How would you operationally define the construct of respect? Take the perspective of each of the three client sectors: insurance, air travel, and retail.
Business Research Methods, 11e, Cooper/Schindler
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>cases
Campbell-Ewald, the Detroit-based marketing communications company, part of
the global Interpublic Group of Companies, is an award-winning consultancy. This
case describes the research behind its effort to measure and improve customer
loyalty and the development of its five respect principles that lead to enhanced
customer commitment. www.campbell-ewald.com
>Abstract
>The Scenario
Much has been written about satisfaction research in the last 20 years. But only recently
has the seeming disconnection between customer satisfaction and customer loyalty been
getting increasing attention. For two years, Campbell-Ewald1, the Detroit-based marketing
communications company and part of the global Interpublic Group of Companies, studied one
aspect of the disconnection: respect. As a result of its findings, the agency is passionate about
helping firms reforge respect bonds with their customers as a primary business strategy.
Campbell-Ewald is no stranger to this concept, which the Queen of Soul, Aretha Franklin,
elevated to the measurable standard for relationships. Twice in this millennium, the agency has
been selected by AdWeek’s Midwest edition as its Agency of the Year. In lauding Campbell-
Ewald, AdWeek noted that it has an average client relationship exceeding 20 years, while the
average in the industry is a relationship that lasts only 5.3 years.
2
David Lockwood, senior vice president and director of account planning, says what started
as an attempt to understand the disconnect grew into a major research initiative. It ultimately
resulted in the identification of five “People Principles” for maintaining long-term relationships
that are helping Campbell-Ewald clients transform their business practices and their sales:
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• Appreciate me. Customers are the reason a firm is in business; they should be made
to feel appreciated.
• Intentions don’t matter; actions do. What a firm does is important, not what it thinks
or what it says it will do.
• Listen, then you’ll know what I said. Companies that listen to customers have the
ability to adjust plans. Companies shouldn’t just collect information but should actually
take direction from what customers say.
• It’s about me, not about you. What the customer needs is more important than
what the firm needs.
• Admit it, you goofed! The customer deserves an apology when the firm fails, even
if the failure isn’t the firm’s fault.
Customer relationship management (CRM) has been a mantra for the last decade, and
understanding the status of CRM was where Campbell-Ewald started its quest of discovery.
“Research from Gartner Group and Accenture told us that traditional CRM solutions—the
large-scale hardware and software investments that track, then model customer contact points
(‘touch points’)—weren’t working,” revealed Lockwood. “Published research indicates 60
percent of CRM initiatives are not meeting user expectations. In addition, more than half (55
Campbell-Ewald:
R-E-S-P-E-C-T Spells Loyalty
Used with permission
of Pamela S. Schindler
© 2006.
Business Research Methods, 11e, Cooper/Schindler
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Campbell-Ewald: R-E-S-P-E-C-T Spells Loyalty
percent) of these programs are not delivering any demonstrable ROI. This may be due to the
fact that often such initiatives are assigned to the IT group in a firm, the group that has the least
contact with the customer.”
So when the purported solution seemed to sometimes exacerbate the problem, Lockwood’s
team decided to look elsewhere. “Basically, loyalty is about personal relationships, not
technology. So, we started by reading anything we could find on relationships—not business
relationships, but people ones. We read everything: Dr. Phil (Phil McGraw—relationship guru
and talk show host), Steven Covey (author of The Seven Habits of Highly Effective People),
even the ancient philosophers, to identify the tenets of strong personal relationships.” In this
early stage, Campbell-Ewald turned to two waves of Synovate’s TeleNation,4 an omnibus,
nationally representative telephone survey, to see if “respect” was an issue people were
concerned about regarding the way they are treated by companies.
Campbell-Ewald then set out to validate that customers were not being treated with respect
and to prove that respect truly matters. “Repeated anecdotes—no matter how persuasively
told—weren’t going to sway our clients as much as empirical evidence.” And as a business,
the agency needed to know there would be a payout for the investment of time and money
(estimated in six figures) in the research it planned.
Campbell-Ewald’s client list is impressive and draws from automotive, financial, insurance,
travel, home furnishings, government, and retail sectors.5 “We wanted the research to reflect
our clients’ needs, their situations, and we believed that respect translated differently in the
different sectors.” To understand the various dimensions of respect and how the five principles
translated in each industry, the agency again partnered with research company Synovate to
conduct 12 focus groups, 4 each in three sectors: insurance, airlines, and retail (home furnishings).
Focus groups were conducted with adult men and women in both Chicago and Detroit.
“One of the reasons Synovate was chosen as a partner was because it has significant
experience with sophisticated multivariate analytic techniques, as well as large-scale mail
surveys,” shared Lockwood. From the focus groups, measurement questions were developed
that would clarify the core motivational drivers in each category. Also, attitudinal statements
were developed that would clearly define the parameters of respect in that sector and ultimately
indicate the translation of each of the five People Principles. Clients were actively involved at
this stage as three different surveys were developed. Each four-page survey contained basic
purchase and usage questions, a full set of demographic questions, and 27 to 29 attitude
statements offering a 5-point strongly agree to strongly disagree scale. (See Exhibit C-E-1 for
samples of these statements.)
“Our clients provided names of customers, mostly from their top customers.”6 Five
thousand surveys were mailed to each sector. “Synovate maintains panels that offer
significantly higher response rates, but we wanted to use actual customers. And we wanted
the actual client disguised. So the surveys went out over Synovate’s letterhead, not the
client’s.” Participants returned between 5 and 9 percent of the surveys; thus each sector had
a sample size between 200 to 500 cases.
Data were studied in the aggregate and by sector to answer the fundamental question:
“Does respect matter?” Additionally, responses to individual attitude statements were
evaluated using a proprietary brand propensity model from Synovate, called The Momentum
Engine, a methodology designed through multiple regression and correlation analyses to
identify consumers with the greatest potential to drive sales growth. These customers,
labeled “Dynamic,” fall in a high-potential/high-relationship quadrant and can be compared
to other groups that offer lower sales potential or less established relationships.7
Data revealed that respect is a significant driver in each of the three sectors.
While it was lowest among retail customers compared to those of insurance or airlines, it
was still significant. Clients, when presented with the findings, reacted with new initiatives
to develop and cement loyalty among their customers. Several initiated loyalty audits and
assessed whether their cultures supported or diminished respect for customers. Others
created task forces assigned to develop respect initiatives. The agency’s Continental
Airlines client is a pioneer in respect marketing. One of Campbell-Ewald’s five respect
Business Research Methods, 11e, Cooper/Schindler
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Campbell-Ewald: R-E-S-P-E-C-T Spells Loyalty
principles, Admit it, you goofed, is clearly demonstrated in the airline’s Customer Recovery
Program. If a plane is delayed, a connection missed, luggage lost—regardless of the cause—
select Continental passengers receive a personalized apology within 24 hours.
And the change can be felt at Campbell-Ewald, too. Internal documents are changing.
Ad campaigns are now more respectful in their creative development.
But what most notice about the agency is its passion for the implementation of the five
People Principles. As Lockwood concludes, “Every customer touch point is critical to keep
those high-value customers. With respect, you can not only reinforce positive feelings
about a company or brand, you can even—at times—turn a negative experience into a
positive, brand-building interaction.”
1 How would you operationally define the construct of respect? Take the
perspective of each of the three client sectors: insurance, air travel, and retail.
2 Map the overall design of the research described here.
a What types of studies were involved in Campbell-Ewald’s respect initiative?
b What are the strengths and weaknesses of the various methodologies?
c How do the methodologies complement each other?
3 Analyze the use of the 5-point scale for measurement of respect dimensions.
What other statements would you add to the sample provided in Exhibit C-E 1-1.
4 Discuss the advantages and disadvantages of the sampling plan for the mail
survey.
1 Campbell-Ewald, with billings in excess of $155.8 million, is ranked 13th among U.S.
>>>>>Discussion
Strongly Agree Neither Disagree Strongly
Agree Agree nor
Disagree
Disagree
General Respect Initiatives, across categories
Is interested in listening to what is important to me as a customer
Places their own interests above those of the customer
Notifies me in advance of sales and special promotions
Rewards me for repeat business
Honor commitments/promises they’ve made to me
Specific Respect Initiatives, with category
Accepts returns without a hassle (retail)
Flights take off and land on schedule (airline travel)
Handles claims in a timely manner (insurance)
Exhibit C-E-1 Sample of Attitudinal Statements
Researchers asked particpants their degree of agreement with several respect validation statements.
A sample of these statements, developed from focus group discussions, appears below.
Business Research Methods, 11e, Cooper/Schindler
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Campbell-Ewald: R-E-S-P-E-C-T Spells Loyalty
agencies. “Top 25 U.S. Agency Brands by Core Advertising Revenue,” 2003 Ad Age
Agency Report, AdAge.com, downloaded February 11, 2004 (http://www.adage.com/
page.cms?pageId=975).
2 Tanya Irwin, “First Class: Campbell-Ewald charms the USPS and Plenty More Chevy
dealers,” AdWeek, 44, no. 3 (January 20, 2003). (Reprint downloaded from Campbell-Ewald
Web site, February 10, 2004.)
3 David Lockwood and Laurie Laurant Smith, principals with Campbell-Ewald, interviewed
by phone, February 9, 2004.
4 “TeleNation is a twice-weekly national omnibus survey surveying three waves of 1,000
American adults each week. Each wave of 1,000 American adults is balanced to be
nationally representative. The sample consists of 50% men and 50% women, 18 years of
age and older. Each survey is conducted using random digit dialing. “TeleNation,”
Synovate.com, downloaded February 12, 2004 (http://www.synovate.com/en/solutions/
branded_solutions/omnibus_telenation/).
5 Among Campbell-Ewald clients are ACDelco, BISSELL, Chevrolet, Continental Airlines,
General Motors, Farmers Insurance, Michelin, National City, Pier 1 Imports, U.S. Navy and
U.S. Postal Service. Irwin, “First Class.”
6 For example, Continental Airlines drew customer names from its One-Pass frequent flyer
list.
7 “Branded Solutions: The Momentum Engine,” Synovate.com, downloaded February 12,
2004, (http//www.synovate.com/en/solutions/branded_solutions/the_momentum_engine/
).
This case was developed for Business Research Methods 9/e from interviews with
and material provided by principals of Campbell-Ewald. Used with permission of
Pamela S. Schindler, © 2006.
>>>>>Notes
>>>>>Source
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