A Customer Loyalty & Profitability Management Tool

This simulator will help you understand how changes in a company’s performance and price will affect customers’ loyalty as well as revenues. This simulator is based on the disguised results of an actual research study. The simulator allows the client user to create "what if" scenarios to see how loyalty and revenues will be affected by the changes made to ratings values and customer experiences (negative and positive).

Description

The simulator is divided into two parts:

1. Effects Viewer: Two graphs with corresponding tables that provide a visual representation of the effects created in part 2

• Loyalty Segment Percentages with a base case, simulated case and percentage change
• Revenue Change %

2. Scenario Creator: Change the HOTEL VALUES by entering

• Individual Ratings Changes (Hotel Mean Ratings)

1. Significant Predictors (mean ratings for five most important loyalty predictors)-
   
   Viewable from both "Our Hotel" and "Our Hotel vs. Competition" perspectives
   
   
2. Positive Customer Experiences (percentage, 1-100)
3. Negative Customer Experiences (percentage, 1-100), or

• All Ratings Change (e.g. with one button increase all hotel values by same 5, 10, 15 or 20%)

Begin the Simulator - (Press "OK" when asked to enable macros)

View Loyalty Simulator Instructions to Create Scenarios

View Loyalty Simulator System Requirements

Instructions to Create Scenarios

• To influence the Base Case you must make changes to the Scenario Creator by either changing the Individual Values or Ratings in the yellow boxes or the All Ratings at the bottom of the simulator.
• If you choose to alter Individual Values or Ratings, there are seven changeable values: five (5) Attribute Ratings, one (1) Experience with Positive Impact, and one (1) Experience with Negative Impact.

• The acceptable range for the five Attribute Ratings is 1 (Unacceptable) to 10 (Outstanding), and can be entered to two decimal places (e.g. 8.65). Next to each rating there is an OPEN button. Click this button to take you to a more detailed sub-model on a new screen. For example, clicking the OPEN button next to the Price Satisfaction rating will bring up the Price Sub-model. The sub-model shows the Base Case and Simulated Price Satisfaction rating at the top. Under it are a number of detailed price attributes. You may change the ratings in the yellow portion of the column to see how changes in the detailed price attribute ratings affects the Price Satisfaction rating. If you click the COPY button, the attribute ratings affect the Price Satisfaction rating. The latest simulated rating for Price Satisfaction will be transferred into the initial Loyalty Model screen, and you can see the resulting change in Loyalty Segment Percentages and Revenues. Click the Simulator tab at the bottom of the screen to return to the original model.
  
  
• The acceptable range for the Experiences with Negative and Positive Impact is 1-100%.

Note: Although only Our Hotel Mean Rating ratings can be changed, the simulator will show the simulated effect for Our Hotel as well as the ratio of Our Hotel’s ratings compared to the Competitors’.

• If you choose to alter All Ratings, you can click on a function bar at the bottom of the simulator page to automatically increase all mean ratings by 5%, 10%, 15%, or 20% above the base case values.
• Once a change to any variable is made in the Scenario Creator, the effects will be seen in the Loyalty Segment Percentages and Revenue tables and graphs at the top of the simulator.
• The Loyalty Segment Percentage graph at the top left shows the effect of changes in the working simulated case on loyalty for our hotel. Green additions onto the blue bars show increases in a loyalty segment’s size while red indicates decreases compared to base case.
• The Revenue Change Percentage graph at the top right shows the effect of changes in the working case on revenue for our hotel. A green bar above the line shows percent of revenue lost compared to base case.
• To reset any factor or combination of factors in the working case to the base case, click the RESET button at the bottom of the screen. This will reset all changed variables to the base case values.

Requirements

You must be running a PC compatible system with Microsoft Excel and the ability to run Macros.

Begin the Simulator - (Press "OK" when asked to enable macros)