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Unlocking Opportunity
at the Intersection of
Brand and Customer
Experience

Kevin Perlmutter
Senior Director, Brand Strate...
Why should we care about brand?




                                                                                      ...
84% of companies don’t
know the cost of a
customer complaint


65% don’t know the length
of an average customer
relationsh...
Customer experience is impacting the behavior of
potential customers




                        “Waiter, there’s a fly in ...
Engagement in social media correlates to financial
performance
   Top 10 Brands
   Engaged in Social                      ...
Our role is to improve
the quality of the
relationships that
people have with our
brands to improve
business performance.
...
A relationship is…



The way in which two
or more people or
organizations regard
and behave toward
each other.




8 | Un...
In human relationships there is a correlation of
relationship quality and behavior


                 Great Relationships ...
Brand relationships work the same way



                               Customer experience affects the bottom line




10...
Customer experience impact revenue



                               Customer experience affects the bottom line




 Aver...
Strong brands drive choice, loyalty and value

 Brand influences
 customer’s choice



                                   ...
Opportunity does exist at the intersection of Brand
 and Customer Experience

                             Brand Evolution...
Focus Area #1:
 How does your brand work today?

                            Brand Evolution
                             ...
To unlock opportunity, we need to analyze the
 customer journey




         How People Engage                            ...
What is the quality of the relationship?




                                                                             ...
How can the experience be better?



        How People Engage                                         How People Buy     ...
How can your brand work better?



                                                                Brand Strategy



     ...
Focus Area #2:
 Created branded customer experiences

                           Brand Evolution
                         ...
1.
Eliminate
pain points
Understanding and eliminating pain points




21 | Unlocking Opportunity at the Intersection of Brand and Customer Experie...
2.
Link the brand
to a top driver
My Deals   Ordering   Ink & Toner   My Rewards   Easy Solutions
Staples delivers on its promise of Easy. The
        My Deals    Ordering   Ink & Toner   My Rewards   Easy Solutions



E...
Westin Heavenly Bed

3.
Create Hero
Products or
Services
Westin drives demand for the Heavenly
offering inside and outside the hotel. They
have sold about 30,000 full Heavenly Bed...
4.
Innovation
Within 4 years of launch, Dyson became
the fastest selling vacuum in the UK, and
overtook Hoover’s category leading market...
5.
Redefine the
category
experience
Mini has an incredibly loyal following thanks
to a highly desirable end-to-end customer
experience. Despite a down economy...
Brand is an evolving relationship and a driver of
 business performance

                           Brand Evolution

     ...
Thank you.

Kevin Perlmutter
Senior Director, Brand Strategy

212-798-7542
kevin.perlmutter@interbrand.com
Interbrand: How Customer Experience affects business performance
Interbrand: How Customer Experience affects business performance
Interbrand: How Customer Experience affects business performance
Interbrand: How Customer Experience affects business performance
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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 website http://www.interbrand.com/paper.aspx?paperid=67&langid=1000

Published in: Business, News & Politics

Interbrand: How Customer Experience affects business performance

  1. 1. Unlocking Opportunity at the Intersection of Brand and Customer Experience Kevin Perlmutter Senior Director, Brand Strategy September 14, 2009
  2. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 19. 1. Eliminate pain points
  20. 20. Understanding and eliminating pain points 21 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
  21. 21. 2. Link the brand to a top driver
  22. 22. My Deals Ordering Ink & Toner My Rewards Easy Solutions
  23. 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. 24. Westin Heavenly Bed 3. Create Hero Products or Services
  25. 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. 26. 4. Innovation
  27. 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. 28. 5. Redefine the category experience
  29. 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. 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. 31. Thank you. Kevin Perlmutter Senior Director, Brand Strategy 212-798-7542 kevin.perlmutter@interbrand.com

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