Customer Experience is the next frontier for differentiation, value creation and growth. Everything is more connected and complex than ever. New customer expectations arise and cross boundaries. Service Design combines customer focus and customer centricity will create competitive advantage, loyal satisfied customers and higher profit margins.
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service experience summit shanghai 2014 stefan moritz
1. S E R V I C E E X P E R I E N C E S U M M I T 2 0 1 4 / V E R Y D A Y . C O M
2. Walking in the
customers shoes
When you have to
storyboard something,
the more realistic it is,
the more decisions
you have to make.
Brian Chesky
“
To shape the future of Airbnb, CEO Brian Chesky used
storyboards to map existing and future customer journeys.
3. Design for
Services
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4. Searching
for a flight
to Shanghai. Not only does the appearance of
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the online booking feel old
fashioned, the way the booking
practically works is very limited.
Example
5. The Kayak service on the other hand offers a vastly beer experience.
You can choose very simply what your parameters are and get the best
options at the best price.
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6. *Theory by Daniel Kahneman
Experience Continuum
Before Experience/Occasion After
Anticipated Self
Decisions based on anticipated memories.
Inspire, motivate, restrict
Experiencing self
Emotions in the present.
Positive, negative, neutral
Reflective Self (The Storyteller)
What we take away from the experience. The
stories we tell. Changes, significant moments,
endings
Better
experience
Worse
experience
Peak-End Rule*
Reflected experience based
almost entirely on highs and
lows, and how it ended.
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7. The Opportuni
Customer Experience is the next frontier for
differentiation, value creation and growth.
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8. Everything is more connected and complex than ever.
New customer expectations arise and cross boundaries.
9. Digital
Mobile
Social
Big data
1. Everything is more connected and complex than ever
2. New expectations across boundaries
3. Easy to loose focus through distraction and disruption An accelerating storm of change
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10. The eye of the storm
1. Everything is more connected and complex than ever
2. New expectations across boundaries
3. Easy to loose focus through distraction and disruption
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11. Your Point of Differentiation
The customer
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12. People perspective (Employees, clients, customers, users)
Why can´t they remember
what I like from time to time?
Why is it always so difficult
to find my way to what I
want!
It would be great if I could
know more about this before
I decide to buy it!
I want to know that they have
the products I want in store.
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13. CRM
Governance
Regulations
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Supply Chain
Database
Loyal
Program
Portfolio
Management
Diversi
Forecasting
LEAN
Investment
Planning
Business Process
Optimization
Channels
SOX
Integrated
Marketing
Solution
Rightshoring
Core
Competency
Alignment
Streamline
6Sigma
The corporate world is a different world
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Bridging the gap
Process Operating
Model Technology Leadership
& Culture Employees
Legislation
CSR
Strategy
Customer Experience Journey
Business Operations
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15. 80% of companies believe they
deliver outstanding value and
a superior customer experience.
8% of their customers agree.
Source: Bain & Company
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16. Age of
Manufacturing
Age of
Distribution
1900–1960 1960–1990 1990–2010 2010–?
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Age of
Information
Age of
The Customer
Forrester. Outside In: The Power of Puing Customers at the Center of Your Business
Mass manufacturing boosts
industrial powerhouses.
Global connections make
distribution key.
Connected PCs benefit those
who control information.
Empowered buyers demand a
customer focus.
Ford, RCA, GE, Boeing,
P&G, Sony, Atlas Copco
Walmart, Toyota,
UPS, CSX, IKEA
Microsoſt, Google, Dell,
Capital One, Ericsson
Southwest Airlines,
Amazon, USAA, ...
Source of dominance and differentiation
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17. Growing share of the economy
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1.2%
e.g. JAPAN
CIA World Factbook
10.0% AGGRICULTURE
43.9% INDUSTRY
46.1%
CHINA
71.4%
27.5%
SERVICES
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19. Great experience can reduce costs
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Flickr 4834842581_ec9a451a0c_o
Progressive Insurance ‘Immediate Roadside Assistance’
creates a fantastic care and support experience as well as brand
awareness. It also reduces possibilities for fraud and legal
issues, both significant costs that can be drastically reduced
which goes beyond funding the great experience.
20. Service Design
Methodology to help improve or innovate
service experiences that result in
more satisfied customers and
more profitable enterprises.
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Service Design – Practical access to an evolving field, 2005
21. SERVICE DESIGN
01. Curiosi what people need and want
02. Imagine and dream up a beer future
03. Find ways to do something about it
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22. SERVICE DESIGN
01. You have to be there
02. It happens over time
03. You don’t own it but use it
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23. SERVICE DESIGN
01. Human Empathy
02. Holistic Thinking
03. Experience Protoping
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24. What is the difference?
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I N D U ST R I A L S E R V I C E
Produced Performed
Material Immaterial
Tangible Intangible
No involvement Client participation
Ownership Experience
M E T H O D O LOGY
Journey
System design
For All Senses
Co-creation
Service blueprint
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HOLISTIC
THINKING
HUMAN
EMPATHY
EXPERIENCE
PROTOTYPES
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26. HUMAN
EMPATHY
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HOLISTIC
THINKING
29. Team Collaboration
“Open Door Analysis”
participatory format to engage
stakeholders at all levels.
Using emotional design research
methodology, we expose people
to real consumer needs and
deliver key insights about
consumer’s drivers and
aspirations.
Share learnings and unite teams
around global insights.
Translate findings into new
customer propositions.
OBSERVATIONS STORIES & INSIGHTS EMOTIONAL EXPERIENCE MAP
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Framing the problem together
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31. Opportuni Mapping and Vision Building
Effective customer and stakeholder engagement
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32. Re-imagine the customer experience
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33. Total Experience Protoping
Co-creation with users drove the
design of solutions with stronger
emotional resonance.
Protoping new total experience
concept offerings (‘protocepts’).
Working across 6 markets,
sharing insights in real time.
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Source: Forrester
Customer Experience
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How customers perceive
their interactions
with your company.
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Based on McKinsey research, 2009
Customer Experience
INTER
ACTION LOYALTY DECISION
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36. Customer Decision Journey
INTER
ACTION LOYALTY DECISION
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Based on McKinsey research, 2009
Consideration
Trigger
Experience
Satisfaction Evaluation
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Feel: Emotional
Is this desirable and trustworthy?
Think: Behavioural
Will this help me achieve my goals?
Do: Functional
Is this useful and easy to use?
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Uncovering deep insights
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39. Emotional Experience Mapping
Experience in context over time
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Emotional Experience Mapping
Experience in context over time
Before During Aſter
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41. The really big missed opportuni…
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Get closer
to people and create
beer experiences
Outside In
Truly understanding
what’s actually going on
in people’s lives.
42. Mutual Value
The creation of systemic solutions that
increase value for several stakeholders.
Building win-win solutions for brands and people.
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43. Why do your customers choose you?
What do they truly value?
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SMALL EXERCISE
44. What you could you do to
enhance, add or reinvent
to create mutual value?
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SMALL EXERCISE
45. Value for the organization
Product
Value for customers
Commodi
Service
Experience
Creating
Mutual Value
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46. DELIVERING VALUE
OPTIMIZE RE-IMAGINE
Reduce cost with improved
customer experience
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Reduce churn and
increase life-time value
Innovation of new business
models and offerings
Reduce risk, time to market
and cost
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EXPAND
New or beer services
for todays customers
New customers through
improving todays service
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Source: Forrester
Great experience at a great price
Forrester Cxi 2012 / 2013
1. How enjoyable were they to do business with?
2. How easy were they to do business with?
3. How effective were they at meeting your needs?
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49. A stock portfolio of Forrester’s Customer
Experience Index (CXi) leaders had a
cumulative 43% gain in performance over a
six-year period (2007 to 2012), compared
with a 14.5% increase for the S&P 500 Index
and a 33.9% decrease for a portfolio
of customer experience laggards.
Source: Forrester Research
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50. Behavioral metrics
Eg Sharing frequency, שּׂme spent
Business metrics
Increase revenue, Market share
What people
pay for
What people
do/use
CX
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What people
say/think
Subjective metrics
NPS, SUS, Subjective satisfaction
Experience Index
Drive service development around
robust & meaningful metrics
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51. The Challenges
The pursuit of implementing the service design
approach successfully in the organization requires
the right leadership and culture change – however
outputs as well as outcomes are worth the effort.
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52. KEY CHALLENGES
01. Collaboration across departments
02. Geing out of old ways of working and thinking
03. Uncertain of specific outcomes
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54. People Driven Digital Transformation
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PEOPLE INSIGHTS
Deep insights into needs and wants
DIGITAL TECHNOLOGY
BUSINESS
TRANSFORMATION
PROCESS
OPERATING MODEL
Leveraging data and connectivi
Creating new business value
TALENT Agile
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55. 6 Practical שּׂps
Creating mutual value by providing great customer
experiences requires focus, passion and teamwork.
Here are six tips to help you lead the way forward.
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56. Leading to great experiences
1. Empathy – Spend time with customers to get a feeling for their latent needs
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57. Leading to great experiences
1. Empathy – Spend time with customers to get a feeling for their latent needs
2. Envision – Create a shared sense of purpose and future vision
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58. Leading to great experiences
1. Empathy – Spend time with customers to get a feeling for their latent needs
2. Envision – Create a shared sense of purpose and future vision
3. Engage – Involve people, work agile and adapt to the environment
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58 | 09 August 2014 | Service Experience Summit | Shanghai | @st_moritz
59. Leading to great experiences
1. Empathy – Spend time with customers to get a feeling for their latent needs
2. Envision – Create a shared sense of purpose and future vision
3. Engage – Involve people, work agile and adapt to the environment
4. Empower – Support the organization to deliver and exceed expectations
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59 | 09 August 2014 | Service Experience Summit | Shanghai | @st_moritz
60. Leading to great experiences
1. Empathy – Spend time with customers to get a feeling for their latent needs
2. Envision – Create a shared sense of purpose and future vision
3. Engage – Involve people, work agile and adapt to the environment
4. Empower – Support the organization to deliver and exceed expectations
5. Experience – Build, share and leverage knowledge
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60 | 09 August 2014 | Service Experience Summit | Shanghai | @st_moritz
61. Leading to great experiences
1. Empathy – Spend time with customers to get a feeling for their latent needs
2. Envision – Create a shared sense of purpose and future vision
3. Engage – Involve people, work agile and adapt to the environment
4. Empower – Support the organization to deliver and exceed expectations
5. Experience – Build, share and leverage knowledge
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6. Evaluate – Measure what maers and make the tough choices
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62. S T O C K H O L M / N E W Y O R K / L O N D O N / S H A N G H A I / V E R Y D A Y . C O M