Customer Experience Management (CEM) is the process of understanding and managing customers’ interaction with and perceptions about the company/brand. In these programs, customer experience metrics are tracked and used to identify improvement opportunities in order to increase customer loyalty. These customer experience metrics, used to track performance against oneself, may not be adequate for understanding why customers spend more with a company. Keiningham et al. (2011) found that a company’s ranking (against the competition) was strongly related to share of wallet of their customers. In their two-year longitudinal study, they found that top-ranked companies received greater share of wallet of their customers compared to bottom-ranked companies.
Relative Performance Assessment (RPA): A Competitive Analytics Approach
I developed the Relative Performance Assessment (RPA), a competitive analytics solution that helps companies understand their relative ranking against their competition and identify ways to increase their ranking, and consequently, increase purchasing loyalty. The purpose of this post is to present some data behind the method.
This method is appropriate for companies who have customers who use a variety of competitors. In its basic form, the RPA method requires two additional questions in your customer relationship survey:
