laurie englert university of st. thomas may 16, 2007 can companies experiencing rapid growth...
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Laurie EnglertUniversity of St. Thomas
May 16, 2007
Can companies experiencing rapid growth maintain loyal
customers?
Has a company won your loyalty?
Northwest Airlines:E-mail check-inSelf-printed boarding passesFree first-class upgradesPriority security screening
Why do companies want to build loyalty?
Acquiring new customers is expensive• Companies spend 7x more on new customers
Loyal customers cost less to keep, spending 3x more in the 3rd year• Less marketing expense• Reduced customer turnover expenses• Lower transaction costs
Competition is intense & continues to grow
How do companies build customer loyalty?Company commitment – all departments
Use of long-term strategy vs. short term tactics
Requires continuous, interactive relationship building
Why is this topic important to me? Currently a Marketing Director for a
rapidly growing companyNeed to do more with less dollars!
More about Chief…Growing at 55% per yearLeading global manufacturer of flat
panel mountsHiring 100 people per yearCustomer service oriented companyRapid growth and change threatens our
ability to stay in touch with customers
What did I want to know?Can companies experiencing rapid growth maintain loyal customers?
What are the key issues?Is Chief in touch with customer needs?
How does Chief perform against competition?
Can Chief do more to ensure long-term loyalty?
Who did I survey?Dealers & distributors who currently purchase mounts from Chief
Located throughout the US & Canada
Focus on residential and commercial installations
How did I reach them?Eight phone interviews1,000 web surveys
How many responded?116 completed web surveys for a response rate of 11.6%
20% was expected
What did I evaluate?17 services and
attributes:1. On-time delivery2. Value (product price
+ services)3. Accurate/Complete
Shipments4. Ease of Install5. Customer Service &
Support6. High quality
products7. Innovative product
solutions8. A broad product line9. No-hassle return
policy
10. Accurate billing11. Technology tools12. Unique product
features13. Shipping/tracking
info14. Product
compliance15. Timely billing16. Product training17. Brand
Is Chief in touch with customer needs? Rate the Importance of Services and Attributes
What I found…Respondents find all 17 services
and attributes important:• Average rating = 8.47 on a 10-point scale
Top 5 include:• Accurate/complete shipments• High quality products• On-time delivery• Value (product & services)• Technology Tools
Is Chief in touch with customer needs?
Rate the Satisfaction of Services and Attributes
What I found…Respondents are very satisfied with Chief services and attributes:• Average rating = 8.89 on a 10-point scale
Is Chief in touch with customer needs?
Impact Differential: (Satisfaction – Importance)
What I found…There is good news!• Small differential between importance and satisfaction
There is opportunity for improvement:• On-time shipments rated 3rd most important - 13th for satisfaction• Value rated 4th most important - 9th for satisfaction• Ease of Install rated 5th most important - 7th for satisfaction
How does Chief perform against competition?
Chart 4
78.1
61.4
41.2
36.8
28.9
23.7
21.9
21.1
20.2
15.8
13.2
10.5
8.8
5.3
3.5
0.9
0.9
0 10 20 30 40 50 60 70 80 90 100
high quality products
a broad product line
innovative solutions
ease of install
on-time delivery
customer service/support
recognized brand name
unique product features
value
complete shipments
technology tools
shipping/tracking information
product testing and compliance
no-hassle return policy
accurate billing
timely billing
product training
Percent of Dealers Identifying Each Factor as Differentiating Chief from its Competitors
Which factors differentiate Chief from its competitors?
Opportunities!
Opportunities!
What I found…Chief is outperforming in 2 Key
areas:• Quality products (78%)• Broad product line (61%)
There is opportunity for improvement:• Product training (.9%)• Timely billing (.9%)• Accurate billing (3.5%)• No-hassle return policy (5.3%)
Could Chief do more to ensure long-term loyalty?
Quick Shipment product availability program – most asked about option!
Frequent buyer/points programEnd-of-year pricing rebates tied to growth
Volume freight incentivesOnline access to customer support
Preferences for loyalty programs offered by other companies.
Why are the findings important?
Chief now has a roadmap to use going forward:• Chief hasn’t lost momentum with customers despite growth• Chief offers competitive advantages in some areas but could address others• Chief has opportunities to do more to continue it’s long-term strategy of maintaining and building loyal customers
Can companies experiencing rapid growth maintain loyal customers?Yes!• Companies must be focused on customer needs– from internal billing to external shipping – they’re all important! • Companies must think long-term; competition is continually adding services• Companies need to grow customer relationships by improving existing or introducing new services
What are my recommendations?
• Keep in touch with customers:• Continue surveys to monitor loyalty/satisfaction
• Evaluate performance to keep a competitive advantage• Leverage Chief strengths by integrating
“product quality” and “a broad product line” into marketing messages
• Work on weaknesses - billing, product training and returns policies
• Continue adding and evaluating services to keep customers loyal• Work with internal groups to evaluate and
implement quick ship program
Do you have any questions?
Thank you for your loyal listening…