MKT 450 Exam 2 Review

Response Rate Equation

(How many did we invite - email bounce backs) = clean invites (how many responded - low quality responses = clean responses) (Clean responses/Clean invites = response rate)

Survey Development Process

1) Survey objectives 2) data collection method 3) survey and question development 4) feedback and revise

what is the response rate given the information below? email invitations to take the survey = 5,000 Email bounce backs = 500 Respones = 500 Low quality responses = 20

(5000 - 500) (500 - 20) (480/4500) = 10.7%

NPS Score Equation

% of Promoters - % of Detractors

Format of a CX Relationship Survey

Introduction Priming & Classification Best Competitor Best Competitor: NPS & Attribute performance Our NPS score Our attribute performance Our attribute improvement Open Ended: Best & Improvement Opportunities Thanks

Form of CX Survey Occurs right after an interaction tactical in nature NO best competitor (Critical interaction)

Transaction Survey

True or False: A representative sample means getting the right person to take our survey

True

True or False: Interconnected CX surveys means that different types of CX surveys have the same questions, with the same exacting wording of attributes, with the same exact scales and the same number of scale points

True

is the survey question below acceptable or not acceptable? Did you vote in the last election? Yes No

Not acceptable

On a 10-point scale, is a score of 8.95 a good score? Yes or No?

Not enough information

Wrong type of data

Our you satisfied with our product? No Yes

Formulating CX survey attributes

determine key drivers determine customer & management perspective Make sure the wording is right Make sure no key attributes were missed

what type of CX survey is tactical in nature?

transaction survey

what type of CX survey is typical administered on a continuous basis?

transaction survey

you are in charge of the Tech support for your company and you want to implement a CX survey. Basically, you want to monitor the performance of Tech Support on a weekly basis to ensure that customer satisfaction with Tech Support remains high. What CX survey would you implement?

transaction survey

what type of CX Survey samples our customers?

relationship survey transaction survey

when evaluating CX performance, it is common that we compare ourselves to a best competitor as well as across time

true

Anchors only scale points

scale used for attitudes, opinions, and intentions labels on the outsides of the scale rather than on each individual number

CX research objectives include the following:

what is important to our customers? how are we performing? what should we prioritize to fix or improve?

The formula for the NPS is as follows:

NPS = % Promoters - % of Detractors

How many respondents do we need to invite? A software company wants to understand the preferences of their customers and they want 300 as a final clean sample. They anticipate a clean response rate of 10%. How many customers need to be invited?

3000

Concerning invitations to take our survey, Coach Garver discussed research that showed the response rate go up by _____% when the email or letter is personalized.

400

why is CX research important?

5 to 10 times more expensive to acquire a new customer Word of Mouth 5% increase in customer retention leads to 25%-85% increase in profitability top box customers buy 2 1/2 times more product

Detractors

6 and below on NPS score

Passives

7 and 8 on NPS score

Promoters

9s and 10s on NPS score

What are some CX Objectives

Attribute importance Attribute performance Price sensitivity Identify improvement opportunities

Net Promoter Score (NPS)

CX Dependent variable, not perfect but commonly used, single "recommended question," percentage of customers falling into the different "loyalty groups." Ex.) how likely is it that you would recommend our company/product/service to a friend or colleague (Not at all likely )1-2-3-4-5-6-7-8-9-10 (Extremely likely)

Form of a CX Survey Sent to competitors' customers Marketplace perspective High level, strategic attributes Examine a number of key competitors

Competitive Benchmark Survey

you just got promoted to the executive team of your company and your product is Library automation software. In short, your customers use ONLY your software and thus it's hard to get a true best other competitor because of this. But this is exactly what you do. You want to find out your firms Strengths and Weaknesses relative to other Library automation software providers with their customers. What CX survey would you recommend?

Competitive Benchmark Survey

randomly selected samples means that every participant would have an _______ and ______ chance to be selected in the sample.

Equal Known

you just got promoted to CEO, and you want to create a customer-driven culture in your organization listening to customers, sharing data and results, using data to make decisions, and then implementing those plans. Which of the following is recommended to drive the customer-driven culture

Executive support communication strategies customer champions validity of data empower employees training

True or False: The NPS or Net Promoter Score is a dependent variable in CX research. The NPS allows us to compare our overall performance to different companies, within and outside of our industry. It is a single question that assesses loyalty via a recommendation question. The NPS is NOT a mean score, but instead the percentage of customers falling into different loyalty groups. More specifically, it adds up the % of Promoters and Passives and subtracts the % of Detractors.

False

Double Barrel questions

Please evaluate the following: Please rate our Food and our Service 1 Poor 2 3 4 5 Excellent

Missing Answer Choices

Please evaluate the following: What is your favorite color? Red Blue Maroon Gold Is there anything wrong?

Too Difficult Questions

Please evaluate the following: how many hours of TV do you watch a month? ______Hours

Overlapping answer choices

Please evaluate the following: how much tv do you watch on a typical day? I don't want tv less than 15 minutes 15-30 minutes 30-45 minutes 45-60 minutes 60+ minutes

Ambiguous Answer Choices

Please evaluate the following: how often do you eat pizza? I don't eat pizza not very often on a regular basis often very often

Biased questions

Please evaluate the following: our company has worked hard tp meet your needs. Please evaluate our new product 1 Poor 2 3 4 5 Excellent

Social Desirability answer choice

Please evaluate the following: please rate our food 1 Excellent 2 3 4 5 Poor

In the NPS, customers who give us a 9 or 10 are called _______, and customers who give us a 7 0r 8 are called _______, while customers who give us a 6 or below are called _________

Promoters Passives Detractors

Form of a CX Survey Sent to our customers Strategic in Nautre Quarterly, Bi-Annual, Annual Compare to a best competitor

Relationship Survey

Sample Size Equation

Sample Frame x Response Rate

concerning the number of scale points to measure satisfaction or any attitudes, the _____ point scale is used by U of M CSI and JD Powers

Ten

True or False: Getting the right attributes for CX research is critical. When determining the CX attributes, I first look at it from my own perspective. Then, I look at it from the customers and managers perspective. Then, I like to directly to customers, asking them if I got the right attributes with the right wording so that they are being interpreted the right way. I also ask if I missed any attributes.

True

True or False: In the Dewey vs. Truman presidential election, a sampling blunder occurred. What happened? They used a survey method to get their data and results. At that time, only the wealthy Americans had phones, so the researchers did not get a representative sample. They got a sample that did not look like the population, and thus their predication was wrong.

True

besides CXX surveys, all of the following are other voices in Voice of the Customer research:

Won, Lost & why? Compliments and Complaints Social Media Online Reviews Employee Insight Big Data

Survey Flow

beginning of survey - easy and interesting questions middle of survey - most important research objective first end of survey - ask the difficult/sensitive questions

what type of CX survey samples the overall marketplace?

competitive benchmark survey

what type of CX survey is strategic in nature?

competitive benchmark survey relationship benchmark

what type of CX survey is typically compared to a best competitor?

competitive benchmark survey relationship survey

Similar names for CX research

customer satisfaction customer loyalty customer value voice of the customer customer feedback

why is it important to calculate a response rate?

higher response rate = a better chance we have a more representative sample

Given the information below, how many customers do we need to send survey invitations to take our survey? 100,000 customers in database 10% project "clean" response rate we need a final sample size of 300

3000

Concerning sample size, _______ responses would yield somewhat low confidence, and this sample size should really be the desired minimum

100

How many Respondents do we need to invite? A transportation company wants to understand the preferences of their customers and they want 250 as a final clean sample. They anticipate a clean response rate of 25%. How many customers need to be invited?

1000

Concerning sample size for predicting results with very large size of populations (presidential election in the USA), ______ to ______ or more responses would yield confidence in the findings for these research studies.

1500 2000

top box customers on NPS (9s and 10s) buy __________ times more in revenue than other customers

2 1/2 2.5

Concerning sample size, _______ or more responses would yield confidence in the findings for many research studies

250

Concerning sample size, we need at least _________ responses, but this would yield low confidence (really low) and we should view the findings as exploratory in nature

30

what is the clean response rate? 2,205 were invited to take the online survey. 557 respondents took our survey. 452 emails were bad or undeliverable. In addition, 32 respondents were deemed unusable

30%

Continuous improvement cycle

start with a measurement of satisfaction, loyalty, etc. share the data with organization analyze the data (crunch the numbers) come out with our strengths, weaknesses, and improvement opportunities make action plans to fix weaknesses and implement those plans remeasure after period of time and repeat steps