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

1. Unlocking Opportunity
at the Intersection of
Brand and Customer
Experience
Kevin Perlmutter
Senior Director, Brand Strategy
September 14, 2009

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. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 1.
Eliminate
pain points

21. Understanding and eliminating pain points
21 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009

22. 2.
Link the brand
to a top driver

23. My Deals Ordering Ink & Toner My Rewards Easy Solutions

24. 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

25. Westin Heavenly Bed
3.
Create Hero
Products or
Services

27. 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

28. 4.
Innovation

30. 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

31. 5.
Redefine the
category
experience

33. 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

34. 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

35. Thank you.
Kevin Perlmutter
Senior Director, Brand Strategy
212-798-7542
kevin.perlmutter@interbrand.com