Tag Archives: conjoint analysis

How Customer Service Boosts Your Marketing Strategy

Wayne Y. Huang

Businesses often struggle to understand what their customers are really thinking. During the Marketing Analytics & Data Science Conference, Wayne Y. Huang, Senior Research Lead, Twitter, presented “Measuring the Value of Customer Service for Brands.”

Wayne started the discussion with these insightful statistics:
- 80% of social customer service requests come from Twitter.
- 79% of customers are not receiving responses from brands.
- 87% who do get a response feel more positively towards the brand.

He talked about the pitfalls of relying on self-reported surveys when conducting customer research and then detailed a novel experiment he ran on Twitter using a conjoint survey to test how a good (or bad) customer service experience from a brand affects the customer’s future decision-making process.

A conjoint analysis is a survey technique and model used to measure preferences for products and services. Consumers’ overall value or “utility” for a product is a weighted sum of the value of each of its parts (The whole is the sum of its parts.). Its name comes from “considered jointly” because it almost always involves a comparison of multiple product or service options.

For this experiment, he found thousands of users who had a customer service interaction with an airline on Twitter in the past six months and used the data to quantify’ in dollar terms’ how the customer changed their behavior after those positive interactions. 

In the conjoint survey, consumers who in the past six months received a response from an airline via Twitter were the test group and those who had no interaction were the control group.

Twitter asked consumers to choose from three airplane ticket options that included this information: the airline, seat location, percentage of on-time arrival, and price. To determine the customers’ willingness to pay, Twitter ran a Hierarchical Bayesian regression which calculates a “utility” for all attributes for all respondents. A larger utility indicates a greater preference.

The research findings showed that:
- Consumers absolutely do remember good and bad customer service experiences (up to six months!).
- Consumers are willing to pay more after a good customer experience (up to $20 more).

Wayne’s research shows how social media is transforming the way consumers interact with brands and how customer service matters more than you think.

Watch for additional #MADSCONF follow-up stories!

Peggy L. Bieniek, ABC is an Accredited Business Communicator specializing in corporate communication best practices. 

Connect with Peggy on LinkedInTwitterGoogle+, and on her website at www.starrybluebrilliance.com

Learn How Twitter Measures the Value of Customer Service for Brands

“The greatest value of a picture is when it forces us to notice what we never expected to see.” – John Tukey, American mathematician

Data helps us to see what is really there. It helps us make informed decisions on how to reach and help our customers. In “Quick Insights on Using Data to Drive Your Digital Strategy,” Crissy Saint shares “a few quick insights on using data to drive your digital strategy in a more informed, cost-effective manner.”

Twitter can be used to effectively find your key audiences. But once you find them, you need to know how to effectively provide them with good customer service.

Join Wayne Y. Huang, Senior Research Lead, Twitter, as he presents “Measuring the Value of Customer Service for Brands’” at the Marketing Analytics & Data Science Conference(MADS) on June 8-10 in San Francisco, California.

During this session, Wayne explains the use of tweets and a novel application of conjoint analysis to measure the value of providing good customer service interaction with brands.

Register today for MADS to learn, network and share best practices with the most influential leaders in data science and analytics. Stay connected at #MADSCONF.

Session descriptions are from the Marketing Analytics & Data Science Conference brochure.

Peggy L. Bieniek, ABC is an Accredited Business Communicator specializing in corporate communication best practices. 

Connect with Peggy on LinkedInTwitterGoogle+, and on her website at www.starrybluebrilliance.com

Live from FOCI 2013: Taking Choice Modeling to the next level

Survey taking is an ardent task, and day in day out, it presents rather archaic responses which almost mandate innovation. Joris Huisman and Eline van der Gaast presented new innovations of understanding a changing consumer and service landscape with 3 innovations that can help to better consumer understanding.

Menu based conjoint allows you to understand consumer choices based on services that are made of a plethora of permutations and combinations. Think of automobiles, Dell laptops, salads or burger menus. Understanding consumer sensitivity to different levels of options is what SKIM excels in understanding, which in turn provides actionable recommendations in markets where customization is critical.

When multiple stakeholders are involved, adaptive conjoint analysis is needed to gauge interactions between different stakeholders that affect a product’s uptake. Exemplifying this through the controversial healthcare industry and its players of physicians, patients and their interaction for product sales. Clearly, an intermediate is needed to understand which of these pools of thought should drive strategy.

And lastly, instead of asking questions, consumers can be engaged in surveys that mimic reality. Using a virtual shelf design to enable consumers to feel like they are shopping, heat maps and the lies can be brought to life to understand what consumers are looking at before the point of purchase. Facial recognition takes this a step further in understanding what a consumer actually feels, bringing to light the emotional understanding.

New ways of research are critical to understanding consumers in a rapidly changing consumer landscape. Innovation is thus valued as a mandatory step for marketers and researchers moving forward.

Sourabh Sharma,
Communication & Social Media Research Expert at SKIM, an international
consultancy and marketing research agency, has a background in engineering,
marketing and finance from the University of Pennsylvania, and the Wharton
School and Rotterdam School of Management. Having worked in marketing and
product development at L’Oreal, followed by a stint in management consulting,
he now passionately enjoys the world of social media, and can be found on every
platform with his alias sssourabh. He is a food critic and a fashion writer,
and documents these alongside strategy on his blog called
3FS. He may be reached at
s.sharma@skimgroup.com. Follow him on