Research and Development. Burke's position as the premier educator of marketing research professionals has its roots in a culture of science and empiricism. As such, Burke's products and services are developed and continually refined through investments in Research and Development activities. Burke's overall framework for customer loyalty measurement is the product of one such large-scale R&D project.

Burke conducted longitudinal research in five industries, three of which included both business-to-consumer and business-to-business customers. Survey participants evaluated two companies from which they purchase on a variety of potential loyalty dimensions and category-relevant performance attributes. These customers also indicated the current share of category expenditures ("share of wallet") spent with that particular company. A subsequent wave of measurement involved determining whether these same respondents were still customers of the companies evaluated in the first measurement wave, and if so, the share of wallet allocated to the company at that later point in time. Linking loyalty measures to customers' share of wallets was instrumental in developing Burke's approach. Thus, Burke used data from this large-scale project to establish a measurement framework, in particular for measuring loyalty and identifying improvement initiatives to elevate customer loyalty in the future.

Secure Customer Index^®: Burke's Secure Customer Index^® has been a mainstay of the industry for over 15 years. This index serves as a leading indicator of downstream loyalty and other important outcomes related to the relationship between a customer and the company or brand. Derived through exploration of 16 different possible aspects of loyalty, such as quality perceptions, overall customer satisfaction, brand preference, and perceived value, five dimensions perform well as predictors of future share of wallet and therefore serve as inputs to the Secure Customer Index^®.

The survey responses on these five dimensions are combined to create a customer-level measure of loyalty, with scores ranging from 0 to 100 based on the customer's responses to the individual items. The Secure Customer Index^® for the company as a whole is the average Secure Customer Index^® across all customers.

The Secure Customer Index^® meets four key criteria for ensuring valid and actionable measurement of customer loyalty.

• Detecting degrees of customer loyalty: Customer loyalty is a continuum; it is not the case that a customer is either loyal or disloyal. Instead, customer loyalty is a matter of degree, and its measurement must enable detection of different levels or gradations of loyalty.
• Parsimony: Customers' time must be respected in measurement efforts; that is, customer surveys must be kept as short as possible. Requiring a multitude of survey items for overall loyalty measurement is therefore not advisable.
• Multidimensionality: Customer loyalty is complex. Numerous studies have shown that loyalty cannot be accurately represented by just overall satisfaction, or likelihood to recommend, or perceptions of value. In addition, one dimension of loyalty might be particularly determinant in one time period or for one product line, while another is more predictive of business outcomes in another context. Accordingly, a valid loyalty measure must include multiple dimensions.
• Linkage to customer outcomes: Organizations use survey research to measure customer loyalty as a leading indicator of future customer retention and other customer outcomes (e.g., frequency of purchase, dollars spent). Thus, a customer loyalty measure must be linked to these important outcomes in order to serve its core purpose.

While Burke's five-dimensional Secure Customer Index^® has been shown to perform well across a variety of industries and customer types, organizations serving particular industries or customer sets might enjoy even greater actionability from a customized version of Burke's index. Burke consultants work with organizations to ensure that the Secure Customer Index^® accommodates the specific dynamics of each client's industry.

Simpact^™: As customer loyalty is measured and monitored through comprehensive, well-designed research programs, Burke consultants also serve as advisors on how to allocate resources to improve the customer experience and ultimately customer loyalty. This process begins with an understanding of how improvements on different performance attributes would affect customer loyalty as measured by the Secure Customer Index^®. Burke's proprietary modeling approach allows simulation of the impact of performance increases and performance decrements on customer loyalty. Combined with examination of existing performance levels on various dimensions, Simpact^™ analyses produce recommendations that enable management to focus on the areas that really matter in achieving greater customer retention.

In summary, successful program design and implementation starts with a clear understanding of how management will use the insights gleaned from the program. With this action-oriented foundation, and a measurement and analysis framework established through Burke's R&D initiatives, Burke consultants design programs suited to individual organizational needs that are often identified through prior Blueprinting, Voice of the Customer Architecture Assessment, and Linkage Assessment. General program design issues include establishing appropriate sampling plans, selecting the best data collection methods, and identifying communication vehicles that maximize the distribution and use of the insights gleaned. As a trusted partner, Burke collaborates with organizations to ensure that measurement systems produce actionable recommendations that help clients to succeed.