Presentation given by Insites' Christophe Vergult on Boondoggle's "Beyond the Promise Session" on Experience

1. Building brands through customer experiences ?
OR
Building customer relationships through brands ?
Christophe Vergult
Director Customer Experience Research

2. Touch
Relation- Financial
point Behavior
experience
ship value
The customer experience value chain
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3. Be an active partner in building customer centric organizations by
connecting customers with the entire company
OUR MISSION
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4. Relationship Monitor by
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5. About the Relationship Monitor
Understand the drivers of the customer experience value chain in service
driven industries
Build a pan-European benchmark on customer experience
Validate customer experience research model
8 industries 8 countries 3 benchmarks
Financial Netherlands Countries
Automotive Belgium Industries
Telecom UK Companies
Airlines Germany
Tour operators France
Food retail Sweden
Furniture retail Spain
Clothing retail Romania
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6. About the Relationship Monitor
How to reduce bias in a
...or how to avoid source bias in a customer experience (benchmark)
study?
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7. About the Relationship Monitor
Company neutral sample frame : InSites research panel
More than 2.5
million panel
Brut sample representative for consumers 25-65 per country members in
Per industry respondents are screened on relevance as contact 25 countries
within their household
If a person is customer of different suppliers within one industry, one
supplier is randomly chosen
Results on an industry level are representative for all existing
relationships within that industry and country.
Consumers are interviewed on their relationship with 2 suppliers from different industries
17.000 respondents (34.000 observations) during Summer 2008
Identical research model/questionnaire over all countries and industries
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8. Our customer experience beliefs

9. We believe in...
...meaningful
experiences
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10. What they were looking for...
Risk reduction
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11. What they are looking for...
Experiences
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12. We believe in...
...meaningful
experiences
Relations are built through
experiences
A long term relationship can help
people to reduce risks. But more
and more people are looking for
personal development in a
relationship. Companies who
understand that and provide
meaningful experiences to their
customers win the race.
What are meaningful
Integrate experiences through
2009
external channels forthe model
experiences in your
customers?
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13. 13

14. How to build profitable relationships through experiences
Product touch point
Value for Money
Sales contact touch point
Delivery touch point
Customer service touch point
Communication touch point
Rewarding touch point
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15. How to build profitable relationships through experiences
“It is not how a company performs, it is how I experience the brand.”
“I evaluate and I feel.”
+
Product touch point
Value for Money
Sales contact touch point
Delivery touch point
Customer service touch point
Communication touch point
Rewarding touch point
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16. Experiences matter to build customer equity
Strength of the model
Results for Belgium
PRODUCT
Banking R² = .57
VALUE FOR Automotive R² = .48
REWARDING
MONEY
Telecom R² = .55
Touroperators R² = .53
COMMUNI- Airlines R² = .48
SALES
CATION
CONTACT
CONTACT CUSTOMER
EQUITY Retail R² = .45
50% of customer
CUSTOMER DELIVERY relationships are built
SERVICE
through experiences
that are under
companies‟ control
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17. Managing customer experiences is about
setting priorities
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18. 1 Remove dissatisfiers
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19. Add example cash withdrawal

20. 1 Remove dissatisfiers
2 Create differentiators
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21. Add example „progressive‟
P93 „de onmisbaarheidsfactor‟
It is not about the broken car, it is about the driver.
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22. 1 Remove dissatisfiers
2 Create differentiators
3 Right-size when a touch point doesn‟t matter 22

23. You need insights in the importance and your
current performance per touch point
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24. How does the industry perform?
Results for the Belgian food retail industry
65
Product
Value for money Shopping experience
60
Performance (=score on 100)
Mean all items
Communication
CustomerService
55
Rewarding
50
Mean all items
45
0,10 0,15 0,20 0,25 0,30 0,35 0,40 0,45 0,50
Importance (=correlation of touch point on customer equity)
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25. What performance level should your strive for?
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26. You need to understand the role of each touch point
Delight
Basic touch point
Basic requirement for the customer
relationship. These touch points get
you in the market. Bad performance
will strongly harm your customer
equity.
Basic
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27. What is the role of each touch point?
Delight
Delight touch point
Touch point that can lead to an
excellent relationship with the
customer. Way to differentiate
yourself from competitors.
Basic
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28. What is the role of each touch point?
Delight
Delight touch point Performance touch point
Touch point that can lead to an These touch points are both basic
excellent relationship with the and delighting. At any performance
customer. Way to differentiate level it makes sense to improve.
yourself from competitors.
Basic touch point
Neutral touch point
Basic requirement for the customer
No or only limited relationship relationship. These touch points get
between touch point and customer you in the market. Bad performance
equity. will strongly harm your customer
equity.
Basic
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29. What is the role of each touch point?
Results for the Belgian food retail industry.
Delight
Delight touch points Performance touch points
Shopping experience
Rewarding
Communication
Product
Neutral touch points Value for money Basic touch points
Basic
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30. Insights on the Belgian air travel industry
RELATIONSHIP MONITOR 2008
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31. Conversation tracking on tripadvisor.com
23200 posts
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32. Conversation tracking on tripadvisor.com
Delivery
FLIGHT
PRE
CHECK-IN LUGGAGE ID & VISA UPGRADE HAND SECURITY BOARDING
LUGGAGE
FLIGHT
DURATION DRINKS & ROOM TO SIT DIRECT PLACE ENTER
SAFETY CREW
OF FLIGHT FOODS FLIGHT SEAT TAINMENT
FLIGHT
POST
DO NOT ARRIVE ON
CUSTOMS IMMIGRATION TRANSIT
DESTINATION
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33. Conversation tracking on tripadvisor.com
Delivery
FLIGHT
PRE
CHECK-IN LUGGAGE ID & VISA UPGRADE HAND SECURITY BOARDING
409 1730 94 361 LUGGAGE 227 155
420
FLIGHT
DURATION DRINKS & ROOM TO SIT DIRECT PLACE ENTER
SAFETY CREW
OF FLIGHT FOODS 808 FLIGHT SEAT TAINMENT
258 828
1561 1150 156 499 484
FLIGHT
POST
DO NOT ARRIVE ON
CUSTOMS IMMIGRATION TRANSIT
DESTINATION
82 47 63
1988
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34. What can we learn from Harley Davidson?
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35. Customer experience management is about branding
“Retention is for wimps. We measure the percent of customers who have our
name tattoed on one of their body parts.” (Harley Davidson Annual report)
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36. We believe in...
...meaningful
... consistent brands
experiences
Relations are built through A brand needs to live its values
experiences
A long term relationship can help Companies need to attract
people to reduce risks. But more customers who can identify them
and more people are looking for self with their brand values.
personal development in a Investments in the relationship
relationship. Companies who pays off if companies act
understand that and provide consistently with these brand
meaningful experiences to their values through all touch points.
customers win the race.
2009
What are meaningful
Integrate experiences through How can you translate your
2009
external channels forthe model
experiences in your brand values into real customer
customers? experiences?
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37. Who do you want to be ? Who are you ?
Your brand positioning Your brand DNA

40. You need to deliver the „total experience‟ by acting
consistent with your brand values trough all touch points
Product touch point
Customer Equity
Value for Money
General Recom- Choose Premium
Sales contact touch point Satisfaction mendation again price
Delivery touch point
Customer service touch point
Communication touch point Brand Equity
Conform with
Reputation Modernity and Personal
values and
and prestige innovativeness relationship
Rewarding touch point mission
Brand consistency
Communi- The way All contact
Offering
cation employees act moments
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41. Experiences matter to build brand equity
Strength of the model
Results for Belgium
PRODUCT Banking R² = .72
Automotive R² = .72
VALUE FOR
REWARDING
MONEY
Telecom R² = .77
Touroperators R² = .63
Airlines R² = .63
COMMUNI-
SALES
CATION
BRAND CONTACT
CONTACT Retail R² = .69
EQUITY
Brand can be built
CUSTOMER DELIVERY through experiences
SERVICE
that are under
companies‟ control...
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42. What is the brand equity in different industries among customers?
100 100 100 100 100 100
0 0 0 0 0 0
65 59 60 58 64 58
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43. Brand can be built through experiences that are under
companies‟ control...
IF a company acts consistenly with its brand values over all
touch points
100 100 100 100 100 100
Brand Consistency = High 76
72 72 73
Brand Consistency = Medium 64 67 68
59 61
58 59 56
Brand Consistency = Low 52
47 49 47 48
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0 0 0 0 0 0
Brand Brand Brand Brand Brand Brand
equity equity equity equity equity equity
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44. We believe in...
...meaningful ... the connected
... consistent brands
experiences customer
Relations are built through A brand needs to live its values
experiences
A long term relationship can help Companies need to attract
people to reduce risks. But more customers who can identify them
and more people are looking for self with their brand values.
personal development in a Investments in the relationship
relationship. Companies who pays off if companies act
understand that and provide consistently with these brand
meaningful experiences to their values through all touch points.
customers win the race.
2009
What are meaningful
Integrate experiences through How can you translate your
2009
external channels forthe model
experiences in your brand values into real customer
customers? experiences?
44

45. Touch
Relation- Financial
point Behavior
experience
ship value
The customer experience value chain
45

46. 2 customer experience value chains
Touch
Relation- Financial
point Behavior
experience
ship value
Individual value chain
Touch point satisfaction Intention to repurchase Buying behaviour Value on buying
behaviour
 DRIVERS > Which touch points drive conversations ?
 PARTICIPANTS > Who participates in the conversations ?
 CONTENT > What are the conversation about ?
 IMPACT > How do these conversations drive value ?
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47. 2 customer experience value chains
Touch
Relation- Financial
point Behavior
experience
ship value
Individual value chain
Touch point satisfaction Intention to repurchase Buying behaviour Value on buying
behaviour
Connected value chain
Acting on
Touch point experience Willingness to recommend
Referral value
conversation recommendation
(NPS)
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48. 0% repurchase

49. We believe in...
...meaningful ... the connected
... consistent brands
experiences customer
Relations are built through A brand needs to live its values The power of conversations
experiences
A long term relationship can help Companies need to attract Customers talk about their
people to reduce risks. But more customers who can identify them experiences. And that matters.
and more people are looking for self with their brand values. Positive recommendations
personal development in a Investments in the relationship generate new customers (referral
relationship. Companies who pays off if companies act value). And these promoters will
understand that and provide consistently with these brand buy more themselves.
meaningful experiences to their values through all touch points.
customers win the race.
2009 2009
What are meaningful
Integrate experiences through How can you translate your How do conversations
2009
external channels forthe model
experiences in your brand values into real customer contribute to the value of your
customers? experiences? company?
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50. Net promotor score
Pose question “Have you, or would you recommend „Company X‟ to others?”
Group responses 1 2 3 4 5 6 7 8 9 10
Detractors Neutral Promoters
Run calculation (Number of promoters - Number of detractors)
Net promoter score _____________________________________
Total respondents
Metrics behind „referral value‟

51. “how likely is it that you would recommend this company
to others?”
“did you select company primarily on the basis of a
+ referral from a friend or colleague?” (yes/no)
+ “have you positively referred friends or colleagues to
company in the past 12 months?” (yes/no)
Metrics behind „referral value‟

52. Time for a small quiz!

53. Which 3 companies have the highest
Net Promoter Score ?

54. Which 3 companies have the highest Net Promoter Score?
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55. Which 3 companies have the highest
Net Promoter Score ?

56. Which 3 companies have the highest Net Promoter Score?
Industry benchmarks
Financial -10
Automotive 24
Telecom 3
Airlines 0
Tour operators 19
Retail 6
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57. in 3 nutshells
Customers are talking about Customer experience Client relationships are
experiences, companies management and branding death row unless you
focus on processes become one have a clear positioning
and act accordingly
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58. Let‟s get connected!
Christophe Vergult
Managing partner
Christophe.Vergult@insites.eu
Tel. +32 9 269.15.06
Mobile +32 496 23.29.32
InSites Consulting
Evergemsesteenweg 195
B-9032 Gent
Belgium
Tel. +32 9 269 15 00
Lichtenauerlaan 102-120
3062 ME Rotterdam
Netherlands
Tel. +31 10 204 56 71
info@insites.eu
www.insites.eu
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