Interbrand: How Customer Experience affects business performance

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This is a really good presentation by Kevin Perlmutter of Interbrand, showing how customer experience directly affects the financial performance of a business. The sides come directly from their …

This is a really good presentation by Kevin Perlmutter of Interbrand, showing how customer experience directly affects the financial performance of a business. The sides come directly from their website http://www.interbrand.com/paper.aspx?paperid=67&langid=1000

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  • 1. Unlocking Opportunity at the Intersection of Brand and Customer Experience Kevin Perlmutter Senior Director, Brand Strategy September 14, 2009
  • 2. Why should we care about brand? High Quality Coffee High Quality Coffee Excellent Flavor Excellent Flavor Branded Non-branded Price Premium $1.00 $3.00 Strong brands drive awareness, stimulate demand and positively impact earnings 2 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
  • 3. 84% of companies don’t know the cost of a customer complaint 65% don’t know the length of an average customer relationship Source: Stativity Group 3 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
  • 4. Customer experience is impacting the behavior of potential customers “Waiter, there’s a fly in my soup (and I have an iPhone).” New York Times Headline, 9/2/09 5 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
  • 5. Engagement in social media correlates to financial performance Top 10 Brands Engaged in Social Brands engaging Media communities 1.Starbucks through social 2.Dell media grew revenues by 18%, 3.eBay those that didn’t 4.Google sunk 6% 5.Microsoft 6.Thomson Reuters 7.Nike 8.Amazon 9.SAP 10.Tie – Yahoo/Intel Sources: ENGAGEMENTdb: The World’s Most Valuable Brands. Who’s most engaged? July 2009 & “New Study Finds Correlation Between Social Media and Financial Success”, Sarah Perez, Read Write Web 6 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
  • 6. Our role is to improve the quality of the relationships that people have with our brands to improve business performance. 7 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
  • 7. A relationship is… The way in which two or more people or organizations regard and behave toward each other. 8 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
  • 8. In human relationships there is a correlation of relationship quality and behavior Great Relationships Bad Relationships 1. I want to spend more 1. I want to spend less time with you time with you 2. I want to be devoted 2. I prefer to see other to you people 3. I want to tell everyone 3. I want to tell everyone you’re great I don’t like you 9 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
  • 9. Brand relationships work the same way Customer experience affects the bottom line 10 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
  • 10. Customer experience impact revenue Customer experience affects the bottom line Average impact of a 10% improvement in Forrester’s Customer Experience Index for a $10 billion company. 11 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
  • 11. Strong brands drive choice, loyalty and value Brand influences customer’s choice Higher level of Role of Brand earnings Value Brand is a key competitive asset Brand Higher security of Strength future earnings 12 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
  • 12. Opportunity does exist at the intersection of Brand and Customer Experience Brand Evolution It’s an ongoing loop of needs analysis and fulfillment, just like any good relationship. Customer Experience Analysis 13 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
  • 13. Focus Area #1: How does your brand work today? Brand Evolution How well is your brand aligned with the drivers of choice? Customer Experience Analysis 14 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
  • 14. To unlock opportunity, we need to analyze the customer journey How People Engage How People Buy How People Commit Passively Relevance Evaluating Selecting Deciding Shopping Confirming Buying Activating Using Committing Advocating aware trigger- options where Decision need/want to buy What are the key drivers, pain points, experience enhancers and experience gaps? 15 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
  • 15. What is the quality of the relationship? Decision Process Touchpoint Usage Messages 16 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
  • 16. How can the experience be better? How People Engage How People Buy How People Commit Continue: What positive things should we continue doing Stop: What experience detractors should we stop doing Start: What new things should we start doing 17 17 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
  • 17. How can your brand work better? Brand Strategy How People Engage How People Buy How People Commit Passively Relevance Evaluating Selecting Deciding Shopping Confirming Buying Activating Using Committing Advocating aware trigger- options where Decision need/want to buy Business Performance 18 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
  • 18. Focus Area #2: Created branded customer experiences Brand Evolution What follows are 5 opportunities to improve the experience and evolve the brand Customer Experience Analysis 19 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
  • 19. 1. Eliminate pain points
  • 20. Understanding and eliminating pain points 21 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
  • 21. 2. Link the brand to a top driver
  • 22. My Deals Ordering Ink & Toner My Rewards Easy Solutions
  • 23. Staples delivers on its promise of Easy. The My Deals Ordering Ink & Toner My Rewards Easy Solutions Easy Button desktop application has become a huge success with small business – tens of thousands have been downloaded yielding tremendous loyalty and repeat usage. Source: Klipfolio
  • 24. Westin Heavenly Bed 3. Create Hero Products or Services
  • 25. Westin drives demand for the Heavenly offering inside and outside the hotel. They have sold about 30,000 full Heavenly Beds, 100,000 pillows and 32,000 sheet sets for home use. Nordstrom alone has sold $20 million worth of Heavenly Beds. Source: USA Today, 5/14/09
  • 26. 4. Innovation
  • 27. Within 4 years of launch, Dyson became the fastest selling vacuum in the UK, and overtook Hoover’s category leading market share in the US going from 0% to 20.7%. Source: NPD
  • 28. 5. Redefine the category experience
  • 29. Mini has an incredibly loyal following thanks to a highly desirable end-to-end customer experience. Despite a down economy, US sales grew 29% in the 2008 to 54,000 – more than double 2002. Source: Business Week, 9/1/09
  • 30. Brand is an evolving relationship and a driver of business performance Brand Evolution 1. Distinctive and Engaging Promise 2. Fulfilling Brand Experience 3. Customer-centric Evolution Customer Experience Analysis 34 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
  • 31. Thank you. Kevin Perlmutter Senior Director, Brand Strategy 212-798-7542 kevin.perlmutter@interbrand.com