one of the key metrics used by any organization. It should be part of the scorecard or dashboard used by your senior management team and cascaded through the organization. Don’t wait a year or more to determine whether efforts to change your customer relationships have been effective – or not.
The LRC’s Loyalty Monitoring Program provides an ongoing measure of the strength of the customer relationship – loyalty - to serve these needs. Brief interviews are conducted with a targeted set of customers over time to provide both a loyalty measure and a read on performance issues that are central to this loyalty measure. Further, this program can uncover emerging issues and test new initiatives.
The results can be reported by team, branch, store, region, and/or any other way which is relevant to your organization’s structure.
The Loyalty Assessment Program typically identifies one or more customer experiences that are critical to the customer’s relationship and behavior with your company – they either contribute strongly to loyalty or vulnerability.
The Customer Experience Tracking Program measures how customers evaluate these critical transactions with your organization. You receive ongoing information to help diagnose where and when flare-ups are occurring. And whether the investments you’ve made are getting traction and changing the customer experience in a meaningful way.
This information can be coupled with company metrics on the experience (e.g. delivering on time as promised) to make the analytics and information more meaningful with greater focus on specific actionability.
Most firms have a set of accounts that are critical in some way, like revenue volume, revenue potential, or the existence of a strong strategic relationship. How do those key/strategic accounts evaluate you? How Loyal are they? What can be done to improve your relationship with them and increase the business they give your organization?
The LRC Key Account Assessment Program examines these relationships, frequently as part of an overall Loyalty Assessment Program. What’s unique about this program is that it examines the relationship from the perspective of several players within each account. At a minimum there are decision-makers, influencers, and users. How do each of these groups view your performance and what is critical to them?
The deliverable is an account-specific report detailing both unrecognized opportunities as well as the issues you face with each account. This includes how to improve your relationship with those accounts and the themes that hold across all or most.
Your sales and marketing team strives to bring new customers into the company, but many of these customer relationships are fractured from the beginning. The new customer sees many of the things promised not being delivered.
How do new customers evaluate your company? How can the on-boarding process be improved to avoid many of these disasters? Are there new customers that are a bad fit for your company?
The LRC’s New Customer Assessment Program examines these new customers within a window of when they begin with their relationship with your organization. Not only does this provide your company with critical information about how to ensure these new sources of revenue are having their expectations met or exceeded, it also sends a message to these customers that you care about their experience.
Organizations frequently have questions about their channel strategy. Is there channel conflict? Which channels are gaining share of spend and which are losing? Which segments of customers have a preference for a specific channel? How much emphasis does the channel give your products and services relative to competitors? Why? What can you do to strengthen your channel relationships?
The Channel Assessment Program examines specific channels used by your organization. It evaluates your relationship with these channels – from the channel members themselves and from the perspective of your customers - and provides findings and recommendations to help you move forward with an informed strategy.
As with channels, companies have questions about specific competitors or types of competitors. For example, how appealing is the competitor’s value proposition to your customer base? Which segments of your customer base would be most willing to use that competitor for a share of their spend?
The Competitor Assessment Program delves into specific competitors or types of competitors. What are their strengths? Weaknesses? How are their business models changing? Are they becoming more (or less) appealing to your customers? What about their customers? Which of their customers are the best prospects for your sales force?
Business development resources are limited. How should they be allocated across the prospects you have in your pipeline? Which of your current prospects are the best fits for your company? Which have the highest probability of becoming a customer within the next 6 months?
The LRC examines this question in the Prospect Scoring Program. The program interviews a sample of your prospects and determines the attractiveness of each. Using descriptors of these prospects, a model is produced that enables these results to be projected onto all prospects. This enables you to target more effectively.
The Prospect Scoring Program frequently follows the Loyalty Assessment Program. The LAP tells you the strengths current customers see in your company and the customers that fit best with your business model. This information integrates neatly with that of the Prospect Scoring Program by helping identify not only the customers most likely to buy from you within the next 3 to 6 months, but also those most likely to remain with your organization.
How does the complete market for your product/service look across all competitors, channels, and customer segments? How is the market growing in units and volume? Which product types in the market are growing and shrinking? Which competitor is gaining share? Losing share? How are channels changing in the share of business being conducted through each of them?
These questions and more are addressed by the LRC’s Market Analysis program. This program feeds depth information into an organization’s strategic planning or marketing strategy to make it more precise and effective.
Many organizations only focus on external customers while most of their internal business processes and transactions impact internal customers. These internal customer transactions are critical for managing both customers and costs.
The LRC’s Internal Customer Program examines these internal customer relationships. It determines the extent to which current processes are providing a sufficient level of value to their internal customers and users. It directs the owners of those processes how to manage and make the most impactful improvements.
This program can be complemented by Business Process Mapping and Optimization.
Part of the issue with managing customer relationships is that many of your employees that are responsible for some part of that relationship are misaligned with how the customer sees your performance. They don’t understand what’s critical to the customer or how the customer evaluates the performance on these experiences.
The Employee Mirror Program addresses that issue. It measures how your employees expect your customers to evaluate their experiences with your organization. When paired with a Loyalty Assessment Program or other customer assessment, this enables gap analysis to be performed.
Where are there disconnects between your organization and customers? Are certain departments better/worse than others in their understanding of the customer? These deliverables provide your organization with a baseline measure of how the employees view the customer experience, along with the identification of barriers to success.
Employees are an important constituency for your organization. Their level of engagement with your company is a large component of their motivation to take care of the company’s customers.
The Employee Engagement Program measures the strength of the relationship between the organization and employee. The deliverables from this program are measures and recommendations on how to strengthen employee commitment and better align employees with the organizational goals. The output is also integrated with customer findings to determine the extent to which employee engagement is one of the critical factors facing the company in its current customer relationships.