Make money with big data by organizing your company around your customers. I presented this deck at the Cybera Big Data #cybersummit 2012 in Banff, Canada. In it, I talk about customer loyalty, how to use driver and linkage analysis to sort out both what's important to your customers and what will drive sustainable revenue for your business. Case studies include a SaaS software company, and U.S. Hospital patient experience data based on HCAHPS patient surveys from 4,610 health care facilities nationwide. For More, please visit http://www.tcelab.com

1. MAKING MONEY
WITH BIG DATA
Stephen King
CEO, TCELab.com
President, Stephdokin.com
@tcelab @stephdokin
© 2012 TCELab LLC. All rights reserved. Unauthorized duplication or distribution is prohibited.

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Some context: I am not THAT Stephen King
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StephdokinSTRATEGIC EXECUTIVE CONSULTING
Driven over $500M in revenue and
participated in over 50 product and program
launches / lifecycles; a combination of
strategic leadership, branding/marketing,
deep technical background, product and
customer experience management (CEM).
Then:
Now:
“Customer-centric,
Data driven
Leadership”

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Disparate business data sources
1. Call
handling
,me
2. Number
of
calls
un,l
resolu,on
3. Response
,me
4. Sources:
phone,
email,
social
1. Revenue
2. Number
of
products
purchased
3. Customer
tenure
4. Service
contract
renewal
5. Number
of
sales
transac,ons
6. Frequency
of
purchases
1. Customer
Loyalty
2. Rela,onship
Sa,sfac,on
3. Transac,on
Sat.
4. Sen,ment
1. Employee
Loyalty
2. Sa,sfac,on
with
business
areas
Operational
Partner
Feedback
1. Partner
Loyalty
2. Sa,sfac,on
with
partnering
rela,onship
Customer
Feedback
Employee
Feedback
Financial
4
1. Frequency
of
use
2. Dura,on
of
use
3. Frequented
areas
4. Crash
&
bug
reports
5. Region
6. Customer
type
7. Customer
profile;
Demographics
like
gender,
age
8. SaaS
,ers
Product Quality,
Software Use,
Adoption

5. … but … most
big data are
garbage

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… so … be careful
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“Big data doesn't inherently lead to better
results … too many organizations don't quite
grasp that being ‘big data-driven’ requires
more qualified human judgment than
cloud-enabled machine learning.”
http://blogs.hbr.org/schrage/2012/09/what-executives-dont-understan.html

7. Make money by organizing big data around the customer
Research &
Audit
Surveys,
Measurement &
Driver Analysis
Linkage Analysis &
Predictive Analytics

8. RAPID LOYALTY
Three dimensions of Customer Loyalty based on the
three ways companies make money
Business
Programs
Marketing
Sales
Service
Customer
Development
(cross/up-sell)
Firm
Value
Customer
Lifetime
Value
Customer
Acquisition
Customer
Retention
Business
Programs
Marketing
Sales
Service
2. New
Customers
(Acquire through
Advocacy Loyalty)
Firm
Value
Customer
Lifetime
Value
1. Customer
Renews
(Retention Loyalty)
3. Customer
Buys More
(cross/up-sell through
Purchasing loyalty)
Product
development
Infrastructure
© 2012 TCELab.com
@TCELab
Based on Dr. Bob Hayes, Ph.D. research, science and
published books, articles and speaking.
“Dr. Bob” is the Chief Customer Officer at TCELab.com
@bobehayes
www.businessoverbroadway.com

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We combine Big Data and Voice of Customer
“VOC” metrics and apply predictive analytics to
identify correlates of customer loyalty and
sustained revenue growth. Create brand fans.
Optimize your ROI.

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Financials
Voice of
Employee
Voice of Partner
Voice of Customer
Product Quality
Operational Metrics
TCELab Customer Experience Management Roadmap
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Sophistication of Business Intelligence
CompetitiveAdvantage
- Establish VOC practices
- Establish satisfaction / loyalty measurement;
typically either NPS or RAPID
- Create “Single Source of Truth” data set
- Establish Big Data technical architecture
- Customer KPI’s
- Recognize trends
- Root cause and driver analysis
- Proactive vs. Reactive (Trend Analysis)
- Customer Impact Analysis
- Risk Awareness
- New revenue growth
- Churn reduction
- Increased ARPU
- Closed loop client feedback
- Social and verbatim
sentiment analysis
- Business Intelligence
Dashboards
- Customer centric
customer and
employee goals

11. DRIVER ANALYSIS
CASE STUDY
SaaS #1 iPad Accounting App
& Cloud Software Company
CRD: Customer Relationship Diagnostic

12. Case study
• SaaS Software Company

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“CRD Customer Survey” Driver Matrix
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Impact
LowHigh
Key Drivers
INVEST in these areas. FIX
and IMPROVE these product
attributes. Improvement in
these areas are predicted to
attract new customers
(advocacy), increase
purchasing behavior
(purchasing) or retain
customers (retention)
Hidden Drivers
LEVERAGE as strengths in
order to keep current
customers loyal
ADVERTISE as strengths in
marketing collateral and sales
presentations in order to
attract new customers
(advocacy), increase
purchasing behavior
(purchasing) or retain
customers (retention)
Weak Drivers
DISREGARD as lowest
priority for investment.
These areas have relatively
low impact on improving
customer loyalty
Visible Drivers
CONSIDER as strengths in
marketing collateral and sales
presentations in order to
attract new customers
EVALUATE as areas of
potential over-investment
Low High
Performance
Driver Matrix helps
us prioritize
investments
1. Key Drivers – Fix and
improve these product
attributes.
2. Hidden Drivers – Focus
on these features in
marketing to grow
customer base.
3. Visible Drivers –
Consider features in
marketing to grow
customer base.
4. Weak Drivers –
Disregard as priority for
investment.

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Driver Chart: Predicting Retention Loyalty
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 Predic,ng
Reten,on
Loyalty
0.00
0.05
0.10
0.15
0.20
0.25
0.30
6.00 6.50 7.00 7.50 8.00
ImpactonRetentionLoyalty
(correlationbetweenbusinessattributes
andRetentionLoyaltyIndex)
Performance on Business Attribute
(Customer Rating)
To improve retention
loyalty, you may consider
focusing on following
areas:
1. Reports
2. Future Product /
Company Direction
3. Banking / Bank
Reconciliation
• Different drivers for Advocacy and Purchasing Loyalty
• Different analysis for “Paid vs. Trial,” “Active, non-active, dormant” & “iPad,
iPhone, Android, Web”, type of customer / business

15. LINKAGE ANALYSIS
CASE STUDY
Hospitals
PXM: Patient Experience Management

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What is Linkage Analysis?
• Linkage analysis between customer loyalty and disparate data sets
answers the questions:
– Which operational metrics have the biggest impact on customer
satisfaction/loyalty?
– Which employee/partner factors have the biggest impact on customer
satisfaction/loyalty?
– Does medical spending improve patient experience?
• And, ultimately, “predictive analytics”:
– What is the $ revenue value of improving customer satisfaction/loyalty?
Opera,onal
Metrics
Transac,onal
Sa,sfac,on
Rela,onship
Sa,sfac,on/
Loyalty
Financial
Business
Metrics
Cons,tuency
Sa,sfac,on/
Loyalty
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Product,
internet
and
intranet
usage

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HCAHPS (Hospital Consumer Assessment of Healthcare Providers and Systems)
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Areas with the highest Medicare spending per patient
• Patience Experience Ratings for each hospital
in the U.S. from surveys over the last few years
• Starting in 2013, the higher the rating, the more
Medicare $ they will receive.
•
Green = Best Patience Experience
Yellow = Average Patience Experience
Red = Bad Patience Experience
Blue = No data
Interactive map available at http://bit.ly/S5kK1H
• U.S. CTO released
6 big data sets of
2.8M surveys from
4,610 hospitals that
Dr. Bob analyzed
over summer, 2012
• Our free report can
be found at
www.tcelab.com/
hcahps.

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Linkage Analysis
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A Good Patient Experience Does
Not Start With Medicare Spending
More insights at: http://businessoverbroadway.com/big-data-provides-big-insights-for-u-s-hospitals
• Valley General Hospital in Monroe,
Washington has average patient satisfaction
• But, the hospital has one of the highest per
patience spend of Medicare in WA
• From public financial statements, hospital lost
$950K in 2010 on $47M gross revenue.
• If medical spending is not related to patient
satisfaction … what is?
• Linkage analysis correlates the hospital’s
customer satisfaction with operational,
financial, employee, etc… big data sets to
understand its unique challenges
• Outcomes:
• Focus time and $$$ on the things that
matter most to patience experience
• Optimize Medicare spend per patient
• Make patient experience better
• Increase total Medicare reimbursement
$$$

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TCELab Products and Services
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Research &
Audit
Surveys,
Measurement &
Driver Analysis
Linkage
Analysis &
Predictive
Analytics
CEM Audit CEM Audit offers a thorough review and evaluation of your VOC program, including big
data sources and organization as well survey data available and required, The CEM Audit
provides a snapshot of “starting Point A,” what “Point B” could look like, and recommendations
on how to get from Point A to Point B.
PXM Audit For hospitals and health care facilities that participate in HCAHPS surveys, PXM Audit helps
you understand the raw data produced from HCAHPS, and evaluate the current Voice of
Patient program at the hospital; from both a Big Data perspective as well as Patient
Experience. It will help you understand which dimensions of the patient experience have the
biggest impact on HCAHPS rankings, giving your health care facility focus on the most important
things that drive PX loyalty and optimize Medicare spend.
CRD Customer Relationship Diagnostic is a survey providing deep insight into key areas of
customer relationship: 1) Customer Loyalty (RAPID), 2) Customer Experience. 3) Driver Chart
on how to best improve loyalty, 4) Competitive Benchmarking (C-PeRK).
Loyalty
Widget
Loyalty Widget is a transactional survey; i.e. small ongoing web or mobile surveys that
customers complete after an interaction with your company (purchase, service call, retail
shopping experience, etc…); it provides a steady stream of VOC data used for measurement
and trend analysis. QR Code for geo-location mobile surveys available.
EUD End User Diagnostic survey is used to understand how the end user experience impacts their
acceptance and adoption of product/software. The end user is not always the buying “customer.”
PRD Partner Relationship Diagnostic survey dives into partner loyalty to optimize relationships
with vendors who work with you; suppliers, sales & distribution channels.
ERD Employee Relationship Diagnostic survey evaluates the employee experience to ensure you
provide the right environment, tools and resources for your employees; great employees do
great things for customers.
PXD For hospitals that don’t participate in HCAHPS, Patient Experience Diagnostic is a great
alternative to create your Voice of Patience surveys to optimize / organize patient data for
key driver analysis.
CEM
Linkage
CEM Linkage helps you build your company around your customer. Following Big Data
principles, we collect, integrate and analyze disparate data sources like customer feedback,
operational metrics and financial metrics. We use predictive analytics to help you improve the
customer experience.

20. stephen@tcelab.com
stephen@stephdokin.com
@tcelab @stephdokin
Thanks!
Questions?
Thoughts?