AMA Customer Experience Workshop: Optimizing the Customer Experience

Propr ietary & Confiden0al

brandgrowthstrategy

OptimizingtheCustomerExperienceTutorialworkshoppreparedforandfacilitatedonbehalfof:

AmericanMarketingAssociation2014AnnualConference,InspiredMarketing

MichaelMillion

mmillion@fullsurge.com

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Youvegottostartwiththecustomerexperienceandworkbacktowardthetechnologynottheotherwayaround

SteveJobs

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Weseeourcustomersasinvitedgueststoaparty,andwearethehostsItsourjobeverydaytomakeeveryimportantaspectofthecustomerexperiencealittlebitbetter

JeffBezos

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Starbucksspentlessthan$10MMonadvertisingfrom1987to1998yetaddedover2,000newstorestoaccommodategrowingsalesStarbucks'popularityisbasedontheexperiencethatdroveitscustomerstohighlyrecommendtheirstoretofriendsandfamily

HowardShcultz

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AtrioofanthropologistsrecentlypublishedanarticlebasedonobservationsatthreeindependentlyownedcoffeeshopsandthreeStarbuckslocationsaroundBoston.TheirintentionwastodeterminehoweffectivelyStarbucksareabletoprovidethesamecommunity-basedsocialenvironmentassociatedwithtraditionalcoffeeshops.

HowStarbucksdrivesloyalty-astudyincustomerexperience

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ThebiggestsurprisewasthatStarbucksactuallyprovidedamorewelcomingenvironmentthananyofthethreelocalcoffeehouses.TheycreditedoneStarbuckswithhavingthemostvibrantsenseofcommunity,andobservedthatthebaristasthereknewmanypatronsbynameandcouldanticipatetheirorders.TheanthropologistsalsonotedthattheStarbucksbaristaswerefriendliertonewcustomersthanthebespokehipstersbehindthecounteratthelocalplaces.

Sameeverywhere,butwestillmakeyoufeelspecial

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WarmupExercise 15

FoundationalTerms&FocusforToday 15

Inspirations&Examples 15

MethodologyAppliedtoaCase 30

Break-outs&Report-backs 45

Conclusions

Agenda

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Whataresomeofexamplesofgreatcustomerexperiences?

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Whatmakesthemsogreat?

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Wheredoescustomerexperiencesitinyourcompany?

Howmuchofapriorityisit?

Howisitviewedintheorganization?

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Wheredoescustomerexperiencesitinyourcompany?

Whosresponsibilityisit?

Howisitmanaged?

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WarmupExercise 15

FoundationalTerms&FocusforToday 15

Inspirations&Examples 15

MethodologyAppliedtoaCase 30

Break-outs&Report-backs 45

Conclusions

Agenda

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Whatiscustomerexperience?

CumulativeImpactDefinition

Multipletouchpointsovertime,whichresultinarealrelationshipfeeling,orlackofit.

-Wikipedia

Asetofexpressions,impressions,andinteractionsbetweenacustomerandcompanythatresultincertainperceptionsofthatcompanythat,inturn,drivesometypeofactioninthenearorlonglong-term

-M.Million

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Whatiscustomerexperience?

DistinctEconomicOfferDefinition

Apersonalandmemorableexperiencethatcreatesadistincteconomicofferdifferentfromthegoodssoldandservicesdelivered

Acompany'sabilitytodeliveranexperiencethatsetsitapartintheeyesofitscustomersservestoincreasetheamountofconsumerspendingwiththecompanyand,optimally,inspireloyaltytoitsbrand

-PineandGilmore,ExperienceEconomy

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Whatiscustomerexperience?

PsychologicalUnderpinningDefinition

Aninteractionbetweenanorganizationandacustomerasperceivedthroughthecustomersconsciousandsubconscious

Ablendofanorganizationsrationalperformance,thesensesstimulatedandtheemotionsevokedandintuitivelymeasuredagainstcustomerexpectationsacrossallmomentsofcontact

Notjustabouttherationalwhatbutalsoabouttheemotionalhow

Morethan50%issubconscious,orhowacustomerfeels

Factorssuchastheemotional,cultural,social,andphysicalaspectsareoftenover-looked

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Differentapproachestowardcustomerexperience

Likesegmentation,therightapproachdependsonknowingspecificallywhatthebusinesschallengesareandobjectivesyouseek

Financialhowdowesqueezecostsoutofthesystem,getcustomerstopaymore(e.g.airlineschargingforpillows),orexpeditetransactions(pathtopurchase)?

Operationalhowdowestreamlineoperationstomakeitmoreefficientfromendtoend(e.g.processreengineering)?

Technicalhowdoweenablethesystemtobemoreproductive,manageable,andinterconnected(digitalenablement)?

InternallyOriented ExternallyOriented Functionalpathhowdowemake

customersjourneyseasy,informative,andhelpfulthroughout?

Emotionalpathhowdoweaddresscustomerschangingpsychologicaloremotionalneedsastheirdecision-makingevolves(e.g.decisionanxiety,confusion,frustration,boredom)?

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AnargumentforaBrandExperienceApproachTheworldisgrowingincreasinglycomplexandfast-paced

Weareinundatedbymoreandmoremarketingmessages(andyet,wedonttrustthemanymorethanweusedto)

Technologyimprovementsareenablingmoreandmorecompaniestogetthebasicsright(e.g.convenience,reducedwaittimes)

Copyingisbecomingincreasinglyeasysamenessofmoreandmoreproductsandservices/makingdifferentiationevermoredifficult

Brandexperienceswilldrivetomorrowssuccessandallowcompaniestostandout(products,services,andevengoodexperiencesarentenoughanymore)

Welookforandvaluewhatispersonallymeaningfultous-experienceswehavewithcompaniesseemtomattermore

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So,whatisaBrandExperience?Interactionssoimpactfulanduniquelyidentifiabletoaparticularcompany,thattheydefinethebrandincustomersminds,distinguishthecompanyfarandawayfromitscompetitors,andhaveahighinfluenceonfuturebehaviors

Nordstrom'ssalesrepresentativesgoingaboveandbeyond

Tumislifelongrepairpolicy

ApplesGeniusBar

Uberspaymentsystem

Others????

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BenefitsofaBrandExperience

AccordingtostudiesbyMcKinsey,brandexperiencesarethemostpowerfulformofwordofmouthdrivingactivity-accountingfor50to80percentinanygivenproductcategory.Brandexperienceisinherentlysocial,it'sbuiltonideasthatpeoplewanttospendtimewithandthatpeoplewanttoshare.

50%to80%ofwordofmouth-drivenbybrandexperience

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BenefitsofaBrandExperience

70%ofconsumerstrustbrandrecommendationsfromfriends,butonly10%trustadvertising.UKEnergysupplier,E.ONdevelopedEONOpenHouse,astoreinNottingham,UKthateducateslocalcustomersaboutsmartmeters,whicharebeingfittedforfreeacrossNottingham.Theprojectprovesthepowerofbrandexperiencebydeliveringpositiveadvocacywhentraditionalmethodshadpreviouslyfailedthebrand;NetPromoterScoresof+88%vs.E.ONCustomerscontrolof-17.7%.

-TheGuardian

70%trustbrand

recommendationsfromfriends

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BenefitsofaBrandExperience

TheKellerFayGroupresearchshowsthatgoodbrandexperiencesarethreetimesmorelikelytosparkconversationsthananad.Furthermore,over50%ofconversationstriggeredbyanin-personexperienceaccountforpassalongandpurchase.

>50%Accountforpassalong

andpurchase

3XMorelikelytosparkconversationsthan

advertising

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IdontwanttobesoldtowhenIwalkintoastore.Thejobistobeabrilliantbrandambassador.Dontsell!No!Becausethatsaturn-off.Buildanamazingbrandexperience,andthenitwilljustnaturallyhappen.

AngelaAhrendt

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Agreatbrandexperienceisaboutknowingandinterpreting

Knowthyself(inside-out)

Whoyouare

Whereyouregoing

Whatyourbrandstandsfor

Knowthycustomer(outside-in)

Whotheyare

Whatsmostimportanttothem

Whattheirjourneyislike

InterpretInterpret BrandExperience

WHATcanwedoforcustomersthatmakestheirjourneybetter

HOWcanwedoitinawaythatisuniquelyus

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Greatbrandexperienceshavesixthingsincommon

1. Brandfirst,transactsecond

2. Distinguishescustomertypes

3. Focusesonwhatmattersmost

4. Makespeoplefeelspecialinsomeway,atsomepoint

5. Designsforcontinuityandintent(acrosschannels,platforms,andpathtopurchase)

6. Measures,manages,andcontinuouslyimproves

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WarmupExercise 15

FoundationalTerms&FocusforToday 15

Inspirations&Examples 15

MethodologyAppliedtoaCase 30

Break-outs&Report-backs 45

Conclusions

Agenda

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VIDEO

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