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tionship because actively dissatisfied, often by a specific event inertial migrators SASU0050030611A4 2 ESSENTIAL TO UNDERSTAND ISSUE DRIVERS AND COST OF FIXING Sources of dissatisfaction ? Understand what drives dissatisfaction ? Understand cost of fixing ? Use key breakpoints not to overspend Structural drivers Problem resolution Dissatisfaction opportunity High % Low % ? Coverage ? Service level ? Friendly staff ? Consistency of service ? Quick resolution Source: McKinsey proprietary research SASU0050030611A4 3 deliberative migrators ., frequently reevaluate decisions, reaffirm/switch to chosen brand based on merits。 rational decisionmaker SEGMENT MANAGEMENT TREND 2 SASU0050030611A4 4 SEGMENT IS MORE COMPLEX, DUE TO DELIBERATION ON SEVERAL DIMENSIONS ? Product and performance attributes ? Value ? Quality Functional benefits Relationship benefits ? Value based on personalized service ? Strong emotional relevance ? Information sharing that creates value exchange ? Differentiated loyalty rewards Process benefits ? Ease of access to product information ? Broad product selection ? Simplified/assisted decision making ? Convenient transactions ? Automatic product replenishment SASU0050030611A4 5 SEGMENTING CUSTOMERS WITH DISTINCT BENEFIT PREFERENCES Segment characteristics Percentage of population Process and relationship Function and process Function and relationship Function only Consider brand relationship important and have high expectations for the standard of customer service Want product features and efficient, effective customer service Want good value and the chance to earn rewards for loyalty Want bination of quality and value 263341n / a33 8 22 37 Credit cards Insurance SASU0050030611A4 6 IMPLICATIONS FOR BUILDING LOYALTY AMONG THOSE CHOOSING TO GO OR STAY ?Understand drivers of deliberation ?Create/package the right set of benefits –Address underlying basic issues (., price, product) –Build tailored offerings (., CRM, frontline sales execution) –Change points of deliberation (., recognition/ reward