Post on 28-Jan-2015
description
Session 4: Service as an Experience
1.Intense competition2.Customers have too many choices3.Customers are relatively immune to marketing communications4. Internet is the terrorist weapon
5. Only Very Satisfied
customers are Loyal!
New Business Landscape
The Experience Economy
The Progression of Economic Value
Growing and feeding
MakeGoods
DeliverServices
StageExperiences
Differentiated
UndifferentiatedPricingMarket Premium
Competitive Position
Relevant to
Needs ofCustomers
Irrelevant to
Value-addedDifferentiation
“as goods”
36 bahts per kg
1. CommoditiesSupply chain optimization
1200 baths per kg
2. GoodsQuality
4800 baths per kg
3. ServicesConsistency
4.ExperiencesOrchestration
9800 baths per kg
Customer Experience is the NEW source of
competitive advantage!
Experiences are as distinct from services as
services are from goods Tom Peters
Experiential Marketing Vs.
Service Experience
Goods that are consumed!
Short-single
Sensory
R&D +Factory
Marketing +Engineers
High control on Customer Experience
Goods that are used!
Single-influenced by learning process
Sensory + users experience
R&D +Factory
Marketing + engineers + designers
High / medium
Services as ExperienceMany (blocks of experiences), last longer
Sensory + users experience + social experience
Not in a factory but in a branch, store, at home…
Collaborative work (all business functions involved)
Low Control
The customer experience champions?
Singapore Airlines
Dell and Microsoft are trying very hard…
The CUSTOMER EXPERIENCEIs how do customers perceive their
INTERACTIONS with a COMPANY
Experience Key Drivers
1. Service Product2. Processes3. People4. Technology5. Environment
Mkg Communications
Marketing Mix
Product Price Place Promotion
The Marketing Mix is Dead
The Meaning of Experience
An event or occurrence which leaves an impression on someone. Oxford Dictionary
Cannot Not have an
Experience!
Experience Experience as a story
Sub-consciousness(set of activities as routines)
Storytelling (Meanings are created by story telling.This is the subjective aspects of an experienceMaking a personal story)
Cognition(require to thinkabout what we are doing)
Narrative(Stop thinking about The experience is formalized in the user’s head)
Meaning
Framework to Understand Customer Experience
Source: J Forlizzi & S Ford 2000
What Experience (as a verb) means?
Creating
WOW!Kensei
Having multiple Experiencesduring a customer journey
To talk aboutexperience as a story
Experience is personal, felt only by the person who has the experience!
It’s the onlysource of emotions
Why to focus on Experience?
Differences between advertising & services experience emotional responses(Cheedar cheese ads vs M Douglas Falling Down movie)
70% of Customer Loyalty is Emotional!
Bill Bernback. DDB Founder
Emotionalbond are
difficult to build
and easy to break!
How emotions are evoked during service interaction
The Emotion Process
1. Emotions have an object...the experience
2. Emotions arise from highly positive or strongly negative appraisal
3. Emotions are associate with automatic physiological activity experienced as feelings. No feelings no emotions…
4. Emotions give rise to a tendency to action
5. Emotions express themselves in involuntary facial display and physiological expression like body posture
Emotion is
always the result of an event that is relevant to the consumer
How customers evaluate an experience?
Enjoyable
Easy to use (usability)
Meets the needs (usability)
Make it fun
Make it intuitive.Quick & easy
Listen & Act
Objectives
Attributes Key actions
Integrate pleasuresthat resonate
Reduce customers efforts during interactions
Deliver what customer needs
Measurements
How much effort do you personally have to put forth to handle your request
Thinking about your recent interactions with this firm, how effective were they at meeting your needs?
Thinking about your recent interactions with this firm, how enjoyable were the interactions?
How customers evaluate a service experience
Likelihood to recommend
Reluctance to switch
Willingness to buy more
Correlation between C. Ex and C. LoyaltyCorrelation between C. Exp and attributes
Enjoyable
Easy
Useful
Wireless Post-paid Service Providers in Thailand
Pleasure Vs
displeasure.
Pleasure
Pleasant Feelings
HappinessJoyLoveSurprise RelaxTrustPrideThrilledOk
Sensory pleasures
Psycho-pleasures
The Flow. A Virtual Pleasure
Challenge
Enjoyable
Boredom
Frustration
Flow
Online Pleasures
Intellectual & Ideo-pleasures
Socio-pleasures
Flight mood. Business talk. Easy Chat. Relax.Work
The World’s First Airline Social Seating System
Displeasure
Unpleasant Feelings
AngerRageDisgustContemptFearEmbarrassmentShameDisappointmentSadnessBoredom
Pleasures tend to quickly fall off. Pains usually stick in our brain
A feeling of control orsubmissiveness
How does emotion affects customers?
It depends of its intensity (relevance of the event) and customer control
Emotions influence brand image
Emotions strengthen or destroy customers relationships with a brand
PainsNegativeRejection
NeutralRoutine
PleasuresPositive
WOW
Terrorists Commodity Ready to leave
Type of Customer Experiences
Promoters
How could we listen to customers and deliver what they want ?
What are touch points relevant for customers?
Could we reduce customer efforts? Could we remove all pains?What pleasures to integrate into a
company touch-points? What these touch-points should evoke for
the brand?
Creating a Customer Experience Centric Culture
Managers must understand howtheir decisions affectcustomer’
Emotions!
5 Things to remember about Customer
Experience?
1. An emotional response2. Across multiple touch points3. Are perceived distinctly by different
individuals4. A combination of routine, pains and
pleasures….5. Drive customer retention and
profitability more than satisfaction!
Thank You