Consumer Durables Corporation


The Challenge
This CEO of the world’s largest appliance manufacturer delivered an executive mandate – "double customer loyalty in 7 years!" The global transformation to a customer-loyalty driven organization was the means to better differentiate and accelerate the value of the 15 global brands. However, customer loyalty was not clearly defined nor was the path in how to achieve the goal. It was a vision without a plan.
The Approach
First, to drive leadership buy-in, we defined Customer Loyalty so that it was relevant across all brands and encompassed both acquisition and retention. Second, we developed a research approach to determine cause and effect of loyalty behaviors across the customer lifecycle for planning and measurement purposes.

Third, we developed a strategic planning process to embed and align strategy within operational plans and across strategic business objectives to ensure accountability across businesses.
The Results
Five years later the customer loyalty strategy and process is “just way we do business" at this company -- driving product improvements, enhancing the customer service experience, and optimizing marketing. Every functional area has annual CL goals with performance measures that correlate to revenue increases. One mass brand increased their CL index metric by 5 points (equating to $600M in incremental revenue over 3 years) by executing an integrated marketing campaign based on customer loyalty feedback.


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