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3.1.1 Positioning Score
Conceptually, a segment is defined by customers saying, “I want this (whatever ‘this’ is), but within limits.” It is vital for marketers to understand both what the customers want and their boundaries. The Perceptual Map captures these ideas with circles. Each segment is described with a dashed outer circle, a solid inner circle, and a dot we call the ideal spot.
The dashed outer circle defines the outer limit of the segment. Customers are saying, “I will NOT purchase a product outside this boundary.” We call the dashed circle “the rough cut circle” because any product beyond it “fails the rough cut” and is dropped from consideration. However, a product just inside the circle does not mean customers are delighted. A product near the outer limit is badly positioned.
The solid inner circle defines the heart of the segment. Customers want products in the heart of segment. We call the solid circle “the fine cut” because products within it “make the fine cut.”
The ideal spot is that point in the heart of the segment where, all other things being equal, demand is highest.
We call the orange boundary areas in Figure 3.1 “the rough cut area.” The green areas represent “the fine cut area.” The black dots are the ideal spots.
The segment is moving across the Perceptual Map a little each month. In a perfect world your product would be positioned in front of the ideal spot in January, on top of the ideal spot in June, and trail the ideal spot in December. In December it would complete an R&D project to jump in front of the ideal spot for next year.
Positioning in the Rough Cut Area
What happens to products that plot in the rough cut area? These products are badly positioned. Customers will consider them, but they are at a significant disadvantage to products inside the fine cut circle.
Specifically, products inside the rough cut have reduced customer survey scores. Their customer survey score drops in a linear fashion. Just beyond the fine cut circle the score drops 1%. Halfway between the fine and rough cut circles the score drops 50%. The customer survey score drops 99% for products that are just inside the rough cut circle.
Sensors that are about to enter the orange areas can be revised by Research & Development see (4.1.1 Changing Performance, Size and MTBF).
The location of each segment’s rough cut circle as of December 31 of the previous year appears on page 11 of the Courier.
Positioning Inside the Fine Cut
In Figure 3.1, products that plot within 2.5 units of the center of the segment are inside the green, fine cut circles. Ideal spots for each segment are illustrated by the black dots. The example on the left illustrates a segment that wants proven, inexpensive technology. The ideal spot trails the segment, where material costs are lower. The example on the right illustrates a segment that wants cutting-edge technology. The ideal spot is located towards the leading edge of the circle, where size is smaller and performance is faster.
Participants often ask, “Why are some ideal spots ahead of the segment centers?” The segments are moving. From a customer’s perspective, if they buy a product at the ideal spot, it will still be a cutting edge product when it wears out. For contrast, if they buy a product at the trailing edge, it will not be inside the segment when it wears out.
A product’s positioning score changes each month because segments and ideal spots drift a little each month. Placing a product in the path of the ideal spot will return the greatest benefit though the course of a year.
FAQs
A product's Monthly Survey Score is developed using marketing's "4 P's" - Price, Product, Promotion and Place. The Survey evaluates the product against the buying criteria. A perfect score of 100 requires that the product: Be priced at the bottom of the expected range.
What is customer survey score? ›
A customer survey score reflects how well a product meets its segment's buying criteria. Company promotion, sales and accounts receivable policies also affect the survey score. Scores are calculated once each month because a product's age and positioning change a little each month.
What is the ideal spot in Capsim? ›
The ideal spot is that point in the heart of the segment where, all other things being equal, demand is highest. We call the orange boundary areas in Figure 3.1 “the rough cut area.” The green areas represent “the fine cut area.” The black dots are the ideal spots.
What does a perfect customer survey score of 100 require that the product be? ›
A perfect customer survey score of 100 requires that the product: Be positioned at the ideal spot (the segment drifts each month, so this can occur only one month per year); be priced at the bottom of the expected range; have the ideal age for that segment (unless they are revised, products grow older each month, so ...
What is a good customer score? ›
What Is a Good Customer Satisfaction Percentage? Monitoring your CSAT score over time helps you get a highly specific overview of whether you're making progress in keeping your business customer-centric. While Customer Satisfaction Scores vary by industry, a good range is typically between 75% and 85%.
What is a good score on a satisfaction survey? ›
Many industries consider a CSAT score between 75 and 85 percent as good and a score above 90 percent as exemplary. Of course, this number is subjective, so expectations may vary slightly between industries and individual businesses.
What is a good customer survey response rate? ›
Nevertheless, a good survey response rate ranges between 5% and 30%. An excellent response rate is 50% or higher.
What's a good CSAT score? ›
While CSAT scores vary by industry, a good score typically falls between 75% and 85%. Since CSAT measures only your promoter scores, obtaining a near-perfect score is difficult. Having a score of 75% means that three out of every four customers gave you a positive score instead of a negative or neutral one.
What do survey scores mean? ›
For example, if you ask your customers to rate your product from 1 to 10, the mean would be the average of scores given by everyone who took the survey. To find the number, add all of the responses and then divide the result by the number of surveys you received.
What is positioning in CapSim? ›
Sensors vary in their dimensions (size) and the speed/sensitivity with which they respond to changes in physical conditions (performance). Combining size and performance creates a product attribute called positioning.
Launch new products when existing ones are nearing maturity and allocate resources accordingly. Consider R&D investments to stay competitive. Marketing Mix: Develop a well-rounded marketing mix by considering product, price, promotion, and distribution. Adapt your marketing strategy as market conditions evolve.
How can I improve my customer on Capsim? ›
Improving product quality in Capsim involves:
- Conducting market research to understand customer needs.
- Investing in R&D to enhance features and performance.
- Implementing quality control measures in production.
- Soliciting feedback and iterating based on customer input.
80 X (100%-50%)/2 X (100%-50%)/2 = 80 X 75% X 75% = 45. However, several remaining factors could cause the score to fall further. The Rough Cut factors (pricing outside the range, positioning outside the inner Fine Cut perceptual map circle, or MTBF below the expected range) can cause the score to fall to zero.
What is the best rating scale for a customer survey? ›
The Net Promoter Score® (NPS) is a famous Likert scale question commonly used to measure customer satisfaction and brand loyalty. It uses an 11-point Likert scale from 0 to 10.
What is a customer score? ›
Customer scoring is the practice of assigning a score to each of your customers based on business-specific criteria such as which customers make larger, more frequent, and consistent purchases from your company, etc. Identifying such customers helps streamline your marketing efforts and increase conversion rates.
What is a customer effort score survey? ›
Customer Effort Score, or CES, is a metric that measures a product or service's ease of use to customers. The score is derived from a customer satisfaction survey and it reflects the amount of effort a customer had to exert to use a product or service, find the information they needed, or get an issue resolved.
What is the rating scale for customer survey? ›
Customer satisfaction survey answers are usually on a scale of 1 (extremely dissatisfied) to 3, 5, or 10 (extremely satisfied). To get your CSAT score, you only consider customers who are satisfied with your customer service.
What do the customer survey scores reflect? ›
Segment Movement
A customer survey score reflects how well a product meets its segment's buying criteria.
What is customer survey index? ›
The Customer Satisfaction Index (CSI) is a headline metric that measures the extent customers are satisfied with an organisation or a specific product or service. Its defining characteristic, and benefit, is its holistic, integrative nature. This means that CSI doesn't just measure overall satisfaction.
