Question

How can consumers rate Target Corporation in terms of Price, Quality, Durability, Image/Style, Value, Name recognition, Customer service, Customer Relation and Location?

Answer 1

Answer:-

Presently to rate a Target Corporations in terms of its Price, Quality, Durability, Image/Style, Value, Name recognition, Customer service, Customer Relation and Location , there are 2 methods which are widely used to ascertain satisfaction/dissatisfaction of a consumer.

1) Net Promoters Score (NPS)- The Net Promoter Score is an index ranging from -100 to 100 that measures the willingness of customers to recommend a company's products or services to others. It is used as a proxy for gauging the customer's overall satisfaction with a company's product or service and the customer's loyalty to the brand.

Customers are surveyed on one single question. They are asked to rate on an 11-point scale the likelihood of recommending the company or brand to a friend or colleague. “On a scale of 0 to 10, how likely are you to recommend this company’s product or service to a friend or a colleague?” Based on their rating, customers are then classified in 3 categories:

a) Detractors- Detractors give a score lower or equal to 6. They are not particularly thrilled by the product or the service. They, with all likelihood, won’t purchase again from the company, could potentially damage the company’s reputation through negative word of mouth.

b) Passives - Passives give a score of 7 or 8. They are somewhat satisfied but could easily switch to a competitor’s offering if given the opportunity. They probably wouldn’t spread any negative word-of-mouth, but are not enthusiastic enough about your products or services to actually promote them.

c) Promoters- Promoters answers 9 or 10. They love the company’s products and services. They are the repeat buyers, are the enthusiastic evangelist who recommends the company products and services to other potential buyers.

2) Customer Value Management- CVM is a measure of a company’s customers’ view of the perceived value for money delivered relative to that of their competitors’ customers.CVM is a powerful business tool as it links customers to KPIs by directly measuring the drivers of purchasing behaviour and the impact these have upon delivering KPIs such as market share, profit and loss, recommendation, share of wallet, ROI etc

Although a score of 1.00 is direct parity with the competition, analysis of companies implementing this approach has shown that scores in the range 0.98-1.02 should also be considered parity. In this range neither the competitive advantage nor weakness is substantial enough to significantly impact on customer choice. However scores below 0.98 indicate competitive weakness and scores in the range 1.03 to 1.10 indicate competitive advantage. Greater than 1.10 is considered world class performance. We have seen businesses and business units struggling to survive at a score of 0.70 or below. The length of time at a particular score, and the direction and rate of change in CVM are also factors that should be considered when linking customers to KPIs in this way.

Market changes and the value of a company’s offer relative to its competitors will be reflected in a change in the CVM score. There is a time-lag, unique to each market place, between a change in the CVM score and a corresponding shift in KPIs. A shift in a CVM score can therefore provide a good prediction of an impending change in a company’s fortunes.