This presentation was given at the Score Conference in Boston in April 2011. I created a new index, C-PeRk (Customer Perceptions of Percentile Rank) to help companies understand how they rank relative to their competitors.

1. Competitive Analytics that drive customer loyalty Bob E. Hayes, PhD Business Over Broadway

2. Overview Competitive Analytics and Benchmarking Percentile Rank Using only your customer survey to benchmark your performance against your competitors How can we use competitive benchmarking to drive improvement? 2

3. Benchmarking Understand where you fit in the mix of competitors Understand relative performance Set standards of performance and identify best practices Among competitors Across customer segments Percentile rank is the key metric Helps you clarify the interpretation of raw scores (in the context of your competitors) 3

4. Percentile Rank of a Score Percentage of scores in the frequency distribution that are the same or lower than it If your score is at the 60th percentile, that means your score is higher than 60% of other scores 4

5. Distribution Properties Percentile rank tells us our relative performance 5 50% 84% 16% 98% 2% .1% 99.9%

6. Customer Perception ofPercentile Rank (C-PeRk)Example 1 6

7. Estimating Percentile Ranking Include competitive question(s) in survey How do our products compare with the alternatives? Assign percentile valuesto response options Calculate average across respondents 7

8. Competitive Ranking Estimates How do our products compare with the alternatives? (0 + 175 + 950 +2550 +3900) / 100 = 75.75

9. Customer Experience Performance 9 1 Performance of each attribute is the percent of positive responses 2 Impact is the correlation between specific Business Attribute sand Customer Loyalty Index.

10. Driver Matrix 10 Examine each business area’s performance and impact on loyalty simultaneously. Key Drivers – Invest in areas to increase Customer Loyalty. Hidden Drivers – Use features in marketing to grow customer base. Visible Drivers – Consider features in marketing to grow customer base. Weak Drivers – Monitor as lowest priority for investment.

11. Driver Matrix 11 Comparative question Just looking at the business attributes, there is no clear key driver of customer loyalty. To improve customer loyalty, best bet would be to focus on competitive benchmarking Customer Loyalty Index is the average of the following four questions (Overall, Satisfaction, Quality, Value, Recommend,).

12. Customer Perception ofPercentile Rank (C-PeRk) Example 2 12

13. Estimating Percentile Ranking Include competitive question(s) in survey What competing products do you use? What best describes our performance compared to the competitors you use? Assign percentile valuesto response options Calculate average across respondents 13

14. Competitive Ranking Estimates What best describes our performance compared to the competitors you use? (0 + 400 + 1850 + 3000 + 200) / 100 = 54.5

15. Competitive Ranking Estimates Company’s Percentile Rankwhen competitors are present Company’s percentile ranking is not adversely impacted by presence of most competitors – Company’s ranking is comparable to most competitors. Competitor H’s presence in Company’s Accounts has significant negative impact on customers’ perception of Company’s performance. * Statistically significant difference between Company’s customers who are using Competitor H and those who are not using Competitor H.

16. Final Thoughts Simple / Repeatable process See changes in your competitive ranking over time Are percentile rank estimates related to actual percentile rankings? Validation study to be completed in two months Sales and Marketing When customers’ perceptions do notmatch reality Branding comparing your customers who usecompetitors and those who do not 16

17. For More Information Bob E. Hayes, Ph.D. Email: bob@businessoverbroadway.com Web: www.businessoverbroadway.com Blog: www.businessoverbroadway.com/blog Twitter: www.twitter.com/bobehayes