Understanding the level and drivers of your customers’ loyalty is important, but it isn’t enough in today’s complex market environment. To stand out, you need to deliver a unique—and truly differentiated—customer experience.
ORC International’s Customer Equity Model provides a framework for measuring the customer experience and determining effective strategies for influencing consumer behavior and buying decisions, which drives top- and bottom-line performance.
ORC’s Customer Equity Model captures the customer experience through the measurement of four key factors:
- External influences—traditional marketing and third-party opinions, as well as personal and external circumstances
- Customer mindset—goodwill that is earned over time and generates tolerance and forgiveness
- Customer events—the basics of products and services, as well as how they are provided to customers
- Customer loyalty—the degree to which dependence on the brand has been created and the return on the investment in loyalty is determined
Ultimately, the Customer Equity Model delivers the critical insight you need to:
- Identify external influences that can sway your customers to one brand over another
- Quantify your customers’ goodwill toward your brands and their dependence on your brands
- Help distinguish what you deliver from how you deliver it
- Better understand varying needs of customer segments, taking the above factors into consideration
- Move beyond customer loyalty to quantify customer equity and the worth of a customer or a customer segment to your business