How Quantzig Used Customer Loyalty Analytics Helps Client Drive Superior CX for a Major Bank in US?

Highlights of the Case Study:

Customer Loyalty Analytics Solutions for Banking & Financial Services:

The reason for the hype in customer loyalty analytics is because of the fact that the BFSI industry is very competitive as consumers have various options available. Therefore, user experience and relationship management have become huge differentiators in the banking industry. A good understanding of target audience is imperative to achieving loyalty and building long-term relationships with clients. As the banking industry witnesses a shift from product-centricity to customer-centricity, it is crucial to engage with the target audience from the moment they sign up. Client life-cycle management has become the key mantra for success in the banking industry.

Owing to the rapid pace of technological advancements and the ongoing digital shift related to big data in chemical industry, the chemical industry has been witnessing a phase of tremendous disruption, especially after the COVID-19 pandemic hit. To thrive in this complex business scenario, players in the chemicals industry need specific analytical tools at their disposal to keep a tab on all aspects of the business, right from manufacturing operations to client demand and end-use industries. Chemical plants generate a large volume of data but discard most of it. Managers need to leverage this data to identify ways to optimize the yield, reduce operational costs and lessen downtime. These are potentially easy wins that can be attained using basic analytics and can reveal immense growth opportunities.

Different ways to measure customer loyalty

1. Churn Rate:

Churn rate is a crucial metric that measures the percentage of customers who discontinue their relationship with a business within a given period. It is calculated by dividing the number of customers lost during that period by the total customers at the beginning of the period. A high churn rate indicates potential issues with satisfaction, engagement, or the overall value proposition. Monitoring and analyzing churn can provide valuable insights into areas that may need improvement, enabling businesses to implement targeted strategies for retention.

2. Customer Lifetime Value (CLV):

It assesses the total revenue a business can expect from a client throughout their entire relationship. By considering factors such as average purchase value, purchase frequency, and retention rate, CLV provides a comprehensive perspective on the economic value of retaining clients over time. Understanding CLV helps businesses prioritize segments with higher long-term value, guiding strategic decisions related to marketing spend, investments, and loyalty program initiatives.

3. Customer Advocacy:

It involves evaluating the extent to which customers actively promote and endorse a brand. This can be assessed through various means, including social media mentions, referrals, and participation in user-generated content. Businesses can track participation rate, the number of customers acting as brand advocates and the impact of their advocacy on acquiring new customers. Creating an environment that encourages and rewards advocacy can contribute significantly to building a loyal client base and enhancing brand reputation.

4. Emotional Loyalty Index:

Emotional loyalty goes beyond transactional interactions, focusing on the emotional connection customers have with a brand. The Emotional Loyalty Index assesses emotional engagement, satisfaction, and attachment to the brand. This can be measured through surveys (like CES survey, RPR survey, CSAT survey) or sentiment analysis of feedback. By understanding the emotional aspects of loyalty, businesses can tailor their strategies to strengthen these connections, fostering long-term relationships that withstand competitive pressures.

Incorporating these additional measures alongside established metrics such as Customer Retention Rate (CRR), Net Promoter Score (NPS), Customer Satisfaction Score (CSAT), and others provides a comprehensive framework for evaluating and enhancing customer loyalty in a holistic manner.

How customer loyalty analytics helps to grow your business?

It plays a pivotal role in driving business growth by providing valuable insights into target audience behavior, preferences, and satisfaction. Here are four keyways in which leveraging this tool can contribute to the success of your business:

• Strategic Decision Making with Data-driven Insights:

Customer Retention Rate (CRR), Net Promoter Score (NPS), and Customer Satisfaction Score (CSAT) are critical metrics that help business owners make informed decisions. By analyzing these metrics, you can identify areas of improvement, understand sentiments, and tailor your strategies accordingly. For instance, tracking the number of promoters and detractors through NPS surveys allows you to gauge loyalty and adjust your approach to retain satisfied customers, total number of responses, number of positive responses, and address concerns of detractors.

• Enhanced Customer Experience through Personalization:

Segmentation Analysis, based on qualitative information and quantitative data, empowers businesses to understand customer needs and preferences at a granular level. By utilizing this information, you can create targeted customer-centric marketing strategies and loyalty programs that resonate with specific segments. This personalized approach fosters emotional relationships, increasing satisfaction and loyalty, as well as driving word-of-mouth marketing through brand advocates.

• Optimized Marketing Strategies and Improved ROI:

Utilizing metrics such as Repeat Purchase Rate (RPR), Redemption Rate, and Engagement Rate enables businesses to assess the effectiveness of their marketing initiatives. By identifying successful strategies and understanding customer behavior, you can optimize marketing campaigns to attract and retain them more efficiently. This data-driven approach ensures a higher return on investment (ROI) and allows you to allocate resources to initiatives that resonate most with your target audience.

• Proactive Issue Resolution and Building Stronger Customer Relationships:

Customer Effort Score (CES) and CSAT surveys provide valuable insights into the ease of interactions and overall satisfaction. By monitoring and addressing customer concerns promptly, you can enhance the client-centric approach. Analyzing audit reviews and social media sentiment further enables businesses to identify potential issues, respond proactively, and turn detractors into promoters. This not only improves relationships but also contributes to positive word-of-mouth marketing, attracting new target audience and solidifying your brand reputation.

It serves as a powerful tool for marketers to make informed decisions, enhance user experiences, optimize marketing efforts, and build lasting relationships, ultimately fostering sustainable business growth.

Challenges of the Banking Client:

• Customer Needs Understanding:

Our client sought to consolidate its place as one of the leading players in the banking industry. Hence, it needed to enhance customer loyalty and maintain long-term relationships with its customers. However, our client was facing difficulties in acquiring an in-depth understanding of needs, due to which it was unable to engage with and retain them. The result was high acquisition cost and churn rate. Therefore, the client approached Quantzig to get help in understanding the clients’ needs better and optimize its engagement process to enhance the experience.

After learning about Quantzig from another industry veteran, the client decided to connect with one of our experts and leverage the power of analytic solutions.

• Optimizing Engagement:

The client had an omnichannel strategy and provided cargo tracking, helpdesk service request management, and queries/complaints resolutions by connecting its drivers, representatives, and customers across multiple touchpoints. The client wanted to improve its service levels for helpdesk service requests, by focusing on service, quality, and delivery.

• Leveraging Customer Loyalty Analytics:

An organizations growth is dependent entirely on the satisfaction of its key customers, which in turn is dependent on many economic, political, cultural, and legal factors. It can be challenging to accurately identify and understand these factors without a thorough understanding of the picture painted by numbers. This chemical manufacturer did not clearly understand its target audience needs and what they valued the most. They often overestimated or underestimated the importance of certain attribute-related products and services compared to what their wants/needs. Moreover, there was a gap between this chemical manufacturers offerings and the preferences/needs of its customers, which consequently resulted in dissatisfaction. Quantzig provided an end-to-end solution that helped this chemical manufacturer adopt a client-centric approach in this hyper-competitive business world.

• Advanced Analytics for Pricing Strategy:

This enabled our specialty-chemical company to rely on advanced analytical tools to reset prices for hundreds of thousands of product-customer combinations in seven core countries, based on willingness to pay and individual risk. By bringing together capability building, and change management, the company was able to achieve significantly higher price increases as compared to previous years.

• Challenges in the Airline Industry:

We live in a fast-changing world where the evolution of industries continues to accelerate owing to innumerable factors, the airline industry is no exception. With growing competitive pressures, airline industry players have now started facing the brunt in the form of declining profits and shrinking client base. Though businesses in this sector have adopted several new strategies to bolster their bottom line, we believe its high-time they adopt a data-driven, strategic approach.

• Transformative Impact of Analytics for Airlines:

Focusing on improving customer experience through analytical tools can not only help airline companies build loyalty but will eventually witness a direct impact on profit margins. Also, with advanced technologies paving their way into the business world, businesses must consider leveraging advanced customer experience analytics to deliver personalized services and experiences to their customers.

Our client, an airline service provider faced similar challenges that curtailed their efforts to drive experiences and boost profitability. Though the client had deployed an in-house data warehouse which served as the foundation of their CRM program, they lacked the required analytics capabilities to sift through the datasets to extract meaningful insights. This is when they turned to Quantzig to leverage its experience analytical expertise to power their digital transformation efforts.

Impact Analysis of Customer Loyalty Analytics Solutions

• Unified Data Integration and Customer Journey Visibility:

The end-to-end customer analytics solution developed by Quantzig helped the client maximize its client bases value. The insights thus gleaned enabled our client to create targeted solutions for its clients and offer the right solutions in a consistent, professional manner. Below is a synopsis of how our intervention helped the client:

• Service Request Analysis for FCR Improvement:

We integrated all the clients and enterprise data into a single platform and utilized management for efficient visibility into the entire journey from the first touch point to all the direct and indirect interactions. We also analyzed the service requests to provide insights on betterment of first call resolution (FCR) process.

• Customer Clustering through Big Data Analysis:

Quantzigs team helped this chemical manufacturer better understand its customers needs by grouping their customers into different clusters through the role of big data in chemical industry. This clustering was done by analyzing the patterns in the data. Quantzig used raw data to form clusters based on common factors among various data points. Meanwhile, Quantzig also checked on intra-segment homogeneity and inter-segment heterogeneity. With this approach, Quantzig was able to label their buyers preferences as mentioned below:

• Identification of Essential Attributes for Client Satisfaction:

The solutions provided by Quantzig helped this specialty chemical manufacturer to understand the essential product and service attributes that were needed and valued most by their buyers. This reduced the gap between what the chemical manufacturer offered and what was needed most by its clients and helped the company provide customized services to their customers, which, in turn, resulted in increased satisfaction.

Our experts adopted a comprehensive approach to helping the client resolve challenges surrounding experience management. The three-pronged approach revolved around conducting a process maturity assessment, building a new platform, and scaling up delivery of new analytics capabilities across the CRM system. By helping them connect the customer data warehouse to personalized solutions, we also helped them interact with their clients at every digital touchpoint. Also, turning data into insights helped them optimize data and take support to the next level with advanced analytical tools. 

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Broad Perspective on Data Analytics

CX has become the holy grail for success in the banking industry. If one can cater to all the customers demands, one is likely to win lifelong membership. Banking services need to cater to the demand for personalized services that target audience can trust and depend on for financial well-being. In addition, they seek round-the-clock easy access along with real-time assistance. Financial institutions need to be able to build trust and nurture a long-term healthy relationship with their customers.Big data analytics is essential in enhancing CX, which will lay the path for future business decisions. The high expectations and variations in needs mandate the reliance on analytic solutions to gain valuable insights.

The diverse client base in the chemical industry helps to insulate this industry from volatility in consumer demand. However, what is required is for companies to augment traditional methods of forecasting, market evaluation, and demand with the use of big data in chemical industry. The information captured through data analytics can be used to optimize plant operations and efficiently cater to the needs of the target audience providing what they need and when they may need it, without delay and wasteful inventory. The chemical industry is an essential supplier to plenty of other industries, and hence, the way this industry can capture growth opportunities will set the pace for its clients to grow.

Key Takeaways

• Decreased customer churn by 17%
• Reduced customer acquisition cost (CAC) by 10%
• Increased client satisfaction by 3X
• Increased number of repeat customers
• An improved client tracking system that manages loyalty programs and integrates them with internal systems

In leveraging the analytical tools, Quantzig demonstrated a strategic approach to enhancing business outcomes for their client. By focusing on CRR, Net Promoter Score (NPS), and other key metrics, our team showcased the power of data-driven decision-making for business owners. The meticulous analysis of audit reviews, social media sentiment, and segmentation allowed for a nuanced understanding of customer behavior and needs.
Quantzig’s implementation of loyalty programs, driven by insights from Repeat Purchase Rate (RPR) and Redemption Rate, underscored their commitment to building emotional relationships and fostering brand advocates. The 4 C’s of customer loyalty – Consistency, Communication, Customization, and Care – were evident in their marketing strategies and engagement initiatives.
Through these efforts, we not only improved the CRR but also attracted New Customers Acquired. The quantifiable success metrics, including Return on Investment (ROI) and Word of Mouth Marketing impact, solidify the effectiveness of their approach.
In conclusion, our adept use of analytics not only deepened client relationships but also drove tangible business growth for their client. This case exemplifies the importance of adopting a data-driven, user-centric approach in today’s competitive business landscape.

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