The Emotion of Customer Experience

Date

05.

01.0

7

The Emotion of Customer Experience

The VenetianLas Vegas, NV

© 2007, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without

written permission is prohibited.

lou carbone minneapolis, minnesota



we live, eat, sleep, breathe and unravel the riddle that is

human experience for a select group of clients who want to

manage experience – and the value that experience can

create.

at experience engineering



progressive auto insuranceneeded to progress

© 2006, All Rights Reserved. Experience Engineering, Inc.

Problem: hit a brick wall

largest high risk auto insurersold through independent agentsneed to expand beyond agents to directcouldn’t alienate agents

Solution: thinking customer backdistinctive customer experiencedesigned and implemented pilot experiences that

were rolled out



Outcome: most profitable auto insurerfastest growing auto insureragent growth instead of attritionhighest retention rates

IRVs Instant Response Vehicles at accident

scenetrained in loss and grief

refreshments

checks written at the scene

assistance and transport to car rental

phone

Progressive plus competitors rate quote




Clients

Mayo ClinicMayo Clinic



engineering customer experiences

• move from “make and sell” to “sense and respond” • customer back (emotional/rational bond)• understand and leverage role of the unconscious mind• clue conscious• rigorous systems to develop and manage clues



“In business after business, our research has shown that 60-80% of customers who defected had said on a survey just prior to defecting that they were “satisfied” or “very satisfied”….

Frederick F. ReichheldThe Loyalty Effect



Would you recommend to a friend or associate?

Extremelyunlikely

Promoters Passive Detractors

10 9 8 7 6 5 4 3 2 1 0

Extremely likely Neutral

Frederick F. Reichheld

The Ultimate Question



hierarchy of customer behavior

Adapted From James Haskett, Prof.. Harvard Business School

satisfactiongetting as much as, or more than, what was expected

loyaltydevoting a large share of wallet to repeat purchases

apostle-like behaviorexhibiting a high degree of loyalty while

convincing others to purchase

commitmentdemonstrating loyalty while telling others of one’s satisfaction

ownershiptaking

responsibility forthe continuing success of

the offering



experience preference model™

acceptanceNo Differentiation

preferencePositive Differentiation

rejectionNegative

Differentiation

- commodity zone +





experience



Starbucks’ story

• 1982 Howard Shultz Joins Starbucks• 1983 Howard Shultz Visits Italy• 1984 He Convinces Company to Test Concept• 1985 Leaves to Found Il Giornale• 1987 Il Giornale buys Starbucks (17 Stores)



“Every Starbucks store is carefully designed to enhance the quality of everything the customers see, touch, hear, smell or taste”

-CEO Howard Schultz.”



experience management

BEHAVIOURS

BEHAVIOURSShareShare of WalletProfitRepeatsRenewalsReferralsShopping TimeTravel Patterns“How they act”

ATTITUDES

EMOTIONS

EXPERIENCECLUES

ATTITUDESLoyalPromoteCommittedApostleshipPassionateTrust“How customers feel about ”

EMOTIONSSignificantStrengthenedRenewedInspiredSafeConfident“How they feel”



the brand canyon™



“ladies and gentlemen, serving ladies and gentlemen.”

Ritz Carlton

the brand canyon™

what customers feel about company!

what customers feel about themselves!

brand

product

service

treatment

experience

feelings



“Brands have run out of juice. More and more people in the world have grown to expect great performance from products, services and experiences.”

Kevin Roberts, CEO Saatchi, Saatchi Author of Lovemarks



A corporate brand represents the promise made to all audiences regarding the unique experience they have whenever and however they come into contact with the brand.



value relationships

brand value how I feel about the company

customer value

how I feel in and about the

experience



how customers think





the power of the unconscious mind



“the tangible attributes of a product or service have far less influence on consumer preference than the sub-conscious sensory and emotional elements derived from the total experience.”

Dr. Gerald ZaltmanHarvard Business School

Laboratory of the Consumer Mind



95% of our processing takes place at the unconscious level

individual wants

consciousopinions

“what people say”

cultural forces

psychological & bio needs

uniquescript

universalscheme

common archetype









customers consciously & unconsciously filter a barrage of clues and organize them into a set of impressions –

some rational, some emotional



types of clues that customers experience

what we taste

what we feel

what we see

what we hear

what we smell



categories of clues

stimuli associated with people – choice of words, tone of voice, level of enthusiasm, appearance, body language

humanic clues

emotional

mechanic cluesstimuli associated with things – sights, smells, sounds, textures

emotional

functional cluesfunctionality of the goodor service

rational



“you cannot NOT have an experience…

…the question is, how managed or haphazard is that experience?”

Lou Carbone,President & CEO

Experience Engineering, Inc.



what kind of experience do these clues create?what if we managed these clues?



we can systematically & purposefullydesign experience clues to

create feelings that emotionallyengage & bond the customers



learn



experience audit

desired customer experiencecurrent customer experience

gap



experience audit

desired customer experience

ZMET®

experience intervention interviews™experience reflection interviews™

current customer experience

experience language analysis™cluescan™


customers’ psychological pathways®

reality tv

gap

© 2005 Experience Engineering

why ZMET?

“ZMET allowed me to walk around in the maze of the consumer mind.”

A ZMET client


working definitiondeep metaphors are the basic, unconscious “filters” or “frames” that influence: • what information we notice • how we process that information• what we do as a result

what are deep metaphors?



Work

Play

Routine Novel

Drudgery Quest

Reward(restore, break)

Exploration

A model for shopping: Four Kinds of Shopping Described by Women in U.S., Japan, and France.

Example of a cross-cultural ZMET Study



ZMET also identified several key cross-cultural differences regarding the deep idea of “connection with others.” For example:

– French consumers, more so than Americans or Japanese, expressed a desire for positive personal interactions with shopkeepers during their shopping journeys. They had a strong preference for the pleasant, enjoyable atmosphere in smaller shops, boutiques, and markets relative to large, impersonal department stores and supermarkets

– Many Japanese women expressed their strong need—sometimes to the point of anxiety—to obtain approval for their purchases from members of their families, especially their husbands.

• Perhaps this explains why Japanese women seem to devote a greater amount of time to planning, imagining, learning, and deliberating prior to going to a store and eventually making a purchase

Example of a cross-cultural ZMET Study



experience audit


ZMET®



experience language analysis™

cluescan™experience intervention interviews™

experience reflection interviews™customers’ psychological pathways®

reality tv

gap



Little Words Make A Big Difference• I’ll have a car ready for you in five minutes.• I’ll have the car ready for you in five minutes.• I’ll have your car ready for you in five minutes.

Linguistics experience audit

learn



experience audit


ZMET®



experience language analysis™cluescan™


customers’ psychological pathways®

reality tv

gap



ClueScan™ Objective

To create an awareness from the eyes of the customer of how they are bombarded by conscious and unconscious clues and how haphazard or managed those clues are which create the total experience.



Experience ClueScanning™



immediate fixes

Before

After



create



experience motif : unifying element for every clue in an experience designprovides alignment for emotional & rational elements in the experience



using the motif as a northstar to generate experience designs embedded with clues

• eliminate or abate negative clues• improve neutral clues • dial up or create preference clues

acceptanceNo Differentiation

rejectionNegative Differentiation

- commodity zone +

preferencePositive Differentiation



Clue: it’s a jewel

“Now I know why ‘engineering’ is in your name. The process you put us through was invaluable to making the experience tangible and actionable for our team.”

Karla D. Stephens – CEOOSKAR Mobil/Vodafone, Czech Republic

oskar mobilyou’ve got my number



do



To deliver an “experience”

“Answer the door and make sure our guests feel welcome after their two day trip ”

”Answer

the door”



Current View Transformed View

organization out customer back

make & sell sense & respond

rational emotional & rational

Total Experience Management™ can change the way companies manage their businesses.


engineering customer experiences

• move from “make and sell” to “sense and respond” • customer back (emotional/rational bond)• understand and leverage role of the unconscious mind• clue conscious• rigorous systems to develop and manage clues



For Further Information On Managing Experience as a Value Proposition Contact:

[email protected]

thank you



© 2007, Experience Engineering, Inc.All rights are reserved. No portion of this document may be reproduced in any form or used in anyway

without the express written permission of:

Experience Engineering, Inc.7808 Creekridge Circle, Suite 225

Minneapolis, MN 55439

952 942-8880www.experienceengineering.com


a draining experience

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The Emotion of Customer Experience