1to1 Magazine - November/December 2008 - (Page 22) Quality of Problem Resolution Affects Loyalty 100% 90% 80% 70% What impact does operational performance have on customer loyalty? 60% 50% 40% 30% 20% 10% 0% e Quality of rease as th omers Dec At-risk Cust eases solution Incr Problem Re ases Resolution Incre ality of Problem reases as the Qu Loyalty Inc 1-4 Problem Resolution 5-6 Problem Resolution 7-8 Problem Resolution 9-10 Problem Resolution No Problem Reported Quality of Problem Resolution (10-point scale) arket Probe Source: Canada Post/M Loyal Positive Hesitant At Risk CP chose VentureOne because of the competitive nature of the Still, he says, “that didn’t completely satisfy my frustration. I parcels business. While CP maintains a monopoly in regular mail, needed to know what levers to push, and how hard. In parcels, we the likes of DHL, FedEx, and UPS ensure that, “if we don’t do the job have granular shipment information including tracking and [for small businesses], there’s someone right down the road who tracing. You can see where we’ve had problems, be able to tell with can,” says Louis O’Brien, senior vice president, parcels. what service the problem is, view the problem history with In addition, VentureOne customers typically are both the customers, and tie it all in to CVI answers.” owner/operator and the card member, thus eliminating having to The key, O’Brien says, was to change the corporate scorecard: weed through complex organizational structures. “Delivery is good, but the ability to show on-time delivery is also “As the complexity of organizations increases, there may critical,” he cites as an example. “Our competitors have it, so be weaker links,” LeBlanc says. “We deal with some logically and intuitively it seems like a good idea.” very large enterprises that are often not one entity The analysis showed that customers who but are made up of many companies. It’s imporrated their experience as better than 98 percent tant to understand who the buyer is, who writes were twice as delighted with CP as those who the RFP, and so on. Understanding those relascored less than 98. “It also turned out that 98 “Delivery is good, but tionships and recognizing that as the complexity was a bit of a cliff,” O’Brien says. “Those who the ability to show of organizations increases, there may be addiscored 98, 99, 99 and a quarter didn’t change on-time delivery is tional weaker links, is critical.” much, but below 98, it dramatically fell off.” CP also critical.” Lastly, due to its nature, VentureOne allowed could now set a benchmark on operational for the efficient mining of several types of data, targets based on what VentureOne customers from behavioral to financial to the number and said their expectations were. types of marketing and communications received. “We went in with Although a 98 percent compliance rate “represents quite a the idea that the more data we have, the stronger the results will be,” positive experience from a customer’s point of view, if you can LeBlanc says. get it even higher, you want to,” O’Brien says. The data defini- Kicking it up a notch “We’d been measuring customer satisfaction for awhile,” O’Brien says. “We got it up into the eighties, but were concerned about how we could take it up another notch. Janet came up with something closer to what we needed. She could compare high CVI [customer value index] to low CVI and demonstrate how it directly related to revenue…how, if we move CVI by X, it will affect revenue by Y.” tively shows that “if you can get a 95 CVI up to a 98, the revenue also goes up. “It’s a wonderful benchmark to have,” he adds. “I always felt like we were sort of winging it before.” O’Brien points to another important finding, which confirms that efficiently solving a customer’s problem can actually result in that customer being more loyal than a customer who experiences no problems. “We deliver 175 million parcels per year,” he says. 22 1to1 magazine www.1to1media.com http://www.1to1media.com
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