1. Customers are irrational:Stop fighting it!Colin ShawFounder and CEO,Beyond Philosophywww.beyondphilosophy.com@ColinShaw_CX #BeyPhil 2. Two countries separated by a common language Winston ChurchillBeyond Philosophy 2001-2012beyondphilosophy.com#BeyPhilAll rights reserved. 3. 85% of senior business leaders say that just differentiating on the rational is no longer sustainableSource: Marketing forum originalresearchBeyond Philosophy 2001-2012 beyondphilosophy.com #BeyPhilAll rights reserved. 4. Traditional way of looking at CustomersBeyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 5. The results of this viewwww.beyondphilosophy.com 5 6. Beyond Philosophy. 2001-2012 All rights reserved beyondphilosophy.com #BeyPhil 7. Beyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 8. Anticipating my needs?Beyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 9. ?Beyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 10. Beyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 11. Beyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 12. Beyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 13. The transactional experience transfers into social mediaBeyond Philosophy 2001-2012 beyondphilosophy.com#BeyPhilAll rights reserved. 14. Process or Experience? www.beyondphilosophy.com 15. Why do we design rational experiences when people are irrational?Beyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 16. Beyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 17. Beyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 18. beyondphilosophy.com #BeyPhil 19. Beyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 20. Label on strollerRemove child before folding Label on blanket Not to be used as protection from tornado. Instructions on pack of Peanuts: Open packet, eat nutsOrThis packet may contain nutsBeyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 21. Customer Experience definitionA Customer Experience is an interaction betweenan organization and a customer as perceived through a Customers conscious and subconsciousmind. It is a blend of an organizations rational performance, the senses stimulated and emotions evoked and intuitively measured against customer expectations across all moments of contact.Beyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 22. Rational and ConsciousEmotional and SubconsciousBeyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 23. The emotionalCustomer Experiencewww.beyondphilosophy.com 24. Beyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 25. Show me the money!Beyond Philosophy 2001-2012beyondphilosophy.com #BeyPhil 25All rights reserved. 26. Beyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 27. Credit card company www.beyondphilosophy.com 28. Emotional profile - the level of emotional engagementBeyond Philosophy 2001-2012beyondphilosophy.com#BeyPhilAll rights reserved. 29. Credit card company example 1 Getting a Card 2 Using my Card 3Servicing my Account4 Extending my Relationship 5 Having Financial Difficulty 6 Ending my RelationshipBeyond Philosophy 2001-2012beyondphilosophy.com#BeyPhilAll rights reserved. 30. Beyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 31. The subconsciousexperiencewww.beyondphilosophy.com 32. Beyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 33. Beyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 34. The key to unlock the Customer brainExperience Psychology beyondphilosophy.com #BeyPhil 35. Sometimes we dont know about the things that influence us, we just subconsciously perceive them 5:1 I am acting in a certain way, but not sure why..Beyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 36. Subconscious signals effect our behaviour and we dont know whyAttributes of the brand Speed Power Aggressiveness Risk-taking Professors S. Adam Brasel andJames Gips of the Boston CollegeCarroll School of ManagementBeyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 37. Beyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 38. Peak End Rule Prospect AsymmetricTheoryDominanceMemory Goals Experience PsychologyCognitiveSub goals DissonanceAmbienceMoodsBeyond Philosophy 2001-2012 beyondphilosophy.com#BeyPhilAll rights reserved. 39. Cognitive Dissonance Leon Festinger, American Social psychologist 1950s. A discomfort caused by holding conflicting cognitions simultaneously. In a state of dissonance, people may feel surprise, dread, guilt, anger, or embarrassment. The theory of cognitive dissonance in social psychology proposes that people have a motivational drive to reduce dissonance by altering existing cognitions or adding new ones to create consistencyBeyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 40. How we make decisions - what are the subconscious signals?Beyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 41. We reference our memory to give this experience meaningBeyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 42. Peak end rule Daniel KahnemamThe peak end rule states we judge our pastexperiences on how we felt about them, our peakemotions (positive or negative) and the endemotion. Irrelevant of how long the experiencelasted.Beyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 43. Goals and Sub goals Goals Ortony, Clore & Collins - 2007 Three aspects of the world to which people can react emotionally. People can react to events of concern to them, to the actions of those they consider responsible for such events, and to objects. What the customer seeks - the main objective of the experience Low-level goals are short range and in the service of higher-level goals which involve maintaining general well-being.Sub goals - Lazarus A series of smaller objectives with in the experience Emotion becomes the result of appraising events that promote or obstruct consumer well-being. Actual behaviour is a response to an emotional state in conjunction with the particular initiating event - Emotions and Adaptations, R. Lazarus, 1992Beyond Philosophy 2001-2012 beyondphilosophy.com #BeyPhilAll rights reserved. 44. Why did you sit whereyou did for thissession?www.beyondphilosophy.com 45. Prospect theory - Kahneman and Tversky - 1979 One of the foundations of Behaviour economicsIf a decision is taken to avoid a loss it will be a bolder moreaggressive, than one to achieve a gain.We want to hold onto the things we have, we are protective, wewant to keep our standard of living. We will gamble more to dothat than to INCREASE our standard of living.Kahneman: People hate losing more than they like winning bya factor or 2 or 3 - The emotional tail wags the rational dogBeyond Philosophy 2001-2012 beyondphilosophy.com #BeyPhilAll rights reserved. 46. Practical examples www.beyondphilosophy.com 47. Beyond Philosophy All rights reserved. 2001-2009 beyondphilosophy.com #BeyPhil 48. Beyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 49. What customers What drivessay they desire business value Beyond Philosophy. 2001-2011 All rights reserved beyondphilosophy.com#BeyPhil 50. Beyond Philosophy. 2001-2011 All rights reserved beyondphilosophy.com #BeyPhil 51. Middle East Telecommunications Company Product quality versus emotional engagementBeyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 52. Priority Order of the Attributes (Combined desirability and current value) Premium ConsumersDesired by Customer Effect on ValueTop Ten-0 +Beyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 53. Experience Psychology Understanding emotional state/mood Excited and anxious Recognition this is the end of the experience - Peak end rule Reinforce good decision Cognitive Dissonance Offered three different TVs Asymmetric Dominance Drivers dressed well, respectful tone, expert installer, Cloth wipe down - Milgram, Body Language Selling insurance for TV Prospect theory Memory of previous visitsBeyond Philosophy 2001-2012 beyondphilosophy.com #BeyPhilAll rights reserved. 54. Designing a new experienceBeyond Philosophy All rights reserved. 2001-2010 www.beyondphilosophy.com 55. Mapping the Credit Card Journey Getting the card Evaluation of offer No Recommended by a Web searchStill ExitApplicationWait for confirmation interested? Awarenessfriend/ direct mail Conversation with the agent Getting the card YesCross sold by an agent Yes Yes YesFill in enrollment forms Do you need Are you Are youNo or call Company your DD andDid you Receipt of call /just about aware of theReceipt ofPP supp cardsmiss it?e-mail to ?waiting time? No Welcome packBenefit 2 Partnerstransferred?confirmation Direct Debit NoYesNo Is it all clearCall to authoriseChase: Receiveto you i.e. YesCall to book /Receive someone to act Benefit 1Wait Benefit 1 & DD set uptickets Statement on my behalf Benefit 2 Benefit 2 Cardsetc? No Call XXX to checkCall Benefit 1 to ask Receive DD Download 3rd Call to chase the 2nd call to chase PA to call to status of Benefit 1about membershipcancellation party DD the DDbook on CMscardnumber letterauthorisationbehalfform online Wait 10 days forFill in & Acct 2nd call to2nd Call to XXX toSend signed Apply for aCall Benefit 1 to Receipt of a response fromDisclosure &authorisecheck status of PPform via post orsupplementarycheck status of cardSupp cardXXX via theAuthorisation someone to act card faxcard online post form on my behalfBeyond Philosophy 2001-2012 beyondphilosophy.com #BeyPhil55All rights reserved. 56. CognitiveExperience Psychology PointsDissonance Getting the cardEvaluation of offer No Recommended by aWeb searchStill ExitApplication Wait for confirmation interested? Awarenessfriend/ direct mailConversation with theagent Getting the cardYes CognitiveCross sold by an agentDissonance YesYes YesFill in enrollment forms Do you need Are you Are you No or call Company your DD and Did you Receipt of call /just about aware of the Receipt ofPP supp cards miss it?e-mail to ?waiting time?No Welcome packBenefit 2 Partnerstransferred? confirmation Peak EndDirect DebitProspect No RuleTheoryYesNoIs it all clearCall to authoriseChase: Receive to you i.e. YesCall to book / Receive someone to act Benefit 1Wait Benefit 1 &DD set upticketsStatement on my behalf Benefit 2 Benefit 2 Cards etc?No Call XXX to checkCall Benefit 1 to askReceive DD Download 3rdCall to chase the 2nd call to chase PA to call to status of Benefit 1about membership cancellation partyDD the DDbook on CMscardnumberletterauthorisation behalf form onlineWait 10 days forFill in & Acct 2nd call to2nd Call to XXX to Send signed Apply for aCall Benefit 1 to Receipt ofa response fromDisclosure &authorisecheck status of PP form via post orsupplementarycheck status of cardSupp card XXX via theAuthorisation someone to act cardfaxcard onlinepost form on my behalfBeyond Philosophy 2001-2012 beyondphilosophy.com#BeyPhilAll rights reserved. 57. CognitivePositive emotions pointsDissonance Getting the cardEvaluation of offer No Recommended by aWeb searchStill ExitApplication Wait for confirmation interested? Awarenessfriend/ direct mailConversation with theagent Getting the cardYes CognitiveCross sold by an agentDissonance YesYes YesFill in enrollment forms Do you need Are you Are you No or call Company your DD and Did you Receipt of call /just about aware of the Receipt ofPP supp cards miss it?e-mail to ?waiting time?No Welcome packBenefit 2 Partnerstransferred? confirmation Peak EndDirect DebitProspect No RuleTheoryYesNoIs it all clearCall to authoriseChase: Receive to you i.e. YesCall to book / Receive someone to act Benefit 1Wait Benefit 1 &DD set upticketsStatement on my behalf Benefit 2 Benefit 2 Cards etc?No Call XXX to checkCall Benefit 1 to askReceive DD Download 3rdCall to chase the 2nd call to chase PA to call to status of Benefit 1about membership cancellation partyDD the DDbook on CMscardnumberletterauthorisation behalf form onlineWait 10 days forFill in & Acct 2nd call to2nd Call to XXX to Send signed Apply for aCall Benefit 1 to Receipt ofa response fromDisclosure &authorisecheck status of PP form via post orsupplementarycheck status of cardSupp card XXX via theAuthorisation someone to act cardfaxcard onlinepost form on my behalfBeyond Philosophy 2001-2012 beyondphilosophy.com#BeyPhilAll rights reserved. 58. Cognitive Negative Emotion PointsDissonance Getting the cardEvaluation of offer No Recommended by aWeb searchStill ExitApplication Wait for confirmation interested?Awareness friend/ direct mailConversation with theagent Getting the cardYes CognitiveCross sold by an agentDissonance YesYes YesFill in enrollment forms Do you needAre youAre you No or call Company your DD and Did you Receipt of call / just aboutaware of the Receipt ofPP supp cards miss it?e-mailto ? waiting time?No Welcome packBenefit 2 Partnerstransferred? confirmation Peak EndDirect DebitProspectNo RuleTheory Yes NoIs it all clearCall to authorise Chase:Receive to you i.e. YesCall to book / Receive someone to act Benefit 1 Wait Benefit 1 &DD set upticketsStatement on my behalf Benefit 2Benefit 2 Cards etc?NoCall XXX to check Call Benefit 1 to askReceive DD Download 3rdCall to chase the 2nd call to chase PA to call tostatus of Benefit 1 about membership cancellation partyDD the DDbook on CMs card numberletterauthorisation behalf form onlineWait 10 days forFill in & Acct 2nd call to2nd Call to XXX to Send signed Apply for aCall Benefit 1 to Receipt ofa response fromDisclosure &authorisecheck status of PP form via post orsupplementarycheck status of cardSupp card XXX via theAuthorisation someone to act cardfaxcard onlinepost form on my behalf beyondphilosophy.com#BeyPhil 59. Mapping the To Be Journey Key = changes identified by BP that will improve the Customer JourneyGetting the cardEvaluation of offer No Recommended by a Web search StillExitApplication Wait for confirmation interested?Awarenessfriend Conversation with the agent timed out onlineCapture preference data i.e. Getting the card where do you normally to; Watch short video explaining nextYes Cross sold by an XXXwhere do you stay; do you steps (ie supp cards applications)agenthave any hobbies andand about the main benefits YesYesinterests?. Ask about 3rd Party Authorisation need.Fill in enrollment formsDo you needReceipt ofCall to Activate BenefitNo onlinecallcall XXXor or XXX your DD andWelcome packDid youReceipt of call / 2 Cards;Receipt of Receipt of PP supp cardswith Benefit 1miss it? e-mail NoWelcome packwelcome callBenefit 2 Partners transferred?and Benefit 2confirmationSet up Direct Debit Direct Debit cards includedLog in to seespecial offersIs it all clearCall XXX to Informed with the statement thatfeeling prestige to you i.e. Yes Call MTS/ toReceive fastauthoriseupon logging in to your MYCAReceiveand special DD set up book / ticketssomeone to act track vouchersaccount online you can see offersStatement thanks to XXXetc?on my behalfmade available specially for you. No Source of the problem i.e. reading the handwriting is Receive DDDownload 3rd Call ES found first contact resolutionchaseto chase the 2nd call toPA to call to Get a room eliminated. Chances ofcancellation reduced by at leastmistakes are party DD should be a priority area for XXXthe DD book on CMs letter50%. authorisationupgrade upon behalfform online arrivalNaive to Natural assessmentWait 10days for aWait 5 days for aApply for a Program system reminders in the accountnd call to XXX toFill in XXX & Acct2 of the rep who response from XXXshowed booking to i.e. havinghotel/rent-a-carSource of the need for the Customer a two someonemade the hotel/rent-a-carthe&problemchaseauthorise forms of supplementary cardDisclosure authorisation for different departments is eliminatedagency andExperience Ownership to preventvia the postvia e-mail onlineAuthorisation formupgrade 3 days prior to their secure the CMs to act on my behalf arrival siloed delivery of the serviceBeyond Philosophy 2001-2012beyondphilosophy.com #BeyPhil 59All rights reserved. 60. Moment Mapping Flow chart Before and after significant efficiencies gained. Before AfterBeyond Philosophy 2001-2012 beyondphilosophy.com#BeyPhilAll rights reserved. 61. Maersk Container Shipping Line Case StudyBeyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 62. Increase in Net promoter Score: As a result of its customer experience efforts, NPS has improved from -10 to +30 Increases shipping volume. Maersk correlated a 4 point increase in Net Promoter Scores with a 1% increase in additional volume shipped by customers. Training improves Net Promoter Scores in local regions. Maersk gave regional divisions the option of putting regional customer experience councils in place. The 55 regions that have set up local councils also received a three-day training course in customer experience improvement methods. The firm then did a study comparing regions with and without a council. The result: participating local offices score 10 points higher on their NPS than those offices that opted out.Beyond Philosophy 2001-2012 beyondphilosophy.com #BeyPhilAll rights reserved. 63. Beyond Philosophy 2001-2012beyondphilosophy.com #BeyPhilAll rights reserved. 64. Book signing at 3:00pmbeyondphilosophy.com@ColinShaw_CXBeyond Philosophy 2001-2012 beyondphilosophy.com #BeyPhilAll rights reserved.