AMA Customer Experience Workshop: Optimizing the Customer Experience

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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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