Key Performance Indicators - Marketing Project HTW & Xerox
-
Upload
kasey-navita-phifer -
Category
Business
-
view
3.454 -
download
1
description
Transcript of Key Performance Indicators - Marketing Project HTW & Xerox
Relevant Marketing Key Performance Indicators (KPIs) in Different Industries;
Xerox diversifying into the service division
Regine Bullon, Michael Gross, K. Navita Phifer, Alina Sachapow, Nadja Scheibler
contact: www.knavita.com
12.04.23
Student project in collaboration with Xeroxfor the B.A. International Business programHTW (University of Applied Sciences) Berlin
Aim of the project
• Xerox does not need to analyze or improve its current business
• Rather, Xerox should diversify in order to stay competitive in today‘s changing market
• Pointing out three important industries for Xerox
• Diversify the business model of Xerox to specialize in personalized white space marketing
• The focus is on an additional service offered to their clients
• Service can be measured through key performance indicators
12.04.232
Overview: HTW & Xerox marketing project focusing on key performance indicators
I. Fundamentals of key performance indicators (KPIs)
II. Explanation of most important KPIs used in the following
industries:
a) Insurance industry
b) Airline industry
c) Telecommunication industry
III. Xerox, a new division concentrating on services
12.04.233
Overview: HTW & Xerox marketing project focusing on key performance indicators
I. Fundamentals of key performance indicators (KPIs)
II. Explanation of most important KPIs as used in the following
industries:
a) Insurance industry
b) Airline industry
c) Telecommunication industry
III. Xerox, a new division concentrating on services
12.04.234
I. KPIs are a tool to measure performance
• Definition: A key performanceiIndicator (KPI) is commonly used by
an organization to evaluate its success in reaching strategic goals
by measuring processes and performance toward a set goal or
comparing actual against past performance.
(AP Institute)
• Most data for KPIs can be found only through service, through
direct questionnaires, studies, data analyzation or similar
methods.
12.04.235
I. There are literally thousands of KPIs and a formula for each; Some examples
12.04.236
Customer Acquisition Rate & Cost
Customer Churn Rate
Customer Satisfaction Index
Brand Awareness Level
Customer Lifetime Value
Conversion Rate
Customer Significance Level
Customer Acquisition Rate
Customer Complaint Ratio
Customer Acquisition Cost
I. The focus is on the most importantkey performance indicators in 3 industries
1. Insurance industry
2. Airline industry
3. Telecommunication industry
12.04.237
Overview: HTW & Xerox marketing project focusing on key performace indicators
I. Fundamentals of key performance indicators (KPIs)
II. Explanation of most important KPIs as used in the
following industries:
a) Insurance industry
b) Airline industry
c) Telecommunication industry
III. Xerox, a new division concentrating on services
12.04.238
II. Three example KPIs for insurance companies
1. Number of policy sales
These numbers are compared against the previous quarter(s) and
against the forecasted amounts or target number
2. Number of years the clients stays with the company
In the insurance industry, this is measure through the customer
retention formula:
Source: http://ezinearticles.com/?Identifying-the-Most-Common-Insurance-KPI&id=1240969
12.04.239
1. Customer lapse ratio
A lapse, or missed payment, can lead to undesirable incidents such
as foreclosure
The ratio is given as a percentage of the total policies sold
Overview: HTW & Xerox marketing project focusing on key performace indicators
I. Fundamentals of key performance indicators (KPIs)
II. Explanation of most important KPIs as used in the following
industries:
a) Insurance industry
b) Airline industry
c) Telecommunication industry
III. Xerox, a new division concentrating on services
12.04.2310
II. Three example KPIs for airline companies
1. Occupancy rate:
Formula:
2. Realized price
is the price paid for each seat sold per flight;
This can be measured on average, median, mean, or difference
between cheapest and most expensive seats sold
Formula:
3. Loyalty rate
is the number of customers staying with the company
Formula:
12.04.2311
Overview: HTW & Xerox marketing project focusing on key performace indicators
I. Fundamentals of key performance indicators (KPIs)
II. Explanation of most important KPIs as used in the following
industries:
a) Insurance industry
b) Airline industry
c) Telecommunication industry
III. Xerox, a new division concentrating on services
12.04.2312
II. Three example KPIs for telecommunication companies
1. Average revenue per user
shows the importance of a customer through revenue generated
Formula:
2. Subscriber acquisition rate:
Formula:
3. Average call time:
Shows the importance of a customer
Formula:
13
II. There are difficulties when using KPIs to measure business performance
• Measurement & data collection
• Analyzing
• Quantifiable performance measurement
• Risk to lose quality when focusing quantity, numbers & data
• No corrective action
Source:http://www.ap-institute.com/Key%20Performance%20Indicators.html
12.04.2314
II. Summary of KPIs used in the industries connected to Xerox
• Useful measurements even though large variety
• Industries own measurements and different interpretations,
• Analyzing data followed from actions of the company taken
• Relevant industries for Xerox: − insurances, airlines and Telco
• Example KPIs to be integrated in Xerox measurement
• Service division as diversified business model of Xerox following
12.04.2315
Overview: HTW & Xerox marketing project focusing on key performace indicators
I. Fundamentals of key performance indicators (KPIs)
II. Explanation of most important KPIs as used in the following
industries:
a) Insurance industry
b) Airline industry
c) Telecommunication industry
III. Xerox, a new division concentrating on services
12.04.2316
III. The current situation of Xerox
• Well-respected company
• One of the best printers and manufacturers worldwide
• Challenge: − shrinking market− saturated market
• Xerox should diversify its business portfolio
• Focus on service
• Consequently:− acting as a service platform − specializing in white space marketing− emphasizing on personalized content
12.04.2317
III. Xerox service platform offering personalized transpromo content
• Developing a platform offering B2B services
• Specialty: printed and digital personalized white space
marketing (WSM)
• Terms & definitions used:
These WSM „communications“ are called transpromo
Transpromo = transactional print + sales promotion
12.04.2318
III. Xerox provides the following services
• Connects Providers and Users
• Data management: receive, analyze and organize customer data provided by clients
• Creation, design and printing of transpromo content
• Response processing: organization and tracking of responses and evaluation of surveys
• Creation of KPIs and analysis of the service provision
12.04.2319
III. Defining terms for Xerox‘ new business; its partnerships and relations
• Xerox has two different kinds
of clients (B2B):
• Clients offering the space for
transpromo on their documents
are called “Providers“
• Clients who placing their
transpromo on the documents
of the Providers are called
“Users“
12.04.2320
III. Defining terms for Xerox‘ business partnerships and relations
• “Customers“ receive the
documents and see the
transpromo content.
• As we are acting on behalf
of our clients, their
customers become our B2C
contacts
• Transpromo content
12.04.2321
III. Business Model of Xerox service division
12.04.2322
B2B
B2C
XeroxProvider User
Customer
III. Information flow for setting up transpromo content
12.04.2323
B2B
B2C
ProviderPlus ++
UserAir BerlinXerox
CustomerMr. Steinbach
Information Information
Mr. Steinbach calls Miami 3 times a week
Advertisement for flights to Miami
Receives transpromo content on his phone bill
III. Future outlook: the possible role of Facebook as example for social networks
• Xerox develops apps for Facebook
• different apps are created for different segments in order to
reach as many customers as possible to gather their data, such
as:
• Birthday-tracking calendar
• News
• Games
• Horoscopes
• Data is received through the apps and is used to create
personalized transpromos
12.04.2324
III. Information flow for setting up transpromo content
12.04.2325
B2B
B2C
ProviderPlus ++
UserAir BerlinXerox
CustomerMr. Steinbach
Information Information
Mr. Steinbach calls Miami 3 times a week
Advertisement for flights to Miami
Receives transpromo content on his phone billInformation
FacebookApp
Information that aunt lives in Miami
III. At different points of the customer lifecycle Xerox uses KPIs to evaluate the success of its services
12.04.2326
Customer life cycle
1. Customer Response Rate:Is the reaction to transpromo WS marketing, for example:Formula:
2. Brand Awareness Level: Of business clients’ customers can be measured through surveys
Formula:
12.04.2327
Print Digitalcalling a certain telephone number clicking on the transpromo link
Accessing a specific transpromo QR code
Download Brochures/PDFs
Using vouchers or coupon codes
Accessing personalized website
Find
1. Customer Acquisition Rate:
Formula:
2. Customer Acquisition Cost:
Formula:
12.04.2328
Find Consider
1. Customer Significance Level: Shows dependence of the clients on their large customers
Formula:
2. Matching rate: Number of Users matched to ProvidersFormula Provider:
Formula User:
12.04.2329
Find Consider Purchase
1. Additional revenue for provider generated by selling WS
2. Effectiveness of the WS advert for the users:
measured by brand awareness or
measured by additional revenues
Formula: Revenues generated by transpromo - money spent for the service bought
3. Customer Satisfaction Index:
4. Customer Complaint Ratio:
How many customers complain relative to services delivered
Formula:
12.04.2330
Find Consider Purchase Develop
1. Re-purchase rate:
Formula:
2. Customer Churn Rate:
Determine the reasons for leaving (dissatisfaction, other
company’s better promotion campaign, personal reasons)
Formula:
3. Customer Lifetime Value:
Value of a customer throughout their customer life cycle
Formula:
12.04.2331
Find Consider Purchase Develop Retain
III. Summary to set up the service division
• Xerox sets up a new division connecting Providers and Users
specializing in personalized transpromo
• Data management and response processing is done by Xerox
• Measuring and analyzing performance of:
− service platform
− company’s advantages gained
• confusion and difficulties through key performance
measurements
• Xerox manages and prepares the data for the User and Provider
it offers each company the adequate action
12.04.2332
III. The recipe for success:
ervice = Xerox + Service
12.04.2333
III. Importance of using Facebook to access new customers
12.04.2334
Source: Facebook.com
III. Keeping up with the competition moo specialized in printing business cards
12.04.2335
little icon connects to moo.com
III. Ordering business cards on moo.com
12.04.2336
III. Thinking out of the box ervice offers photoalbum printing
12.04.2337
12.04.2338
Click to print
III. Click on the icon connects to xervice.org
Referent · 12.04.2339
xervice
Thank you.
Referent · 12.04.2340 von xx Seiten
www.xervice.org