Drive Your Results with Target-Setting Analytics...2017/07/11  · Loyalty & Advocacy VOC TARGET: Customer Satisfaction Customer satisfaction management has moved beyond VOC measurement

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Drive Your Results with Target-Setting AnalyticsBHARATH (VIJAY) VIJAYENDRASenior Vice President, Analytics - Ipsos RDA

SHERRI LOWEKEVice President, Analytics - Ipsos RDA

© 2017 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information and may not be disclosed or reproduced without the prior written consent of Ipsos.

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Target Setting Overview: How Good are your VOC Targets?

A Data-Driven Approach to Target Setting 1- Establish a Corporate Target for your

Overall VOC Measure

2- Link your Corporate Target to Business Units and KPIs

3- Track Performance to Targets

Key Implications – a Roadmap for Success

Q & A

Agenda

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HOW GOOD ARE YOUR VOC TARGETS?

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OUTCOME:IMPACT:Customer Loyalty & Advocacy

VOCTARGET:

Customer Satisfaction

Customer satisfaction management has moved beyond VOC measurement to leveraging insights that directly inform strategic planning

Tying VOC to ROITARGET SETTING OVERVIEW

DETAILED ATTRIBUTE:

ServiceQuality

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TARGET SETTING OVERVIEW

Benefits of VOC Target Setting

Instills a customer-focused mindset

Motivates employees to prioritize impactful initiatives

Ensures accountability through measurable objectives

Rewards actions that improve the bottom line

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TARGET SETTING OVERVIEW

How Good Are My Targets?

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TARGET SETTING OVERVIEW

Difficult to articulate rationale

Often not realistic

Achievement may not lead to expected business results

Judgment-Based Targets are Risky

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A DATA-DRIVEN APPROACH TO TARGET SETTING

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To achieve buy-in, business operations must understand how the target is calculated

A DATA-DRIVEN APPROACH TO TARGET SETTING

Keeping it Simple

FROM NOW ON, TWENTY PERCENT OF YOUR PAY WILL DEPEND ON THE COMPANY MEETING ITS VOC TARGETS.

IN EFFECT, WE’LL CUT YOUR PAY AND TELL YOU IT’S YOUR OWN DARN FAULT.

WILL THE VOC TARGET BE BASED ON A COMPLEX FORUMLA AND INVOLVE NUMBERS THAT CAN’T

BE ACCURATELY MEASURED?YOU

BROKE THE CODE!

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A DATA-DRIVEN APPROACH TO TARGET SETTING

Principles of Effective Target SettingDEFENSIBLE objective and

statistically robustLONG-TERMplanning horizon

EASYto calculate

FLEXIBLEcan adjust to

mitigating factors

REALISTICchallenging but

achievableALIGNEDat all levels

LINKEDto ROI or bottom-

line corporate

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A DATA-DRIVEN APPROACH TO TARGET SETTING

Moving Toward a More Data-Driven Approach

Targets based on statistical significance differentiate “true” change from random variability

60%

65% 67% 68%

Current Year Performance at 80%

Confidence Level

at 90%Confidence

Level

at 95%Confidence

Level

STATISTICALSIGNIFICANCE BASED:

Based on sample size of 300

Target Thresholds

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Targets based on statistical significance differentiate “true” change from random variability

Moving Toward a More Data-Driven Approach

60%

65% 67% 68%

Current Year Performance at 80%

Confidence Level

at 90%Confidence

Level

at 95% Confidence

Level

STATISTICALSIGNIFICANCE BASED:

A DATA-DRIVEN APPROACH TO TARGET SETTING

Based on sample size of 300

Assesses differences between business units, across competitors, and/or over time

Segment Average

73%

COMPARATIVE BASED:

Target Thresholds

90%

Model Best in Class(BIC)

70%

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A DATA-DRIVEN APPROACH TO TARGET SETTING

3 Ways to Add Value to Target Setting

Take a long-term perspective that

includes competitive positioning goals

Incorporate linkagesacross VOC metrics and

organizational levels

Have a mechanism for mid-course adjustments to ensure annual goals can be met

1

2

3

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Establish a corporate target for your overall VOC measure

How can strategic target-setting help achieve best-in-class industry performance?1

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• Ties proprietary VOC metrics to syndicated surveys to predict competitive standing

• Looks at 3-5 year time horizon• Determines how ‘aggressive’ targets need to

be to reach ‘Best-in-Class’ competitor

Benchmarking Syndicated to Proprietary Measures to Achieve BIC Performance

ESTABLISH A CORPORATE TARGET FOR YOUR OVERALL VOC MEASURE

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Other proprietary or syndicated sources can help validate the most appropriate BIC contender

ESTABLISH A CORPORATE TARGET FOR YOUR OVERALL VOC MEASURE

Identify BIC Comparator

Syndicated Study A

Index

Syndicated StudyB

Score

ProprietaryCX

NPS

Competitor A 478 80.7 84.1

Competitor B 464 79.2 79.4

YOUR COMPANY 460 76.4 78.5

Industry Average 458 76.8 76.3

Competitor C 451 73.3 76.8

Competitor D 442 71.5 72.5

STEP 1

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2012 2013 2014 2015 2016 2017 2018 2019 2020

Develop BIC 3-Year Forecast

Competitor A (BIC)

Competitor B

Competitor C

Competitor D

YOUR COMPANY

2020 PROJECTION

ESTABLISH A CORPORATE TARGET FOR YOUR OVERALL VOC MEASURE

STEP 2

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Different methods can be used to establish the transfer equation range, from simple ratio to regression analysis

Develop Syndicated↔Proprietary Transfer Equationy = 0.093x + 1.9265

R² = 0.9268

Prop

rieta

rySyndicated

OSAT Evaluate the historical relationship between program scores, adjusting composition of proprietary scores as needed

STEP 3

ESTABLISH A CORPORATE TARGET FOR YOUR OVERALL VOC MEASURE

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ESTABLISH A CORPORATE TARGET FOR YOUR OVERALL VOC MEASURE

Determine Year 1 & 2 Interim TargetsSTEP 4

2012 2013 2014 2015 2016 2017 2018 2019 2020

Competitor A (BIC)

YOUR COMPANY(Current Path)

2020 PROJECTION

YOUR COMPANY(Glide Path)

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ESTABLISH A CORPORATE TARGET FOR YOUR OVERALL VOC MEASURE

What Factors Can Impact Target Performance?

Survey Process Changes

• Questionnaire• Survey mode• Sampling• Fielding• Incentives

Product and Customer Mix

Changes

• Demographics• Brand/product mix• Product usage• Model changes technology

Business Environment

Changes

• Reward programs• Management compensation• Service delivery• Product recalls/issues• Industry trends

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Link your corporate target to business units and KPI’s

2

How should targets be set for each operating unit and KPI?

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LINK YOUR CORPORATE TARGET TO BUSINESS UNITS AND KPIS

Linking Operational Targets by ‘Bridging the Gap’

Corporate targets should link directly to targets for each level (division, region, branch office, department, etc.)

Global

National

Regional

Branchoffice

90

96 88 84 92

92 88

82 94 92

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LINK YOUR CORPORATE TARGET TO BUSINESS UNITS AND KPIS

Benefits of ‘Bridge the Gap’ Approach

BU baseline and pressure based on

relative performance

Takes into account feasible VOC score ‘ceiling’

Ensures BU targets ‘roll-up’ to achieve corporate target

Targets help bridge fixed % of opportunity gap each year

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RegionA

RegionB

RegionC

Nation

YTD 2017 Sales Satisfaction Performance 40 60 80 60

Performance Opportunity Gap toVOC ‘ceiling’ (90%) 50 30 10 30

Improvement needed to bridge 20%of the opportunity gap +10 +6 +2 +6

Required Year 2018 Target 50 66 82 66

LINK YOUR CORPORATE TARGET TO BUSINESS UNITS AND KPIS

Example: Setting Regional Sales Satisfaction Targets

Targets for poorer-performing business units (Region A) require larger incremental improvement than targets for higher-performing operations (Region C)

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LINK YOUR CORPORATE TARGET TO BUSINESS UNITS AND KPIS

Linking Targets to Key Performance Indicators

Customer Loyalty

Customer Service Satisfaction

Scheduling Appointment

Service Advisor Courtesy

ServiceQuality

Time toComplete Service

Strategic Corporate Objectives

Overall Satisfaction Measures

Key Customer Measures

(KPI’s)

Process Measures # Trained Technicians

Repair Order AccuracyDispatch EfficiencyRatio of Service Advisors to Repair Orders

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REVIEW

IMPROVE SUSTAIN

MAINTAIN

LINK YOUR CORPORATE TARGET TO BUSINESS UNITS AND KPIS

Example: Target Setting Scenario TestingAMP Reset

NPS Score (12-Month)

OSAT INDEX (MARCH 2018 – 12 MONTHS) PROJECTED OSAT INDEX INDEX SCORE CHANGE

88 - - - - - -

Sales Service United States of America

Arrival

Service Staff

Facility Appearance

Value

Index Questions

94

94

85

85

90

90

Impa

ct o

n In

dex

(1-1

0 Sc

ale)

: Sa

les Product knowledge

Understanding my needs

Courtesy & professionalism

Follow-through

Arrival 3

Arrival 2

Arrival 4

Arrival 1

Facility 1

Facility 2 Facility 3

Value 2

Value 1

0

1

2

3

4

5

6

7

8

9

10

78 80 82 84 86 88 90 92 94 96 98

86

86

60 100

60 100

60 100

60 100

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REVIEW

IMPROVE SUSTAIN

MAINTAIN

LINK YOUR CORPORATE TARGET TO BUSINESS UNITS AND KPIS

Example: Target Setting Scenario TestingAMP Reset

NPS Score (12-Month)

OSAT INDEX (MARCH 2018 – 12 MONTHS) PROJECTED OSAT INDEX INDEX SCORE CHANGE

88 89 +1

Sales Service United States of America

Arrival

Service Staff

Facility Appearance

Value

Index Questions

60 100

94

60 100

88

88

60 100

86

60 100Im

pact

on

Inde

x (1

-10

Scal

e):

Sale

s Product knowledge

Understanding my needs

Courtesy & professionalism

Follow-through

Arrival 3

Arrival 2

Arrival 4

Arrival 1

Facility 1

Facility 2 Facility 3

Value 2

Value 1

0

1

2

3

4

5

6

7

8

9

10

78 80 82 84 86 88 90 92 94 96 98

94

90

86

90

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Track performance to targets

When is it time to re-assess your target?3

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TRACK PERFORMANCE TO TARGETS

Post-Target Setting - Increasing Your Odds of SuccessTo increase the likelihood that annual targets will be met:

Develop interim monthly or quarterly targets

Regularly monitor gaps in actual vs. targeted performance

“Re-calibrate” when needed

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TRACK PERFORMANCE TO TARGETS

Example: Mid-Stream Target Recalibration

2017 FYTarget = 83.5

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KEY IMPLICATIONS –A ROADMAP FOR SUCCESS

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KEY IMPLICATIONS

Roadmap to Target-Setting Success

1 Establish a corporate target for overall VOC measure

Link the corporate target to business units and KPIs Track performance

to targets

2

3

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Presenters

Bharath VijayendraSr. Consultant / Senior V.P., Analytics

bharath.vijayendra@ipsos.com

+1 248 836 6008

Sherri LowekeVice President, Analytics

sherri.loweke@ipsos.com

+1 248 836 6004