How emotions drive value. Benefits from Customer Experience & Involvement Dirk van der Laan Windesheim University of Applied Sciences April 2014

Transcription

1 How emotions drive value. Benefits from Customer Experience & Involvement Dirk van der Laan Windesheim University of Applied Sciences April 2014

2 How to make the difference? 2

3 Content Introduction How customers make decisions The importance of the Customer Experience The Customer Journey Definition and Examples of Customer Experience A model for Customer Experience Measuring Customer Experience Co-Creation & Customer Experience Conclusions 3

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5 Windesheim University of Applied Sciences Zwolle 5

6 How customers make decisions 6

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9 5% based on rational assessments 95% based on the unconscious Feelings Emotions So take the customer serious, create trust, good feelings 9

10 Definition customer experience Customer experience is a personal and subjective response that customers have on direct or indirect contact with an organization. By influencing this customer experience the organization tries to evoke several kinds of perceptions to a customer: emotional, physical, sensorial, rational en relational, where customers and the organization co-create unique, meaningful experiences in order to achieve a profitable, durable and affective relationship that gives value to all stakeholders. 10

11 Customer Journey A customer journey map is simply a diagram that illustrates the steps, events, and experiences your customers go through when engaging with your company. It is an end to end map of your business from a customer s viewpoint awareness, shopping, buying, service, billing and spans all aspects, touchpoints, and channels of your business. 11

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13 Lisa s customer journey on the internet Youtube Z4U 13

14 Example 1 If you order a PlayStation online and it gets snatched from your doorstep, that s your problem, right? It s definitely not the problem of the company who fulfilled their end of the bargain by shipping the system using a secure method. However, when this happened to an Amazon customer, he called them to beg if there was anything that could be done because his son was expecting a PlayStation from Santa. Much to the customer s shock, they not only sent another, but they didn t even charge him for shipping. It even made it there on time for Christmas. 14

15 Example 2 Traveling by Bus The ultimate customer experience Travelling by bus 15

16 Example 3 A customer s mother had recently had some medical treatment that left her feet numb and sensitive to pressure and also rendering most of her shoes totally useless. She ordered her mother six pairs of shoes from Zappos, hoping that at least one of them would work. After receiving the shoes, her mother called Zappos to get instructions on how to return the shoes that didn t work, explaining why she was returning so many shoes. Two days later, she received a large bouquet of flowers from Zappos, wishing her well and hoping that she recovered from her treatments soon. Two days later, the customer, her mother and her sister were all upgraded to Zappos VIP Members, which gives them all free expedited shipping on all orders. 16

17 Example 4 Opel Adam De kleine, zuinige auto moet een volwassen weggedrag combineren met een luxueuze gebruikersbeleving. Experience Sharing Personalisation 17

18 Opel Adam 18

19 Example 5 Ikea Ikea is conducted based on turn over, customer satisfaction and employee satisfaction targets Employee and customer satisfaction are highly correlated Ikea has a loyalty program In general there is a high correlation between satisfaction and loyalty 19

20 10Ikea Ikea tries to evoke an experience at the touchpoints This experience depends on the difference between what is expected and realised Customer experience is most important for Ikea Ikea uses concept of customer journey Visiting the shop has to be an experience, already starting at home Shop equipping has to fit seamlessly to catalogue and website and has to be inspiring and educating 20

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22 Experience by This year Fokke & Sukke bought their Christmas tree at Ikea s. 22

23 Results of Ikea s customer research Positive experiences Inspiring set ups Low prices Fast satisfaction Negative experiences Out of stock Waiting lines Parking problems 23

24 Example 6 assurance company 24

25 Resuming conclusion of examples CE (customer experience) is a result of all interaction a customer has with a firm. This can be fun, joy, frustation, excitement, but also unconscious behaviour: the emotional connection between firm & customer which determines satisfaction, loyalty & advocacy. Pay attention to advocacy! This is very benificial for the firm. Superpromotors are for free and the have a huge influence! 25

26 20Concept Customer Experience Management 26

27 Measuring customer satisfaction NPS Net Promotor Score: How likely is it, on a scale from zero to 10, that you will recommend Ikea to a friend or collegue? 0-6 = Criticasters, 7-8 = Passieven, 9-10 = Promotors % Promotors - % Criticasters = NPS Net Promotor Score is between -100 and

28 Example NPS 100 responses on your survey: 10 reactions between 0-6 (Criticasters) 20 reactions between 7-8 (Passives) 70 reactions between 9-10 (Promotors) Percentages for each group are respectively 10%, 20% & 70%. Substract 10% (Criticasters) from 70% (Promotors). This gives the NPS as a number:

29 Measuring Customer Experience [ServQual] Tangibles Attractiveness of facilities, objects and employees Reliability Willingness to solve problems, keeping up to promisses Responsiveness Quality and velocity of helping the customer Assurance Skills and friendlyness of employees, safety of environment Empathy Insight in needs of customers, 29

30 20Types of Customer Experience FASTR Feel, referring to the emotions and feelings in the experience; Act, referring to physical experience and behavior; Sense, when it comes to the sensory experiences as smell, taste, sound and touch; Think for rational, intellectual and cognitive experiences; and Relate, referring to social identity, relational experiences resulting from relations with a (peer) group, culture or lifestyle. 30

31 Levels of customer experience 1. Interactional experience level at 1 point of the customer journey 2. Relational experience level: experience one gets from interacting of communicating with certain individuals or departments of the firm. 3. Channel or transactional experience level, where experience differs depending on the used communication channel. 4. Customer journey experience level which is a composition of the previous three experience levels concerning the customer journey. 5. Brand or organizational experience level where it comes to the experience that derives from contact with the virtual brand or organization. 6. Total customer experience level, which covers the experience a certain person can get from all his contacts and touch-points with an organization in his life. 31

32 Strengths of CX The ultimate, superior experience is the so called flow The customer experience starts at the first contact, and develops in strength, direction and types on all following interactions, touchpoints, communication. The FASTR-components vary in time, depending on the type of interaction, but also shaping and reshaping the total customer experience. In that way we can not speak of customer experience as a static entity 32

33 Outcomes of Customer Experiences Financial outcomes o Increase of market share, profitability and sales, repeat sales Reputational outcomes o Increase of Brand equity, brand loyalty and customer equity o Increase of Customer satisfaction and loyalty o Enhancement of customer relationship o Increased Reputation o Long lasting competitive advantage o Ability to charge exclusive prices Organisational outcomes o Improved Employee satisfaction, New customer attraction, New market entry o Staff empowerment, Process efficiency, Business model innovation o Increased Innovation strength of the organisation 33

34 Customer Cocreation 34

35 Examples LEGO LAYS NIKE nl5hpstwnw&site=tnl5hpstwnw-pa1i.p35xc4hftqou6txsw OPEL ADAM 35

36 Does Customer Cocreation Really Pay Off? 36