3EA Vision of Loyalty and Trust (VoLT) Score
A loyal customer is…
1. Likely to refer you to her friends and contacts.
2. Likely to continue buying from you as long as the need is there.
3. Not actively looking for other suppliers.
4. Not open to sales pitches from competitors.
5. Open to other products and services that you offer.
6. Easy going towards emerging issues and gives you time and trust to fix them.
7. Likely to give feedback about how you could improve.
Measurement of loyalty is the first step in customer loyalty management. By calculating customer loyalty, we can compare, aim, and improve. So, we at 3EA provide the VoLT Score test. It is directly correlated with revenue growth. 3EA VoLT Score analysis signals that sustained value creators i.e. organizations that achieve long term profitability growth will have a VoLT Score two times more than that of an average company.
Assumptions of VoLT Score
Customer base is segregated into 3 categories –
PROTAGONIST (8-10): The group of loyal consumers/customers who will stick to the brand for a lifetime no matter what. They act as the non-paid marketing + sales force.
MALLEABLE (6-7): The group of consumers/customers who are at present using your product but can easily be influenced to switch from your brand to the other.
DEFAMERS(1-5): The group of consumers/customers who are not very concerned about brand names. They are the ones who want to get their hands on each and every brand possible.
Calculation of 3EA VoLT Score for a Brand
Note: Malleable%/2 is an extremely important part of the calculation because as per expected prevalence or proportion we assume half of the malleable may leave/stay in the protagonist zone.
3EA VoLT or VoELT Score (for Employees of a Company)
The VoLT Score test may be used for Present Employees also. Two general questions of recommendation, first being ‘recommendation to work at the company’ and the second being ‘recommendation to use the products or services of the company’. This would be enough to group the employees into the 3 respective categories.
The further analysis of these data would result in a better Vision of Employees Loyalty and Trust (VoELT) All the VoLT or VoELT data must be kept confidential.
There may be categories for VoLT Scores also:
An efficient sample would be required for initial effective analysis and that can be calculated as:
Where, n = sample size,
z = z statistic for a level of confidence,
p = expected prevalence or proportion (in proportion of one; if 50%, p = 0.5),
d = precision (in proportion of one; if 5%, d = 0.05).
Z-statistic (z): For the level of confidence of 95%, which is conventional, z value is 1.96.
In these studies, investigators present their results with 95% confidence intervals (CI). Investigators who want to be more confident (say 99%) about their estimates, the value of z is set at 2.58.
Questions that could be used to measure 3EA VoLT Score for customers:
1. How likely are you to recommend the brand you use to your friends or contacts?
2. How likely are you to buy the same brand again in the future?
3. How likely are you to try out other products/services of the same brand?
Other questions for analysis purpose could be:
1. I like switching from one brand to another.
2. I often switch from one brand to another.
3. If the brand I usually buy is not available in a shop, I go to another shop.
4. On several purchase occasions, it is likely that I will buy each time the same brand.
5. I am loyal to only one brand.
6. During my next purchase, I will buy the same brand as the last time.
7. Even if the price of the brand I am used to buying strongly increases, I’ll still buy it.
8. Generally, I am loyal to a small number of brands.
9. Even when I hear negative information about the brand I usually buy, I still stick to that brand.
10. I’ve been buying the same brand for a long time.
11. I like trying several brands.
12. I always buy the same brand.
13. During my last purchases, I’ve always bought the same brand.
14. If I like a brand, I rarely switch from it.
15. If the shop I regularly visit has not got the brand I usually buy, I go to another shop.
16. Usually, I buy the same brand.
Questions that can be used to measure 3EA VoLT Score for employees (VoELT)-
1. How proud are you to work at your present company?
2. How likely are you to recommend your company to a friend/relative to work at?
3. On a scale of 1-10, how do you rate your organization in front of your competitors?
4. How likely are you to stay at your current company for the next-
a) 1 year b) 3 years c) 5 years
5. Overall, how satisfied are you with your present company?
Other questions that can be asked for analysis purpose are:
1. Are you aware of the vision statement of your company?
2. What are the 2 things that make you HAPPY about working at your present company?
3. What are the 2 things that make you SAD about working at your present company?
4. Define your present company in 3 words.
5. How often do you think about looking for a job at another company?
Article by: Marketing Advisory, 3EA