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© 2017 Ipsos
Drive Your Results with Target-Setting AnalyticsBHARATH (VIJAY) VIJAYENDRASenior Vice President, Analytics - Ipsos RDA
SHERRI LOWEKEVice President, Analytics - Ipsos RDA
© 2017 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information and may not be disclosed or reproduced without the prior written consent of Ipsos.
© 2017 Ipsos
Target Setting Overview: How Good are your VOC Targets?
A Data-Driven Approach to Target Setting 1- Establish a Corporate Target for your
Overall VOC Measure
2- Link your Corporate Target to Business Units and KPIs
3- Track Performance to Targets
Key Implications – a Roadmap for Success
Q & A
Agenda
© 2017 Ipsos
HOW GOOD ARE YOUR VOC TARGETS?
© 2017 Ipsos
OUTCOME:IMPACT:Customer Loyalty & Advocacy
VOCTARGET:
Customer Satisfaction
Customer satisfaction management has moved beyond VOC measurement to leveraging insights that directly inform strategic planning
Tying VOC to ROITARGET SETTING OVERVIEW
DETAILED ATTRIBUTE:
ServiceQuality
© 2017 Ipsos
TARGET SETTING OVERVIEW
Benefits of VOC Target Setting
Instills a customer-focused mindset
Motivates employees to prioritize impactful initiatives
Ensures accountability through measurable objectives
Rewards actions that improve the bottom line
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TARGET SETTING OVERVIEW
How Good Are My Targets?
© 2017 Ipsos
TARGET SETTING OVERVIEW
Difficult to articulate rationale
Often not realistic
Achievement may not lead to expected business results
Judgment-Based Targets are Risky
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A DATA-DRIVEN APPROACH TO TARGET SETTING
© 2017 Ipsos
To achieve buy-in, business operations must understand how the target is calculated
A DATA-DRIVEN APPROACH TO TARGET SETTING
Keeping it Simple
FROM NOW ON, TWENTY PERCENT OF YOUR PAY WILL DEPEND ON THE COMPANY MEETING ITS VOC TARGETS.
IN EFFECT, WE’LL CUT YOUR PAY AND TELL YOU IT’S YOUR OWN DARN FAULT.
WILL THE VOC TARGET BE BASED ON A COMPLEX FORUMLA AND INVOLVE NUMBERS THAT CAN’T
BE ACCURATELY MEASURED?YOU
BROKE THE CODE!
© 2017 Ipsos
A DATA-DRIVEN APPROACH TO TARGET SETTING
Principles of Effective Target SettingDEFENSIBLE objective and
statistically robustLONG-TERMplanning horizon
EASYto calculate
FLEXIBLEcan adjust to
mitigating factors
REALISTICchallenging but
achievableALIGNEDat all levels
LINKEDto ROI or bottom-
line corporate
© 2017 Ipsos
A DATA-DRIVEN APPROACH TO TARGET SETTING
Moving Toward a More Data-Driven Approach
Targets based on statistical significance differentiate “true” change from random variability
60%
65% 67% 68%
Current Year Performance at 80%
Confidence Level
at 90%Confidence
Level
at 95%Confidence
Level
STATISTICALSIGNIFICANCE BASED:
Based on sample size of 300
Target Thresholds
© 2017 Ipsos
Targets based on statistical significance differentiate “true” change from random variability
Moving Toward a More Data-Driven Approach
60%
65% 67% 68%
Current Year Performance at 80%
Confidence Level
at 90%Confidence
Level
at 95% Confidence
Level
STATISTICALSIGNIFICANCE BASED:
A DATA-DRIVEN APPROACH TO TARGET SETTING
Based on sample size of 300
Assesses differences between business units, across competitors, and/or over time
Segment Average
73%
COMPARATIVE BASED:
Target Thresholds
90%
Model Best in Class(BIC)
70%
© 2017 Ipsos
A DATA-DRIVEN APPROACH TO TARGET SETTING
3 Ways to Add Value to Target Setting
Take a long-term perspective that
includes competitive positioning goals
Incorporate linkagesacross VOC metrics and
organizational levels
Have a mechanism for mid-course adjustments to ensure annual goals can be met
1
2
3
© 2017 Ipsos
Establish a corporate target for your overall VOC measure
How can strategic target-setting help achieve best-in-class industry performance?1
© 2017 Ipsos
• Ties proprietary VOC metrics to syndicated surveys to predict competitive standing
• Looks at 3-5 year time horizon• Determines how ‘aggressive’ targets need to
be to reach ‘Best-in-Class’ competitor
Benchmarking Syndicated to Proprietary Measures to Achieve BIC Performance
ESTABLISH A CORPORATE TARGET FOR YOUR OVERALL VOC MEASURE
© 2017 Ipsos
Other proprietary or syndicated sources can help validate the most appropriate BIC contender
ESTABLISH A CORPORATE TARGET FOR YOUR OVERALL VOC MEASURE
Identify BIC Comparator
Syndicated Study A
Index
Syndicated StudyB
Score
ProprietaryCX
NPS
Competitor A 478 80.7 84.1
Competitor B 464 79.2 79.4
YOUR COMPANY 460 76.4 78.5
Industry Average 458 76.8 76.3
Competitor C 451 73.3 76.8
Competitor D 442 71.5 72.5
STEP 1
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2012 2013 2014 2015 2016 2017 2018 2019 2020
Develop BIC 3-Year Forecast
Competitor A (BIC)
Competitor B
Competitor C
Competitor D
YOUR COMPANY
2020 PROJECTION
ESTABLISH A CORPORATE TARGET FOR YOUR OVERALL VOC MEASURE
STEP 2
© 2017 Ipsos
Different methods can be used to establish the transfer equation range, from simple ratio to regression analysis
Develop Syndicated↔Proprietary Transfer Equationy = 0.093x + 1.9265
R² = 0.9268
Prop
rieta
rySyndicated
OSAT Evaluate the historical relationship between program scores, adjusting composition of proprietary scores as needed
STEP 3
ESTABLISH A CORPORATE TARGET FOR YOUR OVERALL VOC MEASURE
© 2017 Ipsos
ESTABLISH A CORPORATE TARGET FOR YOUR OVERALL VOC MEASURE
Determine Year 1 & 2 Interim TargetsSTEP 4
2012 2013 2014 2015 2016 2017 2018 2019 2020
Competitor A (BIC)
YOUR COMPANY(Current Path)
2020 PROJECTION
YOUR COMPANY(Glide Path)
© 2017 Ipsos
ESTABLISH A CORPORATE TARGET FOR YOUR OVERALL VOC MEASURE
What Factors Can Impact Target Performance?
Survey Process Changes
• Questionnaire• Survey mode• Sampling• Fielding• Incentives
Product and Customer Mix
Changes
• Demographics• Brand/product mix• Product usage• Model changes technology
Business Environment
Changes
• Reward programs• Management compensation• Service delivery• Product recalls/issues• Industry trends
© 2017 Ipsos
Link your corporate target to business units and KPI’s
2
How should targets be set for each operating unit and KPI?
© 2017 Ipsos
LINK YOUR CORPORATE TARGET TO BUSINESS UNITS AND KPIS
Linking Operational Targets by ‘Bridging the Gap’
Corporate targets should link directly to targets for each level (division, region, branch office, department, etc.)
Global
National
Regional
Branchoffice
90
96 88 84 92
92 88
82 94 92
© 2017 Ipsos
LINK YOUR CORPORATE TARGET TO BUSINESS UNITS AND KPIS
Benefits of ‘Bridge the Gap’ Approach
BU baseline and pressure based on
relative performance
Takes into account feasible VOC score ‘ceiling’
Ensures BU targets ‘roll-up’ to achieve corporate target
Targets help bridge fixed % of opportunity gap each year
© 2017 Ipsos
RegionA
RegionB
RegionC
Nation
YTD 2017 Sales Satisfaction Performance 40 60 80 60
Performance Opportunity Gap toVOC ‘ceiling’ (90%) 50 30 10 30
Improvement needed to bridge 20%of the opportunity gap +10 +6 +2 +6
Required Year 2018 Target 50 66 82 66
LINK YOUR CORPORATE TARGET TO BUSINESS UNITS AND KPIS
Example: Setting Regional Sales Satisfaction Targets
Targets for poorer-performing business units (Region A) require larger incremental improvement than targets for higher-performing operations (Region C)
© 2017 Ipsos
LINK YOUR CORPORATE TARGET TO BUSINESS UNITS AND KPIS
Linking Targets to Key Performance Indicators
Customer Loyalty
Customer Service Satisfaction
Scheduling Appointment
Service Advisor Courtesy
ServiceQuality
Time toComplete Service
Strategic Corporate Objectives
Overall Satisfaction Measures
Key Customer Measures
(KPI’s)
Process Measures # Trained Technicians
Repair Order AccuracyDispatch EfficiencyRatio of Service Advisors to Repair Orders
© 2017 Ipsos
REVIEW
IMPROVE SUSTAIN
MAINTAIN
LINK YOUR CORPORATE TARGET TO BUSINESS UNITS AND KPIS
Example: Target Setting Scenario TestingAMP Reset
NPS Score (12-Month)
OSAT INDEX (MARCH 2018 – 12 MONTHS) PROJECTED OSAT INDEX INDEX SCORE CHANGE
88 - - - - - -
Sales Service United States of America
Arrival
Service Staff
Facility Appearance
Value
Index Questions
94
94
85
85
90
90
Impa
ct o
n In
dex
(1-1
0 Sc
ale)
: Sa
les Product knowledge
Understanding my needs
Courtesy & professionalism
Follow-through
Arrival 3
Arrival 2
Arrival 4
Arrival 1
Facility 1
Facility 2 Facility 3
Value 2
Value 1
0
1
2
3
4
5
6
7
8
9
10
78 80 82 84 86 88 90 92 94 96 98
86
86
60 100
60 100
60 100
60 100
© 2017 Ipsos
REVIEW
IMPROVE SUSTAIN
MAINTAIN
LINK YOUR CORPORATE TARGET TO BUSINESS UNITS AND KPIS
Example: Target Setting Scenario TestingAMP Reset
NPS Score (12-Month)
OSAT INDEX (MARCH 2018 – 12 MONTHS) PROJECTED OSAT INDEX INDEX SCORE CHANGE
88 89 +1
Sales Service United States of America
Arrival
Service Staff
Facility Appearance
Value
Index Questions
60 100
94
60 100
88
88
60 100
86
60 100Im
pact
on
Inde
x (1
-10
Scal
e):
Sale
s Product knowledge
Understanding my needs
Courtesy & professionalism
Follow-through
Arrival 3
Arrival 2
Arrival 4
Arrival 1
Facility 1
Facility 2 Facility 3
Value 2
Value 1
0
1
2
3
4
5
6
7
8
9
10
78 80 82 84 86 88 90 92 94 96 98
94
90
86
90
© 2017 Ipsos
Track performance to targets
When is it time to re-assess your target?3
© 2017 Ipsos
TRACK PERFORMANCE TO TARGETS
Post-Target Setting - Increasing Your Odds of SuccessTo increase the likelihood that annual targets will be met:
Develop interim monthly or quarterly targets
Regularly monitor gaps in actual vs. targeted performance
“Re-calibrate” when needed
© 2017 Ipsos
TRACK PERFORMANCE TO TARGETS
Example: Mid-Stream Target Recalibration
2017 FYTarget = 83.5
© 2017 Ipsos
KEY IMPLICATIONS –A ROADMAP FOR SUCCESS
© 2017 Ipsos
KEY IMPLICATIONS
Roadmap to Target-Setting Success
1 Establish a corporate target for overall VOC measure
Link the corporate target to business units and KPIs Track performance
to targets
2
3
© 2017 Ipsoshttps://www.ipsos.com/en-us/drive-your-results-target-setting-analytics
© 2017 Ipsos
Presenters
Bharath VijayendraSr. Consultant / Senior V.P., Analytics
+1 248 836 6008
Sherri LowekeVice President, Analytics
+1 248 836 6004
