2. How Product/Service Experiences Impact Customers’ Downstream Communication and Loyalty Behavior and How Online and Offline Sources of Product/Service Information Influence Customer Decision-Making
3. First, the Basics Strengthening Bonds and Building Relationships: Our Concept and Model of Stakeholder Commitment
4. Evolution of the Quality / Satisfaction / Loyalty Movement Stage Two (1985-1993) Focus on Satisfaction Stage One (Pre-1985 ) Focus on Quality Stage Three (1924-2003) Focus on Competitors Stage Four (Today) Focus on Relationships
11. Customer Behaviors: Committed Customers Will Behave More Profitably Will Pay More Often Recommend Will Go Out of Way to Use RATIONALLY CONNECTED COMMITTED RELATIONSHIP DISCONNECTED EMOTIONALLY CONNECTED 11% 52% 7% 27% RATIONALLY CONNECTED COMMITTED RELATIONSHIP DISCONNECTED EMOTIONALLY CONNECTED 57% 88% 17% 44% RATIONALLY CONNECTED COMMITTED RELATIONSHIP DISCONNECTED EMOTIONALLY CONNECTED 24% 66% 4% 22%
16. Customer Advocacy Level Category Descriptions and Definitions DESCRIPTIONS OF ADVOCACY LEVELS Strong personal involvement with brand are active advocates/communicators for that brand Positively disposed towards the brand compared to others in repertoire and consideration sets; strong emotional involvement Relatively well disposed towards a brand will consider next time around but shallow emotional involvement Indifferent or passive towards a brand; may not consider the brand next time around; shallow to negative/disaffected emotional involvement Unconnected/Detractors Positive True Advocates Engaged
22. Functional Diagnostics Gaps $1M - $10M Financial Advisor Team % True Advocates - % Unconnected Top Box (Excellent) % Unconnected - % True Advocates Bottom 3 Box Online Services 1-800 Service Center Account Statement Investment Strategy and Research Handles/ Resolves Concerns Performance Relative to Market Performance Relative to Financial Goals UBS Overall Value Received Contribution UBS Makes to Community Q1. How would you rate UBS on each of the following…? Like other investor levels, these investors associate the financial advisor team more with the advocate profile than the unconnected profile. The 1-800 service center is strongly associated with unconnectedness among these investors.
23. Branch Office Administrative Staff Diagnostics Gaps $1M - $10M Providing Clear and Accurate Answers to Your Questions % True Advocates - % Unconnected Top Box (Excellent) % Unconnected - % True Advocates Bottom 3 Box Completing Requests the First Time Asked Following Up to Resolve Any Issues Being Courteous and Professional Proactive Solutions/Reasons/Alternatives Q4. How would you rate the branch office administrative staff on the following? For this investment level, performance on all branch office/administrative staff attributes is more associated with advocates than with the Unconnected investors, again showing their close associations with UBS staff.
24. Local UBS Branch Office Diagnostics Gaps $1M - $10M Physical Appearance of the Office % True Advocates - % Unconnected Top Box (Excellent) % Unconnected - % True Advocates Bottom 3 Box Hours of Operation Answering the Phone Promptly Making You Feel Welcome and Important Q5. How would you rate your local UBS branch office on the following? This high level investor group shows some indications of dissatisfaction with F eeling important and Hours of operation for UBS.
25. Service Compared to a Year Ago $1M - $10M Q11. Compared to a year ago, has the service you received from UBS and your Financial Advisor improved, stayed the same, or declined? There is little relationship between advocacy segment and perceived UBS improvement among these investors. The Unconnecteds are the most likely to have felt strong declining performance, however.
26. Service Compared to a Year Ago $1M - $10M Q11. Compared to a year ago, has the service you received from UBS and your Financial Advisor improved, stayed the same, or declined? There is little relationship between advocacy segment and perceived UBS improvement among these investors. The Unconnecteds are the most likely to have felt strong declining performance, however.
27. Percentage of Total Savings/Investments With UBS $1M - $10M Q14. Approximately what percentage of your total savings and investments (excluding real estate and employer-sponsored savings/retirement plans) are with UBS? Advocates in this segment are most likely to have all their investments with UBS.
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31. Example Advocacy Metrics Base—All Quarterly Respondents, FY08 Q1 N=355, FY08 Q2 N=390 42% of client customers surveyed are true advocates for the brand. However, 20% of customers surveyed are detractors. True Advocates 42% Positive 25% Engaged 14% Unconnected/Detractors 20% Strong personal involvement with brand , are active advocates/communicators for that brand Positively disposed towards the brand compared to others in repertoire and consideration sets, strong emotional involvement Relatively well disposed towards a brand, will consider next time around but shallow emotional involvement Indifferent or passive towards a brand: may not consider the brand next time around; shallow to negative/disaffected emotional involvement DESCRIPTIONS OF ADVOCACY LEVELS
32. Swing Voter Analysis: What Turns Positive Customers into Detractors ? What Turns Engaged Customers into True Advocates ?
35. One Of This Era’s Key Marketing Trends 2003: Word-of-mouth valued/trusted far more Word-of-mouth Advertising Editorial 92 50 40 1977: Word-of-mouth valued/trusted somewhat more Word-of-mouth Advertising Editorial 67 53 47
36. Why Word of Mouth Matters: Trust and Authenticity People Don’t Trust Advertising… … People Trust Others 76% don’t believe that companies tell the truth in advertisements (Yankelovich, 2005) 68% trust other people “like themselves”. Up from 22% in 2003 (Edelman Trust Barometer)
37. Why Word of Mouth Matters Just About Everyone is Talking 76% of all Americans talk about at least one brand a day (and average 10) (Talk Track™ Keller Fay Group 2006) 15% of every conversation in America includes something about a product or service (Northeastern University)
38. Harris Interactive WOM Research: A Decision-Making Impact Tracking Mechanism for Product/Service Categories and Individual Companies/Consideration Sets
39. Conventional WOM/Communication Impact Grid: It's Time for Reconsideration [ Occasion ] [ Setting ] [ Medium/Mode ] [ Social Definition/Client Mkt Segment ] [ Motivation ] [ Positive/Negative Message ] ~ ~ ~ ~ ~ Perception/Behavior Effect* Inside Out : Companies endeavor to influence attitudes and perceptions of customers/consumers, as well as where, how, and when communication occurs Outside In : Customers/consumers informally influence behavior of others on behalf of selected (preferred) companies When does communication take place? How does communication take place? Where does communication take place? Who communicates? What is communicated ? Why does communication take place?
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42. Contrary to prevailing belief that the overwhelming majority, and behavioral influence, of WOM takes place online, Andy Sernovitz, founder of Word of Mouth Marketing Association and author of Word of Mouth Marketing , has observed: “Only about 20 % of word of mouth happens online. When it does play a role, it usually sparks the 80% of word of mouth conversations that actually happen face-to-face. Real word of mouth dips in and out of different spaces.”
81. Thank you for Attending Contact our Presenter or Follow him on Twitter: Michael Lowenstein [email_address] Follow Michael on Twitter: @ lowen42 Questions?