What Value Is Your Business Getting from Your Customer Interactions?

By Andrea Ruttenberg, Ph.D.

Recently, Andrea Ruttenberg, Senior Manager at Applied Marketing Science, and Wayne Huang, Research Manager at Twitter, co-led a webinar focused on how companies can use conjoint analysis to put a value on customer interactions. The webinar is titled “How to Put a Value on Customer Interactions”.

Over the past 3 years, AMS and Twitter have completed several conjoint studies together to quantify hard-to-measure customer experiences. In 2015 and 2016, our first series of studies quantified the value of receiving customer service through Twitter. We conducted our research on three distinct verticals – airlines, telecom, and pizza delivery companies – and found that when companies respond to a customer question or complaint received on Twitter, customers are willing to pay more in the future for goods or services provided by brand. For example, our research on airlines found that the average customer is willing to pay almost $20 more for a ticket from an airline that responded quickly to their customer-service related tweet.

This study was published in Harvard Business Review in a 2017 article titled “How Customer Service Can Turn Angry Customers into Loyal Ones”.

Our second research initiative, completed this year, quantified the value of seeing advertisements online. For this study, we focused on the insurance industry. We found that people who were exposed to an ad were willing to spend $7 more on their annual premium with that insurance company relative to those who were not exposed to an advertisement.

Both customer service and advertising are notoriously hard to quantify. Companies know they need both, but it can be difficult to decide how much to invest in these types of customer experiences.

If you're struggling to understand just how much value you're getting from your customer service interactions, advertising, or other types of customer experiences, AMS can help.


Tags: Conjoint Analysis and Discrete Choice

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