Case Study:
Conjoint Analysis: B2B Customer Service Strategy
by Sawtooth Technologies Consulting Group
In this case study Sawtooth Technologies researched the values for service attributes in the channel (brokers, agents and distributors) and with end-customers.
Situation
A major U.S. provider of commercial insurance wanted to increase profits by enhancing customer service. The client sought to understand the impact of:
- Customer service on policy purchase and renewal
- Various aspects of customer service on the overall value of customer service
Research Steps
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Developed two different two-stage conjoint interviews: one for end-user customers and one for the channel.
- Stage One allowed respondents to express their trade-offs at a “micro” level between customer service attributes (speed of policy issuance, speed of inquiry resolution, point of contact, etc.).
-
Stage Two assessed respondents’ preferences for different insurance concepts, each composed of “macro”-level attributes such as price, financial rating, coverage and exclusions, etc.
-
Calculated two sets of utilities—one at micro level and one at macro level—for each interviewee.
-
Built a two-stage simulation model for each population to predict acceptance of the client’s products. The model used three sets of information to generate results:
- Respondent perceptions were used to specify the client’s current service level.
- The micro-level specifications service features were coupled with the micro-level utilities to generate a predicted level of customer service performance.
-
The predicted level of customer service performance was combined with the macro-level product specifications and the macro-level utilities to estimate the overall acceptance of the client’s products.
-
Used the two-stage models to test different product and service configurations:
- Altered customer service features and predicted the impact on customer service.
- Simulated changes to the overall level of customer service and observed the predicted changes in purchase and renewal acceptance.
- Tested alternative product scenarios and assessed which product features offered the greatest leverage to the client.
Research Results
Through the use of these simulations, the client gained a rich understanding of the impact of:
- Customer service on policy purchase/renewal.
- Customer service components in driving perceptions of quality.
- Product features in driving policy purchase and renewal.
Outcome
The information was used to reposition the client’s customer service offerings in a way that customers valued and that differentiated them from the competition.
This content was provided by Sawtooth Technologies. Visit their website at www.sawtooth.com.
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