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How do we measure the success of a business through the lens of customer experience?

Summary

The client is a Fortune 500 company and one of the largest hospitality players in the world with dozens of brands and millions of loyalty program members. Traditionally, the client has measured the success in terms of revenue generated for the business. In order to build stronger relationships with its customers, client wanted to understand various metrics that would define the value of each customer through their interactions with them and their partners. This kind of framework has never existed within the client portfolio before.

Approach

Our solution helps:

  • Identify the types of interactions where a customer generates the most business value
  • Segregate the customer interactions into various smaller contract categories to draw the best possible measures for our Customer Value Metric (CVM)
  • Derive two novel metrics that combine these aspects to provide detailed CVM
  • Forecast CVM for the coming year from the past behavioural patterns
  • Design up-to-date tracking dashboard to understand performance of CVM with time

Key Benefits

The solution enabled the clients to

  • Measure CVM effectively using two novel metrics
  • Understand behavioral traits of customers who are generating most value
  • Compare the performance with previous years and current goals
  • Track metrics in detail across geographies

Results

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Quantify and make data-driven business decisions based on the value generated by a customer base of ~21M

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Design and track performance across geographies to understand key aspects of the trends

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Take customer-centric business decisions based on specific consumer segments

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