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