Doing More with Less in Challenging
Economic Times


Dr. Gary Edwards
Chief Customer Officer
October25, 2011
We believe that everyone deserves to love
               where they work, shop and dine.

Customer Relationship Optimization


Page 2 - 11/9/2011           ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Why Am I Here?



                                                                    Does the
                                                    Experience
                                                   Really Matter?




Page 3 - 11/9/2011   ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Howโ€™s the Economy?




        Things Arenโ€™t
         Going Wellโ€ฆ




Page 4 - 11/9/2011   ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Deliver on Your Brand Promise




                        Three Ways
                        to Stand Out


Page 5 - 11/9/2011    ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Happy Employees Make a Difference




                                                       Engagement
                                                                can be
                                                              Contagiousโ€ฆ




Page 6 - 11/9/2011   ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Turn Shopping into an Experience




                                                                An Escape
                                                               Worth Waiting
                                                                   Forโ€ฆ




Page 7 - 11/9/2011    ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Shout it Out Loud



                                       Tell it to the World!




Page 8 - 11/9/2011     ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Donโ€™t Believe Me?

  http://www.empathica.com/about-us/management-team/gary-edwards/




                     Use the chat button in the corner
                     Letโ€™s make this interactive

Page 9 - 11/9/2011        ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Customer Experience Really Does Matter




Page 10 - 11/9/2011    ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Customer Experience Matters
Better Experience Helps the Bottom Line



                                         Strong brand advocates
                                         spend            more 65%

 57% of customers purchase
   a product that was recommended
        to them by a Sales Associate
         http://www.empathica.com/consumer-insights/consumer-behavior-reports/
Page 12 - 11/9/2011            ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Butโ€ฆ




                                                                       โ€ฆfew are able to
                                                                       deliver a superior
                                                                       customer
                                                                       experience todayโ€ฆ




      http://www.empathica.com/consumer-insights/

Page 13 - 11/9/2011          ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
The Opportunity of a Changing Economy




Page 14 - 11/9/2011    ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Tough Economic Conditions




                      http://www.empathica.com/consumer-insights/
Page 15 - 11/9/2011              ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Letโ€™s Make itโ€ฆ a Bigger Deal




Page 16 - 11/9/2011    ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Itโ€™s the Experience


                   Differentiate with experience
          Build an Emotional connection with customers
               Provide an escape from the bad news




Page 17 - 11/9/2011      ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Delivering on Your Brand Promise




Page 18 - 11/9/2011    ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Three Pillars of a Brand Promise



                                               Deliver the
                                                  best
                                               Experience




                                     BRAND
                                    PROMISE
                      Word of                                                        Corporate
                      Mouth                                                           Culture




Page 19 - 11/9/2011             ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
The Path to Delivering




                                        Customer
                                       Experience




                                                                     Employee
                      Advocacy
                                                                    Engagement




Page 20 - 11/9/2011        ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Employee Engagement




Page 21 - 11/9/2011            ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
People Experience




                                        Customer
                                       Experience




                                                                  EMPLOYEE
                      Advocacy
                                                                 ENGAGEMENT




Page 22 - 11/9/2011        ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
A Greeting Card Store




                                               โ€ข Greeting cards are a
                                                 commodity
                                               โ€ข โ€œI can buy a card
                                                 anywhereโ€
                                               โ€ข An Experience that
                                                 transcends a $7 purchase




Page 23 - 11/9/2011   ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Engaged Employees Create Emotion



    โ€ข Employees are engaged

    โ€ข They have to beโ€ฆ
             โ€ข Emotional product
             โ€ข Occasions all carry
               emotional weight
    โ€ข Employees who care




Page 24 - 11/9/2011          ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Why Caring Matters

    โ€ข Not just โ€œDo you want fries with that?โ€
    โ€ข Employees who care about customer needs
                                                                                                        $598.08

              140.00                                                                                                $600.00
              130.00                                              $430.71
                                                                                                        120.04      $500.00
                                 $379.54
              120.00
                                                                                                                    $400.00
              110.00
              100.00                                                95.21                                           $300.00
                90.00
                                                                                                                    $200.00
                80.00             76.52
                                                                                                                    $100.00
                70.00
                60.00                                                                                               $0.00
                        Neither Agree Nor Disagree                 Agree                           Strongly Agree

                                                           Overall Satisfaction

                                   Projected # of Visits per Year                    ($) Projected Yearly Spend




Page 25 - 11/9/2011                            ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Basic Human Needs Havenโ€™t Changed

              An emotional connection to the brand is only possible
                        when basic needs are satisfied


                         SELF-ACTUALIZATION                          I love this place


                                 ESTEEM                    I feel important here

                                 SOCIAL                             A place where I belong

                                 SAFETY                                      I have the support I need

                            PHYSIOLOGICAL                                             I am compensated for my work

                      Abraham Maslows Hierarchy of Needs


Page 26 - 11/9/2011                  ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Everyone is Slightly Different




Page 27 - 11/9/2011     ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
How to Keep Employees Engaged

   Our research consistently demonstrates the importance of:

                                              โ€ข Belief in opportunities for
                      Growth                    personal and career growth




                                              โ€ข Positive relationships with
                 Relationship                   coworkers and management




                                              โ€ข There is a common belief in
                      Pride                     brand and tribal values



Page 28 - 11/9/2011            ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Customer Experience




Page 29 - 11/9/2011    ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Product Experience




                                      CUSTOMER
                                      EXPERIENCE




                                                                     Employee
                      Advocacy
                                                                    Engagement




Page 30 - 11/9/2011        ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
The Pharmacy Experience




                                            โ€ข Differentiate with the
                                              product set
                                            โ€ข Products can deliver a
                                              targeted experience




Page 31 - 11/9/2011   ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Listen to Customer Needs


    โ€ข Emotions are not always logical or linear




                        I need milk, lipstick,
                      photos and pain killersโ€ฆ




Page 32 - 11/9/2011      ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Building the Right Experience




                The Drivers of the Drivers




Page 33 - 11/9/2011    ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Experience Creates Perception




   โ€ข The experience creates
     perception
   โ€ข Use this to your
     advantage
   โ€ข What is โ€œQualityโ€ ?




Page 34 - 11/9/2011   ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Prescribe


                                                   Communicate The Opportunity
                                                    โ€ข Show current position through
                                                      evolution of stages

                                                   Define Success
                                                    โ€ข Share targets for graduation to the
                                                      next stage

                                                   Prescribe Action
                                                    โ€ข Update performance vs. the
                                                      benchmark
                                                    โ€ข Provide behavioral diagnostics
                                                    โ€ข Incorporate best practice guidance


Page 35 - 11/9/2011   ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Building Advocacy




Page 36 - 11/9/2011    ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Share the Experience




                                       Customer
                                      Experience




                                                                    Employee
                      ADVOCACY
                                                                   Engagement




Page 37 - 11/9/2011       ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Discount Retailers




         โ€ข Emotion doesnโ€™t mean luxury
         โ€ข Even discount retailers can drive great advocacy
         โ€ข Focus on experience, and leverage advocates


Page 38 - 11/9/2011     ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Customers Are Talkingโ€ฆ




                       โ€œFound one item for me then when I asked
                       where shower curtains are - she TOOK me
                            there and showed them to me.โ€œ
                        โ€œMade sure my glassware was wrapped so
                      that it wouldn't break. The cashier even put it
                       in a cardboard box. She didn't have to go to
                                       that trouble.โ€




Page 39 - 11/9/2011       ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
โ€ฆEverybodyโ€™s Listening



                             Social Media Adoption


                          75%of Facebook users โ€˜likeโ€™
                             between 2 and 10 brands
                             Source: Mashable Business




Page 40 - 11/9/2011   ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Advocacy NOT Advertising




                                                                                             Paid
                                                                                          Advertising


           13.5 Xโ€™s higher click rate than Facebook advertising
         8.5 Xโ€™s higher click rate than Google/Yahoo advertising




Page 41 - 11/9/2011              ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Three Pillars of a Brand Promise



                                               Deliver the
                                                  best
                                               Experience




                                     BRAND
                                    PROMISE
                      Word of                                                        Corporate
                      Mouth                                                           Culture




Page 42 - 11/9/2011             ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
We believe that everyone deserves to love
              where they work, shop and dine.

Customer Relationship Optimization


Page 43 - 11/9/2011          ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
Questions?



            Download our Free Consumer Insights Study
            www.empathica.com/consumer-insights/


Page 44 - 11/9/2011         ยฉ2011 Proprietary & Confidential โ€“ All rights reserved

Doing More with Less in Challenging Economic Times

  • 1.
    Doing More withLess in Challenging Economic Times Dr. Gary Edwards Chief Customer Officer October25, 2011
  • 2.
    We believe thateveryone deserves to love where they work, shop and dine. Customer Relationship Optimization Page 2 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 3.
    Why Am IHere? Does the Experience Really Matter? Page 3 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 4.
    Howโ€™s the Economy? Things Arenโ€™t Going Wellโ€ฆ Page 4 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 5.
    Deliver on YourBrand Promise Three Ways to Stand Out Page 5 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 6.
    Happy Employees Makea Difference Engagement can be Contagiousโ€ฆ Page 6 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 7.
    Turn Shopping intoan Experience An Escape Worth Waiting Forโ€ฆ Page 7 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 8.
    Shout it OutLoud Tell it to the World! Page 8 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 9.
    Donโ€™t Believe Me? http://www.empathica.com/about-us/management-team/gary-edwards/ Use the chat button in the corner Letโ€™s make this interactive Page 9 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 10.
    Customer Experience ReallyDoes Matter Page 10 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 11.
  • 12.
    Better Experience Helpsthe Bottom Line Strong brand advocates spend more 65% 57% of customers purchase a product that was recommended to them by a Sales Associate http://www.empathica.com/consumer-insights/consumer-behavior-reports/ Page 12 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 13.
    Butโ€ฆ โ€ฆfew are able to deliver a superior customer experience todayโ€ฆ http://www.empathica.com/consumer-insights/ Page 13 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 14.
    The Opportunity ofa Changing Economy Page 14 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 15.
    Tough Economic Conditions http://www.empathica.com/consumer-insights/ Page 15 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 16.
    Letโ€™s Make itโ€ฆa Bigger Deal Page 16 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 17.
    Itโ€™s the Experience Differentiate with experience Build an Emotional connection with customers Provide an escape from the bad news Page 17 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 18.
    Delivering on YourBrand Promise Page 18 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 19.
    Three Pillars ofa Brand Promise Deliver the best Experience BRAND PROMISE Word of Corporate Mouth Culture Page 19 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 20.
    The Path toDelivering Customer Experience Employee Advocacy Engagement Page 20 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 21.
    Employee Engagement Page 21- 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 22.
    People Experience Customer Experience EMPLOYEE Advocacy ENGAGEMENT Page 22 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 23.
    A Greeting CardStore โ€ข Greeting cards are a commodity โ€ข โ€œI can buy a card anywhereโ€ โ€ข An Experience that transcends a $7 purchase Page 23 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 24.
    Engaged Employees CreateEmotion โ€ข Employees are engaged โ€ข They have to beโ€ฆ โ€ข Emotional product โ€ข Occasions all carry emotional weight โ€ข Employees who care Page 24 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 25.
    Why Caring Matters โ€ข Not just โ€œDo you want fries with that?โ€ โ€ข Employees who care about customer needs $598.08 140.00 $600.00 130.00 $430.71 120.04 $500.00 $379.54 120.00 $400.00 110.00 100.00 95.21 $300.00 90.00 $200.00 80.00 76.52 $100.00 70.00 60.00 $0.00 Neither Agree Nor Disagree Agree Strongly Agree Overall Satisfaction Projected # of Visits per Year ($) Projected Yearly Spend Page 25 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 26.
    Basic Human NeedsHavenโ€™t Changed An emotional connection to the brand is only possible when basic needs are satisfied SELF-ACTUALIZATION I love this place ESTEEM I feel important here SOCIAL A place where I belong SAFETY I have the support I need PHYSIOLOGICAL I am compensated for my work Abraham Maslows Hierarchy of Needs Page 26 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 27.
    Everyone is SlightlyDifferent Page 27 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 28.
    How to KeepEmployees Engaged Our research consistently demonstrates the importance of: โ€ข Belief in opportunities for Growth personal and career growth โ€ข Positive relationships with Relationship coworkers and management โ€ข There is a common belief in Pride brand and tribal values Page 28 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 29.
    Customer Experience Page 29- 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 30.
    Product Experience CUSTOMER EXPERIENCE Employee Advocacy Engagement Page 30 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 31.
    The Pharmacy Experience โ€ข Differentiate with the product set โ€ข Products can deliver a targeted experience Page 31 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 32.
    Listen to CustomerNeeds โ€ข Emotions are not always logical or linear I need milk, lipstick, photos and pain killersโ€ฆ Page 32 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 33.
    Building the RightExperience The Drivers of the Drivers Page 33 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 34.
    Experience Creates Perception โ€ข The experience creates perception โ€ข Use this to your advantage โ€ข What is โ€œQualityโ€ ? Page 34 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 35.
    Prescribe Communicate The Opportunity โ€ข Show current position through evolution of stages Define Success โ€ข Share targets for graduation to the next stage Prescribe Action โ€ข Update performance vs. the benchmark โ€ข Provide behavioral diagnostics โ€ข Incorporate best practice guidance Page 35 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 36.
    Building Advocacy Page 36- 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 37.
    Share the Experience Customer Experience Employee ADVOCACY Engagement Page 37 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 38.
    Discount Retailers โ€ข Emotion doesnโ€™t mean luxury โ€ข Even discount retailers can drive great advocacy โ€ข Focus on experience, and leverage advocates Page 38 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 39.
    Customers Are Talkingโ€ฆ โ€œFound one item for me then when I asked where shower curtains are - she TOOK me there and showed them to me.โ€œ โ€œMade sure my glassware was wrapped so that it wouldn't break. The cashier even put it in a cardboard box. She didn't have to go to that trouble.โ€ Page 39 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 40.
    โ€ฆEverybodyโ€™s Listening Social Media Adoption 75%of Facebook users โ€˜likeโ€™ between 2 and 10 brands Source: Mashable Business Page 40 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 41.
    Advocacy NOT Advertising Paid Advertising 13.5 Xโ€™s higher click rate than Facebook advertising 8.5 Xโ€™s higher click rate than Google/Yahoo advertising Page 41 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 42.
    Three Pillars ofa Brand Promise Deliver the best Experience BRAND PROMISE Word of Corporate Mouth Culture Page 42 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 43.
    We believe thateveryone deserves to love where they work, shop and dine. Customer Relationship Optimization Page 43 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved
  • 44.
    Questions? Download our Free Consumer Insights Study www.empathica.com/consumer-insights/ Page 44 - 11/9/2011 ยฉ2011 Proprietary & Confidential โ€“ All rights reserved