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The Emotion of Customer Experience The Venetian Las Vegas, NV
lou carbone   minneapolis, minnesota
we live, eat, sleep, breathe and unravel the riddle that is human experience for a select group of clients who want to man...
progressive auto insurance needed to progress
<ul><li>Problem:  </li></ul><ul><li>hit a brick wall </li></ul><ul><li>largest high risk auto insurer </li></ul><ul><li>so...
<ul><li>Outcome:  </li></ul><ul><li>most profitable auto insurer </li></ul><ul><li>fastest growing auto insurer </li></ul>...
Clients
engineering customer experiences <ul><li>move from “make and sell” to “sense and respond”  </li></ul><ul><li>customer back...
“ In business after business, our research has shown that 60-80% of customers who defected had said on a survey just prior...
Would you recommend to a friend or associate? Extremely unlikely Promoters Passive 10 9 8 7 6 5 4 3 2 1 0 Extremely likely...
hierarchy of customer behavior Adapted From James Haskett, Prof.. Harvard Business School satisfaction getting as much as,...
experience preference model™ acceptance No Differentiation preference Positive Differentiation rejection Negative Differen...
 
experience
Starbucks’ story <ul><li>1982 Howard Shultz Joins Starbucks </li></ul><ul><li>1983 Howard Shultz Visits Italy </li></ul><u...
“ Every Starbucks store is carefully designed to enhance the quality of everything the customers see, touch, hear, smell o...
experience management BEHAVIOURS Share Share of Wallet Profit Repeats Renewals Referrals Shopping Time Travel Patterns “ H...
the brand canyon ™
the brand canyon ™ “ ladies and gentlemen, serving ladies and gentlemen.”   Ritz Carlton what customers feel about company...
<ul><li>“ Brands have run out of juice. More and more people in the world have grown to expect great performance from prod...
A corporate brand  represents  the  promise  made to all audiences regarding the unique  experience  they have whenever an...
value relationships brand value how I feel about the company customer value how I feel in and about the experience
<ul><li>how customers think </li></ul>KNOW
 
the power of the unconscious mind KNOW
<ul><li>“ the tangible attributes of a product or service have far less influence on consumer preference than the sub-cons...
95% of our processing takes place at the unconscious level  individual wants conscious opinions “ what people say” cultura...
 
 
 
<ul><li>customers consciously & unconsciously filter a barrage of clues and organize them into a set of impressions – some...
types of clues that customers experience what we  taste what we  feel what we  see what we  hear what we  smell
categories of clues stimuli associated with  people – choice of words,  tone of voice, level of  enthusiasm, appearance,  ...
“ you cannot NOT have an experience… <ul><li>… the question is, how managed or haphazard is that experience?” </li></ul><u...
what kind of experience do these clues create? what if we managed these clues?
<ul><li>we can systematically & purposefully design experience clues to create feelings that emotionally engage & bond the...
learn
experience audit gap desired customer experience <ul><li>current customer experience </li></ul>
experience audit <ul><li>current customer experience </li></ul><ul><ul><li>experience language analysis ™ </li></ul></ul><...
why ZMET ? “ ZMET allowed me to walk around in the maze of the consumer mind.”    A ZMET client
<ul><li>working definition deep metaphors are the basic, unconscious “filters” or “frames”  that influence:  </li></ul><ul...
Work Play Routine Novel Drudgery Quest Reward (restore, break ) Exploration A model for shopping:  Four Kinds of Shopping ...
<ul><li>ZMET also identified several key cross-cultural differences regarding the deep idea of “connection with others.”  ...
experience audit gap desired customer experience ZMET ® experience intervention interviews™ experience reflection intervie...
<ul><li>Little Words Make A Big Difference </li></ul><ul><li>I’ll have  a  car ready for you in five minutes. </li></ul><u...
experience audit gap desired customer experience ZMET ® experience intervention interviews™ experience reflection intervie...
Clue Scan™ Objective  <ul><li>To create an awareness from the eyes of the customer of how they are bombarded by conscious ...
Experience  Clue Scanning™
immediate fixes Before After
create
experience motif  :  unifying element for every clue in an experience design provides alignment for emotional & rational e...
using the motif as a northstar to generate experience designs embedded with clues  <ul><li>eliminate or abate negative clu...
oskar mobil you’ve got my number <ul><ul><li>Clue:  it’s a jewel </li></ul></ul>“ Now I know why ‘engineering’ is in your ...
do
To deliver an “experience” “ Answer the door and make sure our guests feel welcome after their two day trip ” ” Answer   t...
 
Total Experience Management ™  can change the way companies manage their businesses. Current View Transformed View organiz...
engineering customer experiences <ul><li>move from “make and sell” to “sense and respond”  </li></ul><ul><li>customer back...
For Further Information On  Managing Experience as a Value Proposition Contact: [email_address] 952.942.8880  thank you
© 2007, Experience Engineering, Inc. All rights are reserved. No portion of this document may be reproduced in any form or...
a draining experience
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The Emotion of Customer Experience

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Best-selling author Lou Carbone will change the way you think about customer experience forever. Hear examples of companies bridging the brand canyon' to create on-going emotional connections with their customers. Understand how successful businesses find and manage experience "clues" and differentiate between brand management and experience management. Learn how to make the dynamic shift from making-and-selling to sensing-and-responding.

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Transcript of "The Emotion of Customer Experience"

  1. 1. The Emotion of Customer Experience The Venetian Las Vegas, NV
  2. 2. lou carbone minneapolis, minnesota
  3. 3. we live, eat, sleep, breathe and unravel the riddle that is human experience for a select group of clients who want to manage experience – and the value that experience can create. at experience engineering
  4. 4. progressive auto insurance needed to progress
  5. 5. <ul><li>Problem: </li></ul><ul><li>hit a brick wall </li></ul><ul><li>largest high risk auto insurer </li></ul><ul><li>sold through independent agents </li></ul><ul><li>need to expand beyond agents to direct </li></ul><ul><li>couldn’t alienate agents </li></ul><ul><li>Solution: </li></ul><ul><li>thinking customer back </li></ul><ul><li>distinctive customer experience </li></ul><ul><li>designed and implemented pilot experiences that were rolled out </li></ul>progressive auto insurance needed to progress
  6. 6. <ul><li>Outcome: </li></ul><ul><li>most profitable auto insurer </li></ul><ul><li>fastest growing auto insurer </li></ul><ul><li>agent growth instead of attrition </li></ul><ul><li>highest retention rates </li></ul>progressive auto insurance needed to progress IRVs Instant Response Vehicles at accident scene trained in loss and grief refreshments checks written at the scene assistance and transport to car rental phone Progressive plus competitors rate quote
  7. 7. Clients
  8. 8. engineering customer experiences <ul><li>move from “make and sell” to “sense and respond” </li></ul><ul><li>customer back (emotional/rational bond) </li></ul><ul><li>understand and leverage role of the unconscious mind </li></ul><ul><li>clue conscious </li></ul><ul><li>rigorous systems to develop and manage clues </li></ul>
  9. 9. “ In business after business, our research has shown that 60-80% of customers who defected had said on a survey just prior to defecting that they were “satisfied” or “very satisfied”…. Frederick F. Reichheld The Loyalty Effect
  10. 10. Would you recommend to a friend or associate? Extremely unlikely Promoters Passive 10 9 8 7 6 5 4 3 2 1 0 Extremely likely Neutral Frederick F. Reichheld The Ultimate Question Detractors
  11. 11. hierarchy of customer behavior Adapted From James Haskett, Prof.. Harvard Business School satisfaction getting as much as, or more than, what was expected loyalty devoting a large share of wallet to repeat purchases apostle-like behavior exhibiting a high degree of loyalty while convincing others to purchase commitment demonstrating loyalty while telling others of one’s satisfaction ownership taking responsibility for the continuing success of the offering
  12. 12. experience preference model™ acceptance No Differentiation preference Positive Differentiation rejection Negative Differentiation - commodity zone +
  13. 14. experience
  14. 15. Starbucks’ story <ul><li>1982 Howard Shultz Joins Starbucks </li></ul><ul><li>1983 Howard Shultz Visits Italy </li></ul><ul><li>1984 He Convinces Company to Test Concept </li></ul><ul><li>1985 Leaves to Found Il Giornale </li></ul><ul><li>1987 Il Giornale buys Starbucks (17 Stores) </li></ul>
  15. 16. “ Every Starbucks store is carefully designed to enhance the quality of everything the customers see, touch, hear, smell or taste” -CEO Howard Schultz.”
  16. 17. experience management BEHAVIOURS Share Share of Wallet Profit Repeats Renewals Referrals Shopping Time Travel Patterns “ How they act” ATTITUDES Loyal Promote Committed Apostleship Passionate Trust “ How customers feel about ” EMOTIONS Significant Strengthened Renewed Inspired Safe Confident “ How they feel” BEHAVIOURS ATTITUDES EMOTIONS EXPERIENCE CLUES
  17. 18. the brand canyon ™
  18. 19. the brand canyon ™ “ ladies and gentlemen, serving ladies and gentlemen.” Ritz Carlton what customers feel about company! what customers feel about themselves! brand product service treatment experience feelings
  19. 20. <ul><li>“ Brands have run out of juice. More and more people in the world have grown to expect great performance from products, services and experiences.” </li></ul><ul><li>Kevin Roberts, </li></ul><ul><li>CEO Saatchi, Saatchi </li></ul><ul><li>Author of Lovemarks </li></ul>
  20. 21. A corporate brand represents the promise made to all audiences regarding the unique experience they have whenever and however they come into contact with the brand.
  21. 22. value relationships brand value how I feel about the company customer value how I feel in and about the experience
  22. 23. <ul><li>how customers think </li></ul>KNOW
  23. 25. the power of the unconscious mind KNOW
  24. 26. <ul><li>“ the tangible attributes of a product or service have far less influence on consumer preference than the sub-conscious sensory and emotional elements derived from the total experience.” </li></ul><ul><li>Dr. Gerald Zaltman Harvard Business School Laboratory of the Consumer Mind </li></ul>
  25. 27. 95% of our processing takes place at the unconscious level individual wants conscious opinions “ what people say” cultural forces psychological & bio needs unique script universal scheme common archetype
  26. 31. <ul><li>customers consciously & unconsciously filter a barrage of clues and organize them into a set of impressions – some rational, some emotional </li></ul>KNOW
  27. 32. types of clues that customers experience what we taste what we feel what we see what we hear what we smell
  28. 33. categories of clues stimuli associated with people – choice of words, tone of voice, level of enthusiasm, appearance, body language humanic clues emotional mechanic clues stimuli associated with things – sights, smells, sounds, textures emotional functional clues functionality of the good or service rational
  29. 34. “ you cannot NOT have an experience… <ul><li>… the question is, how managed or haphazard is that experience?” </li></ul><ul><li>Lou Carbone, President & CEO Experience Engineering, Inc. </li></ul>
  30. 35. what kind of experience do these clues create? what if we managed these clues?
  31. 36. <ul><li>we can systematically & purposefully design experience clues to create feelings that emotionally engage & bond the customers </li></ul>KNOW
  32. 37. learn
  33. 38. experience audit gap desired customer experience <ul><li>current customer experience </li></ul>
  34. 39. experience audit <ul><li>current customer experience </li></ul><ul><ul><li>experience language analysis ™ </li></ul></ul><ul><ul><li>cluescan ™ </li></ul></ul><ul><ul><li>experience intervention interviews ™ </li></ul></ul><ul><ul><li>experience reflection interviews ™ </li></ul></ul><ul><ul><li>customers’ psychological pathways ® </li></ul></ul><ul><ul><li>reality tv </li></ul></ul>gap desired customer experience ZMET ® experience intervention interviews™ experience reflection interviews™
  35. 40. why ZMET ? “ ZMET allowed me to walk around in the maze of the consumer mind.” A ZMET client
  36. 41. <ul><li>working definition deep metaphors are the basic, unconscious “filters” or “frames” that influence: </li></ul><ul><ul><li>what information we notice </li></ul></ul><ul><ul><li>how we process that information </li></ul></ul><ul><ul><li>what we do as a result </li></ul></ul>what are deep metaphors?
  37. 42. Work Play Routine Novel Drudgery Quest Reward (restore, break ) Exploration A model for shopping: Four Kinds of Shopping Described by Women in U.S., Japan, and France. Example of a cross-cultural ZMET Study
  38. 43. <ul><li>ZMET also identified several key cross-cultural differences regarding the deep idea of “connection with others.” For example: </li></ul><ul><ul><li>French consumers, more so than Americans or Japanese, expressed a desire for positive personal interactions with shopkeepers during their shopping journeys. They had a strong preference for the pleasant, enjoyable atmosphere in smaller shops, boutiques, and markets relative to large, impersonal department stores and supermarkets </li></ul></ul><ul><ul><li>Many Japanese women expressed their strong need—sometimes to the point of anxiety—to obtain approval for their purchases from members of their families, especially their husbands. </li></ul></ul><ul><ul><ul><li>Perhaps this explains why Japanese women seem to devote a greater amount of time to planning, imagining, learning, and deliberating prior to going to a store and eventually making a purchase </li></ul></ul></ul>Example of a cross-cultural ZMET Study
  39. 44. experience audit gap desired customer experience ZMET ® experience intervention interviews™ experience reflection interviews™ <ul><li>current customer experience </li></ul><ul><ul><li>experience language analysis ™ </li></ul></ul><ul><ul><li>cluescan ™ </li></ul></ul><ul><ul><li>experience intervention interviews ™ </li></ul></ul><ul><ul><li>experience reflection interviews ™ </li></ul></ul><ul><ul><li>customers’ psychological pathways ® </li></ul></ul><ul><ul><li>reality tv </li></ul></ul>
  40. 45. <ul><li>Little Words Make A Big Difference </li></ul><ul><li>I’ll have a car ready for you in five minutes. </li></ul><ul><li>I’ll have the car ready for you in five minutes. </li></ul><ul><li>I’ll have your car ready for you in five minutes. </li></ul>Linguistics experience audit learn
  41. 46. experience audit gap desired customer experience ZMET ® experience intervention interviews™ experience reflection interviews™ <ul><li>current customer experience </li></ul><ul><ul><li>experience language analysis ™ </li></ul></ul><ul><ul><li>cluescan ™ </li></ul></ul><ul><ul><li>experience intervention interviews ™ </li></ul></ul><ul><ul><li>experience reflection interviews ™ </li></ul></ul><ul><ul><li>customers’ psychological pathways ® </li></ul></ul><ul><ul><li>reality tv </li></ul></ul>
  42. 47. Clue Scan™ Objective <ul><li>To create an awareness from the eyes of the customer of how they are bombarded by conscious and unconscious clues and how haphazard or managed those clues are which create the total experience. </li></ul>
  43. 48. Experience Clue Scanning™
  44. 49. immediate fixes Before After
  45. 50. create
  46. 51. experience motif : unifying element for every clue in an experience design provides alignment for emotional & rational elements in the experience
  47. 52. using the motif as a northstar to generate experience designs embedded with clues <ul><li>eliminate or abate negative clues </li></ul><ul><li>improve neutral clues </li></ul><ul><li>dial up or create preference clues </li></ul>acceptance No Differentiation rejection Negative Differentiation - commodity zone + preference Positive Differentiation
  48. 53. oskar mobil you’ve got my number <ul><ul><li>Clue: it’s a jewel </li></ul></ul>“ Now I know why ‘engineering’ is in your name. The process you put us through was invaluable to making the experience tangible and actionable for our team.” Karla D. Stephens – CEO OSKAR Mobil/Vodafone, Czech Republic
  49. 54. do
  50. 55. To deliver an “experience” “ Answer the door and make sure our guests feel welcome after their two day trip ” ” Answer the door”
  51. 57. Total Experience Management ™ can change the way companies manage their businesses. Current View Transformed View organization out customer back make & sell sense & respond rational emotional & rational
  52. 58. engineering customer experiences <ul><li>move from “make and sell” to “sense and respond” </li></ul><ul><li>customer back (emotional/rational bond) </li></ul><ul><li>understand and leverage role of the unconscious mind </li></ul><ul><li>clue conscious </li></ul><ul><li>rigorous systems to develop and manage clues </li></ul>
  53. 59. For Further Information On Managing Experience as a Value Proposition Contact: [email_address] 952.942.8880 thank you
  54. 60. © 2007, Experience Engineering, Inc. All rights are reserved. No portion of this document may be reproduced in any form or used in anyway without the express written permission of: Experience Engineering, Inc. 7808 Creekridge Circle, Suite 225 Minneapolis, MN 55439 952 942-8880 www.experienceengineering.com
  55. 61. a draining experience
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