ClientLoyalty is a new cloud-based software platform service that aggregates data on suppliers and buyers to provide useful information these organizations can use to improve relationships with one another.
The roughly six-month-old company launched a beta version of its software in January, and ClientLoyalty CEO and Co-Founder Kent Barnett said several organizations will continue to test it through March, providing feedback on any possible glitches or areas for improvement. Testers include Fortune 100 consulting firms in industries such as financial services, real estate and transportation, Barnett said, though he did not disclose specific company names. Come April, ClientLoyalty will begin to move its technology to full production and start selling subscriptions.
Determining Loyalty Scores of Users
Barnett said the ClientLoyalty system gathers three specific sets of data, which are used to produce an overall loyalty score for users. The first set of data is around direct feedback on buyers and suppliers. This information is provided from the buying organizations and suppliers in the form of survey data, videos, etc.
“One of the things we are doing is gathering that direct feedback, benchmarking it and tagging it so buyers and suppliers can see how they are performing,” Barnett said, adding that information can identify areas of improvement.
The second set of data going into the ClientLoyalty system is on key performance indicators (KPIs). Barnet said both the suppliers and buyers can track and share their KPI data, making it visible to one another. KPIs, and specifically how suppliers were measuring them, seemed to be a common issue brought up in discussions ClientLoyalty had with dozens of companies before launching its beta version. It was clear there should be more visibility into how buyers and suppliers are measuring and tracking their own performance.
The third set of data on the social sentiment is gathered by the ClientLoyalty team, which mines news and social sites to get a feel for the reputation of a supplier. This information can serve as a risk management tool for buyers, Barnett pointed out.
The three data sets are used create what Barnett called the experience score, the performance score and the reputation score. The separate scores are then combined through the ClientLoyalty algorithm, based on the net promoter system, to determine an overall loyalty score for an organization — information Barnett said enables buyers and suppliers to see how they are performing and how they can improve or even innovate how they are doing business or maintaining relationships.
ClientLoyalty serves both buyers and clients. On the supplier side, ClientLoyalty aims to help suppliers manage performance outcomes, achieve better client satisfaction and engagement and a higher client retention rate. For buyers, ClientLoyalty said its software can reduce risk, help avoid switching costs, create data-driven transparent, accountable performance and spark improvements and innovation.
Beside launching the full software service in the second quarter of 2016, Barnett already sees areas of opportunity for future growth. Initially, ClientLoyalty was geared toward a buying organization’s internal, existing supplier base. But as the benchmarking and external database grows, Barnett said, the software can become a great sourcing tool for buying organizations and open them up to a larger supplier selection.