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file:/C:/D1B93624/custexpKOD.htm file:/C:/D1B93624/custexpKOD.htm Presentation Transcript

  • 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 View slide
  • 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 View slide
  • 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 Customer Transaction Experience Product Quality Reviews Advertising Price Expectations HomePage Hearsay 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  Site must meet basic functionality requirements The Objective Element  Individuals will note and care about certain The Perceived Element aspects of the encounter based on their own unique perceptions  The entire customer encounter element includes The Encounter Element both process and output measures  Customers respond to multiple variables, from The Reactions to Stimuli Element the tactical layout of the site to high-level interpretations of the meaning of the brand  The customer experience can incorporate all five The Sensory Element senses  Cognitive responses are thoughtful and The Cognitive and Emotional Element evaluative in nature; emotional responses tend to capture moods, attitudes and feelings of the customer  Previous, separate experiences can affect a The Relative Element consumer‟s reaction to various stimuli during a new experience 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 What marketing to win in the market activities we will where we will compete 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 Customer Experience Is Is the Key to Success the Key to Success  Building brand awareness leads to traffic  Focusing on customer experience is the  Investors need to see site traffic and the single most profitable thing a business likelihood of future profitability can do  Offering a great customer experience  Customers that have a positive when nobody know s about the site is a experience with the site are more likely waste of resources as long as a baseline to keep coming back and to tell their functional standard is being met 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 Stages If a Firm Gets This Right… This Is What the Customer Experiences Stage One:  Design and information architecture  Site is easy to use Functionality  Deep understanding of customer needs  Quick downloads  Platform independence  Intuitive navigation  Efficient transactions  Site reliability Stage Two:  Warehousing and mining  Personalization Intimacy  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  Significant benefits relative to other offerings (incremental or significant) Stage Three:  Supportof evangelists  Desire to take message to the market Evangelism  Acknowledgment of evangelists  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 Customer Experience  Great design and information  Usable site architecture  Quick, speedy downloads  Deep understanding of customer  Easy navigation behavior  Reliability  Platform independence  Server transactions 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 Customer Experience  Warehousing and mining of data  Personalized information  Tailoring of pages and offerings  Increasing trust  Overlay human interaction  Consistent experiences  Integrate data with web page activity 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 Customer Experience  Acknowledge evangelists  Wants to take message to the  Support evangelists 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 Search box is Customers can prominently Tab navigation view products by displayed. sorts content into activity type, intuitive sections. equipment type, age/gender, or usage occasion. 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 Generic Desired Customer Experience What REI.com Delivers Functionality  Site is usable  Content organized around user needs  Easy navigation  Easy-to-find gear and activity information  Quick download  Multiple views of products and services  Speedy site  Website that rates high on efficiency and fulfillment  Reliable  No crashes and limited downtime Intimacy  High trust  Authoritative content and information  Consistent experience  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  Member discounts and rebates  Consistent with brand message  Product returns to store or by mail  Adventure travel service Evangelism  Takes word to the market  Membership advantages  Defends the experience  E-mail option for sharing information  Community message boards  In-store and local events 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 • Brings market research to life Create Rich Description motivations of Target Customers • Allows shared understanding of customer types • Company better able to anticipate and meet • Site designers put themselves in Develop Use Case customer needs and expectations customers‟ shoes, which helps create Scenarios for Each intuitive navigation and ensures usability Target Segment • Customer experiences consistency • Enhanced overall sales, lessening of across brand and channels perceived channel cannibalization Integrate Online and Offline Experience • Customer experiences increased • Company able to map desired Articulate Stages of Desired attachment to company, greater loyalty outcomes to product and site Experience and potential for evangelism deliverables • Customers perceive that they are of • Company able to consider strategies Assess Levels of Hierarchy value to the company for moving customers along the experience hierarchy • Customer participation in brand and • Company gains insight into product Leverage the Evangelists marketing is rewarded by feeling of uses and product development; belonging and community benefits from viral marketing • Major and incremental changes to site • Online channel‟s full potential is Monitor and Adjust diminish barriers to good experience leveraged 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 Generic Desired Customer What eBay Delivers Experience for Auctions Functionality  Direct message  Easy-to-locate items  Clean layout  Easy-to-upload information about selling  Quick browsing, searching, and bidding  Fast auction interactions  Straightforward selling  Easy-to-understand rules and auction interface  Good market segmentation (by category,  No website crashes and limited downtime region, or special interests)  Very efficient access  Reliable Intimacy  Effective communication  User constantly knows status of auction  Consistent experience  Site is consistent across all areas  Trustworthy customer service  Quick, effective personalized e-mail responses  Only the necessary level of personalization  Users make “My eBay" their main interface with the site   Exceptional value Enabling transactions is regarded by eBay community as  Consumption for leisure extremely valuable   Channel for selling, especially B2C Businesses use eBay as a distribution channel   Active community members Active users in personal and company‟s feedback forums   Assistance in brand building Feedback forum becomes emotion-driven: “I wonder what people are saying about me”  Evangelism  Takes word to the market Describes eBay as the ultimate experience in terms of  Defends the experience great deals and trustworthiness   Look downs on competitors 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  Intuitive interface guides both buying and selling process  Logical organizational structure reinforces where you are in the site at all times Speed  Site is light on graphics, making performance quick on dial-up connections  Item searches are extremely fast Reliability  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