Are you getting all you can from your customer satisfaction data? Introducing: ICSS The Integrated Customer Satisfaction System from

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Are you getting all you can from your customer
satisfaction data?IntroducingICSSThe
Integrated Customer Satisfaction Systemfrom
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Evaluating Customer Satisfaction Means Answering
These Questions

• What benefits are important to customers?
• How do you deliver on important benefits? How
  do your competitors?
• Does your brand have equity that goes beyond its
  performance? How about the competition?
• Do all customers want the same things? If not,
  who wants what?
• Do all customers see you and your customers the
  same way?
• How can you find customers with different needs?

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Using a system of customer satisfaction
techniques, ICSS can help you answer ALL these
questions.

• And presents them in convenient spreadsheet form!

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ICSS Analytic Techniques

• RenSat identifies what issues determine brand
  preference -- and how
• Basic needs that are costs of entry into the
  market
• Key drivers with constant ROI
• Exciters that can set a brand apart from the
  competition
• BEE (Brand Equity Estimate) shows whether your
  brand or the competition is more preferred
  than its performance would suggest (or less)
• Gap Analysis shows how your brand stacks up
  against the competition on each issue
• DRIVESEG Derived Importance Segmentation finds
  groups with different needs, expectations, and
  perceptions
• TARGET FINDER identifies needs groups for
  advertising and direct mail

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How an ICSS Analysis is Conducted
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Step 1 Determine the Variables

• The most important step is the first making
  sure youre examining whats important and
  actionable
• Dependent variable should be as closely related
  to consumer performance as possible (brand
  preference or choice)
• Predictor items should cover every relevant
  aspect of needs and expectations in category
• We will work with you in developing a list of
  items to make sure you cover the territory

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Step 2 Find the Underlying Benefit Factors

• The most well thought-out set of items will not
  necessarily capture the way the consumer views
  the category
• The items as asked are only approximate measures
  of the way the consumer sees the brands
• Factor Analysis identifies the categories the
  consumer uses, and how they relate to the
  questions you asked

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Factor Analysis of Benefit Items
The numbers show the relationship between the
factors and the items. The higher the number,
the more the item contributes to the factors
meaning.
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Step 3 RenSat Derive Importance of Factors

• Factors are important to the extent they drive
  preference
• For instance, if the preferred brand is
  consistently rated higher on value than the
  non-preferred brand, then value is important
• Drivers of preference can be very different from
  what consumers say is important

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Step 3 RenSat Derive Importance of Factors

• But all factors dont influence preference in the
  same way
• Traditional Key Drivers act in a straight-line
  fashion the better your brand does on them, the
  more its preferred
• Basic factors are costs of entry into the
  market a brand is rejected if it lags the
  competition, but isnt necessarily preferred for
  doing better
• Exciters are bonuses a brand is not penalized
  for not having them, but an advantage over the
  competition can translate into brand preference

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EFFECT OF PERFORMANCE FACTORS ON PREFERENCE
PREFERENCE
High
Exciter
PERFORMANCE
Key Driver
Low
Basic Feature
High
Low
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Step 3 RenSat Derive Importance of Factors

• RenSat uses linear and non-linear regression
  techniques to
• Identify what type of effect each factor has
• Key Driver
• Basic
• Exciter
• Evaluate the importance of each factor
• Expressed as a percentage of total influence on
  preference

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Trust is the most powerful driver by far Product
Availability is a basic cost of entry into the
market Good Service is an Exciter that can
distinguish a brand from the competition
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Step 4 Evaluate Competitors on Important
Benefits

• Gap Analysis shows advantages and disadvantages
  of each brand at a glance
• Listed in descending order of importance
• Shows where youre strong and weak
• Shows your biggest threats and opportunities

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• Brand A is the most trusted brand the most
  important factor
• On Service, a competitive advantage, Brand A and
  Brand B compete for dominance.
• Product Availability is a cost of entry. Brand
  A is at parity with its competitors
  and thats enough (as long as another
  competitor with better distribution doesnt come
  in!)

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Step 5 Assess Brand Equity

• Is a brands overall impression more than the sum
  of its parts? Is it less?
• BEE (Brand Equity Estimator) uses the RenSat
  model to find out which brands do better (or
  worse) than their performance predicts
• Preference for each brand is predicted using the
  RenSat factors, then compared with actual
  preference levels
• Brands that exceed predicted levels have a
  positive brand equity they outperform
  expectations
• Brands significantly lower than predicted levels
  have negative brand equity they are less
  preferred than might be expected by their
  performance on attributes

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Brand A, even though its the category leader,
underperforms its expectations In contrast,
Brand B has positive brand equity its more
preferred than its performance on attributes
predicts
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Step 6Find Derived Needs Segments

• Its important to know the needs and attitudes of
  the market as a whole but thats not the whole
  story
• Sometimes the total markets opinion is only an
  average of two or more segments with contrasting
  needs and evaluations
• DRIVESEG, our unique Derived Importance
  Segmentation method, can find and identify those
  segments

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Derived Importance by DRIVESEG Segment
80
70
60
Importance (Share of Determination)
50
40
30
20
10
0
TRUST
SERVICE
PRICE/ VALUE
CONVENIENCE
PRODUCT
AVAILABILITY
Attribute Factors
Segment I (58)
Segment II (26)
Segment III (26)

• Segment I, the largest segment, values Trust and
  Service
• Segment II values Convenience and Availability
• Segment III is the Price/Value segment

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Step 7Analyze Brands By Segment

• Customers form segments with unique sets of
  expectations. Do they also view the brands
  differently?
• Repeating the Gap Analysis and BEE within each
  DRIVESEG segment will answer that question

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• Segment I, the largest, buys based on Trust and
  Service
• Brand A has Trust advantage
• Brand B has the advantage on Service, but Brand A
  can compete by improving response time

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• Segment II is the Convenience/Availability
  Segment
• Brand B has the advantage for Convenience
• Product Availability is seen as a parity benefit
  (which is all it needs to be) however, Brand
  A may have an out-of-stock problem

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• Segment III cares only about Price/Value
• For them, Brand C is the clear winner

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Step 7Analyze Brands by Segment

• We can also apply Brand Equity Estimation within
  segments
• Do brands appeal to (or repel) customers in a
  given segment to a greater extent than their
  performance on attributes would suggest?

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• In the Trust/Service segment (Segment I), Brand B
  outperforms its attributes
• By contrast, Brand A does considerably worse
  among the Convenience segment than its
  performance suggests
• And, even though Brand C is the price brand, it
  underperforms its attribute ratings in the Price
  segment

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SummarySegmented Gap and BEE Analysis

• If youre Brand A, maintain availability and
  improve response time to leverage trust advantage
  and make inroads in the mainstream segment
  (Segment I)
• Brand B is a strong competitor on two fronts it
  holds Segment II with its convenience advantage,
  and competes with Brand A in Segment I by
  superior service
• Brand C, the price brand, would have trouble
  breaking out of its niche in Segment III. Though
  Segment III consumers trust it, Segment I
  consumers, for whom Trust is most important,
  dont. And even in Segment III, Brand C has
  little inherent equity consumers choose it
  mainly because its cheap

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Step 8Identify and Target Needs Segments

• Needs segments dont do the marketer any good if
  they cant be identified so that marketing
  messages can be addressed to them
• Target Finder identifies the demographic and
  behavioral groups in which each segment is most
  likely to be found
• Finds compound definitions that cant be
  identified with the naked eye

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TARGET FINDER RESULTS
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TARGET FINDER SUMMARY

• Segment I is most likely to be found among women,
  particularly with household incomes over 35,000
• Segment II is most likely to be found among men,
  particularly those with no children
• Segment III is most likely to be found
• among women with household incomes under 35,000
• Among men with children

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ADVANTAGES OF ICSS

• Unified system maximizes the value of customer
  satisfaction data
• Modular use the whole system, or conduct
  specific analyses
• Factor model allows discrimination among benefits
• You can really tell which issues drive preference
• Derived Importance model avoids self-report bias
• RenSat distinguishes types of influence
• DRIVESEG segmentation avoids marketing errors due
  to non-discrimination of subgroups
• TARGET FINDER increases actionability by making
  it easier to find segments

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To discuss performing an ICSS analysis, contact
Paul M. Gurwitz, Ph.D.At [phone]or by
e-mail atpgurwitz_at_renaiss.com