HOW DO YOU KNOW WHAT KIND OF EXPERIENCE YOU REALLY DELIVER? AN OVERVIEW PREPARED FOR: It’s Not Magic | Woburn Safar

HOW DO YOU KNOW WHAT KIND OF EXPERIENCE YOU • REALLY DELIVER? • AN OVERVIEW • PREPARED FOR: It’s Not Magic | Woburn Safari Park | June 2008 [CONFIDENTIAL}

If something gets to be a billion-dollar brand, there is more going on than just a rational attachment. My feeling is that all the billion-dollar brands occupy a very special place among some consumers’ Jim Strengel, Global Marketing Officer, P&G

SOMETHING ELSE? • The whole ‘customer ecosystem’ • Making emotive connections with people • Beyond your customers LOYALTY • Rooted in the existing customer base & retention of that base is around ‘calculative or value based drivers’ SATISFACTION • Measurement & understanding is based around ‘quality perceptions’ and focuses on specific experiences & transactions WHAT CAN YOU FOCUS ON?

HOW DO YOU KNOW YOU’RE DOING WELL? • Customer propensity to try new things… • defend you… • recommend you… • overlook mistakes… • give you feedback to help you improve… • participate & contribute… • support others to help them get more out using your products and services

SOME CUSTOMER MEASUREMENT DATA Sell experiences Don’t compete: lock customers in John Lewis Virgin Tesco Nintendo Gap Sony Average BA Dell Microsoft AOL Hilton O2 Direct Line British Gas NatWest Egg Sky Curry’s Digital Compete on price Focus on service 80 70 60 50 Likelihood to repurchase (Top ratings) 40 30 20 10 0 0 10 20 30 40 50 Likelihood to defend the brand (Top ratings) Source: Intrepid Customer Experience Benchmarking Survey 2007

EMOTIONALLY CONNECTED LOYAL SATISFIED CALCULATIVE Customers have an emotive connection with these brands that goes beyond the product based experience. The experience is NOT just linked to the product . This is where customers love their interactions with a company and eagerly refer others Customers influenced through tools to better understand products and services. This is where the customer experience is not driven by experience or emotion but on a needs based push or pull premise. Customers driven by basic level determiners. This is where the customer experience and repeat purchase is driven by basic factors such as price, convenience and proximity Customers are encouraged to remain loyal through a focus on repeat purchase behaviour Driving loyalty is increasingly difficult to achieve based on brand alone. Would people hesitate to switch to another cut-price airline offering a cheaper price? Or a new convenience store closer to home? Influencing customers to engage with your products is important but given many options would it be enough to get them to stay? If your customer has enrolled in similar loyalty programs with 3 of your competitors is it really driving loyalty? If Starbucks no longer offered the 11th coffee for free would customers really leave them?

DNA OF SUCCESSFUL CUSTOMER EXPERIENCES Identity Performance Involvement Knowledge Belonging

SOME PRACTICE

WHICH IS THE ODD ONE OUT?

MARKETEERS HAVE GENERATED ‘000S OF DEFINITIONS FOR CUSTOMER INSIGHT… • “A fresh and not yet obvious understanding of customer beliefs, values, habits, desires, motives, emotions or needs and can become the basis for competitive advantage”(Kellogg School of Management) • “Penetrating discovery about consumer motivations that can be applied to drive growth”(Diageo)

CUSTOMER INSIGHTS – WHAT WE KNOW They’re not immediately apparent They often come from unusual sources They’re often discovered accidentally They can be rooted in observed anomalies They are NOT a number, a fact or a quote from a customer Do not in themselves drive competitive advantage

Innovation This is your challenge New understanding that is actionable and competitively unique Insights Interpretation of findings Findings Carefully considering project objectives Information Data analysis and reduction FROM DATA TO…. Data

Innovation Of most value because it offers new ways of doing things that lead to competitive advantage Insights Fresh understanding of your customers or markets Findings Selected information that is of interest, but lacking in implications Information Think Gartner reports. Information informs but offers no indication of relative importance to a business Data Think database extracts… WHERE’S THE VALUE?

CAN CUSTOMERS INNOVATE FOR US? There are dangers in treating customers as ‘fonts of all wisdom’, especially where the future is concerned Why?: • Customers’ ideas can be incremental • Customer contexts mean their feedback is rooted in what they know rather than what is happening in the world • Because they focus on what they think is doable • Asking people to tell us what they want tends to screw up what they think they want • Because they often get it wrong!

This is still your challenge Innovation The basis for competitive advantage Insight New learning about your customers or markets Findings Selected information that is of interest, but lacking in implications Information Think Gartner reports. Information informs but offers no indication of relative importance to a business Data Think database extracts… Fuel Ethnographic outputs Primary or ‘traditional’ research ‘Raw’ internal workshop outputs Parallel worlds or competitors A one line idea or challenge

GETTING FROM INSIGHT TO INNOVATION Insights from… Ethnographic outputs Primary or ‘traditional’ research Raw internal workshop outputs Parallel worlds or competitors A one line idea or challenge

AN EXERCISE

CREATE YOUR OWN INNOVATION ‘FILTERS’ TO CHALLENGE YOUR INSIGHTS MAKING INNOVATION ACCESSIBLE – CREATE INNOVATION ‘FILTERS’ BRAINSTORMING OR THINKING ‘OUTSIDE THE BOX’?

What would need to happen to the product if customers were charged 20GBP per month in charges?

HOW DO YOU KNOW WHAT KIND OF EXPERIENCE YOU REALLY DELIVER? AN OVERVIEW PREPARED FOR: It’s Not Magic | Woburn Safar