What Is a Good Experience Really Worth? Using Conjoint Analysis to Quantify the Value of Customer Service
Tue. September 27, 2016
9:45 AM to 10:30 AM
Customer service comes in many forms, including phone, email, tweets, and in‑person. Typically, to measure the impact of each channel, companies measure changes in NPS, re‑purchase intent, or through brand equity attributes. But few companies, if any, have quantified the impact of customer service on future willingness to pay.
Working with Applied Marketing Science, Twitter uses a new twist on a classic method – the conjoint survey. By analyzing completed choice tasks from respondents, they were able to quantify the dollar value of customer service interactions, including how both speed and the quality of customer service interactions then affected willingness to pay.
The results, recently featured in AdWeek, favor Twitter’s hypothesis – better, faster customer service increases willingness to pay. The team is extending the research into new categories to further determine how service creates customer value.
• Evidence shows that better customer service increases willingness to pay in a meaningful and quantifiable way
• Evidence also shows that fast responses to customer service requests—for which Twitter is a perfect platform—dramatically improves brand value
• Choice-based approaches are often a better way of measuring the value of customer experience than direct-questioning approaches like stated repurchase intent or Net Promoter Score™
• Integrating conjoint data with existing “big data” helps replace stated behavior with actual behavior
• A lightweight, mobile-friendly conjoint approach yields results quickly and inexpensively
Learn how Twitter used a conjoint experiment to prove the financial value of delivering fast responses to customer service requests through its platform.