Is your marketing creating an ‘Expectation Debt’, and are your competitors now responsible for your customer's experience? Customer Experience has taken great leaps forward as brands embrace the truth that good customer experience costs less than bad customer experience. However, for most businesses customer trust is eroded as expectations of experience fail to match the reality, forcing them to face their own ‘negative experience equity’.

1. What’s Next:
The Great Customer
Expectation Gap
How Brands Avoid Negative Experience Equity
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2. Welcome
José Arteaga
Creative Digital Strategist
Ogilvy Consulting
Dickon Laws
Head of Experience Design
Ogilvy UK
Lau Moyano
Experience Strategy Director
Ogilvy UK

3. Tell us
where you
are dialing
in from!
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5. A Brief History of
Economic Progress
The Great Expectation Gap
Experience Debt
& Negative Experience Equity
5
The 5 Drivers Of The
Expectation Gap
Negative Bias
& Peak End Rule
CX Audit
& Other Services
Today

6. Good Customer Experience
Costs Less Than
Bad Customer Experience
Consumers Place More Value
in Satisfying Experiences
Than Satisfying Products
Remixing Two Established Truths

7. March 8, 2019
A Brief
Birthday Cake History
of Economic Progress*
*Borrowed from B. Joseph Fines and James H Gilmore, first published in Harvard Business Review in 1998
Experience
Economy
Mum/Dad outsource the entire
experience to the Soft Play centre (who
include a Cake!)
Service Economy
Mum/Dad order the cake to be delivered
from the store
Goods Economy
Mum/Dad buy a cake mix from the store
(God bless Betty Crocker!)
Commodity Economy
Mum / Dad make birthday cakes from
scratch (flour, sugar, butter, eggs)

8. When in reality business is ok with here
26%
Employees who think their
business fails to delivers on
its brand promise
[Forbes]
Precedence brings customers here
Brand promise makes customers believe they are here
The Experience Scale
Meaningful
Pleasurable
Convenient
Satisfactory
Below average
Frustrating
Unquestioned
Habitual
Belief
Benefit of Doubt
Skepticism
Pessimism
The Trust Scale
In The Experience Economy
The Promise and The Precedence Are Everything
The
Expectation
Gap

9. 9
The Expectation Gap
The distance between a
customers expectation of a product or service
and the reality of experiencing it

10. Source: Edelman Trust Barometer 2018
-1%
+7%
Global Trust Index
remains at distrust level
20 of 26 markets are distrusters,
up +1 from 2017
-9%
The Trust Crisis is Making The Task of Building Brands and
Reducing the Expectation Gap Even More Challenging

11. Source: Prophet Relevant Brands 2018
Top 10 Brand In The UK
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
2016 2018Those Brands That Remain
Indispensable and Relevant
Continue to Dominate
The Experience Economy

12. Source: Prophet Relevant Brands 2018
Top 10 Brand In The UK
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
2016 2018Those Brands That Remain
Indispensable and Relevant
Continue to Dominate
The Experience Economy

13. March 8, 2019
Negative
Experience
Equity
Expectation
Debt
A
The Expectation Gap
B
Expectation
Brand Promise
to Customer
Customer
Experience
Reality
Under Deliver
Over-Promise
Minimum
Expectation
“The last, best experience that anyone
has anywhere becomes the minimum
expectation for the experiences they
want everywhere.”
Best Experience
The Cost of Missing the Landing of Your
Customers Expectations

14. DEMONSTRATORS DEBTORS DISRUPTORS

15. What ‘Expectation Debt’
does a brand owe you?
15
ASK THE AUDIENCE TIME
ANSWERS IN THE CHAT!

16. March 8, 2019
The 5 Drivers Of The
Expectation Gap
5 Human Centred Design
Business goals to customer needs ratio is
unbalanced
From
70:30
To
50:50
4 Internal Integration
No cross-functional collaboration &
information sharing
3 Business Integration
Your business strategy & technology
misaligned or lack of investment
2
The Brand Promise ‘Over-Juicing’ your creative
communications work
1
Customers Experience
Precedence
Your culture not changing as fast as your external
environment and customer expectations

17. 17
Lau Moyano
Experience Strategy Director
Ogilvy UK
Over to Lau…

18. March 8, 2019
Negative
Experience
Equity
Expectation
Debt
A
The Expectation Gap
B
Expectation
Brand Promise
to Customer
Customer
Experience
Reality
Under Deliver
Over-Promise
Minimum
Expectation
“The last, best experience that anyone
has anywhere becomes the minimum
expectation for the experiences they
want everywhere.”
Best Experience
Two Key Behavioural Bias That Can
Help Bridge The Expectation Gap
Negative
Bias
Peak-End
Rule

19. NEGATIVE BIAS
WHAT IT MEANS
Humans subconsciously place more significance
on negative events than positive ones, affecting
behaviour and cognition. A common balance of
positive to negative is for humans and found that it
is consistently 5:1*
STEP
1

20. Counteracting negative
bias by finding and
removing pain-points
STEP 1
Covering all touchpoint to understand…
• Expectations
• Precedences
• Friction points

21. PEAK-END RULE
STEP
2
WHAT IT MEANS
We judge our experiences almost entirely on how
they were at their peak (high or low) and how they
ended, regardless of the quality of the experience.

22. 22
The “wow” factor of
an experience
The “longevity” factor
of an experience
Leverage the ‘Peak End Rule’ to design experiences that will
improve the overall perception
STEP 2
• What is the duration of the impact of this feature?
• How memorable is the intervention?
• Can I use it multiple times?
• Does it grow or improve over time?
• Does it open new possibilities in future?
• Does it exceed expectations?
• Is it novel for the customer?
• Is it novel within the category?
• Is the idea something expected or surprising?
• How personal / relevant does it feel?
PEAK-END RULE

23. 23
The “wow” factor of
an experience
The “longevity” factor
of an experience
This can help throughout the CX design process
STEP 2
• What is the duration of the impact of this feature?
• How memorable is the intervention?
• Can I use it multiple times?
• Does it grow or improve over time?
• Does it open new possibilities in future?
• Does it exceed expectations?
• Is it novel for the customer?
• Is it novel within the category?
• Is the idea something expected or surprising?
• How personal / relevant does it feel?
Discovery
Synthesis
Ideation
Measurement

24. March 8, 2019 24
And can help balance a business view with
a customer-centric view
Impact
Effort
Peak (“Wow effect”)
End
(“Longevity”)
+

25. Support from Ogilvy
Consulting to help brands
bridge the expectation gap
A PROVEN FRAMEWORK AND
METHODOLOGY THAT EVALUATES OVER A
100 DATA POINTS, APPLIED AT EVERY
STAGE OF THE DESIGN PROCESS, TO HELP
BRANDS;
• Diagnose what key forces are driving the
expectation gap
• Highlight relevant friction points and expectations
of our consumers
• Design experiences that will prevent negative bias
and exceed expectations
• Create a development roadmap that drives
organisational change, balancing business needs
with a consumer-centric view
Ogilvy Consulting
CX Audit

26. A Brief History of Economic Progress
The Great Expectation Gap
Experience Debt
& Negative Experience Equity
26
The 5 Drivers Of The Expectation Gap
Negative Bias & Peak End Rule
CX Audit & Other Services
In Summary
Consumers Place More Value in Satisfying
Experiences Than Satisfying Products
Your Competition Is Now Responsible for Your
Customers Experience
Aim To Balance the Promise & The Precedence
Don’t Let Your Customers and Your
Culture Drop You in it
Leverage the ‘Peak End Rule’ to design experiences
that will improve the overall perception
Unashamedly….We can help!

27. Questions?

28. Thank you.