Structural Equation Modeling:
Prioritizing what really matters to the consumers
In the banking world, customers' needs and expectations have been gradually changing. To stay ahead of the competition, the Client would like to have an updated understanding of the factors driving customer satisfaction and expectation across different segments. Ultimately, it is also essential for them to know how to build customer loyalty in a sustainable way.
Structural Equation Modeling (SEM) was deployed to identify the key experience factors including touch points and product offers as well as their relative importance in driving customer satisfaction and loyalty across different segments. Zooming into the individual attributes of each touch point and key driver, competitive analyses were also performed to determine the performance gaps, where the Client should prioritize resources in sustaining or rebuilding the edges over the competitors.
By knowing what matters most to different customer segments in driving the delightful and loyal relationship, key enhancement priorities were identified to facilitate forward planning of the Client’s resources.