Entire Contents © 2013 Hansa|GCR
Performance Management System
Using Linkage Analysis:
Case Study
2
Introduction
•
Hansa|GCR has provided support to a client over a nine-year period in
conducting a global brand management system. This system was used
by multiple stakeholder groups to gain insight on what to do to
enhance brand and market performance.
•
One of the aspects of the brand management system was the
development of linkage analysis to provide additional insight on what
the organization could do to enhance the brand and ultimately
increase financial results. The following pages provide a snapshot of
sample results from this linkage analysis as well as background on the
Hansa|GCR linkage approach.
3
Background On Hansa|GCR
Approach To A Performance
Management System Using Linkage
Analysis
4
Our Performance Management System Philosophy
Multi-knowledge Stream Thinking Actionability Orientation Business Orientation Conceptual Model Building
Brand/Customer
Management &
Linkage
Philosophy
Business Management Business ManagementHansa|GCR views brand and customer management as fundamental to business management. A linked system of measures needs to inform the business and provide actionable direction for improvement. The best systems actively involve key stakeholders in conceptualizing their system and how it can
support the business, plus integrate different functional groups’ perspectives in what can be done with results for on-going business management
5
The Vision: Create Line Of Sight To Business Results
A management system with a series of linked measures enables clients to focus on specific attributes of the brand and customer experience that drive consideration, preference and purchase. It
pinpoints organizational action needed to enhance brand affinity. And, it demonstrates what needs to be done to create financial results.
Business
Outcomes
Increased
Market Share
Enhanced
Profitability
Customer &
Prospect
Outcomes
Captured
Profitable
Customers
Deepened
Customer
Relationships
Retained
Customers
• Brand awareness • Brand consideration • Brand preferenceOrganizational
Action
Marketing
Process
Improvement
Relationship
Management
Skills, Knowledge,
& Attitudes
Drivers of
Behavior
Prospects
Customers
Internal
Employees
Reps/Channel
Processes
• Resource allocation to priority leverage points • System of leading to lagging indicators of business performance • Revenue • Market share6
Create Linkages And Leading-to-Lagging Indicators For
Performance Improvement And Management
Customer/Prospect Experience With The
Brand Rep/Channel Experience Leading Indicator Lagging Indicator Engagement and behavior linkages Engagement and behavior linkages Engagement and
behavior linkages Engagement and
behavior linkages Relationship Transactions Customer Behaviors Financials Business Results Process Experience Employee Experience
Linkage analysis can link a variety of measures, including brand, financial
results, and customer, employee, channel, and process experience metrics.
7
Training & Technical Support
Training & Technical Support
Linkage & Management System Support Process: Overview
Discovery
Hypothesis
generation &
model
building
Data
gathering &
processing
Data analysis
& modeling
Data room
simulation
Report/
Dissemination
of results
On-going
support
Hansa|GCR tailors the development of management systems that link customer and brand measures to business and other outcomes to each client’s unique situation. The following illustrates an overall approach for developing a linked system of measures.
8
Client Case Example
9
Brand & Market Share Linkage Analysis
•
A major global firm collected data on brand metrics annually over a
nine year period.
•
They wanted to know:
1.
Were brand metrics actually correlated with market performance?
2.
Which brand metrics were most critical to market performance or diagnostic of
future performance?
3.
Did the relationship between metrics and performance differ by geography or
customer segment?
4.
What could they do to enhance brand affinity and business results?
•
Because market share is an aggregate measure, we created aggregate
measures for brand metrics and modeled their relationship to market share.
•
Our analysis uncovered some similarities across geographies and customer
segments but also critical differences that explained performance variation
across groups and identified some key metrics and actions for our client to
pursue.
10
We Identified Pathways, Drivers, And Driver Relative
Impact On Customers/Prospects and Business Results
Agent Tech Support Billing Advertising Marketing Web Word of mouth Customer service Education
Disguised data
• Response time • Rep listening skills • Time for problem resolution • Contact method • Options offered . 44 . 32 . 58 . 21 . 17 . 42 . 08 . 14 . 33 . 02 . 36 . 30 . 11.28
Cognitive
Emotional
. 45Market
Share
Customer
Loyalty
. 22 . 44Brand
11
Brand Metrics Strongly Predict Market Share
Market Share and Brand Metrics
0 10 20 30 40 50 60 70 80 90 100 0 10 20 30 40 50 60 70 80 90
Aggregated Brand Metrics Factor
Ma rk e t S h a re
•
Our initial model showed a very strong relationship between Market Share and a composite
factor of brand metrics.
•
Although intriguing, the initial model failed in Western Europe. Our client
’
s market share
was at odds with their brand equity. In contrast, US data were strongly aligned with the
overall model.
12
Explaining The Western Europe Anomaly
Western Europe
•
In Western Europe, Preference did not predict Market Share and Evaluation
did not predict Preference.
•
Our conclusion was that other market forces were driving preference and
that our client and competitors were at an impasse on earning high product
ratings from customers.
Awareness
Product
Ratings
Consideration
Familiarity
Preference
.63
.27
.64
.72
.50
.40
Market Share
Not Significant13
The US Is A More Mature Market For Our Client
•
In the US, in contrast, Product Ratings drove Preference and Consideration
was only an indirect predictor of Preference.
•
For our client, the US was a more mature market where customer behavior
followed a different causal model.
•
Examination of the data over time confirmed our interpretation. Market
Share was a function of Preference when driven by Product Ratings but not
when driven by Consideration.
.67
.54
.42
.53
.57
United States
Awareness
Familiarity
Consideration
Preference
Product
Ratings
14
Over Time, The European Market Will Evolve
Product
Ratings
.48
.49
.64
.61
Western Europe
We expect these links to weaken over time and the impact of Product Ratings to grow.
Product
Ratings
.20
.41
.55
.36
United States
Awareness
Awareness
Familiarity
Familiarity
Consideration
Consideration
Preference
Preference
15
Outcome
For the first time, the client was able to see the impact of
their brand on market share and business results. The
system enabled the client to draw a line-of-sight from brand
attributes and particular touchpoints that impacted brand
consideration and preference to resulting market impact.
This insight provided the client with priorities for business
attention to increase market share.
Entire Contents © 2013 Hansa|GCR
Wayne Marks
President
Hansa GCR +1 503.241.1103 [email protected] About Hansa|GCRHansa GCR is a full-service market research and consulting firm. Looking through the lens of the customer experience and applying psychological principles of human motivation, it offers best-in-class services in areas relating to Customer Relationship Equity, Market Assessment, Branding, and Product/Service Innovation. Hansa GCR is part of R K SWAMY HANSA, an emerging global group with 1,600+ professionals offering Creative Communication, Market Research, Data Analytics, Brand Consulting, Interactive and Healthcare Communication services. For further information about Hansa| GCR please visit us on the Web at
www.hansagcr.com, contact us via email at
[email protected], or call us at: +1
