Overview
Let’s say that you have done the obvious. Relevant information has been gathered to
identify and target your most profitable customers. The marketing department has massaged
the numbers endlessly to identify core demographics, product profiles, distribution
channels, etc. The mass of data is, well, endless.
The scorecard
solution simplifies customer measures to those that are relevant, i.e., those that make a
meaningful difference in customer loyalty and retention.
Visual Scorecards
For the senior executive an image is worth the proverbial thousand statistical words. The
scorecard (shown at the right) visually captures those factors that should receive our
focus.
The visual scorecard is generated using four key steps:
- Create a Dirty Dozen List of customer aggravations (listed as a1, a2...)
- Determine the importance of each to the customer
- Evaluate our performance on a scale of 1 to 10
- Plot the results
Arithmetic Scorecards are somewhat similar:
- Identify the Dirty Dozen List of customer aggravations
- Weight each factor by customer relevance
- Multiple each factor by occurrence
- Add 'em up
For an airline, a1 might be lost luggage, returned in 59 days, badly damaged, items missing, customer must pick up, note attached saying "HAAA!" If this received a weight of 10.0 on factor importance to customer and happened 10,000 times per year:
10 X 10,000 == score for factor a1;
The step is repeated for each factor, and the total score added up.
These scorecards measure and profile our performance vs the competition. The graph at the right shows a very simple implementation.
The CRM competition scorecard provides a gap analysis of our company vs the competition. The profile creates a mining tool for identifying opportunities in the CRM cycle.
