the emotion of customer experience
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The Emotion of Customer Experience
The VenetianLas Vegas, NV
© 2007, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without
written permission is prohibited.
lou carbone minneapolis, minnesota
© 2007, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without
written permission is prohibited.
we live, eat, sleep, breathe and unravel the riddle that is
human experience for a select group of clients who want to
manage experience – and the value that experience can
create.
at experience engineering
© 2007, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without
written permission is prohibited.
progressive auto insuranceneeded to progress
© 2006, All Rights Reserved. Experience Engineering, Inc.
Problem: hit a brick wall
largest high risk auto insurersold through independent agentsneed to expand beyond agents to directcouldn’t alienate agents
Solution: thinking customer backdistinctive customer experiencedesigned and implemented pilot experiences that
were rolled out
progressive auto insuranceneeded to progress
© 2006, All Rights Reserved. Experience Engineering, Inc.
Outcome: most profitable auto insurerfastest growing auto insureragent growth instead of attritionhighest retention rates
IRVs Instant Response Vehicles at accident
scenetrained in loss and grief
refreshments
checks written at the scene
assistance and transport to car rental
phone
Progressive plus competitors rate quote
progressive auto insuranceneeded to progress
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written permission is prohibited.
Clients
Mayo ClinicMayo Clinic
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written permission is prohibited.
engineering customer experiences
• move from “make and sell” to “sense and respond” • customer back (emotional/rational bond)• understand and leverage role of the unconscious mind• clue conscious• rigorous systems to develop and manage clues
© 2007, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without
written permission is prohibited.
“In business after business, our research has shown that 60-80% of customers who defected had said on a survey just prior to defecting that they were “satisfied” or “very satisfied”….
Frederick F. ReichheldThe Loyalty Effect
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written permission is prohibited.
Would you recommend to a friend or associate?
Extremelyunlikely
Promoters Passive Detractors
10 9 8 7 6 5 4 3 2 1 0
Extremely likely Neutral
Frederick F. Reichheld
The Ultimate Question
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written permission is prohibited.
hierarchy of customer behavior
Adapted From James Haskett, Prof.. Harvard Business School
satisfactiongetting as much as, or more than, what was expected
loyaltydevoting a large share of wallet to repeat purchases
apostle-like behaviorexhibiting a high degree of loyalty while
convincing others to purchase
commitmentdemonstrating loyalty while telling others of one’s satisfaction
ownershiptaking
responsibility forthe continuing success of
the offering
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written permission is prohibited.
experience preference model™
acceptanceNo Differentiation
preferencePositive Differentiation
rejectionNegative
Differentiation
- commodity zone +
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written permission is prohibited.
© 2007, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without
written permission is prohibited.
experience
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written permission is prohibited.
Starbucks’ story
• 1982 Howard Shultz Joins Starbucks• 1983 Howard Shultz Visits Italy• 1984 He Convinces Company to Test Concept• 1985 Leaves to Found Il Giornale• 1987 Il Giornale buys Starbucks (17 Stores)
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written permission is prohibited.
“Every Starbucks store is carefully designed to enhance the quality of everything the customers see, touch, hear, smell or taste”
-CEO Howard Schultz.”
© 2007, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without
written permission is prohibited.
experience management
BEHAVIOURS
BEHAVIOURSShareShare of WalletProfitRepeatsRenewalsReferralsShopping TimeTravel Patterns“How they act”
ATTITUDES
EMOTIONS
EXPERIENCECLUES
ATTITUDESLoyalPromoteCommittedApostleshipPassionateTrust“How customers feel about ”
EMOTIONSSignificantStrengthenedRenewedInspiredSafeConfident“How they feel”
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written permission is prohibited.
the brand canyon™
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written permission is prohibited.
“ladies and gentlemen, serving ladies and gentlemen.”
Ritz Carlton
the brand canyon™
what customers feel about company!
what customers feel about themselves!
brand
product
service
treatment
experience
feelings
© 2007, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without
written permission is prohibited.
“Brands have run out of juice. More and more people in the world have grown to expect great performance from products, services and experiences.”
Kevin Roberts, CEO Saatchi, Saatchi Author of Lovemarks
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written permission is prohibited.
A corporate brand represents the promise made to all audiences regarding the unique experience they have whenever and however they come into contact with the brand.
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written permission is prohibited.
value relationships
brand value how I feel about the company
customer value
how I feel in and about the
experience
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written permission is prohibited.
how customers think
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written permission is prohibited.
© 2007, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without
written permission is prohibited.
the power of the unconscious mind
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written permission is prohibited.
“the tangible attributes of a product or service have far less influence on consumer preference than the sub-conscious sensory and emotional elements derived from the total experience.”
Dr. Gerald ZaltmanHarvard Business School
Laboratory of the Consumer Mind
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written permission is prohibited.
95% of our processing takes place at the unconscious level
individual wants
consciousopinions
“what people say”
cultural forces
psychological & bio needs
uniquescript
universalscheme
common archetype
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written permission is prohibited.
© 2007, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without
written permission is prohibited.
© 2007, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without
written permission is prohibited.
© 2007, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without
written permission is prohibited.
customers consciously & unconsciously filter a barrage of clues and organize them into a set of impressions –
some rational, some emotional
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written permission is prohibited.
types of clues that customers experience
what we taste
what we feel
what we see
what we hear
what we smell
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written permission is prohibited.
categories of clues
stimuli associated with people – choice of words, tone of voice, level of enthusiasm, appearance, body language
humanic clues
emotional
mechanic cluesstimuli associated with things – sights, smells, sounds, textures
emotional
functional cluesfunctionality of the goodor service
rational
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written permission is prohibited.
“you cannot NOT have an experience…
…the question is, how managed or haphazard is that experience?”
Lou Carbone,President & CEO
Experience Engineering, Inc.
© 2007, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without
written permission is prohibited.
what kind of experience do these clues create?what if we managed these clues?
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written permission is prohibited.
we can systematically & purposefullydesign experience clues to
create feelings that emotionallyengage & bond the customers
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written permission is prohibited.
learn
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written permission is prohibited.
experience audit
desired customer experiencecurrent customer experience
gap
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written permission is prohibited.
experience audit
desired customer experience
ZMET®
experience intervention interviews™experience reflection interviews™
current customer experience
experience language analysis™cluescan™
experience intervention interviews™experience reflection interviews™
customers’ psychological pathways®
reality tv
gap
© 2005 Experience Engineering
why ZMET?
“ZMET allowed me to walk around in the maze of the consumer mind.”
A ZMET client
© 2005 Experience Engineering
working definitiondeep metaphors are the basic, unconscious “filters” or “frames” that influence: • what information we notice • how we process that information• what we do as a result
what are deep metaphors?
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written permission is prohibited.
Work
Play
Routine Novel
Drudgery Quest
Reward(restore, break)
Exploration
A model for shopping: Four Kinds of Shopping Described by Women in U.S., Japan, and France.
Example of a cross-cultural ZMET Study
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written permission is prohibited.
ZMET also identified several key cross-cultural differences regarding the deep idea of “connection with others.” For example:
– French consumers, more so than Americans or Japanese, expressed a desire for positive personal interactions with shopkeepers during their shopping journeys. They had a strong preference for the pleasant, enjoyable atmosphere in smaller shops, boutiques, and markets relative to large, impersonal department stores and supermarkets
– Many Japanese women expressed their strong need—sometimes to the point of anxiety—to obtain approval for their purchases from members of their families, especially their husbands.
• Perhaps this explains why Japanese women seem to devote a greater amount of time to planning, imagining, learning, and deliberating prior to going to a store and eventually making a purchase
Example of a cross-cultural ZMET Study
© 2007, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without
written permission is prohibited.
experience audit
desired customer experience
ZMET®
experience intervention interviews™experience reflection interviews™
current customer experience
experience language analysis™
cluescan™experience intervention interviews™
experience reflection interviews™customers’ psychological pathways®
reality tv
gap
© 2007, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without
written permission is prohibited.
Little Words Make A Big Difference• I’ll have a car ready for you in five minutes.• I’ll have the car ready for you in five minutes.• I’ll have your car ready for you in five minutes.
Linguistics experience audit
learn
© 2007, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without
written permission is prohibited.
experience audit
desired customer experience
ZMET®
experience intervention interviews™experience reflection interviews™
current customer experience
experience language analysis™cluescan™
experience intervention interviews™experience reflection interviews™
customers’ psychological pathways®
reality tv
gap
© 2007, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without
written permission is prohibited.
ClueScan™ Objective
To create an awareness from the eyes of the customer of how they are bombarded by conscious and unconscious clues and how haphazard or managed those clues are which create the total experience.
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written permission is prohibited.
Experience ClueScanning™
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written permission is prohibited.
immediate fixes
Before
After
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written permission is prohibited.
create
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written permission is prohibited.
experience motif : unifying element for every clue in an experience designprovides alignment for emotional & rational elements in the experience
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written permission is prohibited.
using the motif as a northstar to generate experience designs embedded with clues
• eliminate or abate negative clues• improve neutral clues • dial up or create preference clues
acceptanceNo Differentiation
rejectionNegative Differentiation
- commodity zone +
preferencePositive Differentiation
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written permission is prohibited.
Clue: it’s a jewel
“Now I know why ‘engineering’ is in your name. The process you put us through was invaluable to making the experience tangible and actionable for our team.”
Karla D. Stephens – CEOOSKAR Mobil/Vodafone, Czech Republic
oskar mobilyou’ve got my number
© 2007, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without
written permission is prohibited.
do
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written permission is prohibited.
To deliver an “experience”
“Answer the door and make sure our guests feel welcome after their two day trip ”
”Answer
the door”
© 2005 Experience Engineering
© 2005 Experience Engineering
Current View Transformed View
organization out customer back
make & sell sense & respond
rational emotional & rational
Total Experience Management™ can change the way companies manage their businesses.
© 2005 Experience Engineering
engineering customer experiences
• move from “make and sell” to “sense and respond” • customer back (emotional/rational bond)• understand and leverage role of the unconscious mind• clue conscious• rigorous systems to develop and manage clues
© 2007, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without
written permission is prohibited.
For Further Information On Managing Experience as a Value Proposition Contact:
lcarbone@expeng.com952.942.8880
thank you
© 2007, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without
written permission is prohibited.
© 2007, Experience Engineering, Inc.All rights are reserved. No portion of this document may be reproduced in any form or used in anyway
without the express written permission of:
Experience Engineering, Inc.7808 Creekridge Circle, Suite 225
Minneapolis, MN 55439
952 942-8880www.experienceengineering.com
© 2007, All Rights Reserved. Experience Engineering, Inc.
a draining experience
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