Unlocking Opportunity at the Intersection of Brand and Customer Experience

Unlocking Opportunity

at the Intersection of Brand and Customer

Experience

September 14, 2009

Kevin Perlmutter Senior Director, Brand Strategy

Why should we care about brand?

2 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009

High Quality Coffee Excellent Flavor

Non-branded

High Quality Coffee Excellent Flavor

Branded Price Premium

$1.00 $3.00

Strong brands drive awareness, stimulate demand and positively impact earnings

84% of companies don’t know the cost of a customer complaint

65% don’t know the length of an average customer relationship

Source: Stativity Group

3 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009

Customer experience is impacting the behavior of potential customers

| Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009 5

“Waiter, there’s a fly in my soup (and I have an iPhone).”New York Times Headline, 9/2/09

Engagement in social media correlates to financial performance

Brands engaging

communities through social

media grew revenues by 18%,

those that didn’t

sunk 6%

Sources: ENGAGEMENTdb: The World’s Most Valuable Brands. Who’s most engaged? July 2009 & “New Study Finds Correlation Between Social Media and Financial Success”, Sarah Perez, Read Write Web

Top 10 Brands Engaged in Social Media

1.Starbucks

2.Dell

3.eBay

4.Google

5.Microsoft

6.Thomson Reuters

7.Nike

8.Amazon

9.SAP

10.Tie – Yahoo/Intel

6 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009

Our role is to improve the quality of the relationships that

people have with our brands to improve business performance.

7 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009

A relationship is…

The way in which two or more people or organizations regard

and behave toward each other.

8 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009

Bad Relationships Great Relationships

1. I want to spend less

time with you

2. I prefer to see other

people

3. I want to tell everyone

I don’t like you

1. I want to spend more

time with you

2. I want to be devoted

to you

3. I want to tell everyone

you’re great

In human relationships there is a correlation of relationship quality and behavior

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Brand relationships work the same way

Customer experience affects the bottom line

10 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009

Customer experience impact revenue

Average impact of a 10% improvement in Forrester’s Customer Experience Index for a $10 billion company.

Customer experience affects the bottom line

11 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009

Strong brands drive choice, loyalty and value

Higher level of earnings

Brand influences customer’s choice

Value

Role of Brand

Brand is a key competitive asset

Higher security of future earnings

Brand Strength

12 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009

Opportunity does exist at the intersection of Brand and Customer Experience

Brand Evolution

Customer Experience Analysis

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It’s an ongoing loop of needs analysis and fulfillment, just like any good relationship.

Focus Area #1: How does your brand work today?

Brand Evolution

Customer Experience Analysis

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How well is your brand aligned with the drivers of choice?

To unlock opportunity, we need to analyze the customer journey

15 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009

How People Engage How People Buy How People Commit

Passively

aware

Relevance

trigger-

need/want

Evaluating

options

Selecting Deciding

where

to buy

Shopping Confirming

Decision

Buying Activating Using Committing Advocating

What are the key drivers, pain points, experience enhancers and experience gaps?

What is the quality of the relationship?

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Touchpoint Usage

Messages

Decision Process

17

How can the experience be better?

Continue: What positive things should we continue doing

Stop: What experience detractors should we stop doing

Start: What new things should we start doing

How People Engage How People Commit How People Buy

17 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009

How can your brand work better?

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How People Engage How People Buy How People Commit

Business Performance

Brand Strategy

Passively

aware

Relevance

trigger-

need/want

Evaluating

options

Selecting Deciding

where

to buy

Shopping Confirming

Decision

Buying Activating Using Committing Advocating

Focus Area #2: Created branded customer experiences

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Brand Evolution

Customer Experience Analysis

What follows are 5 opportunities to improve the experience and evolve the brand

Eliminate pain points

1.

Understanding and eliminating pain points

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Link the brand to a top driver

2.

My Deals Ordering Ink & Toner My Rewards Easy Solutions

My Deals Ordering Ink & Toner My Rewards Easy Solutions Staples delivers on its promise of Easy. The Easy Button desktop application has become a huge success with small business – tens of thousands have been downloaded yielding tremendous loyalty and repeat usage. Source: Klipfolio

Create Hero Products or

Services

3. Westin Heavenly Bed

Westin drives demand for the Heavenly offering inside and outside the hotel. They have sold about 30,000 full Heavenly Beds, 100,000 pillows and 32,000 sheet sets for home use. Nordstrom alone has sold $20 million worth of Heavenly Beds. Source: USA Today, 5/14/09

Innovation

4.

Within 4 years of launch, Dyson became the fastest selling vacuum in the UK, and overtook Hoover’s category leading market share in the US going from 0% to 20.7%. Source: NPD

Redefine the category

experience

5.

Mini has an incredibly loyal following thanks to a highly desirable end-to-end customer experience. Despite a down economy, US sales grew 29% in the 2008 to 54,000 – more than double 2002. Source: Business Week, 9/1/09

Brand is an evolving relationship and a driver of business performance

| Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009 34

1. Distinctive and Engaging Promise

2. Fulfilling Brand

Experience

3. Customer-centric

Evolution

Brand Evolution

Customer Experience Analysis

Thank you.

Kevin Perlmutter Senior Director, Brand Strategy

212-798-7542

kevin.perlmutter@interbrand.com