33
33
process
service
Function and relationship
Want good value and the chance to earn rewards for loyalty
41
8
Want combination of quality
Function only and value
differentiate their core valuonsumer attitudinal
profiles to manage customer relationship and value migration
• Build CRM by incrementally
0
SA-SU0050-030611-A4
ESSENTIAL TO UNDERSTAND ISSUE DRIVERS AND COST OF FIXING
Sources of dissatisfaction
High % Structural • Coverage
drivers
• Service level
rewards programs, offer/service changes)
• Communicate the benefit
5
SA-SU0050-030611-A4
KEY TRENDS OF SUCCESSFUL CRM
How they use CRM to drive value
• Find practical ways to
3
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SEGMENTING CUSTOMERS WITH
DISTINCT BENEFIT PREFERENCES
Segment characteristics
Percentage of population
Credit cards
Insurance
Consider brand relationship
Dissatisfaction opportunity
Problem Low % resolution
• Friendly staff • Consistency of service • Quick resolution
• Understand
what drives
dissatisfaction
• Understand
– Address underlyTinygpbaicsiac lislysuesse(ee.g., price, product) – Build tailoredimoffepriangcst(eo.gf.,2C0R-M30, f%rontline sales
execution)
– Change points oof dnelimbeirgatrioant(ieo.gn., recognition/
delivering targeted offers that drive results and test capabilities
SA-SU0050-030611-A4
SEGMENT MANAGEMENT TREND - 1
inertial migrators
e.g. those that leave or reduce relationship because actively dissatisfied, often by a specific event
Relationship benefits
• Value based on personalized service • Strong emotional relevance • Information sharing that creates value
exchange
• Differentiated loyalty rewards
Process and important and have high
26
37
relationship expectations for the standard
of customer service
Function and
Want product features and efficient, effective customer
Process benefits
• Ease of access to product information • Broad product selection • Simplified/assisted decision making • Convenient transactions • Automatic product replenishment
cost of fixing
• Use key
breakpoints
not to
overspend
Source: McKinsey proprietary research
1
SA-SU0050-030611-A4
SEGMENT MANAGEMENT TREND - 2
deliberative migrators e.g., frequently reevaluate decisions, reaffirm/switch to chosen brand based on merits; rational decision-maker
n/a
22
4
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IMPLICATIONS FOR BUILDING LOYALTY AMONG THOSE CHOOSING TO GO OR STAY
• Understand drivers of deliberation
• Create/package the right set of benefits
2
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SEGMENT IS MORE COMPLEX, DUE TO
DELIBERATION ON SEVERAL DIMENSIONS
Functional benefits
• Product and performance attributes • Value • Quality