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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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