Services are experiences. Managers should not focus only on service attributes ( functional benefits) to build a competitive advantage but to understand customers interactions as a sources of emotional responses that can create customer loyalty. It requires an understanding of the emotional process and an ability to emphatise with customers
2. New Business Landscape
1. Intense competition
2. Customers have too many choices
3. Customers are relatively immune to
marketing communications
4. Internet is the terrorist weapon
5.
Only Very Satisfied
customers are Loyal!
4. The Progression of Economic
Value
Differentiated
Stage
Experiences
Value-added
Differentiation
Competitive
Position
Deliver
Services
Make
Goods
Relevant to
Needs of
Customers
“as goods”
Growing and
feeding
Undifferentiated
Market
Irrelevant to
Pricing
Premium
13. Goods that are used!
Single-influenced by
learning process
Sensory + users
experience
R&D +Factory
Marketing + engineers
+ designers
High / medium
14. Services as
Experience
Many (blocks of
experiences), last
longer
Sensory + users
experience + social
experience
Not in a factory but in a
branch, store, at
home…
Collaborative work (all
business functions
involved)
28. Framework to Understand Customer Experience
Experience as a story
Experience
Narrative
Cognition
(Stop thinking about
The experience is
formalized
in the user’s head)
(require to think
about what we
are doing)
Sub-consciousness
(set of activities
as routines)
Source: J Forlizzi & S Ford 2000
Meaning
Storytelling
(Meanings are created by story telling.
This is the subjective aspects
of an experience
Making a personal story)
41. The Emotion Process
1. Emotions have an object...the experience
2. Emotions arise from highly positive or
strongly negative appraisal
3. Emotions are associate with automatic
physiological activity experienced as
feelings. No feelings no emotions…
4. Emotions give rise to a tendency to
action
5. Emotions express themselves in involuntary
facial display and physiological expression
like body posture
44. How customers evaluate a service experience
Objectives
Attributes
Key actions
Measurements
Integrate pleasures
that resonate
Thinking about your
recent interactions with
this firm, how enjoyable
were the interactions?
Make it fun
Enjoyable
Make it intuitive.
Quick & easy
Listen & Act
Easy to use
(usability)
Meets the needs
(usability)
Reduce customers
efforts during
interactions
Deliver what
customer needs
How much effort do you
personally have to put
forth to handle your
request
Thinking about your recent
interactions with this firm,
how effective were they at
meeting your needs?
45. Wireless Post-paid Service Providers in Thailand
Correlation between C. Exp and attributes
Correlation between C. Ex and C. Loyalty
Useful
Likelihood to recommend
Easy
Reluctance to switch
Enjoyable
Willingness to buy more
63. Type of Customer Experiences
Pains
Negative
Rejection
Terrorists
Neutral
Routine
Commodity
Ready to leave
Pleasures
Positive
WOW
Promoters
64. Creating a Customer Experience Centric Culture
How could we listen to customers and
deliver what they want ?
What are touch points relevant for
customers?
Could we reduce customer efforts?
Could we remove all pains?
What pleasures to integrate into a
company touch-points?
What these touch-points should evoke for
the brand?
66. 5 Things to remember about
Customer Experience?
1. An emotional response
2. Across multiple touch points
3. Are perceived distinctly by different
individuals
4. A combination of routine, pains and
pleasures….
5. Drive customer retention and profitability
more than satisfaction!