agenda

1. Introductions • Context for CSM is Business Success • Begin with the end in mind – reporting results • Survey design • Data analysis • Other issues A Step-by-Step Approach to Survey Design, Validation and Implementation agenda

2. Section 5: Other Issues Topics • Outsourcing vs. in-house • Selecting the right vendor • Writing the Professional Services Agreement (PSA) • Vendor management • Sampling issues • Data collection • Questionnaire design • Global issues • Segmentation • Communicating the research results • Causes of survey failure • Linking your results to other research and operational data • Case study – outline survey design based on customer lifecycle touch points • HP’s Total Customer Experience Measurement Program • Networking and resources for further development

3. Outsourcing vs. in-house Program Manager vs. “Expert” • Internal staff • Training • Experience • Credibility • Need for speed • Management’s outsourcing philosophy • Management’s philosophy about internal consultants • Is this position a career path? • Entry level vs. experienced • Need for additional sources of competitive differentiation • Why would you hire out strategy development? • Market research vs. customer research • Tactical vs. strategic • Out-of-pocket vs. ongoing costs • Short term vs. long term needs

4. Outsourcing vs. in-house • Class discussion – articulate your situation and your short/long term proposal.

5. Selecting the right vendor • Consultant expertise vs. low cost • Training • Methodological expertise • Fielding expertise – e.g. data quality issues • Knows my industry • Written proposal • Presentation content • Credibility • WOM, references, credentials, papers, books • Presentation professionalism • Willingness/ability to answer your difficult questions • Relationship and trust • Responsiveness • Previous experience • Cost

6. Selecting the right vendor • Class discussion – what are some of your selection criteria?

7. Writing the PSA(Professional Services Agreement) • Detailed definition of the “work product” • Intellectual Property – who owns the work product • Who owns the data • Detailed sampling/quota plan with contingencies • Assumed response rate • Name list sources, size, cost • Detailed timeline for each phase (e.g. development, fielding, reporting) • Detailed cost breakdown • Timeline for each phase showing labor rates and time/cost for each job type and output

8. Writing the PSA • Class discussion – PSA best practices and “war stories”.

9. Vendor management • Bottom line: your vendor works for you. • Set expectations before the contract is signed. If they are not sufficiently responsive, work with them to resolve the problem. If problems persist, fire them. • Employees want to be treated as a partner, not as a competitor • Like a good employee, they want to feel valued, that their contribution is having an impact. They want an inclusive relationship with you. • They desire regular communication.

10. Vendor management • Class discussion – best practices and “war stories”.

11. Sampling issues • Who should be interviewed? • Current/past/competitors’ customers • Sample frame (name lists) reflects target population (and segments). • Internal vs. purchased name lists • Target population must be large enough • E.g. top 100 global customers • Types of sampling • Random (probabilistic) sampling • Quota sampling • Declining response rates • Incentives – monetary and other • Customer “Over-touching” issues

12. Sampling issues • Increasing privacy concerns, standards, law • Phone – “opt-out” • Email, mail – “opt-in” • Blind surveys • Sample size • Judgment or history • Budget • Statistical precision • One must know a priori the variance in order to determine sample size N for a given desired degree of precision • Analytical considerations • E.g. driver analysis

13. Sampling issues • Standards committees you should become familiar with • ESOMAR http://www.esomar.nl/ • CASRO http://www.casro.org/ • CMOR http://www.cmor.org/

14. Data collection • In-house vs. outsourced • Types – generally prefer not to mix • In-person • Mail • Telephone • FAX • Email • Internet • hybrid

15. Data collection • Qualitative versus quantitative • Complex surveys - skip patterns • Survey length • Global vs. regional • Senior executives • “state of mind” issue • Data quality and cleanup • Not enough attention is paid to this • CATI programming • Interviewer training, monitoring • Allow - not applicable, DK, refused

16. Data collection • Class discussion – what is your approach and why?

17. Questionnaire design addendum • Who to include on the team… • Using the concept of an integrated measurement system and customer experience lifecycle mapping to frame the discussion • Criteria for cutting unnecessary detail… • The review process…

18. Questionnaire design • Class discussion – best practices and “war stories”.

19. Segmentation Concept • Market segmentation involves viewing a heterogeneous market as a number of smaller homogeneous market segments that have different customer demand characteristics. That is, the drivers of business success are different.

20. Segmentation Criteria for Usefulness • Identifiable • Substantial • Accessible • Responsive (unique response to marketing mix) • Stable • Actionable (firm competitiveness)

21. Segmentation Many potential segments • There is not a single correct segmentation. • Segmentation is dependent on bases, methods, markets and the purpose of the study

22. Segmentation Classification of Segment Bases

23. Segmentation Classification of Segmentation Methods

24. Segmentation Purpose of study • Pricing • New product development • Media selection • Customer loyalty • Your customers • Competitor A customers • Competitor B customers Other bases

25. Segmentation Common Segmentation Schemes • Consumer • VALS http://www.sric-bi.com/VALS • Business • SIC codes • Company size

26. Segmentation • Class discussion • What is an obvious hotel segmentation? • Be careful of “scale usage” segmentation • What segmentation are you using?

27. Communicating research resultsAddendum • Identify audience and information needs • Senior management, middle management, individual contributors • Region, entity, department • Process owner • Have management “take the survey” first • Facts versus opinions • Triangulation – survey is only once source of recommendations, it does not alone set strategy • The role of graphics and customer quotes • Presenting complex statistics to senior management • Preview of results before general roll-out

28. Communicating research results • Class discussion – best practices and “war stories”.

29. Some causes of survey failure • Lack of partnership with stakeholders • Lack of actionability • Lack of “needle” movement • Lack of integration with other customer research • Lack of modularity • Lack of flexibility • Lack of credibility • It doesn’t tell senior management what they want to hear

30. Communicating research results • Class discussion – best practices and “war stories”.

31. Linking your results to market share • Discussion…