Creating Strategies for Increasing Customer Loyalty and Engagement
The Call
A major player in the retail space had been conducting their own post-purchase survey with customers, but felt they weren’t getting enough out of the data. While the survey gave them a solid understanding of how their brand performed on several key metrics, they were left wondering where they should focus their efforts to improve the overall customer experience and increase brand love and loyalty. With several months’ worth of data in hand, they approached the Catapult team with a key business question – Where should we put our efforts and money to have the biggest impact?
Our Response
The Catapult team got to work exploring the data available through the survey and the potential transactional data that could be appended. Our statistical experts went into the analysis with a loose plan in mind to allow the data to guide the direction of the analysis—this would ensure we ended up with a solid, data-driven model that wasn’t shaped by too many preconceived notions.
Through some exploratory statistical techniques, a small set of potential outcome variables were identified to model their overall retail satisfaction, rate of return, and other key metrics. With the exploratory analysis complete, we got to work conducting several different key drivers analyses (KDA) that included both behavioral and attitudinal drivers to ensure a robust and comprehensive model.
The Celebration
Through an iterative and collaborative process between Catapult and the client team, we landed on a final model that was not only statistically sound but also identified several key factors that predicted a customer’s likelihood to return to their retailer. While the model was solid, it relied heavily on transactional/behavioral variables which can be more challenging to influence with traditional market strategies. This led the Catapult and client team to agree that the existing survey was likely missing several important elements of the customer experience that could be key drivers of their likelihood to return.
With this information in hand, the team set off on a complete audit of past customer experience research the client had conducted (with and without Catapult) over the past 2 years. One of the main outcomes of that audit was an understanding of the dimensions of the customer experience the current survey failed to capture, which the team used to quickly update the post-purchase survey with those new dimensions. The new survey is back in field and performing well. The next step is for Catapult to partner with the client once there’s a solid amount data available to create a new KDA model to better predict customers’ likelihood to return using experiential measures they can create strategies to action against in the real world.