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The Amazon Experience. What makes Amazon's Customer Experience great?
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The Amazon Experience
Pascal Spelier, June 13th 2014
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”Our vision is to be the world's most consumer-‐centric company, where customers can come to find anything they want
to buy online.” Jeff Bezos
4 Source: Google Trends
Trends
Customer Journey
Customer Experience
Customer Experience: Hip and happening
Index 100
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Price
Product
Service Customer Experience
The road to loyal customers
‘Commodity’ Competitive edge by ‘value added services’
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“How likely is it that you would recommend [your company] to a friend or colleague?”
“How much effort did you personally have to
put forth to handle your request?“
Loyaliteit predictor
Customer satisfaction
Co-‐creation
Product-‐ and transaction focused
Get to know your customer
‘Fix the basics’
Source: based on model Balachandran
Involvement customer
Loyality
Long lasting relationship
For the customer
Together with the customer
Stop trying to delight your customers
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Product/service differentiation
Employee satisfaction
Processefficiency Processeffectiveness
-‐ Customer satisfaction
-‐ NPS
-‐ Sales
-‐ Share of wallet
-‐ Retention
-‐ Referral
-‐ NPS (als groeidoel)
-‐ Groth revenue
-‐ Market share
-‐ Profitability
-‐ Share holder value
People
Product/service offering
Process
Customer Experience Customer Behaviour High level company KPI’s
Leading indicators Lagging indicators
Chan
ges
in re
gula
tions
and
tech
nolo
gy
deve
lopm
ents
Context
Source: based on Schmitt – Managing the Customer Experience
Determine your motivation for improving customer experience
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Customer Experience is about smooth processes and value adding propositions
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Customer insights 1
Customer Experience Design 4
Customer Journeys 3
Customer Experience Strategy 2
Customer Experience Implementation 56 Customer Experience Monitoring
Customer Experience approach: take it step by step
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From Customer Journey to Customer Experience
3 Customer Journeys
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Simplified Customer Journey
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Customer Journey
Buying a book Life events / Products / Services
Reading a book Groceries Cloud services Streaming music
and video Other events
Voice of the customer: I want..., I need...
Voice of the employee: I want..., I need...
Awareness Discover Receive Use Get help Next purchase Purchase
What does the customer want and what does the customer need?
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Customer Journey
Each Customer Journey has a customer side and an organization side
Processes
Midoffice
Customer Relationship
Management
Customer Financial
Management
Document Management
CommunicationManagement
Business Process
Management Security
Awareness Discover Receive Use Get help Next purchase Purchase
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Remove barriers Simplify processes Ensure alignment and consistency
Provide relevant content Differentiate and create
“wow-‐moments”
Customer Experience opportunities
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Range
Price
Customer Experience
Availability
Amazon’s Value Proposition
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For the second year in a row, Amazon was the top-‐scoring company in terms of overall customer satisfaction, just above Coca-‐Cola and Apple Nielsen, May 2014
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Amazon.com is the reigning and undisputed champ in both
Internet retailing and across the entire department in overall
customer satisfaction.
American Customer Satisfaction Index, University of Michigan, June 2013
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Amazon stands at the top of 100 globally-‐known brands
across seven major industries for best customer experience. .
Foresee Experience Index, Report, Deccember 2013
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Customer Journey
Awareness Discover Receive Use Get help Next purchase Purchase
What makes Amazon’s Customer Experience great?
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Customer Journey
Awareness Discover Receive Use Get help Next purchase Purchase
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Range
Price
Customer Experience
Availability
Amazon’s Value Proposition
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Price
“I got an email a few days ago from Amazon, telling me the price of the book I’d ordered had dropped, so it was passing the savings on to me. I think it was all of $.16. But that small sum is why I’m a loyal customer.”
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Customer Journey
Awareness Discover Receive Use Get help Next purchase Purchase
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35% van de sales komt uit recommendations
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Customer Journey
Awareness Discover Receive Use Get help Next purchase Purchase
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Milkrun: Instead of waiting for suppliers to
deliver to Amazon's warehouses, Amazon sends
its own trucks out to pick up top-‐selling goods.
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Customer Journey
Awareness Discover Receive Use Get help Next purchase Purchase
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Customer Journey
Awareness Discover Receive Use Get help Next purchase Purchase
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Mayday, mayday, mayday button…
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Customer Journey
Awareness Discover Receive Use Get help Next purchase Purchase
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”Customer experience includes having the
lowest price, having the fastest delivery, having
it reliable enough so that you don't need to
contact [anyone].” Jeff Bezos
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Customer Journey
Awareness Discover Receive Use Get help Next purchase Purchase
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Amazon aims to keep you clicking
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Customer Journey
Awareness Discover Receive Use Get help Next purchase Purchase
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One word…
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Reading tip: Customer Experience
in practice
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What’s your most important…
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Pascal Spelier
Managing Consultant All Channel Experience
Reykjavikplein 1,
Utrecht, The Netherlands
Mobile:+31 (0) 6 53 29 90 17 [email protected]
Thank you!
@spelier
