2014 Annual Conference Inspired Marketing

Please download to get full document.

View again

of 66
26 views
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.

Download

Document Related
Document Description
1. PROPRIETARY AND CONFIDENTIAL 2014 Annual Conference Inspired Marketing Tutorial: Optimizing the customer experience Michael Million mmillion@fullsurge.com Brand-Driven…
Document Share
Document Transcript
  • 1. PROPRIETARY AND CONFIDENTIAL 2014 Annual Conference Inspired Marketing Tutorial: Optimizing the customer experience Michael Million mmillion@fullsurge.com Brand-Driven Growth Strategy
  • 2. SUBSECTION TITLE You’ve got to start with the customer experience and work back toward the technology – not the other way around AMA 2014 Annual Conference - Tutorial 2 Steve Jobs
  • 3. SUBSECTION TITLE We see our customers as invited guests to a party, and we are the hosts It’s our job everyday to make every important aspect of the customer experience a little bit better AMA 2014 Annual Conference - Tutorial 3 Jeff Bezos
  • 4. SUBSECTION TITLE Starbucks spent less than $10MM on advertising from 1987 to 1998 yet added over 2,000 new stores to accommodate growing sales Starbucks' popularity is based on the experience that drove its customers to highly recommend their store to friends and family Howard Shcultz AMA 2014 Annual Conference - Tutorial 4
  • 5. SUBSECTION TITLE How Starbuck’s drives loyalty - a study in customer experience A trio of anthropologists recently published an article based on observations at three independently owned coffee shops and three Starbucks locations around Boston. Their intention was to determine how effectively Starbucks are able to provide the same community-based social environment associated with traditional coffee shops. AMA 2014 Annual Conference - Tutorial 5
  • 6. SUBSECTION TITLE Same everywhere, but we still make you feel special The biggest surprise was that Starbucks actually provided a more welcoming environment than any of the three local coffee houses. They credited one Starbucks with having the most vibrant sense of community, and observed that the baristas there knew many patrons by name and could anticipate their orders. The anthropologists also noted that the Starbucks baristas were friendlier to new customers than the bespoke hipsters behind the counter at the local places. AMA 2014 Annual Conference - Tutorial 6
  • 7. SUBSECTION TITLE AMA 2014 Annual Conference - Tutorial 7 Agenda • Warm up Exercise 15 • Foundational Terms & Focus for Today 15 • Inspirations & Examples 15 • Methodology Applied to a Case 30 • Break-outs & Report-backs 45 • Conclusions
  • 8. SUBSECTION TITLE What are some of examples of great customer experiences? AMA 2014 Annual Conference - Tutorial 8
  • 9. SUBSECTION TITLE What makes them so great? AMA 2014 Annual Conference - Tutorial 9
  • 10. SUBSECTION TITLE Where does customer experience sit in your company? How is it viewed in the organization? How much of a priority is it? AMA 2014 Annual Conference - Tutorial 10
  • 11. SUBSECTION TITLE Where does customer experience sit in your company? How is it managed? Who’s responsibility is it? AMA 2014 Annual Conference - Tutorial 11
  • 12. SUBSECTION TITLE AMA 2014 Annual Conference - Tutorial 12 Agenda • Warm up Exercise 15 • Foundational Terms & Focus for Today 10 • Inspirations & Examples 15 • Methodology Applied to a Case 30 • Break-outs & Report-backs 45 • Conclusions
  • 13. SUBSECTION TITLE What is customer experience? Cumulative Impact Definition Multiple touchpoints over time, which result in a real relationship feeling, or lack of it. - Wikipedia A set of expressions, impressions, and interactions between a customer and company that result in certain perceptions of that company that, in turn, drive some type of action in the near or long long-term - M. Million AMA 2014 Annual Conference - Tutorial 13
  • 14. SUBSECTION TITLE What is customer experience? Distinct Economic Offer Definition A personal and memorable experience that creates a distinct economic offer different from the goods sold and services delivered A company's ability to deliver an experience that sets it apart in the eyes of its customers serves to increase the amount of consumer spending with the company and, optimally, inspire loyalty to its brand - Pine and Gilmore, Experience Economy AMA 2014 Annual Conference - Tutorial 14
  • 15. SUBSECTION TITLE What is customer experience? Psychological Underpinning Definition An interaction between an organization and a customer as perceived through the customer’s conscious and subconscious A blend of an organization’s rational performance, the senses stimulated and the emotions evoked and intuitively measured against customer expectations across all moments of contact • Not just about the rational ”what” but also about the emotional “how” • More than 50% is subconscious, or how a customer feels • Factors such as the emotional, cultural, social, and physical aspects are often over-looked AMA 2014 Annual Conference - Tutorial 15
  • 16. SUBSECTION TITLE Different approaches toward customer experience Internally Oriented Externally Oriented • Financial – how do we squeeze costs out of the system, get customers to pay more (e.g. airlines charging for pillows), or expedite transactions (path to purchase)? • Operational – how do we streamline operations to make it more efficient from end to end (e.g. process reengineering)? • Technical – how do we enable the system to be more productive, manageable, and interconnected (digital enablement)? • Functional path – how do we make customers’ journeys easy, informative, and helpful throughout? • Emotional path – how do we address customers’ changing psychological or emotional needs as their decision-making evolves (e.g. decision anxiety, confusion, frustration, boredom)? Like segmentation, the right approach depends on knowing specifically what the business challenges are and objectives you seek AMA 2014 Annual Conference - Tutorial 16
  • 17. SUBSECTION TITLE An argument for a “Brand Experience” Approach The world is growing increasingly complex and fast-paced We are inundated by more and more marketing messages (and yet, we don’t trust them any more than we used to) Technology improvements are enabling more and more companies to get the basics right (e.g. convenience, reduced wait times) Copying is becoming increasingly easy – “sameness” of more and more products and services / making differentiation ever more difficult Brand experiences will drive tomorrow’s success and allow companies to stand out (products, services, and even “good” experiences aren’t enough anymore) We look for and value what is personally meaningful to us - experiences we have with companies seem to matter more AMA 2014 Annual Conference - Tutorial 17
  • 18. SUBSECTION TITLE So, what is a “Brand Experience”? Interactions so impactful and uniquely identifiable to a particular company, that they define the brand in customers’ minds, distinguish the company far and away from its competitors, and have a high influence on future behaviors • Nordstrom's sales representatives going above and beyond • Tumi’s lifelong repair policy AMA 2014 Annual Conference - Tutorial 18 • Apple’s Genius Bar • Uber’s payment system • Others????
  • 19. SUBSECTION TITLE Benefits of a “Brand Experience” According to studies by McKinsey, brand experiences are the most powerful form of word of mouth driving activity - accounting for 50 to 80 percent in any given product category. Brand experience is inherently social, it's built on ideas that people want to spend time with and that people want to share. AMA 2014 Annual Conference - Tutorial 19 50% to 80% of word of mouth - driven by brand experience
  • 20. SUBSECTION TITLE Benefits of a “Brand Experience” 70% of consumers trust brand recommendations from friends, but only 10% trust advertising. UK Energy supplier, E.ON developed EON Open House, a store in Nottingham, UK that educates local customers about smart meters, which are being fitted for free across Nottingham. The project proves the power of brand experience by delivering positive advocacy when traditional methods had previously failed the brand; Net Promoter Scores of +88% vs. E.ON Customers control of -17.7%. - The Guardian AMA 2014 Annual Conference - Tutorial 20 70% trust brand recommendations from friends
  • 21. SUBSECTION TITLE Benefits of a “Brand Experience” The Keller Fay Group research shows that good brand experiences are three times more likely to spark conversations than an ad. Furthermore, over 50% of conversations triggered by an in-person experience account for pass along and purchase. AMA 2014 Annual Conference - Tutorial 21 3X More likely to spark conversations than advertising >50% Account for pass along and purchase
  • 22. SUBSECTION TITLE I don’t want to be sold to when I walk into a store. The job is to be a brilliant brand ambassador. Don’t sell! No! Because that’s a turn-off. Build an amazing brand experience, and then it will just naturally happen. AMA 2014 Annual Conference - Tutorial 22 Angela Ahrendt
  • 23. SUBSECTION TITLE A great brand experience is about knowing and interpreting Know thyself (inside-out) • Who you are • Where you’re going • What your brand stands for AMA 2014 Annual Conference - Tutorial 23 Know thy customer (outside-in) • Who they are • What’s most important to them • What their journey is like Interpret Brand Interpret Experience • WHAT can we do for customers that makes their journey better • HOW can we do it in a way that is uniquely us
  • 24. SUBSECTION TITLE Great brand experiences have six things in common 1. Brand first, transact second 2. Distinguishes customer types 3. Focuses on what matters most 4. Makes people feel special in some way, at some point 5. Designs for continuity and intent (across channels, platforms, and path to purchase) 6. Measures, manages, and continuously improves AMA 2014 Annual Conference - Tutorial 24
  • 25. SUBSECTION TITLE AMA 2014 Annual Conference - Tutorial 25 Agenda • Warm up Exercise 15 • Foundational Terms & Focus for Today 15 • Inspirations & Examples 15 • Methodology Applied to a Case 30 • Break-outs & Report-backs 45 • Conclusions
  • 26. SUBSECTION TITLE AMA 2014 Annual Conference - Tutorial 26
  • 27. SUBSECTION TITLE AMA 2014 Annual Conference - Tutorial 27
  • 28. SUBSECTION TITLE AMA 2014 Annual Conference - Tutorial 28
  • 29. SUBSECTION TITLE AMA 2014 Annual Conference - Tutorial 29
  • 30. SUBSECTION TITLE AMA 2014 Annual Conference - Tutorial 30
  • 31. SUBSECTION TITLE AMA 2014 Annual Conference - Tutorial 31
  • 32. SUBSECTION TITLE https://www.youtube.com/watch?v=Y1nzWY3JFJQ AMA 2014 Annual Conference - Tutorial 32
  • 33. SUBSECTION TITLE How would you characterize the Virgin America experience? AMA 2014 Annual Conference - Tutorial 33
  • 34. SUBSECTION TITLE Grab a pillow, take a nap The Swedish manufacturer of hand-made luxury beds, strives to make consumers’ experience transformative, from the first time they lay on the bed until the bed arrives in their bedroom. Guests are encouraged to take off their shoes, pick their own personal pillow, and even take a private nap on the bed of their choice. This simulation coupled with the highest level of hospitality distinguishes Hästens and burnishes the brand like no other form of marketing can. Winner of Sweden’s prestigious Signum award for quality of long-term branding in 2013 AMA 2014 Annual Conference - Tutorial 34
  • 35. SUBSECTION TITLE I’m here to take care of you Each customer service representative is available around the clock and empowered to act on customer issues. They are assigned to customers, stay with them throughout their problem resolution process, and get to know them as individuals. They often provide a personal touch, like occasionally sending flowers to a customer or their partner to mark a birthday. These gestures turn a faceless and cold experience into something more special, and give the brand a real heart and soul. AMA 2014 Annual Conference - Tutorial 35
  • 36. SUBSECTION TITLE AMA 2014 Annual Conference - Tutorial 36 Non-stop coffee Through remote diagnostics each Nespresso machine is technologically enabled to feed up-to-the-minute information of its status including rate of consumption, water temperature, pressure, extraction, etc., so local Nespresso service offices get warning to proactively address issues vs. waiting for a service call. This preventative maintenance has significantly increased the uptime of its machines and allows Nespresso to more continuously brew great coffee for discriminating guests.
  • 37. SUBSECTION TITLE AMA 2014 Annual Conference - Tutorial 37 Agenda • Warm up Exercise 15 • Foundational Terms & Focus for Today 15 • Inspirations & Examples 15 • Methodology Applied to a Case 30 • Break-outs & Report-backs 45 • Conclusions
  • 38. SUBSECTION TITLE Roadmap to build a brand experience DIAGNOSE (customer, journey, brand) • Know thy customer, their journey, and their contexts • Know thy customer pain points / improvement opportunities throughout the journey • Know thy brand, what makes it special, and what type of experiences it should provide STRATEGIZE (business, brand, prioritization, plan) • Clarify business objectives and growth strategy • Determine brand intent / role of brand in driving business objectives • Pinpoint interactions that matter most (what, when, and where you should spend efforts on) • Determine “your” CE principles CREATE & BUILD (messy innovation, front-end design, engineering) • Interpret what you know about the target customer and your brand • Envision the impression and interaction / look, feel, etc. • Build out how things fit together to turn the vision into a reality EXECUTE & OPERATIONALIZE (systematize / routinize, manage, monitor) AMA 2014 Annual Conference - Tutorial 38
  • 39. SUBSECTION TITLE Decimated by the financial crisis, a miracle was needed In 2005, the US power boating industry was 307K units …. by 2011 it was 139K units – a decline of 55% 24’-36’ Sport Cruisers (Sea Ray’s core) was down even more – the hardest hit The 50’-70’ yacht class ($3M boats - custom homes that float) represented the best opportunity for Sea Ray to begin growing again, as it was expected to recover the fastest, but …. Sea Ray had very little presence or product in the category, and ….. AMA 2014 Annual Conference - Tutorial 39
  • 40. SUBSECTION TITLE Opportunity in the small yacht class, but so much was unknown …. the organization knew very little about the market from a consumer perspective: • Who were the consumers for these products? • How did they perceive Sea Ray? • What kind of experience did they expect and weren’t receiving from strong competitors? AMA 2014 Annual Conference - Tutorial 40
  • 41. SUBSECTION TITLE AMA 2014 Annual Conference - Tutorial 41 Approach DIAGNOSE (consumer, journey, brand) STRATEGIZE (business, brand, prioritization, plan) CREATE & BUILD (messy innovation, front-end design, engineering) EXECUTE & OPERATIONALIZE (systematize / routinize, manage, monitor)
  • 42. SUBSECTION TITLE In-depth research with target consumers around the world • Industry reports • Boating life social media • Competitor websites • Executive interviews • Product development plans • Ethnographic interviews at the world’s largest Marina’s • Dealer / broker interviews AMA 2014 Annual Conference - Tutorial 42
  • 43. SUBSECTION TITLE AMA 2014 Annual Conference - Tutorial 43 Know thy customer Observations Traits What they Value Expectations Buyers are Wealthy people surprisingly Who also grounded Work hard In it for the long haul Sharp, quick studies who understand customer service. Those who keep them from wasting their time will earn credit. Responsive Buyers are restless and driven Self-made Who also Respect their roots What has been earned They’re not famous and they’re not blue-bloods. They’re searching for ‘superior’ things have true merit. Real Cruisers are emotional amplifiers Stretched thin Who also Crave relationships Their time, above all else Boating gives them a meaningful way to connect with who they are, with those they love, and with the natural world. Connected Every buyer is unique in personality and expectations Characters Who also Appreciate details Cultivating rapport through graciousness Treating them with same thoughtfulness and attention to detail that they strive to uphold matters to them a great deal. Personal Genuinely rooting for Sea Ray Nostalgic Who also have Discriminating tastes Familiar things reinvented Evolutionary
  • 44. SUBSECTION TITLE Know thy customer journey Service Area Pain Prep & Strike • People just want to get out on the water—prep tasks take up valuable time for owners and their guests • Even the smallest issue discovered during prep can spark frustration when people are waiting to leave the dock Maintenance • Owners have little faith in the quality of maintenance and suspect corners are cut Repair • The repair process feels opaque and lacks responsiveness • Owners don’t know who they are supposed to call when certain boat parts fail Enhancement • Pricing for a post-production change is often a negotiation that feels like being “nickel and dimed” • There is very little support from the manufacturer, most of the load is on the AMA 2014 Annual Conference - Tutorial 44 owner Hospitality • Taking a boat out isn’t a spontaneous adventure—it requires significant planning to account for things out of a boater’s control (e.g., weather) • People want to enjoy themselves on the boat with food, drinks, and various other provisions, but it requires a lot of time Crewing • The responsibility of operating a boat isn’t something people want to take on all the time—there are many ways to enjoy a boat, and some owners feel locked into one
  • 45. SUBSECTION TITLE long-standing association with 007 solidifies position in the market - British quality with polarizing attitude Opportunity for Sea Ray AMA 2014 Annual Conference - Tutorial 45 Know thy brand PARENTAGE “Who” is behind the business PURCHASER “Who” buys it PURPOSE What it’s designed for PROCESS Custom vs. Production PLACE Where it’s built draws heavily from parent LMVH to give the brand a “luxe hotel” feel the romantic side of old Italy draws heavily upon its roots in fishing / known for tank-like construction and sports car-like muscle the modern, flashy, sexy side of Italy
  • 46. SUBSECTION TITLE Roadmap toward brand experience DIAGNOSE (customer, journey, brand) STRATEGIZE (business, brand, prioritization, plan) CREATE & BUILD (messy innovation, front-end design, engineering) EXECUTE & OPERATIONALIZE (systematize / routinize, manage, monitor) AMA 2014 Annual Conference - Tutorial 46
  • 47. SUBSECTION TITLE AMA 2014 Annual Conference - Tutorial 47 Know thy brand intent Purpose • To re-energize the business by establishing a strong foothold in the luxury yacht class • Drive $X in revenues at %Y margins over the next three years • Engage consumers who historically wouldn’t have considered Sea Ray for a purchase in the class level Positioning • For those who have earned it along the way and are never satisfied • Sea Ray L-Class provides both the style and substance they seek in a 50’–70’ yacht class • By being responsive, real, connected, personal, and authentically Sea Ray Persona • ARCHETYPE: The Warrior King • Relentless progress • Confident outlook • Passionate about craft • Connected to what’s important • “Bring it on” attitude • Respectful and respected
  • 48. SUBSECTION TITLE AMA 2014 Annual Conference - Tutorial 48 Know thy brand intent Grit & Grace Here’s to those who started small. To the ones who made it to the top without putting people below them. The ones who climbed the corporate ladder, or just built their own. Here’s to the best of us, who never think themselves better than anyone. To ones who put class in the working class. T
  • Search Related
    We Need Your Support
    Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

    Thanks to everyone for your continued support.

    No, Thanks
    SAVE OUR EARTH

    We need your sign to support Project to invent "SMART AND CONTROLLABLE REFLECTIVE BALLOONS" to cover the Sun and Save Our Earth.

    More details...

    Sign Now!

    We are very appreciated for your Prompt Action!

    x