Six Sigma Tool Navigator: The Master Guide for Teams

2017-07-07 02:10:07

AKA

N/A

Classification

Analyzing/Trending (AT)

Tool description

The customer acquisition-defection matrix is a very useful tool to gauge customer brand loyalty, to track competitors' market share, and to identify trends in customer needs, expectations, or behavior.

Typical application

To identify customer product purchase flows among different product brand names in comparison to the company's existing market share.

To plot market share data of previous product purchase percentage to new product purchase percentage.

To measure percent change in product demand; to track customer defection rates.

To develop a benchmarking plan for targeting the strongest competitors.

Problem-solving phase

→	Select and define problem or opportunity
→	Identify and analyze causes or potential change
	Develop and plan possible solutions or change
→	Implement and evaluate solution or change
→	Measure and report solution or change results
	Recognize and reward team efforts

Typically used by

4	Research/statistics
	Creativity/innovation
5	Engineering
	Project management
	Manufacturing
3	Marketing/sales
	Administration/documentation
	Servicing/support
2	Customer/quality metrics
1	Change management

links to other tools

before

Data Collection Strategy

Measurement Matrix

Interview Technique

Surveying

Questionnaires

after

Customer Satisfaction Analysis (CSA)

Customer-First-Questions (CFQ)

Benchmarking

Failure Mode Effect Analysis

Countermeasures Matrix

Notes and key points

The data collection process should include the search and verification of secondary data, such as market share studies, company annual reports, trendlines, or any other summarized customer behavior information.

Step-by-step procedure

STEP 1 The first step requires an extensive and highly focused data collection on the product under analysis. Market share data, customer buying behavior, and market/technology trends need to be examined.

STEP 2 Product-specific data such as previous ownership percentage, repurchase percentage, and competitors' gain/loss percentages are collected.

STEP 3 A customer acquisition-defection matrix is constructed and percentages listed in the appropriate squares associated with particular brand names. See example Purchase of Home Water Heaters.
- Brand A is the company's location on the matrix. It shows that 42 percent of Brand A customers purchased another Brand A home water heater from this company, 10 percent purchased Brand B, 7 percent purchased Brand C, etc.
- Referring to Brand B on the matrix, 45 percent of all Brand B heater customers repurchased a Brand B heater, 9 percent purchased a Brand A heater, 8 percent purchased a Brand F heater, and so on.

STEP 4 Next, total all row percentages for each brand and indicate this total in the percentage column.

STEP 5 Lastly, check all plotted data and calculations, and date the matrix.

Example of tool application

Purchase of Home Water Heaters