service experience summit shanghai 2014 stefan moritz

S E R V I C E E X P E R I E N C E S U M M I T 2 0 1 4 / V E R Y D A Y . C O M

Walking in the customers shoes

When you have to storyboard something, the more realistic it is, the more decisions you have to make. Brian Chesky

“To shape the future of Airbnb, CEO Brian Chesky used storyboards to map existing and future customer journeys.

| 09 August 2014 | Service Experience Summit | Shanghai | @st_moritz 3

Design for Services

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Searching for a flight to Shanghai. Not only does the appearance of

the online booking feel old fashioned, the way the booking practically works is very limited.

Example


The Kayak service on the other hand offers a vastly beer experience. You can choose very simply what your parameters are and get the best options at the best price.

*Theory by Daniel Kahneman

Anticipated SelfDecisions based on anticipated memories.

Inspire, motivate, restrict

Experiencing selfEmotions in the present.

Positive, negative, neutral

Reflective Self (The Storyteller)What we take away from the experience. The stories we tell. Changes, significant moments,

endings

Before Experience/Occasion After

Better experience

Worseexperience

Peak-End Rule* Reflected experience based

almost entirely on highs and lows, and how it ended.

Experience Continuum



The Opportuni

Customer Experience is the next frontier for differentiation, value creation and growth.

Everything is more connected and complex than ever. New customer expectations arise and cross boundaries.

1.  Everything is more connected and complex than ever

2.  New expectations across boundaries

3.  Easy to loose focus through distraction and disruption An accelerating storm of change

Digital

Mobile Social

Big data


1.  Everything is more connected and complex than ever

2.  New expectations across boundaries

3.  Easy to loose focus through distraction and disruption

The eye of the storm


Your Point of Differentiation

The customer


Why can´t they remember what I like from time to time?

Why is it always so difficult to find my way to what I want!

It would be great if I could know more about this before I decide to buy it!

I want to know that they have the products I want in store.

People perspective (Employees, clients, customers, users)



CRM

Governance

Supply Chain

Database

Portfolio Management

Loyal Program

Regulations

LEAN

Forecasting

Investment Planning

Business Process Optimization

SOX

Rightshoring

Channels

Integrated Marketing Solution

Core Competency

Diversi

Alignment

Streamline

6Sigma

The corporate world is a different world


Click to edit Master title sle Process Operating

Model Technology Leadership & Culture Employees

Legislation CSR

Strategy

Customer Experience Journey

Business Operations

Bridging the gap


80% of companies believe they deliver outstanding value and

a superior customer experience.

8% of their customers agree. Source: Bain & Company


| 09 August 2014 | Service Experience Summit | Shanghai | @st_moritz

Age of Manufacturing

Age of Distribution

Age of Information

Age of The Customer

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Mass manufacturing boosts industrial powerhouses.

Global connections make distribution key.

Connected PCs benefit those who control information.

Empowered buyers demand a customer focus.

Ford, RCA, GE, Boeing, P&G, Sony, Atlas Copco

Walmart, Toyota, UPS, CSX, IKEA

Microsost, Google, Dell, Capital One, Ericsson

Southwest Airlines, Amazon, USAA, ...

1900–1960 1960–1990 1990–2010 2010–?

Source of dominance and differentiation


| 09 August 2014 | Service Experience Summit | Shanghai | @st_moritz

Growing share of the economy

e.g. JAPAN

CIA

Wor

ld Fa

ctbo

ok

10.0% AGGRICULTURE

43.9% INDUSTRY

46.1%

CHINA

71.4%

1.2%

27.5%

SERVICES



+ Customer Centrici + Customer Focus = Competitive advantage = Loyal satisfied customers = Higher profit margins


Progressive Insurance ‘Immediate Roadside Assistance’ creates a fantastic care and support experience as well as brand awareness. It also reduces possibilities for fraud and legal issues, both significant costs that can be drastically reduced which goes beyond funding the great experience.

Great experience can reduce costs

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Service Design

Methodology to help improve or innovate service experiences that result in

more satisfied customers and more profitable enterprises.

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Find ways to do something about it 03.

Imagine and dream up a beer future 02.

01. Curiosi what people need and want

SERVICE DESIGN


You don’t own it but use it 03.

It happens over time 02.

01. You have to be there

SERVICE DESIGN


SERVICE DESIGN

Experience Protoping 03.

Holistic Thinking 02.

01. Human Empathy


What is the difference? I N D U S T R I A L S E R V I C E

Produced Performed

Material Immaterial

Tangible Intangible

No involvement Client participation

Ownership Experience

M E T H O D O L O G Y

Journey

System design

For All Senses

Co-creation

Service blueprint



NEED BETTER IMAGES

HOLISTIC THINKING

HUMAN EMPATHY

EXPERIENCE PROTOTYPES


HUMAN EMPATHY



HOLISTIC THINKING

EXPERIENCE PROTOTYPES


OBSERVATIONS STORIES & INSIGHTS EMOTIONAL EXPERIENCE MAP

“Open Door Analysis” participatory format to engage stakeholders at all levels. Using emotional design research methodology, we expose people to real consumer needs and deliver key insights about consumer’s drivers and aspirations. Share learnings and unite teams around global insights. Translate findings into new customer propositions.

Team Collaboration

“Open Door Analysis” with all stakeholders




Framing the problem together

Opportuni Mapping and Vision Building Effective customer and stakeholder engagement



Re-imagine the customer experience

Total Experience Protoping Co-creation with users drove the design of solutions with stronger emotional resonance. Protoping new total experience concept offerings (‘protocepts’). Working across 6 markets, sharing insights in real time.



Source: Forrester

Customer Experience


How customers perceive their interactions with your company.


Based on McKinsey research, 2009

Customer Experience

INTER ACTION DECISION LOYALTY


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Based on McKinsey research, 2009

INTER ACTION DECISION LOYALTY

Consideration Trigger

Experience

Evaluation Satisfaction

Customer Decision Journey




Feel: Emotional Is this desirable and trustworthy?

Think: Behavioural Will this help me achieve my goals?

Do: Functional Is this useful and easy to use?



Uncovering deep insights

Emotional Experience Mapping Experience in context over time


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Emotional Experience Mapping Experience in context over time



The really big missed opportuni…

Get closer to people and create beer experiences

Outside In Truly understanding what’s actually going on in people’s lives.


Mutual Value

The creation of systemic solutions that increase value for several stakeholders.

Building win-win solutions for brands and people.


Why do your customers choose you?

What do they truly value?


SMALL EXERCISE


What you could you do to enhance, add or reinvent to create mutual value?


SMALL EXERCISE

Valu

e fo

r the

org

aniz

atio

n

Value for customers

Commodi

Product

Service

Experience

Creating Mutual Value



DELIVERING VALUE

RE-IMAGINE OPTIMIZE

Reduce cost with improved customer experience

Reduce churn and increase life-time value

Innovation of new business models and offerings

Reduce risk, time to market and cost


EXPAND

New or beer services for todays customers

New customers through improving todays service


Source: Forrester

Great experience at a great price Forrester Cxi 2012 / 2013

1. How enjoyable were they to do business with?

2. How easy were they to do business with?

3. How effective were they at meeting your needs?


A stock portfolio of Forrester’s Customer Experience Index (CXi) leaders had a cumulative 43% gain in performance over a six-year period (2007 to 2012), compared with a 14.5% increase for the S&P 500 Index and a 33.9% decrease for a portfolio of customer experience laggards. Source: Forrester Research



Behavioral metrics Eg Sharing frequency, שme spent

Business metrics Increase revenue, Market share

Subjective metrics NPS, SUS, Subjective satisfaction

What people pay for

What people do/use

What people say/think

CX


Experience Index Drive service development around robust & meaningful metrics


The Challenges

The pursuit of implementing the service design approach successfully in the organization requires

the right leadership and culture change – however outputs as well as outcomes are worth the effort.


KEY CHALLENGES

Uncertain of specific outcomes 03.

Geing out of old ways of working and thinking 02.

01. Collaboration across departments

UNCERTAINTY

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PEOPLE INSIGHTS

DIGITAL TECHNOLOGY

BUSINESS TRANSFORMATION

PROCESS

OPERATING MODEL

Deep insights into needs and wants

Leveraging data and connectivi

Creating new business value

Agile TALENT

People Driven Digital Transformation



6 Practical שps

Creating mutual value by providing great customer experiences requires focus, passion and teamwork. Here are six tips to help you lead the way forward.


Leading to great experiences

1.  Empathy – Spend time with customers to get a feeling for their latent needs




1.  Empathy – Spend time with customers to get a feeling for their latent needs 2.  Envision – Create a shared sense of purpose and future vision





3.  Engage – Involve people, work agile and adapt to the environment





3.  Engage – Involve people, work agile and adapt to the environment 4.  Empower – Support the organization to deliver and exceed expectations





3.  Engage – Involve people, work agile and adapt to the environment 4.  Empower – Support the organization to deliver and exceed expectations 5.  Experience – Build, share and leverage knowledge





3.  Engage – Involve people, work agile and adapt to the environment 4.  Empower – Support the organization to deliver and exceed expectations 5.  Experience – Build, share and leverage knowledge

6.  Evaluate – Measure what maers and make the tough choices


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service experience summit shanghai 2014 stefan moritz

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