8. CUSTOMER EXPERIENCE IS MORE...
More than mint, create value, money, CE = beyond sat > sust differentiation, DEFS 8
9. DEFINITIONS
Customer Experience is
everything a business does
for and to its customers—
and how it makes them feel.
Transaction = physical, experience = emotion, why important = preference 9
10. DEFINITIONS
All things being equal,
customers buy from the
company with the better
experience.
Why don’t more businesses do this? Like you. 10
11. DID YOU KNOW...
80% of companies
think they offer their
customers a great
experience.
Only 8% of their
customers agree!
Bain & Co., 2005
Choice = figure it out or do something about it, the value is in closing the gap 11
12. DID YOU KNOW...
91% of Americans
consider the level of
customer service
important.
Only 24% believe
they get the service
they deserve!
AMEX, 2010
Why is the gap between customers and companies so enormous? 12
13. WHY THE HUGE GAPS?
Customers want more service.
Companies want more profit.
But
Most customers don’t want to pay more.
Most companies don’t want to give more.
There is hope, proof, just change perspectives-and quadrants 13
14. CHANGE QUADRANTS
Premium
Emergency
Brands +
Purchases
Cash Cows
Value
Commodities Today’s
w/o Service “Sweet Spot”
Cost
Race from top right to lower right, new biz designs, less manip, more value create 14
15. FIND YOUR HAPPY POINT
Make business best at what customers want most = sustainable advantage 15
16. IT’S ALL ABOUT DESIGN
Design for customers, employees, and sponsors/shareholders, design twice 16
17. DESIGN FOR CUSTOMERS FIRST
International USA + Atlanta
CE purpose/design, everyone gets more, focused to create value, R+E, examples 17
26. MARKETING BEGINS AT THE ‘END’
BAB gets three relationships, store = factory, customers = labor, no sales
27. HOW DOES CE WORK?
Great experiences
breed great stories.
Great stories bring in
new customers.
CE is the birthplace of word-of-mouth, make and keep the right promises 26
28. WISDOM
No summary, my 10 years, design is the best tool for finding the best solution(s) 27
29. WISDOM
• Set a clear context for value creation (tools to
help you make--and keep--the right promises)
• Inside-out for existing, outside-in for new
• Behind every great experience brand is an
adaptive enterprise
• Every great customer experience first requires a
great employee experience
• Never let your business processes dictate your
customer’s experience
• Always design for adoption
• You can’t buy loyalty
No summary, my 10 years, design is the best tool for finding the best solution(s) 27
30. REMEMBER
No matter how much
you spend or how
hard you try,
your brand
can never
be any better
than what your
customers
experience!
Thanks, Q&A 28
31. ABOUT Mike Wittenstein
Thank You!
Based in Atlanta, Mike works globally. Q&A
770.425.9830 - v
404.229.5809 - m
mike@MikeWittenstein.com
www.MikeWittenstein.com
www.Storyminers.com
www.Twitter.com/MikeWittenstein
www.LinkedIn.com/in/MikeWittenstein
29
Notas do Editor
“The Best Experiences in the World and What Makes Them Work” will highlight several of the world’s most interesting, effective, and profitable experiences. You will discover why the experience connects with customers so well, how it keeps employees engaged, and how the brand and the business work seamlessly. After all, looking at operations differently—from the customer’s point of view—yields a better experience and a better bottom line. In this session, you won’t get too much theory. You will get details, how-tos, and strategic insights in a format you can apply to your own businesses. By dissecting The Best Experiences in the World, you will learn how the best companies deliver the most value to customers. Not just rationally or financially, but emotionally too. In each example, the presenter will point out the little differences in design and operations that lead to the big differences in loyalty, word of mouth, and competitive advantage. Attendees will get a checklist of big ideas with room to make notes during the presentation. \n\n/ISTLL212Q/ISTLL212Q SS/SU 12NOV10/1027Z 4RZGNO \n 1.WITTENSTEIN/MICHAELDAVIDMR \n 2 DL 072 L 06DEC 1 ATLJFK HK1 S 1225 1450 *1A/E* \n 3 TK 002 K 06DEC 1 JFKIST HK1 1 1645 0925+1 *1A/E* \n 4 TK 001 K 10DEC 5 ISTJFK HK1 I 1050 1445 *1A/E* \n 5 DL 073 L 10DEC 5 JFKATL HK1 3 1915 2210 *1A/E* \n 6 AP MODUS \n 7 AP SERPILS \n 8 TK TL12NOV/ISTLL212Q \n 9 SSR+\n\nRB5DTS\n\nEbru Asal RAMIREZ\nContent Manager\n\nManagement Centre Turkiye\nSungurlar İş Merkezi\nYıldız Caddesi No. 45/5\n34353 Beşiktaş, İstanbul\n \n \n \nOffice\nDirect\nMobile\nFax\n: +90 (212) 310 17 00\n: +90 (212) 310 17 18\n: +90 (533) 682 24 38\n: +90 (212) 261 14 61\n \n \nearamirez@mct.com.tr\nwww.mct.com.tr.\n\n\nApple, location-based marketing, frame-breaking approach to retail, customer-focused, buying vs. selling (ARTICLE)\nMcDonald's, rethinking the business model, wireless ordering, shows how prototyping works\nBuild-a-Bear Workshop, teddy bear store where customers put together their own bears, innovative design\nBig Peach Running Company, gets to know its customers' feet, then fits the shoe (VIDEO)\nHard Rock Cafe, employee experience, culture (VIDEO)\nWingate Inns, experience design to set a new standard in technology-based service delivery\nDisney, value of story and back-end operational support\niPay Technologies, detailed experience design for B2B2C on-line bill pay company\nRainforest Cafe, environmentals, architecture, art of waiting\nInsperience, in-bound sales center for white goods (appliances)\n\n\n
Compilation with ken burns effect for each video\n\n
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Customer experience is about more than smiling when customers come into your store. It’s more than putting chocolate mints on your hotel guests’ pillows. The purposeful design of customer experiences is about creating value and making money. That’s why some of the best performing and most-loved brands in the world are using it. Today, I’m going to show you how customer experience can get you or your clients way beyond customer satisfaction. Using real-world examples, you’ll see how others have used their mystery shopping and traditional research findings to create sustainable competitive advantage for their brands--and make more money at the same time. Let’s start with some definitions.\n
Customer experience is everything a business does for and to its customers--and how it makes them feel. The difference between a transaction and an experience is this: Transactions meet the physical needs whereas experience go beyond that to also deliver on the emotional needs all customers want fulfilled. \n\nLet’s put that idea to the test and see if it holds up. How many of you believe you purchase things partly because of how they make you feel? [hands]\n\nWhat about theatre and movie tickets? Gifts for your children? Maybe a hot new sports car for you (really for the person you’re trying to impress)? All of these apparently routine purchases have emotional components to them.\n\nOK, so it looks like emotions do play a role in buying decisions. \n\n\n\n
All things being equal, customers buy from the company with the better experience. \n\nSo, why don’t more businesses emphasize customer experience?\n\n\n\n\n\n
80% of companies think they offer their customers a great customer experience. \nNol 8% of their customers agree!\n\nThis amazing fact was uncovered by Bain & Co., a large consulting firm, in 2005. For the most part, it’s still true today. As a business owner or operator yourself you may react to the 72% gap by blaming a third-party, by arguing the validity of the study, or by mentioning the things have gotten better in the last five years. Or, you may look at the gap in understanding between businesses and the customers they serve and see tremendous opportunity. There’s a lot of value to create and profit to take in closing that gap. \n\n\n
According to a recent study by American Express, 91% of Americans consider the level of customer service important. Only 24% believe they get the service they deserve. \n\nOw. Another statistic that hurts. Another big gap. \n\nWhy is the gap between what companies think is right and what customers think is right so large? Who is right? How do you close the gaps?\n
\n
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And, everyone in the business gets happy too.\n
And, everyone in the business gets happy too.\n
Companies that offer some of the world’s best experiences have figured it out. They create their customer and their employee experiences on purpose and by design so that everyone gets more of what they want. Each of these brands has developed a formula for profitably working with customers in ways that they find meaningful and valuable. That way includes both tangible and emotional outcomes. They know that what customers get and how they get it are equally important and they design their business processes to deliver maximum value for both.\n\nThese companies have stopped letting their business processes dictate their customer’s experience. They have taken accountability for how their customers feel. \n
With sales ready to surpass US$5000 per square foot (that’s almost €3900), Apple has become the worlds leading retailer. It’s been fascinating to watch the process from Apple’s very first store to the current formats which are several generations improved. Apple has successfully converted a great product design into a superior store experience that entertains, delights, and serves customers like no other. For example, when you first arrive at an Apple Store you’re met by a friendly employee wearing a T-shirt and a headset. Rather than just saying hello then pointing you to the center of the store, they engage you in a friendly and meaningful conversation about your objectives for the day. They ask questions, listen hard, and remember what you said. The interaction is truly authentic.\n\nIn other stores, the reader simply point to where you need to go but let you go there by yourself. At the Apple Store, the reader brings the resources that you need to you, introduces you, restates your objectives, goals, or issues, and provides a smooth handoff. The encounter eels like you’re being passed between friends at a party, not like you’re being pushed around by a sales clerk. That was the first thing Apple did to wow its customers. A\n
Inside the stores, Apple did something that American shoppers consider truly extraordinary. (Europeans have known about this for years.) They got rid of the big bulky cash register–in the long line that goes with it. Instead, employees are equipped with hand-held scanners that connect them via the stores wireless Internet to all critical applications, including checkout functions. The person you meet at Apple who helped you with your laptop or your software or your accessories, is the same one who makes sure that the product you take home is the best possible fit for you and is the same one to check you out.\n\nThis is another example of how a better experience can also achieve a triple bottom line benefit. Customers are thrilled with the one-on-one attention they receive, they are generally quicker to make up their minds from the expert guidance they receive from thoroughly trained consultants who actually use the company’s products, lines–and the cost of running them–are avoided, and transaction counts as well as average ticket prices are higher as a result. The employees feel engaged and connected to “they are” customers as profits rise. You only need to glance at the New York Stock Exchange price for Apple stock to see just how valuable this experience has become.\n
The third smart thing that Apple has done to improve its experience and reduce its costs at the same time and alleviate stress for its employees is to give customers access to their in-store systems through the Apple Store app, Apple customers are able to reserve time for personal or business shopping, get one-on-one training, get support for any of their Apple products. Apple is smart not to force customers to use the self-service tool. Rather, the company offers it as an alternative for those customers who prefer to do things themselves or who sometimes prefer the speed that these apps can offer.\n\nOne of the most important things about the Apple experience overall is that the products perform so well. Without a great product and without great employee use, you can’t have a great customer experience. \n
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Build a bear workshop is a teddy bear retailer now found in malls across the United States. Its concept is simple: let families make their own teddy bears just the way they want them with supervision in the stores. The result is been nothing short of phenomenal. Here’s the Build-a-Bear story.\n
The customer experience is different) start. When you walk in the store, instead of being greeted with shelves full of stuffed teddy bears, you face a rack of empty teddy bear shells. Honestly, they do look quite sad. The children quickly start to like one of them and get attached to it. Once the child (or the adult) experiment or shall we take it to a fluffing station. Here the store employee blows stuffing into the back of the bearer to fill it up. It comes to life in front of the child’s eyes.\n
Before the bear is sewn up and completed the child pixel heart makes a wish on it and put it inside the bear. That’s probably the highlight moment of the entire experience. It must be like putting the genie into a lamp. Once the Bears completely assembled, the young girl or boy picks close for it and it’s ready to go home.\n
The last step, is to name your bare and print out its birth certificate. Of course, to do that you have to enter your family information (with the permission of parents, of course). This is where the build of their marketing program truly begins. After all every bear has to have the latest fashions and every year every bear has a birthday. Every year each child has a birthday as well. The store has the opportunity to sell on multiple occasions on very invited basis.\n\nWas unique about the build of your design is that the store doubles as a factory in the customer’s double as laborers. Because the store carries no finished inventory per se, purchasing is 100% effective. Very few items go on sale as each pair is customized to the likes of each customer. The stock room is very small which saves money on real estate and the marketing is closed loop, relying primarily on referrals. Again, a low-cost high-value proposition.\n\n
Now I’d like to tell you why I believe customer experience design is worth its weight in gold and why it works so well for service businesses. If you understand what your customers want most and make your business the best at delivering it, your customer experiences will be better than your competition’s. Your customers will notice, remember, and then share them with their friends and colleagues-your new customers. As the experiences you give your customers get translated into stories for their friends, learn about your brand and what to expect from it. They begin to look forward to having an experience for themselves. This desire to have an experience that someone shared as a story only happens when an emotional connection is made. For example imagine you’re a 16-year-old boy on your first roller coaster ride. You wouldn’t say to your friends that the roller coaster to queue up at 27° incline for 46 seconds then released you through double spiral loop in a switchback–you’d say something like oh man. That ride was awesome! We went straight up–it seemed like we were going to the sky–and then we plummeted down. I swear I thought I was going to hit the ground then my feet skimmed through the water and made a splash I felt my stomach and my throat as we just did a triple loop on the way up to the next big drop. You have got to try this ride is so cool. You’ll notice from the second description that very few facts were passed along. The story was mostly made of a motion.\n\nIt’s the job of your experience to deliver the details and the clues for customers to discover on their own so that they can connect with your service your business and your brand. So that they have the details they need to turn the experience you give them until a compelling and authentic story. Do that and your customers will become your brand ambassadors.\n\nGiving more service is counter-intuitive to those who typically deal in products. Giving more service to your customers at the same cost point is how you make customers happier customers means happier shareholders. \n\nI believe that one of the biggest reasons for such huge gaps between what customers want and what the businesses who serve them deliver is that customers want more service while businesses want more profit. Neither is wrong for wanting what it does. However, the fact that it is possible to have both at the same time seems to elude many leaders. It is possible to deliver more and better service at lower cost. All it takes is a new design. A new customer experience design. By truly listening to what customers want the most, businesses can learn to deliver that outcome better. Rick is to not let existing processes get in the way of new kinds of value creation and delivery. For example, let’s look at checkout lines in retail stores. Customers don’t like to wait in them in retailers don’t like to pay for staff to be in them either. Maybe Taylor’s are using hand-held scanners that allow a single clerk to scan the items in the baskets of shoppers standing in several lines. The result is a labor, speed, and profit outcome. Customers get through the lines sooner, retailers pay less for the transaction throughput, and profits rise. That’s just one example of how a better design has a triple bottom line effect on customers, employees, and the business.\n\nCustomer experience includes what you get–and how you get it. What you get includes the services and products you contract for. Includes having your basic expectations met. It also includes a basic level of service. How you get what you want is what makes customer experience such a unique tool. The way you receive a service–the experience you get–is often the more valuable part of an exchange between you and a merchant or you and a supplier. The reason for that is that how you were treated determines how you feel. Customer experiences unlike simple service transactions generate feelings. These “emotional outcomes” are sought out by customers all the time but for years businesses have been blind to the opportunity to provide them to their customers.\n\nMost of us are used to paying to have our emotions affected. It happens when we buy a good book, go see a movie, watch a play, or attend the theater. We buy flowers for girlfriends when were young, jewelry for our wives when the older, and presence for our children–all with the objective of connecting at an emotional level. It’s the emotional side of things that we remember most–and that’s what experience design delivers so well.\n\nCustomer experience design connects the business with the brand. It shows us how to create many kinds of value for customers using our resources such as employee use and business capabilities. Customer experience design can also differentiate practically any brand. After all, all things being equal, people buy from the business with a better experience.\n\n----\n learned focus only on the tangible and the rational. are outdated. Outdated because they fail to consider feelings and emotions in the creation of value. \n\nExperience design takes these into account and makes the brand accountable for delivering them. \n\nCustomer experiences deliver the “what” you know, the service promised AND it delivers on the \n\n You can’t notice a customer experience by looking at it for just a minuteIt comprises each interaction at every touch point. From advertising and direct mail, to telephone calls, website visits, in person shopping, and credit card statements. Great customer experiences are built detail by detail, on purpose and by design. Every element of a great experience happens because it was carefully planned, coordinated, trained, and performed. For example, at a nice restaurant the host will notice the color of your pants or skirt and bring you the right color napkin so as not to leave lint on your clothes. Another example: the business class hotel you stay at each time you’re out of town remembers your pillow preference and has just the right softness and size waiting in your room. Part of the great experience happens when your dry cleaner replaces the loose button on your shirt without your even having to ask. Great experiences are made up of hundreds of small details that work in unison to give you the feeling of being properly cared for. \n\n\n\nAnother fact that astonished me came from this year’s American express study on customer service. The only meaningful conclusion I can draw is that American customers–perhaps customers in your countries as well–feel underserved. \n\nHearing customers say the words “I’m underserved” is music to my ears. Some people may translate that into a complaint and not consider it any further. The best practice among the world’s best experience brand leaders is to seize that understanding as an opportunity to distance themselves from their competitors by creating better customer experiences. Customers are always changing their minds. They are fickle. No business can escape their whims. The businesses that can rapidly adjust their service delivery processes and the emotional outcomes their experiences deliver are better off than those companies who decide to delay in responding or ignore the change altogether.\n\nIn my opinion, the best way to close this gap is to apply customer experience design. It’s a perspective and a design methodology that finds the best promise for the brand to make to its customers–and shows the business how to keep the promises it makes.\n\nCustomer experience design focuses on both the rational/tangible and the emotional/creative so that customers get more of what they want and you get more profit. Yes, you can have both! \n\nIt follows that your business needs to learn how to deliver experiences--not just products and services if you want to compete successfully. One of the big problems we all face right now is that many of the business processes, tools, and models we use are, well, kind of outdated. They’re outdated because they only consider the rational and tangible aspects of service delivery. You know, the things that can be directly and objectively measured. The business models and tools we use now come, from the most part, from our parents and grandparents. They teach us to optimize profits by taking out costs from the business model--especially from the service delivery systems. \n\nThat’s the exact opposite of what customers want. They want more service, better service, more options, all at a lower cost. But, how can a business deliver that? How can your business deliver that?\n\n