Upload
elfreda-logan
View
212
Download
0
Embed Size (px)
Citation preview
1
CBR in the real world
a practitioner's pov
Copyright, GfK Custom Research North America, 2011
2
There is nothing so practical as a good theory
- Kurt Lewin
Lewin, K. (1951) Field theory in social science; selected theoretical papers. D. Cartwright (ed.). New York: Harper & Row.
3 3
Some good theories
• Exit, Voice & Loyalty– Albert O. Hirschman, 1970
• Commitment and satisfaction in romantic relationships: A test of the investment model– Caryl Rusbult, 1980 & ff
Hirschman, A.. (1970) Exit, voice & loyalty: Responses to decline in firms, organizations and states. Cambridge, MA: Harvard University Press.Rusbult, C. (1980) Commitment and satisfaction in romantic relationships: A test of the investment model. Journal of Experimental Social Psychology.
4
Responses to decline in firms, organizations and states
Destructive Constructive
Active Exit Voice
Passive Neglect Loyalty
commitment higherlower
alts
better
worse
5
Rusbult investment model
COM = f(SAT + INV – ALTs)
6
InvestmentsIntrinsic Extrinsic
Material
• Unique/proprietary channel paths or ways of interacting
• Rewards programs
• Supplies/gear
• Property (shared)
• Contracts
Psychological/
Social
• Time/tenure
• Predictability
• Emotional involvement/ participation
• Identification with the brand
• Mutual friends/ acquaintances or co-worker relationships
• Normative/social/ moral pressures
• Community ties
7
Brand commitment
Performance
Alternatives
Investment
Persistence
Pro-Relationship Behaviors> Devaluing alternatives> Positive illusions> Accommodation behaviors> Willingness to sacrifice> Forgiveness> Cognitive interdependence
Trust
Commitment
8
GfK relationship model
Trapped Committed
Exit/Inert
Switchable
A>altsalt>A
High
Low
Competitive Performance
Investment
9 Low Profit High Profit0%
25%
50%
75%
100%
39%54%
39%
30%
12%8%
11% 8%
Model validation
Committed Switchable Trapped Exit
0%
25%
50%
75%
100%
63%
24%
7% 6%
Share of Deposits/Investments
Trapped
Committed
Exit
Switchable
1 2 3 4 5 6 7 8
0%
25%
50%
75%
100%DDA Price Sensitivity
Trapped
Committed
Exit
Switchable
Account Price Difference ($)
Committed Switchable Trapped Exit
-20
-15
-10
-5
0
5
10
15
20
8.0
4.73.3
-1.7
Business With Bank In Next 12 Mos.
Incr
ease
Dec
reas
eSOW $ sensitivity
∆ SOW profitability
10
Time series validation
99% 99% 99% 99% 99% 99% 98% 98% 98% 98% 98% 98%
95%96%96%96%96%97%97%97%98%
98%
95%
100%
93%94%94%94%95%
95%96%96%97%97%
98%
86%87%
88%88%
89%
90%91%
92%93%
93%
97%
95%
84%
86%
88%
90%
92%
94%
96%
98%
100%
102%
0 1 2 3 4 5 6 7 8 9 10 11 12
Months
Ho
us
eh
old
Re
ten
tio
n
Committed
Exit
Switchable
Trapped
Average Modeled Customer Retention for a 12 Month Period
0.000.00
0.020.03
0.050.06
0.080.10
0.110.13
0.140.16
0.180.19
0.100.09
0.080.07
0.060.06
0.050.04
0.030.02
0.11
0.040.040.040.030.030.020.020.020.010.010.01
-0.04-0.04-0.03-0.03-0.03-0.02-0.02
-0.02-0.01-0.010.00 -0.01
-0.10
-0.05
0.00
0.05
0.10
0.15
0.20
0.25
0 1 2 3 4 5 6 7 8 9 10 11 12
Months
To
tal S
ervi
ces
Qu
anti
ty G
row
th Committed
Exit
Switchable
Trapped
Average Modeled GrowthIn Total Services for a 12 Month Period
attrition growth
11
Practical application• Size & Trend• Stimulators & Simulators
Trapped Committed
Exit/Inert
Switchable
A>altsalt>A
High
Low
Competitive Performance
Investment
12
Size & trend
35% 34%39% 41% 38%
33%39% 38% 39% 36% 33%
43%39% 39% 38% 42%
37% 39% 41% 45%40% 41%
47% 43% 46% 44%
33%
44%38% 38% 41% 38%
30% 34% 36%
29% 29%
29% 28% 31%
27%
26%33% 31%
32%
25%
26% 31% 31% 32% 27%29% 26%
29%
33%35%
37% 23%35% 31%
28% 47%
39%
41% 40% 36%
22%34%
30% 29%
13% 15%
15% 10% 12%
12%11%
12% 12% 14%
9%
6%10% 11% 14% 14%
15% 12%11%
7% 12% 9%
11%
6%9%
3%7%
6% 8% 8%
12%
24% 23%17%
21% 19%
28%24%
17% 18% 18%
33%25%
20% 16% 18% 20% 23%19% 16% 13% 13%
20%13%
19% 16%
26% 24%28%
10%16% 7%
9%
19% 24%16%11% 14%17%
15%
0%
20%
40%
60%
80%
100%
1 2 3 4 1 1 1 1 1 1 1
C*
S
T
E
Brand A Brand B Brand ZBrand DBrand C Brand YBrand X
Favorability/Intention
Target>AltAlt>Target
High
Low
PsychologicalInvestment
*Committed (C)
Switchable (S)
Trapped (T)
Exit/Inert (E)
13
Stimulators & simulators
Exit Switchable Committed TrappedCustomer Care Makes cust feel valued
Will be there when need them
Reps make cust feel cared for
Reps resolve problems quickly
Confidence best interest rate
Is flexible
Is caring
Is innovative
Practical/Usability Is for people like me
Takes hassle out of cc use
Is practical
Good for big ticket purchases
Acceptance Incr accepted at places want to use
Good for everyday purchases
Accepted at upscale places I go
(Not) will. make primary cc/not accepted
Rewards Offer rewards I value most
Offer best rewards in mkt
Protection Cares about protect my privacy
Proactive against id theft
Late Fees Doesn't charge many fees when late
Primary Secondary Tertiary
14
New directions• Pro-relationship behaviors• CBR in social networks• CBR metaphors