CX-Research 1: Expectation: Satisfaction & Loyalty

Using SWOT, CSAT, & NPS Analyses to Create Consumer Strategies (100 points)

DUE:  MARCH1, 2021 @ 11:59 p.m. (Monday)

 

Introduction

The total consumer journey can be examined across three stages of involvement:

(1) expectation,

(2) engagement, and

(3) experience. 

While consumer perceptions are formed throughout the total experience, it is the consumer's expectations that can have the greatest impact on engagement and subsequently on the experience.  A consumer judges how closely the total experience met his or her original expectation in the dynamic path to purchase. The closer an expectation is aligned with engagement and the total experience, the more likely the consumer will be satisfied at a high level and become a loyal customer of that brand. 

Successful brands understand that each dynamic path to purchase is an opportunity to:

· satisfy a consumer’s needs and wants;

· meet a consumer’s values and efficiencies; and,

· meet a consumer's expectations so closely that it will result in his or her satisfaction, loyalty and repeat business.

Consumer satisfaction is linked to how closely a brand meets a consumer's expectations during the consumer's engagement with the brand to fulfill a want of need. Thus, satisfaction is an important metric used to evaluate how closely a brand comes to meeting expectations.  Moreover, a satisfied consumer is more likely to become a loyal customer which translates into repeat business as well as being an advocate (i.e., an influencer) for that brand. The goal is not to meet expectation, it is to exceed expectations! 

Read the Article - Customer Expectations Hit All-Time Highs  (Salesforce Research)

The link that follows is an article that summarizes changing consumer expectations using a 360 viewpoint.  It will provide you with some useful information for completing your first CX-Research Study. To access the article, click on the following link:   Salesforce_ Consumer Expectations_8-30-2019.docx(1).docx

 Applying the Concept of "Brand" in Your CX-Study

In this assignment, the concept of "brand" refers to a consumer product or service that is identified by a unique brand name. The brand could be the name of the company (e.g., Marriott, Dillards, Disney, Fossil, McDonalds, JC Penney, Outback Steak House).  Or, the brand could be found in companies who carry the product/service brand, but the brand is not the company (e.g., Disney watches carried in a Macy's store, or Nike shoes carried in Sports Authority stores). It is possible that the "brand" is a retail, hospitality, or travel brand such as Expedia for travel. The brand might be found online, offline or  it is universally found across unified commerce - which refers to brands that exist in both physical and virtual spaces. 

CX-Research Project Uses an 8-Step Process

You are to use the following 8 step-by-step process to complete your CX-Research-Study. By doing so, it will help you organize your thoughts, understand the research process, and meet all of the requirements of the assignment. 

Step 1. Research Concepts

Step 2: Purpose Statement

Step 3.  Objective

Step 4.  Sample Description

Step 5.  Qualitative Data: Collecting SWOT Data

Step 6.  Quantitative Data: Measuring  CSAT & NPS

Step 7.  Create SWOT Analysis

Step 8. Create CSAT & NPS Strategies 

 

Applying the 8-Step Research Process

The following information describes the actions you need to take for each of the 8 research steps.

 

Step 1:  Identify Research Concepts (6 points)

· What are the CONCEPTS being measured?  

· All measurable concepts should be included in the purpose statement. 

· In this research study you are measuring three concepts:

1.

1. Expectations - identified in a consumer SWOT analysis; 

2. Satisfaction (CSAT) - measured on a scale from very dissatisfied to highly satisfied

3. Loyalty (NPS) - measured on a scale from not likely to recommend to extremely likely to recommend

Step 2:  Write Purpose Statement (6 points) 

The purpose statement is a broad statement that describes the concept(s) being studied and their relationship to each other. 

· In this research project, you will determine if a sample of consumers average level of satisfaction with a specific product/service brand is aligned with their average level of loyalty to that brand and why. 

· The "why" is how well expectations are met and it will be answered through a SWOT analysis.

· Look at how the three concepts (See Step 1) are positioned and linked in the following purpose statement.

· Use the Sample Purpose Statement below as your model (TEMPLATE) to complete your Purpose Statement 

· IMPORTANT NOTE:  When there is a BRACKET  [      ]   you are to insert your own brand, product, and/or service in the [      ].  

·

Sample text for Purpose Statement

The purpose of this study is to  determine if consumer expectation(s) with [brand X product/service] are aligned with the overall level of consumer satisfaction and likelihood of consumer loyalty to [brand X] and why.

 

What does the purpose statement tell the reader?  It indicates that from a sample of consumers the researcher can determine if expectations for a brand product/service meet two expectations: 

1.

1.  Alignment with satisfaction achieved with that brand product/service; and

2. Linked to brand loyalty. 

 

Step 3:  Write Objective of Study (6 points) 

The objective of a study is an expanded statement of purpose with the specific details of the attributes (product/service characteristics) that are being examined.  

· Use the Sample text for Objective of Study found below as your model (template) for completing the assignment. 

· Note that the details of the brand product are in [     ] and in italics below - the Apple watch.

· When you see a [      ] you are to insert your own brand, product, and/or service where the [     ] is. 

Sample text for Objective of Study

The objective of this study is to determine if a consumers' overall expectations for an [Apple watch] are aligned with the consumer's level of satisfaction with the purchase of an [Apple watch] and the consumer's likelihood to recommend an [Apple watch]to a friend or colleague.

 

In Step 3 you introduce the:

·

· brand (i.e., Apple), and 

· product/service (i.e., watch) that you are researching.

This provides the context for the questions you will ask the consumer sample.

Examples of products/services.

·

· Product - Nike athletic shoes, Apple watch, Alien computer, 

· Service - Embassy Suite Hotel Stay, meal at Chili's, Dallas Cowboy's football game.

 

Step 4: Select Your Consumer Sample (6 points)

You are to select a consumer sample who will serve as subjects in your CX-Research Study.  Your sample must meet the following FIVE requirements:

· Must contain at least five consumers (N = 5). 

· Note: N is the symbol for the total number of consumers within a sample of consumers.

· All consumers in the sample must share at least one common personal characteristic or attribute such as: 

· all male consumers.

· all consumers in the same generation - e.g., Gen Z.

· all consumers who are ages 20 to 22 years old.

· all consumers who are UNT students.

· all consumers who own Alien computers, 

· You can be even more specific by selecting several shared characteristics to form your sample.

· The shared characteristics are used to describe the sample.   

· Remember everyone in your sample must share at least one common personal characteristic. 

 

Example of a statement describing the consumer sample: 

"The consumer sample in this study included five UNT male athletes who wear Nike athletic shoes."

 

In the example above there are 5 characteristics (attributes) that describe the sample: 

(1) UNT student,

(2) male,

(3) athlete,

(4) wear Nike (brand),

(5) wear specific type of shoe (athletic).

 

Sample Requirements

·

1. Each consumer must have purchased the brand product or service that you are investigating.  

2. Each consumer agrees to respond to a set of six questions asked through an interview.

3. Each consumer must have at least one common characteristic with all other consumers in the sample (e.g. gender, age, student, etc.). 

 

Step 5: Gather Qualitative Data by Personal Interviews (Use phone, Zoom, Text) 

1. In Step 5 you are gathering  qualitative data  which means it is contextual (i.e.,  words) NOT numbers. 

2. Your consumers (subjects) in the sample are to respond to the four questions (follow below)  with their own statements, phrases or comments.

3. You are  to record responses by writing on paper, electronic device or by audio recording. 

4. Allow the consumer to have a free-flow of thought so you can capture the true expectations they had for the brand.

 

Ask each subject the following 4 questions (2 points each):

Interview each person in your sample by asking the following four questions Q1, Q2, A3, Q4: 

Q1. Reflecting upon your expectations when you made the decision to purchase [brand X product/service], what strengths did you associate with the brand and product/service?

RECORD CONSUMER'S STATEMENTS AFTER QUESTION.  This is your RAW DATA. This means you have not analyzed yet.

Consumer 1:

Consumer 2:

Consumer 3:

Consumer 4:

Consumer 5:

 

Q2. Reflecting upon your expectations when you made the decision to purchase [brand X product/service], what weaknesses did you associate with the brand and product/service?

RECORD CONSUMER STATEMENTS AFTER QUESTION.

Consumer 1:

Consumer 2:

Consumer 3:

Consumer 4:

Consumer 5:

 

Q3. Reflecting upon your expectations when you made the decision to purchase [brand X product/service], what opportunities did you associate with the brand and product/service?

RECORD CONSUMER STATEMENTS AFTER QUESTION.

Consumer 1:

Consumer 2:

Consumer 3:

Consumer 4:

Consumer 5:

 

Q4.  Reflecting upon your expectations when you made the decision to purchase [brand X product/service], what threats did you associate with the brand and product/service?

RECORD CONSUMER STATEMENTS AFTER QUESTION.

Consumer 1:

Consumer 2:

Consumer 3:

Consumer 4:

Consumer 5:

NOTE:  The text data that you gather from the five consumers will be used to create a SWOT Analysis of consumer expectations toward the brand and product in STEP 7.

 

Below are some examples of the type of text data you might gather:

·

·

·

· expectations for great experiences fell short

· didn't have consumers best interest in mind

· treated like a number 

· wanted personalized offers

· loyalty focused

· need to offer more choices

· tailored engagement

· no innovation

· offer many new products

· consistency across channels (online and offline

· experience did not match expectations

·

·

·

· low effort by brand to impress consumer

· concerns about data protection

· concerns about security breach

 

Step 6:  Gather  Quantitative Data from the SAME 5 Consumers by Personal Interviews (Use phone, Zoom, Text) (12 points)

· You will be gathering qualitative data (numerical) not text data. 

· You will be doing two measures using numerical scales:  

1.

1.

1. level of satisfaction with the brand using  CSAT as the measurement scale, and

2. loyalty to the brand's product/service using NPS as the measurement scale. 

 

Measuring CSAT - level of Consumer Satisfaction

Ask each consumer the following question: 

What was your level of satisfaction with  [brand X] when you purchased [product Y/service  Z]?

Measurement Scale:

(1) very dissatisfied,

(2) dissatisfied,

(3) neutral,

(4) satisfied,

(5) very satisfied.

NOTE: When you see a [   ] you are to place your own brand, product, and/or service where the [  ] are.

 

Example of How to Ask the CSAT Question

Please answer the following question:

On a scale of 1 to 5 where 1 equals "very dissatisfied", 2 equals "dissatisfied", 3 equals neutral, 4 equals "satisfied, and 5 equals "very satisfied," how satisfied were you with [insert name if brand X product/service] when you purchased [  X ] (insert name of product or service)?

 

Example of CSAT Question that includes the Brand and Product

 On a scale of 1 to 5, where 

· 1 equals "very dissatisfied",

· 2 equals "dissatisfied",

· 3 equals neutral,

· 4 equals "satisfied, and

· 5 equals "very satisfied,"  how satisfied were you with the [ X brand] after you purchased your [ X ]?

 

How to Calculate the CSAT Score (6 points)

The CSAT score is calculated using the two highest responses of 4 (satisfied) and very satisfied (5).  The number of highest respondents (levels 4 and 5) are subtracted from the total number of consumer responses to the survey across all five levels of satisfaction. 

The calculation is:  Number of Satisfied consumer ( 4 + 5) / Total Number of Survey respondent X 100 = % of satisfied consumer

If you had 1,000 respondents and 400 respondents answered either a 4 or 5 on the survey, the calculation would be:

400 / 1,000 = .4 X 100 = 40%

This means that in this example the CSAT Score was 40% which is very low.  

 

Measuring Level of Loyalty:  How to Calculate Brand Loyalty (NPS)

NPS - Measures Consumer Loyalty

Question:  "How likely is it that you would recommend [Brand X,] [Product Y/Service Z] to a friend or colleague?

Measurement Scale: not likely at all (0) . . . (1) . . (2) . . .(3) . . . (4) . . .(5) . . . (6) . . .(7) . . . (8) . . .( 9) . . . 10 (extremely likely) 

 

NOTE: When you see a [     ] you are to place your own brand, product, and/or service where the [    ] are.

 

Example of How to Ask the NPS Question

Please answer the following question:

On a scale of 0 to 10, where  0 is "not likely at all" to 10 "extremely likely,"  how likely is it that you would recommend an [X Brand = Apple] [ Z product =computer] to a friend or colleague?

 

How to Calculate the NPS Score  (6 points)

The NPS Score is calculated by subtracting the percentage of Detractors from the percentage of Promoters.  For example, you had gathered data from consumer responses to the question:  "How likely is it that your would recommend [Organization X, Product Y, or Service Z] to a friend or colleague?  Among the 1,000 respondents, you had 25% who were Detractors, 25% who were Passives, and 50% who were Promoters.  You would calculate you NPS Scores by subtracting the Detractors from the Promoters.  

50 (Promoters) -  25 (Detractors) = 25 (NPS Score)

What does this tell you?  The experience that this sample of 1,000 consumers has very low (25%) potential for promoting your brand.  There is an immediate need to determine what is causing this low score and to develop strategies to increase the Promoters. 

EXAMPLE:  How to calculate NPS for Your Sample 

You have a very small sample of N = 5.  You can calculate the percentages even for a small  sample.  See the following example. Since there are 5 consumers, each represents 20% of the sample.  The first two consumers scored 9 - 10 which is a promoter and represents 40% of the sample.  The next two consumers (3 & 4) scored 8 and 7 (Passive) so they are excluded from the calculation.  The fifth consumer scored a 6 which is a detractor and represents 20% of the sample.

1 consumer  scored a 9 (Promoter) (20 %)

1 consumer scored a 10 (Promoter) (20 %)

1 consumer scored a 8  (Passive)  (20 %)

1 consumer scored a 7  (Passive)  (20 %)

1 consumer scored a 5 (Detractor  (20 %)

 

EXAMPLE of an Equation to calculate NPS:

You will ONLY look at those consumers who scored as a:

· Promoter (9 or 10) and Detractor (6,5,4,3,2,1,0).

· Subtract which ever is the smaller number from the larger number.

For example, if your business had the following scores for a sample of consumers:

·

· 40 % (Promoters with a 9 or 10 score)

· 20 % (Detractors with a 6,5,4,3,2,1, or 0) 

· Calculate the NPS Score:  40%  -  20% = 20% NPS

· A 20% is VERY LOW!

 

Summarizing the CSAT & NPS Scores

1. Develop a statement about the sample's overall average CSAT using the CSAT formula. 

· The data will be one number.

2. Develop a statement about the sample's overall NPS score. 

· The data will be one number. 

 

Step 7:  Create SWOT Analysis (12 points)

 

1. Use the qualitative analysis from Step 5 to create your  SWOT analysis.

2. Insert the text  comments from each consumer in STEP 5 into the quadrant associated into the four quadrants:

·

·

·

·

· Strengths,

· Weaknesses,

· Opportunities,

· Threats 

EXAMPLE OF SWOT

Below is an example of a SWOT using text as data from the information the reading for this assignment.  It offers examples of the how the data you collected can be organized into strengths, weaknesses, opportunities, and threats.   

 

Figure 1. An Example of a SWOT Analysis

Strengths · personalized offers · loyalty focused · connected experiences across channels · seamless transitions · seamless experiences · seamless handoffs across business departments · contextualized engagement · pro-active service · customer care · treated as a human

Weaknesses · silos · O2O was not connected · lack of understanding consumer's need/want · didn't understand how consumer wanted to use product or service · was not treated like a person - more likely to switch  · expectations for great experiences fell short · didn't have consumers best interest in mind · treated like a number  · inconsistency across channels

Opportunities · leverage innovation through cloud, mobile, social and artificial intelligence technology for deliverables. · offer immediate experiences · offer more choices · need new products and services · use new technology · immediacy is vital · use real time response to consumer · balance trust and understanding · consumers share good experiences with others · consumers pay premiums for superior experiences · enhanced human touch · consistent experiences need to be  universal across channels · manage customer data efficiently

Threats · felt it would be easy to take business elsewhere · easy to switch brand from one being considered · experience did not match expectations · low effort by brand to impress consumer · concerns about data protection · concerns about security breach · fear my personal information was vulnerable · uncomfortable with how brand used personal data · lack of trust in brand · consumers share bad experiences with others · needed a 360-degree view of consumer · not responding accurately to consumer needs/wants · matching consumer expectations impacted customer lifetime value - willing to switch

 

 

CREATING Your SWOT Analysis - DIRECTIONS EXAMPLE:  Identify your brand and product/service in title of SWOT.
Strengths (Use Figure 1. An Example of a SWOT Analysis and insert all words and phrases that indicate strengths.)	Weaknesses (Use Figure 1. An Example of a SWOT Analysis and insert all words and phrases that indicate weaknesses.)
Opportunities (Use Figure 1. An Example of a SWOT Analysis(Insert all words and phrases that indicate opportunities for a brand or business.)	Threats (Use Figure 1. An Example of a SWOT Analysis and insert all words and phrases that indicate threats to a brand or a business.)

 

TEMPLATE FOR CREATING YOUR SWOT INSERT YOUR TITLE HERE
INSERT ALL STRENGTHS	INSERT ALL WEAKNESSES
INSERT ALL OPPORTUNITIES	INSERT ALL THREATS

Step 8: Create Two Strategies from the Data you Analyzed (24 total points)

 

Strategy 1 -  Improving consumer satisfaction for your brand product/service.  (12 points)

·

· Use CSAT score and SWOT to explain a new strategy to increase consumer satisfaction.

Strategy 2 -   Using customer satisfaction to drive brand loyalty for your product/service. (12 points) 

·

· Use CSAT score, NPS score, and SWOT to explain how high satisfaction can drive NPS brand loyalty for a product/service. (12 points)

 

Submitting Assignment 1:  An Assignment 1 Template will be provided for final submission through Turnitin link.

 

Grading Rubric - Micro-Study 1

 

Micro-Study:  Using SWOT, CSAT & NPS  Analyses to Create Consumer Strategies
Action Steps	Incomplete/Lacking Provided little or no detail, description,  example(s), and/or summary statements in the Step (1 - 8).	Developing Provided brief detail, description,  example(s), and/or summary statements in the Step (1 - 9).	Accomplished Developed comprehensive  detail; description(s); example(s), and/or summary statement(s) in the Step (1 - 9).	Exemplary Created insightful comments, details, description(s), and/or summary statements of analyses of consumer sample, data, strategies in the Step (1-9).	Total Points = 100
Step 1 -Concepts	0	2	4	6	________ / 6
Step 2 - Purpose	0	2	4	6	________ / 6
Step 3 - Objective	0	2	4	6	________ / 6
Step 4 - Sample	0	2	4	6	________ / 6
Step 5 - Qualitative Data - 4 questions	0	8	16	24	_______ / 24
Step 6 - CSAT	0	2	4	6	_______ / 6
Step 6 - NPS	0	2	4	6	_______ / 6
Step 7 -  Create SWOT  ANALYSIS	0	4	8	12	_______ / 12
Step 8 - Strategies	0	8	18	28	_______ / 28
	TOTAL POINTS =	_____  / 100

 

Grade Range - Assignment 1

A = 90% = 90 points

B = 80 %  = 80 points

C = 70 % = 70 points 

D = 60 % = 60 points

F =  59% and below = 59 points and below

 

 

Rubric

Assignment Research Project 1 Rubric

Assignment Research Project 1 Rubric
Criteria	Ratings	Pts
This criterion is linked to a Learning OutcomeStep 1 - Concepts	6 pts Exemplary 4 pts Acomplished 2 pts Developing 0 pts Incomplete/Lacking	6 pts
This criterion is linked to a Learning OutcomeStep 2 - Purpose	6 pts Exemplary 4 pts Acomplished 2 pts Developing 0 pts Incomplete/Lacking	6 pts
This criterion is linked to a Learning OutcomeStep 3 - Objective	6 pts Exemplary 4 pts Acomplished 2 pts Developing 0 pts Incomplete/Lacking	6 pts
This criterion is linked to a Learning OutcomeStep 4 - Sample	6 pts Exemplary 4 pts Acomplished 2 pts Developing 0 pts Incomplete/Lacking	6 pts
This criterion is linked to a Learning OutcomeStep 5 - Qualitative Data - 4 questions	24 pts Exemplary 16 pts Acomplished 8 pts Developing 0 pts Incomplete/Lacking	24 pts
This criterion is linked to a Learning OutcomeStep 6 - CSAT	6 pts Exemplary 4 pts Acomplished 2 pts Developing 0 pts Incomplete/Lacking	6 pts
This criterion is linked to a Learning OutcomeStep 6 - NPS	6 pts Exemplary 4 pts Acomplished 2 pts Developing 0 pts Incomplete/Lacking	6 pts
This criterion is linked to a Learning OutcomeStep 7 - Create SWOT ANALYSIS	12 pts Exemplary 8 pts Acomplished 4 pts Developing 0 pts Incomplete/Lacking	12 pts
This criterion is linked to a Learning OutcomeStep 8 - Strategies	28 pts Exemplary 18 pts Acomplished 8 pts Developing 0 pts Incomplete/Lacking	28 pts
Total Points: 100

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