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Designing the Customer Experience

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Learn why your in-store experience is your secret weapon for competing with/beating online retail. How do you continually surprise and delight your customers and still leave them anticipating more? Learn how every touchpoint – before, during, and after the purchase – impacts your customers’ perception of your business, and how to connect your brand’s online personality with your in-store experience.

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Designing the Customer Experience

  1. 1. Mary Aviles Principal, Connect 4 Insight Designing the Customer Experience September 26, 2018
  2. 2. 2 What is customer experience?
  3. 3. 3 “As consumers, we expect everything to be tailored to us, whether we’re searching online or visiting a store. But according to a study by PwC and SAP, just half of retailers are meeting these expectations.” Source: https://www.fastcompany.com/90177301/from-muji-to-ikea-why-the-best-retailers-think-like-ux-designers
  4. 4. 4 CUSTOMER SERVICE = what happens when customer experience breaks down... feelings, emotions, and perceptions Ex: making a purchase, using the product, paying the bill, calling support, visiting the website, etc. Σ the interactions a customer has with a company Source: http://www.brandquarterly.com/journey-maps-action-designing-better-customer-experience
  5. 5. 5 On average, customers of usage brands are : Today’s most successful brands think of their customers as USERS NOT BUYERS ...They look beyond the one-time sale to inspiring gratitude 7% premium 8% less likely to switch 2x as likely to make a spontaneous recommendation Willing to pay a Source: https://hbr.org/2018/02/the-most-successful-brands-focus-on-users-not-buyers
  6. 6. Position brands in the minds of their customers Position brands in the lives of their customers Prioritize spending on marketing campaigns and lead generation Elevate customer service and loyalty, no longer cost-centers Measures awareness, impressions (values winning advertising awards) Measures engagement (prefer 5-star reviews) Create demand to buy product, customer = one-time buyer Create demand for use of product, thinks of customers as members Emphasize promotion Emphasize advocacy Worry about what they say to customers Worry about what their customers say to each other Reach prospects through advertising and traditional media Discovered via social media and word of mouth Shape what people think along the path to purchase Strive to influence how customers experience brand at every touchpoint Critical "Moments of Truth“ – just before the transaction (purchase drivers) Critical "Moments of Truth" – just after the transaction (delivery, service, education, sharing, etc.) 6 The most successful brands focus on users, not buyers Buyers Users Source: https://hbr.org/2018/02/the-most-successful-brands-focus-on-users-not-buyers
  7. 7. 7 “It used to be that we HAD to shop, but now we must WANT to shop.” – design:retail forum, 2018 Greg Buzek, IHL Services
  8. 8. 8https://www.thinkwithgoogle.com/feature/search-intent-marketing-funnel/#/ Pop ups give you the opportunity to “interrupt” the decision-making process Every customer journey is unique—even within the same category
  9. 9. 9 Active evaluation touchpoints come from consumer-driven activity like friends and family WofM, online reviews, in-store interactions, and past experience Source: The Consumer Decision Journey, McKinsey & Company, June 2009 66% 2/3 Passive consumers are open to messages from competitors that Give them a reason to switch Make comparison shopping easy give consumers reasons to leave, not excuses to stay
  10. 10. 10Source: https://www.impactbnd.com/blog/word-of-mouth-marketing-strategies-infographic Pre-visit goals = drive awareness, overcome threshold barrier
  11. 11. 11 Visualize the customer journey
  12. 12. 12 24% of Amazon retail sales are from shoppers who went to a physical store FIRST Source: Greg Buzek,IHL Services, design:retail forum, 2018
  13. 13. 13 Use Amazon rather than cower before them
  14. 14. 14 84% of Americans are shopping for something at any given time and in up to 6 different categories Mobile searches for shopping lists have grown by over 150% In the past two years 200% Increase in mobile searches for “open” + “now” + “near me” Source: https://www.thinkwithgoogle.com/intl/en-ca/consumer-insights/consumers-are-always- shopping-and-eager-your-help/ https://www.thinkwithgoogle.com/intl/en-ca/consumer-insights/near-me-searches/ Customer engagement starts with being quick and in stock
  15. 15. 15 Mystery shop your customer’s journey starting from when they search for you on their cell until they get home with their bag of goods from your store and (put on the dress, eat the cheese, etc.) Understand what they’re trying to achieve when: Chatting with your staff Walking into your store They’re browsing your website They’re searching on their mobile device Document the journey along the way FROM YOUR CUSTOMER’S POINT OF VIEW
  16. 16. Are you incenting user-generated content (word of mouth)?
  17. 17. Implied v. Explicit
  18. 18. Featured (expressing gratitude)
  19. 19. 19 Involve & reward or entertain
  20. 20. 20 Overcome threshold barriers
  21. 21. 1. Examples of compelling, funny, misdirected signage 2. “What is that face?” 3. Little details that might otherwise escape notice 4. Reposts of #DetroitLocals I admire or clients doing cool stuff 5. Interesting, accessible #dataviz examples 6. Books I recommend (covers) 21 Use deliberate types of posts to reinforce branding, inspire sharing v Consider posting at least one time per day v Choose posting time aligned with when targets are engaged in relevant activity v Event-related posting should align with event timing v Vary content on Instagram and Facebook v Continue to use personal social to recruit brand ambassadors and drive brand page engagement
  22. 22. ID and nurture top customers Use as referral channel Crowdsource feedback for support & product/service suggestions Automate analysis of reviews 22 Social Media for Customer Relationship Management (CRM)
  23. 23. 23 Create a shareworthy experience
  24. 24. 24 “During the holidays, consumers are often drawn into stores that they haven’t been to or otherwise might not visit. This presents prime opportunities for retailers to acquire new, and potentially long- term, customers.” Source: 2017 Holiday Planning Playbook, National Retail Federation
  25. 25. 25 We are visual/tactile animals, so use the physical experience to close the sale, delight the customer, incent word of mouth Source: The Consumer Decision Journey, McKinsey & Company, June 2009 40% of consumers report changing their minds because of the in-store experience (packaging, placement, or interactions with sales people)
  26. 26. 26 80% of consumers would pay +25% to ensure a superior experience 80% of consumers will stop doing business due to bad experiences Source: Experience Design Is The New Imperative, Russ Klein, Marketing News, September, 2018 Experience outweighs product or price 80% of consumers will share bad experiences (warning, discouraging, venting)
  27. 27. 27 “We realized we need to have stores if we’re going to grow on a national and global scale.”
  28. 28. 28 Key Messages: Find the perfect pair—let our stylists guide you through our entire selection Pop in or book an appointment— Drop in anytime or plan ahead and we’ll have all your favorites (and a glass of bubbly) waiting for you Visit any of our fit shops to try things on for size. See something that you love? Enjoy them delivered to your door (for free) just a few days later. M. Gemi Fit Shops
  29. 29. 29 Outdoor Voices
  30. 30. 30 Pop ups can be used strategically to: • Introduce new products/services • Test market • Provide exclusive access to products/services in their “natural environments” • Establish and further relationships
  31. 31. 31 Pop up apartment Pop up art installation
  32. 32. 32
  33. 33. 33 Consider your brand attributes when you build out or renovate your space Apple Store
  34. 34. 34 Physical environments allow you to activate the senses… Margaux & Max Castalia at Sfumato
  35. 35. 35 Umpqua Bank Source: https://thefinancialbrand.com/33026/umpqua-bank-san-francisco-flagship-branch/
  36. 36. 36 Physical environments...allow you to reinforce brand values. Source: Trendwatching, December 2017 RETAIL INDUSTRY UPDATE | BEST OF 2017
  37. 37. 37 Physical environments... allow you to create truly, one-of-a-kind experiences. Source: Trendwatching, December 2017 RETAIL INDUSTRY UPDATE | BEST OF 2017
  38. 38. 38 What are your Branded Pleasures? IKEA’s mission: to make quality furniture that everyone can afford Brand values reflected by their Branded Pleasures: • Price • Product • Product display and trial • Cafeteria • Ice cream Branded Pleasures: The core element of every branded experience; a memorable branded experience must offer significant branded-pleasures—i.e. pleasure peaks that reflect your brand values. Source: https://www.linkedin.com/pulse/stop-trying-eliminate-customers-effort-sampson-lee/
  39. 39. 39 IKEA ”sweats” or Good Efforts Pain Point #1 Pain Point #2 Pain Point #3 What are your Good Efforts? The existence of Good Effort is to support Branded Pleasure. Source: https://www.linkedin.com/pulse/stop-trying-eliminate-customers-effort-sampson-lee/
  40. 40. 40 Mirror the physical experience online, use online to drive in-store
  41. 41. 41 32% of respondents agree that, “It is important that the retailers I shop at have both a store I can visit and an online site.” Source: 2017 Deloitte Holiday Survey, Retail in Transition
  42. 42. 42 won’t recommend a business if it has a poorly designed mobile website Source: FORMSTACK via Marketing News, September 2018 57%
  43. 43. 43 Online retailers that opened physical stores experienced five- to eight-fold sales increases Why do people Webroom 47% I don’t want to pay for shipping 46% I like to go to the store and feel a product before I buy it 42% I want to check an item’s availability online before I purchase it in store 37% I like the option of being able to return the item to the store if I need to 36% I will ask the store to price match the better price I found online 23% I don’t want to wait for the product to be delivered 14% 36% 49% 56% 2013 2014 2015 2016 U.S Digital-Influenced In-Store Retail Share (% of total in-store sales) Source: https://www.slideshare.net/scottmonty/the-direct-brand-economy https://www.fastcompany.com/90177301/from-muji-to-ikea-why-the-best-retailers-think-like-ux-designers
  44. 44. 44 * Findings from 28 retail formats Note: The above chart depicts findings related to top 3 of 28 retail formats and 5 of 18 store attributes evaluated in Deloitte’s 2017 holiday survey. In-store retail formats include traditional department stores, mass merchant department stores, warehouse membership clubs, supermarkets, etc. Online is winning by outperforming in-store venues in five key areas Key Store Attributes Driving Retail Format Preferences (% very/extremely important) Internet/Online Only Retailers In-store Retail Formats Ease of searching Products - high quality/trusted Variety of products/styles available Availability of hard-to-find/unique products Variety of delivery options available 79% 76% 76% 57% 56% 64% 64% 62% 41% 31%
  45. 45. 45 • Inspiring landing pages • Cool calls to action • Delightful cart and checkout experiences • Creative convincing copy • Reimagined ecommerce • Transparency • Reflective of your brand values How do you deliver a Branded Experience online? Source: https://www.kaushik.net/avinash/web-design-branding-digital-marketing-experiences/
  46. 46. 46 App that allows a virtual experience Image: IKEA Source: https://www.fastcompany.com/90177301/from-muji-to-ikea-why-the-best-retailers-think-like-ux-designers/
  47. 47. 47 Clever landing page that delights Can you explain your value proposition in nine words? Source: https://www.kaushik.net/avinash/web-design-branding-digital-marketing-experiences/
  48. 48. 48 Reduce cart and checkout abandonment rates Source: https://www.kaushik.net/avinash/web-design-branding-digital-marketing-experiences/
  49. 49. 49 Don’t undercut your in-store experience with an inconsistent online experience Source: https://www.kaushik.net/avinash/web-design-branding-digital-marketing-experiences/
  50. 50. 50 What are your “moments of truth”?
  51. 51. 51 72% of respondents will take advantage of Free Shipping; Free Shipping is more important than Fast Shipping Source: 2017 Deloitte Holiday Survey, Retail in Transition
  52. 52. 52 Act on consumer insights Source: National Retail Federation, 2017 Holiday Planning Playbook
  53. 53. When you deliver your brand promise, customers remember the pleasure peaks. On the other hand, when you fail to deliver on promise, they recall the pain peaks. – Sampson Lee 53Source: Don’t spread yourself too thin, focus on what makes your brand memorable, Marketing Week, 1/28/2018 “ Focus on the lasting last impression Isolate a single moment in the customer experience, ideally at the end, and make it exceptional Peak-end Rule:
  54. 54. Capture satisfaction as close to the experience as possible
  55. 55. 55 Capture reviews as close to the experience as possible
  56. 56. 56 “I bought and returned something online from a large home furnishing brand in the States, without question. In fact, once the parcel was placed at UPS for return, I noticed that my credit card was refunded the money. The brand didn't even wait to get the goods (or check them upon return). Flawless. Painless. Customer-centric (great work, Restoration Hardware!).” Your policies should reflect your brand values. Price transparency and ease of return are table stakes.
  57. 57. Gratitude is reciprocal Defined... A readiness to show appreciation for and return the kindness https://hbr.org/2015/10/why-customer-gratitude-trumps-loyalty
  58. 58. 58 Consumers are savvy Brands that are inconsistent between stated values and action will be punished Brands that demonstrate consistent authenticity and character win vs.
  59. 59. Thank You! 59 C O N T A C T Mary Aviles mary@connect4insight.com www.connect4insight.com 248.633.5135 @connect4insight

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