How customer feedback analysis helped the CMI team of a consumer electronics leader
In this case study, we take a closer look at one of our customers, who had problems when it came to gathering data and then providing adequate insights based on this data for them to act on.
Wonderflow received a problematic product launch, and through our expert analysis, we gathered all the available data. Then, with information from free-text formats such as online reviews and blogs in particular, we were able to pinpoint the actual source of the problem.
Why should you read this case study:
If you are a member of your company’s CMI team at any level,
Ignoring the need for customer feedback analysis
The customer has a lot of different consumer electronic stores across Europe. They are working with a central organization, which is strengthened by local specialists. This structure had always worked well for them in the past. However, with the growing need for quick access to insights regarding any consumer feedback, cracks started to show. A cultural clash started to emerge, with a part of the company calling for different ways to truly understand the customers and the regional differences, where others were reluctant to change and preferred keeping the traditional means of market research.
Eleanor, VP of Sales for the DACH region, was dismissive of the fact that company Y needed help in the area of feedback analysis. She was confident that their departments, both local and centralized, was more than equipped with software and knowledge to provide everyone in the company with the necessary insights. As she would put it in an interview some months later:
“I was 100% sure that the software and the expertise we had available supported our goals. The data I received whenever I spoke to our market research team, gave me the feeling that we had a constant eye on the market”.
At the beginning of this year, the company launched a new series of televisions and their sales team reported a discrepancy in the predicted revenue. However, the sales team could not figure out the reason for this divergence. More specifically, they wanted to know why sales on their televisions were not running as fast as planned, especially compared to their direct competitors. At this point, Eleanor was urged by the company’s C-level to solve this issue and produce relevant insights. Eleanor started to inquire with peers at other companies to see how they dealt with similar issues and was introduced to Wonderflow.
Eleanor: “The big problem was that every department and their local counterparts were all collecting and analyzing some data relevant to their day jobs, in their local language. I think we didn’t really see it as a problem and appreciate the potential until we started talking to Wonderflow.”
To run the project in tandem with the regular business, a project team was established consisting of business users from the client and specialists from Wonderflow.
Michael, a senior project manager from Wonderflow responsible for this project, saw the same situation many times before. “Companies lack the right technology to tie all the data points together. Sometimes departments are given the objective to gather data, and there is no analysis done afterward. But bringing so many sources together creates an enormous potential to truly understand trends and make informed strategic decisions. You don’t just look at what people are writing, but you start to understand why they are writing certain things”.
”The big problem was that every department was collecting and analyzing data relevant to their day jobs, in their local language. We didn’t really see it as a problem and appreciated the potential until we started talking to Wonderflow.EleanorVice President of Sales for the DACH region
Getting back on its feet
The first step in the project was to analyze the whole television market in Europe’s 5 biggest countries. This meant collecting data from more than 75 public and internal sources to cover all the ratings and reviews.
For public sources like Amazon and local resellers, all the data for televisions was scraped using the Wonderboard, which cleansed, anonymized, translated, and produced the insights about the whole television market of these 5 countries. By incorporating the competitors, the project team was able to create a full analysis of the market, in the first weeks.
The initial analysis showed which aspects were driving consumers to purchase televisions. The biggest driver of television sales was, perhaps unsurprisingly, the quality of the image (57%). However, the image quality of our client’s lines of televisions was rated at the same level as those of the competitor. That didn’t explain the dragging of sales.
For this reason, the project team decided to drill down on specific components of the product, which were regularly mentioned by consumers. The analysis showed that the second most important driver of sales was actually the design of the televisions (24%), and this was the point where our client outperformed the competitor with multiple features being lauded by customers.
”We couldn’t actually tell why consumers chose the competition, despite the fact that they loved our design and the lack of other significant differences.EleanorVice President of Sales for the DACH region
Eleanor: “This by itself was already a great finding, as I shared this with my colleagues who were able to highlight these features in their campaigns.” However, this didn’t solve the problem. “We couldn’t actually tell why consumers chose the competition, despite the fact that they loved our design and the lack of other significant differences.”
At this point, the project started to further leverage the power of the Wonderboard. Until this point, the client has looked at public consumer reviews. Together, the project team (part of CMI team Europe) identified a number of different sources to include for each country. The primary focus was expert reviews, in the form of blogs and Youtube videos. In a few days, the system scraped, cleaned and analyzed a long list of these unstructured data.
As a result
The analysis demonstrated to the CMI team that the general sentiment of these expert reviews were negative towards an aspect of the image quality and related technologies used in the television. This was the true difference between the televisions of the client versus their strongest performing competitors. So even though overall consumer feedback was positive, the experts were advising to go for a different brand, and they influenced a large part of sales for premium SKUs.
The news came as a surprise to Eleanor. “I know we make good products. However, I thought that the only reason why people didn’t buy a particular television was the price. But the Wonderboard clearly showed me otherwise. I was able to share the findings quickly internally, as this had some major implications.” The minute the company found out the significance of the expert reviews, the global strategy for the company shifted. They started extensive influencer marketing campaigns with their local counterparts. On top of that, the messaging of new advertising campaigns put the core strengths of the product, in a message and a tone of voice that the consumers recognized.
In less than 3 months, Eleanor saw that the sales target was not only achieved but also exceeded by 12%. “Because we were able to add so much more information from free-text formats such as blogs, and visualize that in one central place, the trends started to become clear.”
”Because we were able to add so much more information from free-text formats such as blogs, and visualize that in one central place, the trends started to become clear.EleanorVice President of Sales for the DACH region
As a result of this project, the global organization wanted to further implement the Wonderboard in the company. This was met with some reluctance by some of the local departments. Stefano witnessed the internal struggle firsthand: “Change is never easy. People are used to working in a certain way. The traditional market research tools and partners the company was leveraging told them one part of the story, but together we could go so much further.” To overcome this, the Wonderflow team hosted multiple workshops to make the different departments more aware of the importance and the advantages of a more customer-centric approach.
At the same time, Wonderflow’s project management team worked to create a customized dictionary to produce the most accurate and actionable insights. After a brief training, different departments now are able to use the dashboard of the Wonderboard, and new data is added regularly.
The insights that company Y received were:
- Overall rating of consumer reviews for their product, comparable to those in Europe’s biggest markets (4.2 – 4.3 on a 5 points scale), but lower in expert reviews
- The customer’s preference for Y’s design, which can be considered an advantage as it’s part of the core values of the brand, was less relevant than image quality, and
For the creation of the partnership:
- The CMI team of Y company received workshops in order to familiarize themselves with the Wonderboard, while at the same time
- Our Product Management team created the necessary tools, files, and recommendations, in order to complete the customer feedback loop.
- Increase revenue by 12%
- Made the advertisement for the product more specific, focusing on design aspects, which lead to 23% higher conversion rates
- Built good relationships with influencers/expert reviewers for future product launches
To conclude, Wonderflow received a problematic product launch, and through our expert analysis, we gathered all the available data. Then, with information from free-text formats such as online reviews and blogs in particular, we were able to pinpoint the actual source of the problem.
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