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.

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.

2. 2
Some context: I am not THAT Stephen King
TCE
Lab
Then: 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).
Now:
Stephdokin
STRATEGIC EXECUTIVE CONSULTING
“Customer-centric,
Data driven
Leadership”

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

5. … but … most
big data are
garbage

6. 6
… so … be careful
TCE
Lab
“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. Research & Surveys, Linkage Analysis &
Audit Measurement & Predictive Analytics
Driver Analysis
Make money by organizing big data around the customer

8. 1. Customer
Customer
Business Renews
Acquisition
(Retention Loyalty)
Programs
Business
Product
Programs
development 2. New
Customer Customer
Customers Firm
Development Lifetime
Marketing (Acquire through Value
(cross/up -sell)
Advocacy Loyalty) Value
Sales
Sales
Service
Service 3. Customer
Customer
Buys More
Infrastructure Retention
(cross/up-sell through
Purchasing loyalty)
Three dimensions of Customer Loyalty based on the
three ways companies make money
RAPID LOYALTY
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 © 2012 TCELab.com
@TCELab

9. TCE
Lab
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.

10. TCE 10
TCELab Customer Experience Management Roadmap Lab
- Proactive vs. Reactive (Trend Analysis)
Financials - Customer Impact Analysis
- Risk Awareness
- New revenue growth
- Churn reduction
Voice of - Increased ARPU
Employee - Closed loop client feedback
Competitive Advantage
- Social and verbatim
sentiment analysis
- Business Intelligence
Voice of Partner Dashboards
- Customer centric
customer and
employee goals
Voice of Customer
- Establish VOC practices
Product Quality
- Establish satisfaction / loyalty measurement;
typically either NPS or RAPID
- Create “Single Source of Truth” data set
- Establish Big Data technical architecture
- Customer KPI’s
Operational Metrics - Recognize trends
- Root cause and driver analysis
Sophistication of Business Intelligence

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

12. • SaaS Software Company
Case study

13. 13
“CRD Customer Survey” Driver Matrix
TCE
Lab
Key Drivers Hidden Drivers Driver Matrix helps
INVEST in these areas. FIX LEVERAGE as strengths in us prioritize
and IMPROVE these product order to keep current
investments
High
attributes. Improvement in customers loyal
these areas are predicted to ADVERTISE as strengths in
attract new customers marketing collateral and sales 1. Key Drivers – Fix and
(advocacy), increase presentations in order to improve these product
purchasing behavior attract new customers
attributes.
Impact
(purchasing) or retain (advocacy), increase
customers (retention) purchasing behavior 2. Hidden Drivers – Focus
(purchasing) or retain on these features in
customers (retention) marketing to grow
customer base.
Weak Drivers Visible Drivers
3. Visible Drivers –
DISREGARD as lowest CONSIDER as strengths in Consider features in
priority for investment. marketing collateral and sales marketing to grow
Low
These areas have relatively presentations in order to customer base.
low impact on improving attract new customers
customer loyalty EVALUATE as areas of
4. Weak Drivers –
potential over-investment Disregard as priority for
investment.
Low High
Performance

14. 14
Driver Chart: Predicting Retention Loyalty
TCE
Lab
 Predic,ng
Reten,on
Loyalty
0.30
0.25
To improve retention
loyalty, you may consider
(correlation between business attributes
Impact on Retention Loyalty
focusing on following
and Retention Loyalty Index)
0.20
areas:
0.15 1. Reports
2. Future Product /
0.10 Company Direction
3. Banking / Bank
0.05 Reconciliation
0.00
6.00 6.50 7.00 7.50 8.00
Performance on Business Attribute
(Customer Rating)
• 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. Hospitals
PXM: Patient Experience Management
LINKAGE ANALYSIS
CASE STUDY

16. 16
What is Linkage Analysis?
TCE
Lab
• 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
Transac,onal
Metrics
Sa,sfac,on
Rela,onship
Financial
Sa,sfac,on/
Business
Product,
Loyalty
Metrics
Cons,tuency
internet
and
Sa,sfac,on/
intranet
Loyalty
usage

17. TCE 17
HCAHPS (Hospital Consumer Assessment of Healthcare Providers and Systems) Lab
• 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.
• 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 Areas with the highest Medicare spending per patient
Interactive map available at http://bit.ly/S5kK1H

18. 18
Linkage Analysis
TCE
Lab
A Good Patient Experience Does
Not Start With Medicare Spending
• 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
More insights at: http://businessoverbroadway.com/big-data-provides-big-insights-for-u-s-hospitals

19. 19
TCELab Products and Services
TCE
Lab
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
Research & 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
Audit 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 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
Widget shopping experience, etc…); it provides a steady stream of VOC data used for measurement
Surveys, and trend analysis. QR Code for geo-location mobile surveys available.
Measurement & End User Diagnostic survey is used to understand how the end user experience impacts their
EUD
Driver Analysis 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.
Linkage
Analysis & CEM Linkage helps you build your company around your customer. Following Big Data
CEM
Predictive Linkage
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
Analytics customer experience.

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