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Do you want to win back customer loyalty?

Shopper Insights helps recover brand perception

The Business Challenge

The Consumer Insights Team was perplexed. Faced with declining marketing share, they conducted a survey and discovered that public perception of the brand's quality was lower than expected.

The questions then became, "Why… and what can we do to win back customer loyalty?

The Solution

Fractal Analytics surveyed 10,000 consumers to understand the forces that drive customers' perception of quality. Participants were asked to rank the retailer as well as its competitors on over 50 attributes..

Questions included topics such as:

  • Does this store carry fresh produce?
  • Are their products high quality?
  • Is the store clean and well-lit?
  • Are the store associates helpful/knowledgeable?
  • Would you recommend this store to a friend?

After analyzing the data, our analysts grouped the attributes into categories such as store environment, product innovation, assortment, store associates, and more.

"Using structural equation modeling, we were able to identify the relative impact of each factor and predict its effect on the likelihood that customers would recommend the brand," said Pranay Agrawal, Fractal co-founder and EVP Global Consulting and Account Management.

Further review of the data revealed a structure of drivers that would influence the overall quality rating. By using this model, we were able to establish the direct and indirect impact of each component on shopper's perception of quality.

The Results

Fractal Analytics' analysis showed that the retailer ranked high on price/value and on product quality versus its competitors. Where they fell behind was on the shopper's opinion of their sales associates who were seen as being indifferent and unhelpful.

To address this issue, the company established a sales training program and modified their compensation plan by linking it to customer satisfaction in each location. Implementation of the program took 12 months, at the end of which the company regained market share and increased profits in a down economy.