World’s Largest Emotion Database: Part 1<br />Steven Walden<br />Senior Head of Research and Consulting Beyond Philosophy<...
1. Viewer Window<br />2. Control Panel<br />GoToWebinar Example Interface<br />Webinar Interface Review<br />Beyond Philos...
3<br />Beyond Philosophy © All rights reserved. 2001-2011<br />The Beyond Philosophy Perspective<br />Customer Experience ...
4<br />We are Proud to Have Helped Some Great Organizations…<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
Experience Value is Emotional Value<br />Customer Satisfaction<br />Emotional Signature<br />Beyond Philosophy © All right...
The Evidence from Marketing Experiments<br />6<br />Beyond Philosophy © All rights reserved. 2001-2011<br /><ul><li>The pr...
The "principle of hedonic dominance“:  after a required level of functionality is met, hedonic aspects drive consumer choi...
a consumer shopping for a cell phone with at least an eight-hour battery life will choose an option that offers this level...
The Evidence from Neuroscience<br />7<br />Beyond Philosophy © All rights reserved. 2001-2011<br />When making decisions i...
‘Somatic Marker’ Marketing<br />Firms tend to see their experience as a detailed painting<br />Customer tend to see their ...
The Urgency of Measurement<br />9<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
Four Clusters of Emotions Drive or Destroy Value<br />The  2 years of baseline research produced the framework against whi...
11<br />Endorsement from the Market Research Industry<br />The DNA of customer experience: how emotions drive value<br />“...
12<br />Beyond Philosophy © All rights reserved. 2001-2011<br />The Worlds Largest Database of EmotionsEmotional Signature...
The Findings<br />Emotion database<br />13<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
Emotion Exercise<br />14<br />Beyond Philosophy © All rights reserved. 2001-2011<br />How would your typical customer feel...
The Emotional Database <br />15<br />Beyond Philosophy © All rights reserved. 2001-2011<br />N= 25,000 New Overall Busines...
Advocacy:  Happy, Pleased Reduce<br />16<br />Beyond Philosophy © All rights reserved. 2001-2011<br />2005 to 2011<br />Re...
Recommendation: Safe, Focused Reduce<br />17<br />Beyond Philosophy © All rights reserved. 2001-2011<br />2005 to 2011<br ...
Attention: No Change Except Pampered Reduces<br />18<br />Beyond Philosophy © All rights reserved. 2001-2011<br />2005 to ...
Negatives: Significant Reductions<br />19<br />Beyond Philosophy © All rights reserved. 2001-2011<br />2005 to 2011<br />R...
The Failure of Perspective<br />20<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
Internal Bias Towards Controlling Losses<br />21<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
Avoid The Cost of a Negative Experience <br />22<br />Beyond Philosophy © All rights reserved. 2001-2011<br />Case Study:<...
But Leave the Blight of the Bland<br />From the American Customer Satisfaction Index<br />Looks good except when you look ...
Experience Psychology<br />Frederickson (1998) suggests that positive emotions ‘broaden the cognitive and behavioral reper...
Rational 4Ps Trade-Offs No Longer Work<br />25<br />Beyond Philosophy © All rights reserved. 2001-2011<br />I see the expe...
LoveMark your Experience<br />26<br />Brands are running out of juice". Love is what is needed to rescue brands. Roberts a...
27<br />Beyond Philosophy © All rights reserved. 2001-2011<br />TV ad: http://www.youtube.com/watch?v=M0mXUC0cUPg<br />
Reasons for the Change<br /><ul><li>The increasing transactional focus of companies on controlling the negatives in an exp...
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  • The unconscious and the subconscious are vastly different, though non-psychiatric professionals often incorrectly use subconscious. In contrast to the unconscious, the subconscious mind lies just below consciousness, and it is easily accessible if attention is paid to it. For instance, you might know someone’s phone number. This information is not stored in your conscious mind, but in your subconscious. If you think about it, you can produce the phone number, but it isn’t simply floating around in your conscious mind. You need to direct your attention to memory in order to dredge up the phone number. Those memories you can recall easily are not conscious unless you pay attention and focus. When someone asks you to describe your perfect day, you reach into your subconscious mind for these memories. However, if someone asked you to describe the worst day you ever had, especially if it was particularly traumatic, you might not really be able to describe the worst. You’d be able to discuss memories in your subconscious that were memorably bad, but a truly traumatic day could be in part, or completely repressed. In this way, one of the differences between the unconscious and the subconscious is that, at least in Freud’s estimation, the unconscious worked as a protecting force on the mind, even if this protection was wrongly guided. Really finding the most traumatic day of your life might mean significant therapy to access layers of memory buried away from both from conscious and subconscious, deeply hidden in the mind.
  • Worlds largest database part

    1. 1. World’s Largest Emotion Database: Part 1<br />Steven Walden<br />Senior Head of Research and Consulting Beyond Philosophy<br />
    2. 2. 1. Viewer Window<br />2. Control Panel<br />GoToWebinar Example Interface<br />Webinar Interface Review<br />Beyond Philosophy © All rights reserved. 2001-2011<br />2<br />
    3. 3. 3<br />Beyond Philosophy © All rights reserved. 2001-2011<br />The Beyond Philosophy Perspective<br />Customer Experience is all we do!<br />Thought leadership is our differentiator<br />New Fourth book <br />Is now available<br />Offices in London, Atlanta with Partners in Europe & Asia<br />Links with Academia<br />Focus on the emotional side of Customer Experience<br />
    4. 4. 4<br />We are Proud to Have Helped Some Great Organizations…<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    5. 5. Experience Value is Emotional Value<br />Customer Satisfaction<br />Emotional Signature<br />Beyond Philosophy © All rights reserved. 2001-2011<br />5<br />
    6. 6. The Evidence from Marketing Experiments<br />6<br />Beyond Philosophy © All rights reserved. 2001-2011<br /><ul><li>The principle of precedence: consumers attach greater importance to functionality (over hedonics) up to the point at which a "required" level of functionality is met.
    7. 7. The "principle of hedonic dominance“: after a required level of functionality is met, hedonic aspects drive consumer choice.
    8. 8. a consumer shopping for a cell phone with at least an eight-hour battery life will choose an option that offers this level of battery life over ones that do not, even if this option is much worse looking than the alternatives. However, after the required level of functionality is met, consumers shift focus almost entirely to the hedonic aspects. Thus, if all available cell phones exceeded the eight-hour battery limit, the phone that looks best will be chosen, regardless of the differences among the options in terms of battery life. </li></ul>Source: Form versus Function: how the intensities of specific emotions evoked in functional versus hedonic trade-offs mediate product preferences<br />
    9. 9. The Evidence from Neuroscience<br />7<br />Beyond Philosophy © All rights reserved. 2001-2011<br />When making decisions in the future, physiological signals (or ‘somatic markers’) and evoked emotions are consciously or unconsciously associated with their past outcomes and bias decision-making towards certain behaviors. When a somatic marker associated with a positive outcome is perceived, the person may feel happy and motivate the individual to pursue that behavior. When a somatic marker associated with the negative outcome is perceived, the person may feel sad and act as an internal alarm to warn the individual to avoid a course of action. These situation-specific somatic states based on, and reinforced by, past experiences help to guide behavior in favor of more advantageous choices and therefore are adaptive<br />In contrast to economic theory, the somatic marker hypothesis proposes that emotions play a critical role in our ability to make fast, rational decisions in complex and uncertain situations.<br />Patients with damage to certain regions of the frontal lobe suffer from an inability to appreciate negative outcomes. Though they can reason logically, their decision-making ability is flawed. <br />They have lost emotional reactivity at a high level; they can no longer sense, for instance, embarrassment or guilt or pride or shame. They have lost their ability to feel emotion relative to the future consequences of their actions and thus are no longer able to qualify their choices as "potentially good" or "potentially bad." <br />Professor Antonio Damasio<br />Decision-making is devoid of emotions and involves logical reasoning based on costs-benefit calculations<br />Assumes that individuals have unlimited time, knowledge and information processing power and can therefore make perfect decisions. <br />
    10. 10. ‘Somatic Marker’ Marketing<br />Firms tend to see their experience as a detailed painting<br />Customer tend to see their experience as an impression <br />8<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    11. 11. The Urgency of Measurement<br />9<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    12. 12. Four Clusters of Emotions Drive or Destroy Value<br />The 2 years of baseline research produced the framework against which we will compare your experience. The baseline model identified 20 emotions clustered into 4 hidden factors and that drive/ destroy value for business. <br />10<br />www.beyondphilosophy.com<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    13. 13. 11<br />Endorsement from the Market Research Industry<br />The DNA of customer experience: how emotions drive value<br />“The case for focusing on emotion<br />as a philosophy for building a better<br />experience for customers as presented in the book is a compelling<br />one. <br />The methodology for undertaking the necessary emotional analysis<br />is practical, simple, potentially very<br />effective, and enables organizations to<br />benchmark themselves by sector and<br />'best practice'.<br />International Journal of Market Research Vol. 53 Issue 1, Peter Mouncey, Editor<br />Endorsement from Research Industry Magazine<br />http://www.research-live.com/magazine/why-we-must-measure-emotion/4003434.article<br />Independent, Peer Reviewed Endorsement from the leading Journal for Market Research<br />Beyond Philosophy © All rights reserved. 2001-2011<br />Scale development with Professor Voss of London Business School, Professor Raymond (Chair of Experimental Consumer Psychology at University of Wales) and Dr Miles (ex- York University) now Quantitative Psychologist and RAND corporation<br />
    14. 14. 12<br />Beyond Philosophy © All rights reserved. 2001-2011<br />The Worlds Largest Database of EmotionsEmotional Signature® Database (N=25,000)<br />The 2 years of baseline research and subsequent 3+ years of client work has resulted in the world’s largest fit-for-business emotional database <br />Benchmarking<br />The Emotional Signature® system has been independently corroborated and validated<br />It looks not just at the Past<br />But perspectives on the future<br />
    15. 15. The Findings<br />Emotion database<br />13<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    16. 16. Emotion Exercise<br />14<br />Beyond Philosophy © All rights reserved. 2001-2011<br />How would your typical customer feel towards your organization<br />
    17. 17. The Emotional Database <br />15<br />Beyond Philosophy © All rights reserved. 2001-2011<br />N= 25,000 New Overall Business Index<br />
    18. 18. Advocacy: Happy, Pleased Reduce<br />16<br />Beyond Philosophy © All rights reserved. 2001-2011<br />2005 to 2011<br />Reduction in Advocacy<br />N= 25,000 New Overall Business Index<br />
    19. 19. Recommendation: Safe, Focused Reduce<br />17<br />Beyond Philosophy © All rights reserved. 2001-2011<br />2005 to 2011<br />Some reduction in Recommendation<br />N= 25,000 New Overall Business Index<br />
    20. 20. Attention: No Change Except Pampered Reduces<br />18<br />Beyond Philosophy © All rights reserved. 2001-2011<br />2005 to 2011<br />Same levels of Attention<br />N= 25,000 New Overall Business Index<br />
    21. 21. Negatives: Significant Reductions<br />19<br />Beyond Philosophy © All rights reserved. 2001-2011<br />2005 to 2011<br />Reduction in Negatives<br />N= 25,000 New Overall Business Index<br />
    22. 22. The Failure of Perspective<br />20<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    23. 23. Internal Bias Towards Controlling Losses<br />21<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    24. 24. Avoid The Cost of a Negative Experience <br />22<br />Beyond Philosophy © All rights reserved. 2001-2011<br />Case Study:<br />Enterprise with 2 million customers<br />Revenue = $200,000,000 per year <br />Average Revenue per customer = $100 per year<br />Sources: Cherry Tree Research, Bain & Co., McKinsey, Harvard Business Review and Gartner<br />2,992 customers<br />$299,200<br />At risk — 34%Issue not resolved<br />2,464 customers<br />$246,400<br />Complain2%<br />Defect — 28%<br />8,800<br />customers<br />Poor experience22%<br />Resolved — 38%<br />440,000<br />customers<br />Do notcomplain98%<br />At risk — 55%Decline in wallet<br />share<br />237,160 customers<br />$23,716,000<br />Positiveexperience 78%<br />431,200<br />customers<br />194,040 customers<br />$19,404,000<br />Defect — 45% <br />
    25. 25. But Leave the Blight of the Bland<br />From the American Customer Satisfaction Index<br />Looks good except when you look at the scale!<br />23<br />BeyondPhilosophy © Allrightsreserved. 2001-2011<br />
    26. 26. Experience Psychology<br />Frederickson (1998) suggests that positive emotions ‘broaden the cognitive and behavioral repertoire, signifying new possibilities’, while negative emotions are more action specific e.g., fear leads to flight, anger to fight. Needless to say for the business manager the positive emotion set represents the best point of competitive differentiation in a marketplace focused on controlling the negative emotions: in particular, happy and pleased which relates to the concept of achieving advocacy or total satisfaction with an experience encounter<br />24<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    27. 27. Rational 4Ps Trade-Offs No Longer Work<br />25<br />Beyond Philosophy © All rights reserved. 2001-2011<br />I see the experience<br />Price<br />I feel wowed by the experience<br />Product<br />Promotion<br />Place<br />That feeling embeds in my memory<br />As expected, little different from your competitors = Rational Satisfaction and declining ROI<br />I want to return<br />Loyalty Emotions = CLV<br />
    28. 28. LoveMark your Experience<br />26<br />Brands are running out of juice". Love is what is needed to rescue brands. Roberts asks, "What builds Loyalty that goes Beyond Reason? What makes a truly great love stand out?”<br />Kevin Roberts, CEO Saatchi and Saatchi<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    29. 29. 27<br />Beyond Philosophy © All rights reserved. 2001-2011<br />TV ad: http://www.youtube.com/watch?v=M0mXUC0cUPg<br />
    30. 30. Reasons for the Change<br /><ul><li>The increasing transactional focus of companies on controlling the negatives in an experience by, for instance, reacting to customer complaints has led to a decline in negatives. With most competitors focused on this end of the emotional experience, the positive emotions have been largely neglected.
    31. 31. The increasing use of Six Sigma, Lean and other BPR initiatives has led to an increased focus of control on the negative emotional experience. This has been to the detriment of value-adding positive emotional experiences.
    32. 32. The recession has led to a cut-back in initiatives that focused on positive emotional experiences.
    33. 33. The meaning of a positive emotional experience has changed under conditions of hyper-competition. That is to say that to score highly on a word like happy requires an increased effort over and above what has happened before to match changed expectations. For this to have been the effect, firms efforts would have been minimal over the last few years to evoke a positive emotional reaction from clients and consumers.</li></ul>28<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    34. 34. Managerial Implications<br /><ul><li>The positive emotion set represents the best point of competitive differentiation in a marketplace focused on controlling the negative emotions: in particular, happy and pleased which relates to the concept of achieving advocacy or total satisfaction with an experience encounter.</li></ul>MEASURE THE EMOTIONS<br />MAP THE EXPERIENCE<br />CREATE POSITIVE EMOTIONAL PULL<br />29<br />Beyond Philosophy © All rights reserved. 2001-2011<br />
    35. 35. Thank You<br />Questions or ideas?Contact <br />Steven Walden<br />Senior Head of Research and Consulting<br />Email: steven.walden@beyondphilosophy.com<br />Tel USA: +1 678-638-3050<br />Tel UK: +44 158-263-5007<br />
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