Innovation in services

Slide 1: Innovation in Services Defining and Managing Your Member’s Experience Jeneanne Rae Co-founder & President, Peer Insight Digital Now: Association Leadership Conference Orlando, Florida April 25, 2008

Slide 2: Interesting times we live in, eh?

Slide 3: Member Why is Customer experience the most promising place for innovation?

Slide 8: The Customer Experience Endgame Differentiation Premium Pricing Loyalty Raving Fans

Slide 9: Let’s compare some blue chip companies P&G Unilever Starwood Marriott Apple Sony Whole Foods Safeway cX Target Walmart OpEx Leaders All-stars Bank of America Citigroup Cisco Nortel Progressive AIG HP Dell Southwest US Air

Slide 10: Over the past 5 years, a hypothetical $1,000 investment in a cX portfolio would’ve outperformed the Op Ex portfolio by nearly a 4- to-1 margin from 2003 through 2007 $3,000 cX leaders $2,500 $2,791 (23.1%) A $1000 investment on January 1st, 2003 $2,000 would have S&P 500 returned: $1,823 (13.2%) $1,500 OpEx All-Stars $1,343 (6.6%) $1,000 $500 $0 2003 2004 2005 2006 2007

Slide 11: Okay, but how does this apply to us?

Slide 12: Collaborate and Connect

Slide 13: Collaborate and Connect ASCRS American Society of Cataracts & Refractive Surgery Online member created library of images and video of complex eye surgery and research.

Slide 14: Manage complexity

Slide 15: Manage complexity AHS American Heart Association Food certification denotes heart-healthy foods, online tool to create emailable shopping lists of heart healthy foods

Slide 16: Recognize me

Slide 17: Recognize me AMA American Medical Association American Medical Association invites the public to share their story about being uninsured

Slide 18: Escapism

Slide 19: Escapism ACS American Cancer Society Relay for Life facilitates donations, participation, and awareness generation in person, and now, while people escape into their SecondLife community.

Slide 20: How do experiences “work ”

Slide 21: Maslow’s Hierarchy of Needs, 1943 Self Actualization Esteem Needs Self-Esteem ~ “Experience zone” Status~ Recognition Social Needs Sense of Belonging ~ Love Safety Needs Security ~ Protection Physiological Needs Hunger ~ Thirst

Slide 22: B to C: The Starbucks Experience Engaging the senses: Seeing Hearing Smelling Tasting Feeling

Slide 23: B to B: The York Source Experience Stimulating productivity: Managing complexity Decreasing cost Relieving technical burden Stimulating emotions: Peace of mind Trust Focus on core competencies

Slide 24: Associations: The American Chemical Society’s “TechCatalyst” Experience Molecule Marketplace Functional value Network Leverage technology Find investors Emotional value Connect with others Create new value to the world Be recognized for your contribution

Slide 25: What does it mean to design an experience? member design: Customer experience (məm·bər ik·speéree·ənss dĭ-zīn' ) (n.) 1. The development and orchestration of multiple touch points, spanning human and technological interfaces, to create a functionally and emotionally compelling experience.

Slide 26: Experiences have an atomic structure a customer 1 2 3 4 5 6 7 journey a touch point 2 a moment of truth

Slide 27: That membership is a good credential, but I wish it…. Emotional Functional

Slide 28: Your brand is the “north star” for experience design

Slide 29: What is a brand?

Slide 30: Associations and Brands Brand management is a significant investment

Slide 31: A process for creating robust experiences: design-thinking

Slide 36: It’s not just about making things pretty!

Slide 37: Design Thinking Process Ideation Needs Implementation Synthesis Development Finding

Slide 38: Latent Needs Finding

Slide 39: Synthesis Looking for patterns and developing profiles and personas

Slide 40: Development Iteration improves concepts and lets the user co- design the experience along with you

Slide 41: Implementation Implementing valid, tested concepts reduces risk and facilitates getting it right the first time.

Slide 42: Design Thinking Process Ideation Needs Implementation Synthesis Development Finding

Slide 43: Don’t rely on Start by understanding the technology latent needs

Slide 44: Behind the curtain…..

Slide 45: Member Centricity

Slide 46: Bringing Experience to Life Awareness Application Training Adjust to new Advocacy Learning & Career Donation Intent Support community Involvement Development Development & Alumni Networking

Slide 47: Change Management

Slide 48: closing thoughts Member experience endgame Begin with latent needs, then see how technology fits Brand is the “north star” for experience design Leverage design thinking as a process to mitigate risk

Slide 49: Let’s do some questions….

Slide 50: Thank you! Jeneanne Rae, Co-founder and President Peer Insight LLC 703-778-5543 www.peerinsight.com jrae@peerinsight.com