Applications of Analytics to Marketing

Improving Customer Satisfaction

Michelle S. Alarcon
President and Managing Director, Z-Lift Solutions
 What is Customer Satisfaction?
OUTLINE Why Customer Satisfaction is
Important
How Analytics helps improve
Customer Satisfaction
Customer Satisfaction

It is a measure of how products and services supplied

by a company meet or surpass customer expectation.
Customer satisfaction is defined as "the number of
customers, or percentage of total customers, whose
reported experience with a firm, its products, or its
services (ratings) exceeds specified satisfaction goals.

Wikipedia, the free encyclopedia

Why Customer Satisfaction is Important
🙂 It helps with acquiring new customers
8 out of 10 consumers won't buy products from a company with negative reviews
🙂 It is an indication of repurchase
Repeat customers spend, on average, 67% more than new customers
🙂 It prevents customers to leave
The cost of acquiring a new customer costs 5 to 10 times more than retaining an
existing one
🙂 It differentiates one’s products or services from its competitors

Sources:
https://www.linkedin.com/pulse/what-cost-customer-acquisition-vs-retention-ian-kingwill
https://www.inc.com/graham-winfrey/the-cost-of-unhappy-customers.html
Indicators of Customer Satisfaction

CSAT – product rating

“Are you satisfied with the product based on its {specific attributes}?”
Net Promoter Score (NPS) – customer’s loyalty to provider
“How are you likely to recommend to a friend / relative?”

X Does not capture the overall experience of the customer

X Does not pinpoint which customers need to be addressed
More sources of customer feedback allow better
understanding of what makes customers satisfied
or dissatisfied
Industry
recognition

Focus group discussions

Social media sentiment

Product reviews
How Analytics can help
improve Customer Satisfaction
Discover
Design the
patterns that
Analyze all right
may yield
customer intervention
insights about
feedback and to improve
customer
interactions satisfaction of
preferences,
customer
behavior

A B C A C A C B A B
Application of Analytics Techniques
Text mining is the analysis of data contained in natural language text.
Sentiment analysis refers to the use of natural language processing, text analysis,
computational linguistics, and biometrics to systematically identify, extract, quantify,
and study affective states and subjective information. (wikipedia)

75% negative feedback on product A comes

from millennials

New feature introduced on product B is

confusing
Data input:
Natural language text in the form of product reviews Advertisement is misleading, raising
in the website, tweet or Facebook post about the expectations which led to disappointments in
product, comments on the feedback form, or reviews
narratives captured from Focus Group Discussions
Application of Analytics Techniques
Cluster analysis or clustering is the task of grouping a set of objects in such a way
that objects in the same group are more similar to each other than to those in other
groups. (wikipedia)

Most of the high value customers are happy

with product A

A B C A C A C B A B
4 out of 5 customers who were not happy with
product A were first time customers

Usage of product B had been decreasing which

Data input:
Customer demographics, touchpoints accessed or
signals segment X customers about to leave
interactions with Provider, products availed, total
relationship value
Application of Analytics Techniques
Regression analysis is a set of statistical processes for estimating the relationships
among variables. (wikipedia)

Customers who are active on social media tend

to be more negative about products.

Underlying factor that drives satisfaction

among high value segment seem to be the
brand.

The more frequent a customer uses a product,

Data input:
the higher likelihood it is for the customer to be
Customer demographics, touchpoints accessed or satisfied with the product.
interactions with Provider, products availed, total
relationship value
Conclusion

By understanding our customers better, we can effectively address

their dissatisfaction with our products or services, and find the most
efficient method to do so.

Only by leveraging on the data that we capture about our customers

by applying analytics techniques can we gain insightful knowledge
about them.
 What is Customer Satisfaction?
OUTLINE Why Customer Satisfaction is
Important
How Analytics helps improve
Customer Satisfaction