Partnering with Your Members to Strengthen Their Customer Relationships (and Yours)

Allen Paison, Managing Partner, Loyalty Research

Kevin McDonald, General Manager, PPG Industries Fiber Glass

Tom Dobbins, President, American Composites Manufacturers

Association

LOYALTY RESEARCH CENTER 2

Our Story Begins in early 2011……

PPG Industries – Fiber Glass: Launches Customer Loyalty Study with the Loyalty Research Center (LRC)

And continues through the Fall, when…

American Composites Manufacturing Association Implements a Member Loyalty Study with LRC

LOYALTY RESEARCH CENTER

The Players:

3

Tom Dobbins,President,

ACMACMA BOD

Kevin McDonald,General Manager,

PPG Industries, Fiber GlassACMA BOD

PPG Industries, Fiber GlassCustomers

Shared Interest: Strengthening Relationships

Al PaisonPresident &

CEOLoyalty

Research Center (LRC)


Study Objectives:

4

PPG: ACMA:

Refine PPG’S current value proposition and market positioning relative to competitors

Conduct a baseline measure of member loyalty/perceptions of the association, the benefits it provides, and activities in support of the composites industry

Achieve a better understanding of customer loyalty and the relationship that exists between PPG and its customers

Understand members’ specific needs and service expectations

Identify specific areas for improvement

Understand the most important drivers of member behavior – specifically what is the key driver of loyalty to ACMA

Identify our loyal and vulnerable members and understand why they fall into these segments

Establish priorities for improving member relationships and increasing the number of loyal, engaged members.


The “Intersection”

What Trade Associations Provide Its Members and…

Its Members’ Needs and…

The Members’

Customers’ Needs

5

PPG Industries, Inc.Pittsburgh, PA

778

A global maker of paints, coatings, optical products, specialty materials, glass and fiber glass.Founded in 1883.Global sales of $15.2B in 2012Approximately 38,000 employees.In more than 70 countries.

7LOYALTY RESEARCH CENTER

PPG Objectives/Response

Achieve a better understanding of our customers and the relationship that exists between us and them.

Refine our current value proposition and market positioning relative to our competitors.

Identify specific areas of improvement.

Survey size: 55 companies 111 individuals

Response size: 38 companies (69.09% of

total) 63 individuals (56.76% of

total) Response by product type:

Yarn – 22% (9 companies) Rovings/Fabrics – 6% (2

companies) Direct Draw – 35% (13

companies) Chopped Fibers – 37% (14

companies)


PPG Key Findings

Our relationship with our customers closely resembles the “typical” loyalty profile observed by Loyalty Research Center in other business-to-business programs.

According to our customers, we have strengths in these areas of our business: Account Management Overall Product Quality Technical Support Services Customer Service Communication

We have opportunities across multiple areas of our business to improve/strengthen our relationship with our customers


Provide consistently high quality products that meet customer demands and requirements.

Ensure fiber glass products are consistently compatible with customers’ manufacturing process.

Actions Taken Capital spend on new

equipment Product development Global S&OP process Process control

technology

PPG Opportunities for Improvement

Quality and Consistency


Provide account service support resources who have technical & industry knowledge, as well as an understanding of the customers’ business

Communicate more proactively to keep customers more informed of pricing changes, new products, product quality issues, shipment delivery changes, etc.

Provide ideas and support for growth through share gain, identifying new markets and processes and product knowledge

Actions Taken Support

Expanded the tech support team Provided product manager training

Communication Customer Service

On Time Delivery Order Entry Improvements Customer inquiry response time

Formation of a Global Customer Relationship Steering (CRS) Team

More proactive public relations/marketing communications plan

Growth Expanded our S&T spend Focus on our customer’s customer Market intelligence role

PPG Opportunities for ImprovementSupport, Communication and

Growth


Representing the entire composites supply chain- suppliers, distributors, manufacturers

Engaging the design community, OEMs and academics

Providing education, information, advocacy, market growth and development


“Overall, the Reputation of the association is strong with most image evaluations exceeding 70% agreement (association benchmark).

Advocacy, as the distinguishable strength of ACMA, is evaluated extremely well nearly across the board.

The service provided by staff is superb, particularly in their responsiveness to questions or information needs.”

Like PPG, we had a lot of ways that we could improve/strengthen our relationship with our members

ACMA Key Findings


ACMA Opportunities for Improvement

Opportunities Opportunities Actions Taken

More members wanted to see ACMA help them grow

Launched new programs, raised funding and participation in our Composites Growth Initiative

Perceived value of membership

Developed specific value proposition, quarterly accomplishments document

Educational program reason to join, but could be strengthened

Increased webinars, made changes to trade show, revamped regional conferences


ACMA Capitalizing on Strengths

Strength Actions

Reputation More press releases and communication to further strengthen reputation

Advocacy Launched GA newsletter and online content

Educational Programming

New trade show, launching LMS, technical papers members only, archiving magazine content

Service Hiring, orientation, and training on service. Engraining in culture


The “Intersection”

15

PPG: ACMA “Intersect”:

Our customers look to us to help them grow

1. Composites Growth Initiative (CGI) Committees

2. Volunteer opportunities – serve on CGI committees

3. Legislative & Regulatory advocacy

Communications – are we communicating with our customers as to where we are going?

Suite of communications products that inform the industry on where ACMA is going as well as where the industry and markets are going

Product Knowledge:How to use, how to support our customers

Trade shows, webinars, magazines, technical presentations, etc.

Quality of Products Certified Composite Technician training program

Consistently Performing Product Learning Management System, Technical papers

Tom Dobbins 703.525.0511 [email protected]

Kevin McDonald 412.820.8024 [email protected]

Al Paison 317.466.5040 [email protected]

Tracie Mrakich 317.466.5003 [email protected]


Partnering with Your Members to Strengthen Their Customer Relationships (and Yours)

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