Experience marketing

Lea Ward, Director of Customer Experience, C•note

C note Customer driven results

Lecture for Masters Students, Vrije Universiteit Amsterdam January 2013

How to create ‘Experience Marketing’ that works

01 Introduction 02 What is ‘experience marketing’?

break 03 What works in experience marketing? 04 Measuring experience marketing

Agenda

#BUCKUP

01 INTRODUCTION

About C.Note

We design services and products that add meaning to daily life.

We do this by designing from the customer’s perspective.

C.Note designed the self-service transfer experience at Schiphol.

C.Note designed the customer experience for fashion brand and retailer Expresso.

from in-store to online

C.Note improves how senior citizens get in-home help in The Hague.

Why consider ‘experience marketing?’ The customer today is harder to reach than ever.

The social media report - Nielsen 2012

02 WHAT IS EXPERIENCE MARKETING?

An old concept with increasingly innovative execution

Santa Claus at Schiphol Airport, popping out of a moving Chirstmas Tree - 2102

QUIZ Is this Experience Marketing?

Albert Heijn supermarket App for grocery list and walking route through store

Lego Amusement theme parks in the US and Europe

Princess Traveller 2 free tickets with purchase of a luggage set

Expresso Loyal customer evening with make-up artist & styling advice

Coke Friendship Machine

You Tube

2 Cokes for the price of 1 if you can pay for it

Leading Golf Tournament in the Netherlands

Lady Gaga Pop-up store at Barneys

Pepsi Challenge You Tube

Private Banking Lecture series with Dutch thought leaders

Victoria’s Secret App Photo yourself with Wings & upload

Experience Marketing

²  Engages the customer, in a meaningful way ²  Outside the tradi8onal marke8ng path ²  O;en company sponsored ²  O;en a sensory component ²  Can take many forms

-‐ Big, small -‐ One event, ongoing -‐ Sales related, brand related

Brand / PR

Big ini8a8ve

Small ini8a8ve

can take many shapes

and sizes depending on

? © C.Note Consultants BV

Yes, because.. ü  Guides the customer in

orientation, starting at home through store, and in cooking (recipes)

ü  It adds value to the core shopping experience

No, because.. ü  Apps are now traditional

marketing…

ü  It’s an ordering channel

Brand / PR

Big ini8a8ve

Small ini8a8ve

Yes, because.. ü  It brings Lego to life

outside of the play room ü  It’s enormously engaging

No, because.. ü  It has become its own

business

Brand / PR

Big ini8a8ve

Small ini8a8ve

Princess Traveller 2 free tickets with purchase of a luggage set ?

Princess Traveller 2 free tickets with purchase of a luggage set

No, because.. ü  It’s a traditional sales

promotion

Brand / PR

Big ini8a8ve

Small ini8a8ve

Expresso Loyal customer evening with make-up artist & styling advice ?

Expresso Loyal customer evening with make-up artist & styling advice

Yes, because.. ü  It’s an additional event to

interact with the clothes above and beyond traditional marketing channels

Brand / PR

Big ini8a8ve

Small ini8a8ve

You Tube

2 Cokes for the price of 1 if you can pay for it

You Tube

2 Cokes for the price of 1 if you can pay for it Yes, because..

ü  It’s engaging and

meaningful ü  It’s a twist on the

traditional TV marketing

Brand / PR

Big ini8a8ve

Small ini8a8ve

Yes, because.. ü  When you fly, you play

golf..?

No, because.. ü  It’s too far away from

the actual customer journey

ü  It’s more sponsorship of sports

Brand / PR

Big ini8a8ve

Small ini8a8ve

Yes, because.. ü  It adds meaning to the

Lady Gaga musical experience

ü  It is outside traditional marketing of her music

No, because.. ü  It’s a line extension

Brand / PR

Big ini8a8ve

Small ini8a8ve

Yes, because.. ü  It engages customers to decide for

themselves what tastes best ü  While it was used in traditional

media, it was one of the first things that went outside and engage customers in a new way

Brand / PR

Big ini8a8ve

Small ini8a8ve

Yes, because.. ü  It adds meaning to the

customer journey ü  It is outside traditional

marketing

Brand / PR

Big ini8a8ve

Small ini8a8ve

Yes, because.. ü  It engages the

customer in doing something fun with the brand

No, because.. ü  It’s also a sales channel ü  It’s a traditional app

Brand / PR

Big ini8a8ve

Small ini8a8ve

What is Experience Marketing?

Engages the customer in a meaningful way outside of traditional approaches

03 WHAT MAKES “GOOD” EXPERIENCE MARKETING?

“Good” starts from with a definition

ü what’s the goal?

ü  for whom?

ü what does the customer want?

Expresso customer evening

Goal: For whom: What does customer want?

Extra sales, commitment “Dress me!” customers •  Total style solution •  Spoiling / me time •  Advice on body shape •  Confidence to wear

Experience Scan ™ Tool to evaluate customer experiences

Expresso customer evening

1. Does it work? Wants: •  Style solu8on •  Confidence •  Advice body shape

2. Understands me? An8cipates my ques8ons & situa8on

3. Wow! So special I will tell everyone

What’s the experience: Expresso customer styling evening Goal? Extra sales, committing loyal customers Who is it for: Loyalty card owners (> €500)

A+ A B C F Very OK Not so FAIL well well

+ 0 − YES! Neutral

Irritatingly

A Very well

Showed me how to look even better

+ 0 YES! Didn’t happen

Felt special, personal aVen8on

For some this might be a wow, to others not

0 Didn’t

happen

Coke friendship machine

Goal: For whom: What does the customer want?

Brand engagement Students

•  Want free stuff •  BoVle of Coke •  Fun with friends

Coke friendship machine

What’s the experience: Get 2 boVles of coke by joint efforts Goal? Extra sales, brand engagement Who is it for: Every customer in store, everyone online

A++ A B C F Very OK Not so FAIL well well

Irritatingly

A Very well

Direct fun en indirect engagement through social media

Funny, engaging

This you’lll post to FB

Victoria’s Secret app

Goal: For whom: What does the customer want?

More sales, brand engagement Teenage girls •  Be part of the brand •  Show off

Victoria’s Secret app

What’s the experience: Shopping app with ‘get your wings’ feature Goal? Extra onine sales, brand engagement Who is it for: Women

C- A B C F Very OK Not so FAIL well well

Irritatingly

C Not so

Lots of issues, bugs

Extremely slow, irrita8ng

− NOT

0 Didn’t

happen

EXERCISE ü  In pairs, explain your experience marke>ng idea

ü  Have your partner evaluate it: •  What grade would you give?

•  What would make it beVer?

Experience Scan ™

What’s the experience: ________________________________________ Goal? ________________________________________ Who is it for: ________________________________________

Grade? A B C F Very OK Not so FAIL well well

Irritatingly

“Good” starts out with definitions

ü  Clear definition of §  Goal §  Group §  needs

ü  A or B + evaluation

§  does it work §  does it understand customer situation §  wow

04 HOW TO MEASURE EXPERIENCE MARKETING?

Why measure?

ü  Effect vs. cost & 8me ?

ü  Effect vs : §  Other possible marke8ng investments? §  Similar experience marke8ng over 8me?

What you measure depends on your goals

If goal is primarily Brand / PR then

Measure Coke Traffic / exposure to experience

Direct (actual use/engagement in the event) ??

Indirect (you tube, tweets, etc)

Brand vs. control

Core brand values Happiness & Friendship up

Trust in company & brand Up

If goal is primarily direct Sales/ Loyalty then

Measure Expresso evening out

Direct (actual use/engagement in the event) 100-‐200

Measure vs. control

Sales ++

Net promoter score Up

Re-purchase intent Up

trust in company & brand Up

Remember the sales component. Fantastic windows at Lord & Taylors. Much traffic outside, but ….

No one in the store? Why not offer incentive at end of line to go inside?

Measuring

Why measure? §  vs. cost & effort §  vs. other marketing options §  vs. other experience marketing

What to measure?

§  for all, exposure & impact on brand/trust §  Otherwise, depends on goal

§  brand – brand values §  sales – financials, NPS

Great experience marketing over time

Instead of experience marketing, just

create a great experience

One final thought

Experience Marketing around a

coffee machine

Senseo -> great experience marketing

Experience Marketing around a

coffee machine

A total coffee

experience

Nespresso -> a great experience Senseo

Nespresso is so successful at creating the Starbucks café coffee experience, that now Starbucks has launched Verismo, a Nespresso-like machine for at-home use.

Blog www.buildingtrustequity.com TrustEquity

@Learw

C·Note Consultants BV Jacob Obrechtstraat 20 I Amsterdam www.cnote.nl lea@cnote.nl

C note Customer driven results

Thank you and good luck.

Experience marketing

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