Internet Marketing, 2nd Ed
Mohammed, Fisher, Jaworski, Paddison
Chapter 4 Lecture Slides
Customer Experience
Exhibits and Tables
Copyright © 2003 by Marketspace LLC
Customer Experience — Today’s Objectives
To understand how the desired customer experience influences
marketing choices
Chapter 3
Formulating the
Marketing
Strategy
Chapter 4
Designing the
Customer
Experience
Chapters 6-14
Designing the
Marketing
Program
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Chapter 4:
Customer Experience

Defining the customer experience - the seven elements

The “Experience Hierarchy” - stages of customer experience

Steps in the process of creating desirable customer experience

Case Study: eBay

Conclusion
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Chapter 4:
Customer Experience

Defining the Customer Experience - the seven elements

The “Experience Hierarchy” - stages of customer experience

Steps in the process of creating desirable customer experience

Case Study: eBay

Conclusion
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Supporting Slide 4–A: What is Customer Experience?
Customer Experience is a target customer’s perception and interpretation of all
the stimuli encountered while interacting with a firm
Competitors
Transaction
Customer
Experience
Product Quality
Reviews
Advertising
Price
Expectations
Hearsay
HomePage
Trust
Site Reliability
Speed of Delivery
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Supporting Slide 4–B: Seven Key Elements of Customer Experience
The Objective Element

Site must meet basic functionality requirements

Individuals will note and care about certain
aspects of the encounter based on their own
unique perceptions

The entire customer encounter element includes
both process and output measures

Customers respond to multiple variables, from
the tactical layout of the site to high-level
interpretations of the meaning of the brand

The customer experience can incorporate all five
senses

Cognitive responses are thoughtful and
evaluative in nature; emotional responses tend to
capture moods, attitudes and feelings of the
customer

Previous, separate experiences can affect a
consumer’s reaction to various stimuli during a
new experience
The Perceived Element
The Encounter Element
The Reactions to Stimuli Element
The Sensory Element
The Cognitive and Emotional Element
The Relative Element
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Supporting Slide 4–C: Role of Customer Experience
Articulating a desired customer experience connects high-level positioning
strategy to program-level tactics
Desired Customer Experience
How we are positioned
to win in the market
where we will compete
What marketing
activities we will
engage in
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Supporting Slide 4–D:
Point-Counterpoint: Brand Building vs. Customer Experience
Point-Counterpoint
Brand Awareness
Is the Key to Success



Building brand awareness leads to traffic
Investors need to see site traffic and the
likelihood of future profitability
Offering a great customer experience
when nobody knows about the site is a
waste of resources as long as a baseline
functional standard is being met
Customer Experience Is
the Key to Success



Focusing on customer experience is the
single most profitable thing a business
can do
Customers that have a positive
experience with the site are more likely
to keep coming back and to tell their
peers about it
Positive customer experience leads to
purchases at commerce sites,
exploration at content sites and
participation at community sites
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Chapter 4:
Customer Experience

Defining the Customer Experience - the seven elements

The “Experience Hierarchy” - stages of customer experience

Steps in the process of creating desirable customer experience

Case Study: eBay

Conclusion
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Exhibit 4–1: Stages of Customer Experience
The “Experience Hierarchy” outlines the three stages of customer experience, from
a user’s first click on a site to the point at which that user experiences site loyalty
If a Firm Gets This Right…
Stages
Stage One:
Functionality
Stage Two:
Intimacy
Stage Three:
Evangelism

Design and information architecture
 Deep understanding of customer needs
This Is What the Customer Experiences

Site is easy to use

Quick downloads

Platform independence


Efficient transactions

Site reliability

Warehousing and mining

Personalization

Tailoring of pages and offerings

Increasing trust

Overlay human interaction

Repeated experiences of exceptional value

Integrated data

A sense of being “in the know”

Consistent performance over time

Consistent experiences

Constant innovation and upgrading
(incremental or significant)

Significant benefits relative to other offerings
 Support
of evangelists
Acknowledgment
of evangelists

Intuitive navigation

Desire to take message to the market

Community benefits
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Supporting Slide 4–E:
Stage 1: Functionality
A firm must fulfill certain responsibilities at each stage of customer experience
in order to deepen customer involvement
Stage 1: “The Site Works Well”
Firm Responsibilities




Great design and information
architecture
Deep understanding of customer
behavior
Platform independence
Server transactions
Customer Experience




Usable site
Quick, speedy downloads
Easy navigation
Reliability
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Supporting Slide 4–F:
Stage 2: Intimacy
Once the functionality hurdle has been met, firms can distinguish themselves by
establishing a more individualized connection
Stage 2: “They Understand Me”
Firm Responsibilities




Warehousing and mining of data
Tailoring of pages and offerings
Overlay human interaction
Integrate data with web page activity
Customer Experience



Personalized information
Increasing trust
Consistent experiences
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Supporting Slide 4–G:
Stage 3: Evangelism
Loyal long-term customers serve to bring other target customers into the brand
Stage 3: “I Love to Share the Story”
Firm Responsibilities


Acknowledge evangelists
Support evangelists
Customer Experience


Wants to take message to the
market
Enjoys benefits of community
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Exhibit 4–2: Stages of the Customer Experience Over Time
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Exhibit 4–3: The Seven Deadly Sins of Customer Experience
• No search feature. Customers must navigate a
company-specified path or consult a site map in order
to find what they’re looking for.
• No indication until checkout that an item is out of
stock.
• Hard-to-find contact information. The absence of
phone numbers is especially irritating to customers,
even though the company may find it beneficial.
• No gift certificates or gift shipping options.
• No shipping information or costs until the end of
checkout process. This is one of the top reasons that
shopping carts are abandoned.
• So-called ‘opt-in’ marketing buttons. When check
boxes default to settings in the company’s favor,
customers have to uncheck them to avoid unwanted
marketing messages.
• No printer-friendly feature. This results in hard-to-read
printouts and wasted paper.
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Chapter 4:
Customer Experience

Defining the Customer Experience - the seven elements

The “Experience Hierarchy” - stages of customer experience

Steps in the process of creating desirable customer experience

Case Study: eBay

Conclusion
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Supporting Slide 4–H:
Seven Steps in the Process of Creating a Desirable Customer Experience
Create a Rich Description of the Target Customer
Develop Use Case Scenarios for Each Target Segment
Integrate the Online and Offline Experience
Articulate Clear Stages of the Desired Experience
Assess Relative Levels of Hierarchy
Highly Leverage the Evangelists
Continuously Monitor and Adjust
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Exhibit 4–4: REI.com Organizes Around Customer Needs
Customers can
view products by
activity type,
equipment type,
age/gender, or
usage occasion.
Search box is
prominently
displayed.
Tab navigation
sorts content into
intuitive sections.
Subnavigation
offers
additional
detail.
Third-party
recommendations
enhance
customers’ trust in
products.
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Exhibit 4–5: Stages of Customer Experience for REI.com
Stages
Functionality
Generic Desired Customer Experience

Site is usable

Content organized around user needs

Easy navigation

Easy-to-find gear and activity information

Multiple views of products and services
Website that rates high on efficiency and fulfillment

Intimacy
Quick download

Speedy site


Reliable

No crashes and limited downtime

High trust


Consistent experience

Authoritative content and information
Kiosks in store link to online channel

Quick, effective communication

Easy access to customer service, including live online help

High personalization

E-mail newsletter
Exceptional value
Consistent with brand message

Member discounts and rebates

Product returns to store or by mail

Adventure travel service
Takes word to the market

Defends the experience

Membership advantages
E-mail option for sharing information
Community message boards
In-store and local events


Evangelism
What REI.com Delivers




Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Exhibit 4–6: Summary of Steps in Creating Good Customer Experience
Step
Benefit to Customer
Benefit to Company
• Company better able to imagine customer
motivations
• Brings market research to life
• Company better able to anticipate and meet
customer needs and expectations
• Site designers put themselves in
customers’ shoes, which helps create
intuitive navigation and ensures usability
• Customer experiences consistency
across brand and channels
• Enhanced overall sales, lessening of
perceived channel cannibalization
Articulate Stages of Desired
Experience
• Customer experiences increased
attachment to company, greater loyalty
and potential for evangelism
• Company able to map desired
outcomes to product and site
deliverables
Assess Levels of Hierarchy
• Customers perceive that they are of
value to the company
• Company able to consider strategies
for moving customers along the
experience hierarchy
• Customer participation in brand and
marketing is rewarded by feeling of
belonging and community
• Company gains insight into product
uses and product development;
benefits from viral marketing
• Major and incremental changes to site
diminish barriers to good experience
• Online channel’s full potential is
leveraged
Create Rich Description
of Target Customers
Develop Use Case
Scenarios for Each
Target Segment
Integrate Online and Offline
Experience
Leverage the Evangelists
Monitor and Adjust
• Allows shared understanding of
customer types
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Chapter 4:
Customer Experience

Defining the Customer Experience - the seven elements

The “Experience Hierarchy” - stages of customer experience

Steps in the process of creating desirable customer experience

Case Study: eBay

Conclusion
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Exhibit 4–7: Stages of Customer Experience for eBay
Stages
Functionality
Generic Desired Customer
Experience for Auctions






Intimacy









Evangelism



Direct message
Clean layout
Quick browsing, searching, and bidding
Straightforward selling
Good market segmentation (by category,
region, or special interests)
Reliable
Effective communication
Consistent experience
Trustworthy customer service
Only the necessary level of personalization
Exceptional value
Consumption for leisure
Channel for selling, especially B2C
Active community members
Assistance in brand building
Takes word to the market
Defends the experience
Look downs on competitors
What eBay Delivers
















Easy-to-locate items
Easy-to-upload information about selling
Fast auction interactions
Easy-to-understand rules and auction interface
No website crashes and limited downtime
Very efficient access
User constantly knows status of auction
Site is consistent across all areas
Quick, effective personalized e-mail responses
Users make “My eBay" their main interface with the site
Enabling transactions is regarded by eBay community as
extremely valuable
Businesses use eBay as a distribution channel
Active users in personal and company’s feedback forums
Feedback forum becomes emotion-driven: “I wonder what
people are saying about me”
Describes eBay as the ultimate experience in terms of
great deals and trustworthiness
No need to visit other auction websites for better deals or
more variety
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Exhibit 4–8: EBay’s Functionality
The Basics
EBay’s Score
Usability and ease of navigation


Speed


Reliability
Intuitive interface guides both buying and selling process
Logical organizational structure reinforces where you are in the site
at all times
Site is light on graphics, making performance quick on dial-up
connections
Item searches are extremely fast

Site can handle 800,000 transactions per minute
Outages, a problem in eBay’s earlier days, have been reduced to a
minimum
Media accessibility

EBay Anywhere enables access from any wireless device
Security



Security keys for payments separate from eBay passwords, adding
extra level of protection
Encryption used on all transactions to ensure safe exchanges
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Exhibit 4–9: EBay Tailors the User Experience to the Individual User
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Exhibit 4–10: EBay Community Resources
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Chapter 4:
Customer Experience

Defining the Customer Experience - the seven elements

The “Experience Hierarchy” - stages of customer experience

Steps in the process of creating desirable customer experience

Case Study: eBay

Conclusion
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC
Customer Experience — Conclusion


Customer experience encompasses a customer’s perception and
interpretation of all the stimuli encountered while interacting with a firm
The “Experience Hierarchy” is the three stages a customer can pass
through as their relationship with the product evolves
– Stage One: Experiencing Functionality: “The Site Works”
– Stage Two: Experiencing Intimacy: “They Understand Me”
– Stage Three: Experiencing Evangelism: “I Love to Share the Story”

Designing the ideal customer experience through each of the three
stages can assist marketers in making the transition from high level
positioning strategy to program level tactics
Last Updated: 04/10/03
Copyright  2003 by Marketspace LLC