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Measuring Customer Experiences<br />Vlerick Alumni – Marketing Informal – Jan 28th 2009<br />Christophe Vergult<br />

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It is not about measuring, but delivering the experience<br />Vlerick Alumni – Marketing Informal – Jan 28th 2009<br />Christophe Vergult<br />

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What makes/breaks a relationship ? <br />Get the story<br />Make research actionable<br />

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What makes/breaks a relationship ? <br />Get the story<br />Make research actionable<br />

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Touch point<br />experience<br />Relation-ship<br />Behavior<br />Financial value<br />The customer experience value chain<br />

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We believe in...<br />...meaningful<br />experiences<br />

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What they were looking for...<br />Risk reduction<br />

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What they arelooking for...<br />Experiences<br />

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Add example ‘progressive’<br />P93 ‘de onmisbaarheidsfactor’<br />It is not about the broken car, it is about the driver.<br />

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There is more than satisfaction<br />

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We believe in...<br />...meaningful<br />experiences<br />MEASURE<br />Beyond the basics<br />Emotions<br />

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We believe in...<br />...meaningful<br />experiences<br />... branded experiences<br />MEASURE<br />Beyond the basics<br />Emotions<br />

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What can we learn from Harley Davidson?<br />

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Customer experience management is about branding<br />“Retention is for wimps. We measure the percent of customers who have our name tattoed on one of their body parts.” (Harley Davidson Annual report)<br />

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BRAND IDENTIFICATION<br />No/Low brand identification<br />Brand Values<br />My values<br />High brand identification<br />

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BRAND IDENTIFICATION<br />?? Declining product quality + increasing prices = increasing subscriptions ??<br />It’s about ‘WE’<br />

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BRAND CONSISTENCY<br />Who do you want to be ?<br />Who are you ?<br />Your brand positioning<br />Your brand DNA<br />

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We believe in...<br />...meaningful<br />experiences<br />... branded experiences<br />MEASURE<br />MEASURE<br />Brand identification<br />Beyond the basics<br />Brand consistency<br />Emotions<br />

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We believe in...<br />...meaningful<br />experiences<br />... branded experiences<br />... the connected customer<br />MEASURE<br />MEASURE<br />Brand identification<br />Beyond the basics<br />Brand consistency<br />Emotions<br />

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Touch point<br />experience<br />Relation-ship<br />Behavior<br />Financial value<br />The customer experience value chain<br />

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2 customer experience value chains<br />Touch point<br />experience<br />Relation-ship<br />Behavior<br />Financial value<br />Individual value chain<br />Intention to buy again<br /> Touch point satisfaction<br />Buying behaviour<br /> Value on buying behaviour<br /><ul><li>DRIVERS > Which touch points drive conversations ?

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PARTICIPANTS > Who participates in the conversations ?

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CONTENT > What are the conversation about ?

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IMPACT > How do these conversations drive value ?</li></li></ul><li>2 customer experience value chains<br />Touch point<br />experience<br />Relation-ship<br />Behavior<br />Financial value<br />Individual value chain<br />Intention to buy again<br /> Touch point satisfaction<br />Buying behaviour<br /> Value on buying behaviour<br />Connected value chain<br />Acting on<br /> recommendation<br />Willingness to recommend <br />(NPS)<br />Touch point experience conversation<br />Referral value<br />

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0% repurchase<br />

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We believe in...<br />...meaningful<br />experiences<br />... branded experiences<br />... the connected customer<br />MEASURE<br />MEASURE<br />MEASURE<br />Intention to buy again<br />Brand identification<br />Beyond the basics<br />Brand consistency<br />Emotions<br />Willingness to recommend<br />

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Relationship Monitor by<br />

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About the Relationship Monitor <br />Understand the drivers of the customer experience value chain in service driven industries <br />Build a pan-European benchmark on customer experience<br />Validate customer experience research model<br />3 benchmarks<br />8 industries<br />8 countries<br />Countries<br />Industries<br />Companies<br />Financial<br />Automotive<br />Telecom <br />Airlines<br />Tour operators<br />Food retail <br />Furniture retail<br />Clothing retail<br /> <br />Netherlands<br />Belgium<br />UK<br />Germany<br />France<br />Sweden<br /> Spain <br />Romania<br />

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Time for a small quiz!<br />

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Which 3 companies have the highestNet Promoter Score ?<br />

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1<br />2<br />3<br />4<br />5<br />6<br />7<br />8<br />9<br />10<br />Net promotor score<br />“Have you, or would you recommend ‘Company X’ to your friends and family?”<br />(1 = “not to my worst enemy”; 10 = “to my dear grandmother”)<br />Pose question<br />Detractors<br />Neutral<br />Promoters<br />Group responses<br />Run calculation<br />(Number of promoters - Number of detractors) <br />Net promoter score _____________________________________<br /> Total respondents<br />

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Which 3 companies have the highest Net Promoter Score?<br />

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Which 3 companies have the highest Net Promoter Score?<br />1<br />2<br />3<br />

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What makes/breaks a relationship ?<br />Get the story<br />Make research actionable<br />

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Get the story<br />Go beyond the hard data - Start a survey with getting the story<br />Dare to rely on social media<br />

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What can we learn about touch point experiences via social media netnography?<br />

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1. Listen to what consumers tell each other<br />

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2. Get access to emotions and natural language<br />

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3.Profit from the large amount of existing information<br />

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4. Find hidden patterns through text analytics<br />

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Social media netnography on tripadvisor.com<br />23200 posts<br />

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Social media netnography on tripadvisor.comBuild understanding what 1 touch point is about<br />TAXES<br />I have looked up several of the low cost carriers, and they have such high taxes. For example, the round-trip ticket on BMI was 34 pounds, but the taxes made it an additional 52 pounds! How is this possible?<br />CHEAP TICKETS<br />…with the low cost airlines like Easy Jet, it can be as low as £15, ea way, but the prices vary, mid week is cheaper than weekends, no 2 days seem to be charged the same,<br />FUEL PRICE<br />I aksed this same question on the Tuscany forum a couple weeks ago. It seems that this is normal range for airfare to Italy! It also seems that with fuel prices rising, the prices are likely only to increase.<br />EARLY BOOKING<br />. If you can book in advance you can usually get a flight for about £40-£50, about $70-$80 I think<br />TRAVEL WITH CHILDREN<br />An infant is under 2 so you will have 45kg with a maximum of 15kg in each bag. Plus 10kg * 3 for carry-on.<br />

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Social media netnography on tripadvisor.comDefining touch points from consumer perspective<br />PRE FLIGHT<br />HAND LUGGAGE<br />CHECK-IN<br />LUGGAGE<br />UPGRADE<br />SECURITY<br />BOARDING<br />ID & VISA<br />FLIGHT<br />PLACE <br />SEAT<br />DURATION OF FLIGHT<br />ENTER<br />TAINMENT<br />DRINKS & FOODS<br />ROOM TO SIT<br />DIRECT<br /> FLIGHT<br />SAFETY<br />CREW<br />POST FLIGHT<br />DO NOT ARRIVE ON DESTINATION<br />IMMIGRATION<br />TRANSIT<br />CUSTOMS<br />

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Social media netnography on tripadvisor.comDefining touch points from consumer perspective<br />PRE FLIGHT<br />HAND LUGGAGE<br />420<br />CHECK-IN<br />409<br />LUGGAGE<br />1730<br />UPGRADE<br />361<br />SECURITY<br />227<br />BOARDING<br />155<br />ID & VISA<br />94<br />FLIGHT<br />PLACE <br />SEAT<br />499<br />DURATION OF FLIGHT<br />1561<br />ENTER<br />TAINMENT<br />484<br />DRINKS & FOODS<br />1150<br />ROOM TO SIT<br />808<br />DIRECT<br /> FLIGHT<br />156<br />SAFETY<br />258<br />CREW<br />828<br />POST FLIGHT<br />DO NOT ARRIVE ON DESTINATION<br />1988<br />CUSTOMS<br />82<br />IMMIGRATION<br />47<br />TRANSIT<br />63<br />

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Social media netnography on tripadvisor.comMake brand experience analyses<br />

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Get the story<br />Go beyond the hard data - Start a survey with getting the story<br />Rely on social media<br />Research becomes fusion research<br />

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What makes/breaks a relationship ?<br />Get the story<br />Make research actionable<br />

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Make research actionable <br />Don’t make flat what is not<br />Measure improvement suggestions<br />Integration of research into marketing/sales processes<br />

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Research is a brand experience as well<br />Branded survey experience<br />Short questionnaires<br />Give feedback - engage to improve<br />

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It is not about measuring, but delivering the experience<br />Vlerick Alumni – Marketing Informal – Jan 28th 2009<br />Christophe Vergult<br />