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 NEURAL NETWORK ANALYSES
REVENUE INDEX
PROBLEM IDENTIFICATION MATRIX
RESPONSE RATE
SPEED/COST
NEURAL NETWORK ANALYSES –
Rather than ask customers (users, specifiers , distributors, agents, employees etc.) what is important, InfoQuest uses pattern recognition – a branch of artificial intelligence - to generate precise (and prioritized) information on what must be done to most effectively and efficiently improve overall customer satisfaction. This analytical tool identifies issues that actually impact customer retention from those that generate complaints but not necessary key satisfaction drivers. One especially positive feature of neural networks is that they predict intention based on customer behavior;
See: Neural net analysis ferrets out “Totally Satisfied” Customers, David C Foster, Marketing News. Chicago: Oct 27, 1997. Vol. 31, Iss. 22; pg. 17
REVENUE INDEX –
This documented metric accurately predicts the relative revenue impact of improvements in prioritized elements of the business relationships identified by the neural net analysis. Various studies performed over the years, starting with one conducted by Xerox Corp. in the early ‘90’s, have consistently shown that a Totally Satisfied customer is, on average, from 3-10 times more likely to buy from you again than a customer who is merely Somewhat Satisfied. Additional studies conducted by the developers of InfoQuest have taken those findings a step further. Not only is the propensity to buy much greater among Totally Satisfied customers, but we have been able to statistically verify that the implied financial relationship between customer satisfaction and revenues is also measurable and predictable. That breakthrough came in 1995, when we performed a statistical analysis of Customer Satisfaction data encompassing the findings of over 20,000 customer surveys conducted in 40 countries. The conclusions of the study were as follows:
Over time –
- A Totally Satisfied Customer contributes 2.6 times as much revenue to a company as a Somewhat Satisfied Customer. A Totally Satisfied Customer contributes 17 times as much revenue as a Somewhat Dissatisfied Customer.
- A Totally Dissatisfied Customer decreases revenue at a rate equal to 1.8 times what a Totally Satisfied Customer contributes to a business.
With those findings in hand, we were able to develop the Revenue Index.
See: Measuring The Relationship Between Satisfaction And Spending," Journal of the Strategic Account Management Association - Visions®, Q4, 2000, pg. 32, 4 pgs.
PROBLEM IDENTIFICATION MATRIX–
With the presumption of anonymity, InfoQuest generates candid qualitative information unobtainable with direct interview processes. Customer specific issues and hidden agendas are tabulated according to account revenue and growth potential. Clients typically use this information for relationship management.
RESPONSE RATE – Customers actually find the InfoQuest process interesting and enjoyable, and though it evaluates up to 60 business and relationship elements, it has an extremely high participation rate (74% in North America, 70% Worldwide).
SPEED/COST –
The entire process takes 8 weeks for North American applications and about 10 weeks for worldwide programs. High response rates make this an affordable low cost process, often paying for itself within a few months.
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