Customer Experience.pptx

Quality Customer Experience Design The Subject The Subject: Customer Experience 1. Understanding customer needs, wants and dem 2. Product features vs. customer benefits 3. Service product characteristics 4. Service and customer value 5. Service profit chain 6. Buyer decision process 7. Customer...

Quality Customer Experience Design The Subject The Subject: Customer Experience 1. Understanding customer needs, wants and dem 2. Product features vs. customer benefits 3. Service product characteristics 4. Service and customer value 5. Service profit chain 6. Buyer decision process 7. Customer experience, user experience 8. Researching customers 9. Net promoter score 10.Customer journey mapping 3 INTERNAL 1. Understanding Customer Needs, Wants and Demand Customer Needs: Process Customer Experience (CX) is based on needs and/or wants. These needs depend on the individual: Culture, personality, etc. Need + purchase power = DEMAND. Mk finds out these needs by doing market research and client analysis. 5 INTERNAL Customer Needs: Process Needs are states: • Physical—food, clothing, warmth, safety • Social—belonging and affection • Individual—knowledge and selfexpression • Wants are the form that needs take as they are shaped by culture and individual personality. (luxury) • Demands are wants backed by the buying power. 6 INTERNAL Customer Needs: Process Stimulate Transform into Spot / Ads opportunities WANTS DEMANDS Generate stimulus Build profitable relationships NEEDS 7 INTERNAL 2. Product Features vs. Customer Benefits 9 INTERNAL Features They are often technical, describing what the product is or service does: Color, Size, Location, How many, which services... 24-hour room service / 24-hour security / Amenities/ Air conditioning / Airline desk / Baby sitting / Baggage hold / Banking services / Banquet facilities / Beachfront / Bell staff/porter / Bicycle rentals / Body scrub / Bookstore / Boutiques / stores / Buffet breakfast / Business center / Business services / Car rental desk / Catering services / Child programs / Coffee shop / Complimentary breakfast / Concierge desk / Direct dial telephone / Doctor on call / Dry cleaning / Early check-in / Elevators / Florist / Front desk / Golf / Hair dryer / Hairdresser / Barber / Health club / High speed internet Access / Indoor parking / Late check-out available / Laundry / Locker room / bars / Massage services / Meal plan available / Multilingual staff / Nightclub / Non-smoking rooms / On-Site parking / Outdoor pool / Pets allowed / Poolside snack bar / Restaurant / Room service / Safe deposit box / Sauna / Shoe shine stand / Shopping mall / Shops and commercial services / Sports trainer / Technical concierge / Theatre desk / Tour/sightseeing desk / Translation services / Wakeup service, etc… 10 INTERNAL Benefits •Benefits describes how the product can help the audience. You will rest like never. You will forget all your problems. •Benefits paint a picture of success in the prospect's mind of how it will change their life (in some way). #Identity_Transformation 11 INTERNAL FEATURES 12 UMBRELLA INTERNAL BENEFITS FEATURES BENEFITS IPod 1000 Feelings, Songs, Memories… in your pocket 13 INTERNAL Features and Benefits Features: Iron, It wash clothes, white. Eco-friendly. Short Spin Benefits: You will look better, and you will smell better too. 14 INTERNAL Features and Benefits Features: Golf Resort with a Hotel, 3 golf courses and one Spa. Benefits: If you stay in the hotel for a week, you could play 3 different golf courses without leaving the resort. Giving you stress-relief. 15 INTERNAL 15 3.Service product characteristics 16 INTERNAL Characteristics of services Intangibility • Service product cannot be seen, tasted, felt, heard, or smelled before purchase. 17 Inseparabilit y •Service product cannot be separated from service providers, customers and other customers. Variability •Service quality depends on who provides the service and when, how and where it is provided. Perishabilit y •Service product cannot be stored for later sale or use. INTERNAL Characteristics of services 1. Intangibility Problem: • It is difficult to evaluate service before the experience. Solutions: • Tangibilize the intangible – physical evidence • Create strong organization image • Stimulate post-purchase communication, “word of mouth” and publicity. 18 INTERNAL Characteristics of services Intangibility • Service product cannot be seen, tasted, felt, heard, or smelled before purchase. 19 Inseparabilit y •Service product cannot be separated from service providers, customers and other customers. Variability •Service quality depends on who provides the service and when, how and where it is provided. Perishabilit y •Service product cannot be stored for later sale or use. INTERNAL Characteristics of services 2. Inseparability •Problem: The customer becomes part of the service. Service encounter Solutions: •1. Managing employees • Communication training • Empowerment •2. Managing customers • What do you expect customers to do? • Interaction with other customers 20 INTERNAL Characteristics of services Intangibility • Service product cannot be seen, tasted, felt, heard, or smelled before purchase. 21 Inseparabilit y •Service product cannot be separated from service providers, customers and other customers. Variability •Service quality depends on who provides the service and when, how and where it is provided. Perishabilit y •Service product cannot be stored for later sale or use. INTERNAL Characteristics of services 3. Variability Problem: ▪ Lack of consistency Solutions: ▪ ▪ ▪ ▪ ▪ 22 Standardized procedure: Customized: taking care of individuals Educate customers Train contact and non-contact employees Manage suppliers’ quality INTERNAL Characteristics of services Intangibility • Service product cannot be seen, tasted, felt, heard, or smelled before purchase. 23 Inseparabilit y •Service product cannot be separated from service providers, customers and other customers. Variability •Service quality depends on who provides the service and when, how and where it is provided. Perishabilit y •Service product cannot be stored for later sale or use. INTERNAL Characteristics of services 4. Perishability •Problem: • Lack of ability to inventory •Solutions: • Managing demand • Understanding demand patterns • Price, Shift demand • Reservation, Overbooking • Create promotional events • 24 Managing capacity • Cross-train employees • Schedule downtime during periods of low capacity INTERNAL 4. Service and Customer Value 25 INTERNAL If dogs don’t like your dog food, the packaging doesn’t matter” stephendenny.com/ 26 INTERNAL What are their needs? Customer Value Customer experience Customer Value is the customer’s perception of the balance between benefits received, from a product or service, and its cost. Expected Delight Cost 27 INTERNAL Customized Services: Personalization is perceived like extra value. Service and Customer Value: What do you expect in a 5 stars hotel when you book a double room? 2010 28 INTERNAL The wow effect in your business sucess: The WOW effect it’s a moment of wonder that your client will remember. How to create a Wow effect? Its not only first impression, the last impression too. Identify and manage expectations. “Promise LESS and give MORE” Make sure your clients know everything you do for them. Interest + Enthusiasm is a must. 29 INTERNAL Exercise with wow effect Exercise: Create a WOW moments effect in any stage of the customer journey in a hotel 30 INTERNAL 30 5. The service profit chain 31 INTERNAL Types of Service in customer experience Hospitality employees have the ability to affect the human experience by creating powerful impressions—even brief moments of truth—that may last a lifetime. Fridge Action & Attitude: Negative “I don’t care” Factory Action: Positive Attitude: Negative “You are a number” Funny Clown Action: Negative Attitude: Positive “No idea Sir.” Complete Balance Action & Attitude: Positive “Customer Oriented” 32 INTERNAL The Service Profit Chain Internal service quality Satisfied & productive service employees Happy employees 33 Greater service value Happy Customers INTERNAL Satisfied & loyal customers Healthy service profits and growth Characteristics of services Explain how happy employees impact in your customer experience. 34 INTERNAL 6. Buyer Decision Process Buyer Decision Process Need Need Recognition Recognition 36 Information Information Search Search Evaluation Evaluation of of Alternatives Alternatives INTERNAL Purchase Purchase Decision Decision PostPostpurchase purchase Behavior Behavior Buyer Decision Process •Think of a last time you bought a laptop •What helped you to make decision towards the company you bought from? 37 INTERNAL Buyer Decision Process Step 1. Need Recognition The buying process starts when the buyer recognizes a need. • Internal Stimuli: previous experience, memories • External Stimuli: coming from the outside environment What TRIGGERS consumers to recognize the need/wants? - Product out of stock, - Dissatisfaction with previous purchase, - New needs or wants, - Related product purchase, - Advertising and promotions (Persuasion), - New products … 38 INTERNAL Buyer Decision Process Step 2. Information Search • The buyer starts to look for the information about the product. Information Sources: • Personal: Family, friends, neighbors, acquaintances • Commercial: Advertising, salespeople, dealers, packaging, displays • Public: Restaurant reviews, consumerrating organizations • The Internet: Web site, podcast, blogs and comments from previous guests 39 INTERNAL Buyer Decision Process 3. Evaluation of Alternatives The buyer compares the different options. Multi-attribute approach: Product attributes: Features and Benefits. Different degrees of importance of each attribute. Set of beliefs about where each brand stands on each attribute. 40 INTERNAL Buyer Decision Process Step 4. Purchase Decision The consumer ranks brands in the choice set and forms purchase intentions. Usually, the buyer proceeds with the purchase. Purchase intention is also influenced by unexpected situations: Family influence, friends Unexpected events, etc. You never know 100% 41 INTERNAL Buyer Decision Process Step 5. Post-Purchase Evaluation The buyer uses the product and decides whether the purchase was satisfactory or not. It might affect future purchases and customer loyalty. If the product matches expectations, the consumer will be satisfied. This is the time the consumer might or might not voice their dis/satisfaction through feedback and reviews. 42 Almost all major purchases result in cognitive dissonance, or discomfort caused by post-purchase conflict INTERNAL 7. Customer Experience, User Experience 43 INTERNAL Who is this man? And… Do you know Newton’s Third Law “For every action there is an equal and opposite reaction…” Isaac Newton 44 INTERNAL Customer Experience 45 CX UX Customer Experience User Experience Moments of True Interactions INTERNAL Traditional definition Customer experience (CX) is everything related to a business that affects a customer’s perception and feelings about it. Zendesk.es It includes every INTERACTION, sometimes, no matter how brief and even if it doesn't result in a purchase. 46 INTERNAL Moments of truth The term cames from the book written in 1985 CEO of Scandinavian Airlines. Interactions = Moments of truth. 50.000 Moments of truth. E.g Website 47 INTERNAL Moments of truth It is important that companies become focused on meeting their customers' needs. Decisions from the top of the pyramid will not always be the right one. Why? In hospitality, leaders should empower frontline employees to address their needs with agility and courtesy. 48 INTERNAL When/Where do we have these interactions/Moments of true? Stages of CX in our Customer Journey Retention Acquisition Awareness Service Loyalty Buyer Decision Process. Customer Journey. 49 INTERNAL When/Where do we have these interactions/Moments of true? Retention Guest goes to lounge for a cocktail Acquisition Awareness Service Loyalty 50 Examples in a restaurant… Guest parking Guest calls for reservation Guest welcome Guest tries to find restaurant. Guest is told table is not ready INTERNAL Emailing Exercise Exercise: Mention 10 moments of truth / Interactions in any stage of the customer journey in a hotel 10 51 10 10 INTERNAL 10 51 Because Digital transformation: Customer Experience -> User experience (UX) UX experience (UX) are all online aspects of the end-user's interaction with the company. Don Norman and Jakob Nielsen. Why UX?. 1. Investing now, you saves money later 2. Create right product from the start 3. Increase your conversion 4. Self service 52 INTERNAL Because Digital transformation: Customer Experience -> User experience Elements Do you recognize this page? 1. Screen 2. Icons, Buttons 3. Colors 4. Platform 53 INTERNAL Because Digital transformation: Customer Experience -> User experience Why is important the user experience anlysis? 1. Investing in UX saves money later 2. Create the right product from the start 3. Increase your conversion 4. Crucial for SEO 5. Drive customer Loyalty 54 INTERNAL 54 Why User Experience is Essential? • Good UX & UI improves peoples lives • UX & UI aims to make interactions efficient and enjoyable • Improve CRO (conversion rate optimization) Battery example 55 INTERNAL Because Digital transformation: Customer Experience -> User experience Write 10 examples of UX improvements in your daily life. Battery example 56 INTERNAL 8. Researching Customers “Your most unhappy customers are your greatest source of Learning” Bill Gates Researching customers • Observations of customer behavior. • Surveys and questionnaires (Written or by phone) • Point-of-sale feedback • Focus groups • Personal interviews • Social media (Reviews / Comments). Survey • Fixed sets of questions: - Multi-choice - True/False - Open question Focus groups • A set of questions or discussion points to debate. What types of information do we have? 1. Transactional Types of Payment, Currency, Channels, Credit Card number, Bank account number, price, dates, times, pace, how many etc… 2.clients, Behavioral data You don’t need to ask… 3. Declaratory You need to ask… 60 What Is a Marketing Information System (MIS)? All the technology that gathers, stores, analyzes, and distributes mk data to the managers and teams that they need it. Data Data Data Data Data Data Data Google Ads-----> Wordpress --------> CRM --------> Marketing + Contact Center ------> Operations (Social Media) (Landing) KPI’s Dashboards Visits, time, sources, countries… Personal Data STORE Mk/Sales Manager DISTRIBUTE Operations Manager DISTRIBUTE GATHERS 61 INTERNAL 61 Collecting Data – Example In collaboration with RetailNext, Montblanc deployed video analytics in their offline retail spaces, generating maps that show where customers spent most TIME in store. Counting data from WiFi get powerful insights such as visit duration, unique traffic, pass-by traffic in showcase, visit frequency, and entrance path analytics. 62 INTERNAL 62 Data-driven personalization: The company was able to identify where to place their various product lines and sales staff. 20% after installation. The software helped them increase sales by Rodrigo Fajado, Montblanc’s brand manager. 63 INTERNAL 63 9. NPS Score Net Promoter Score (NPS). NPS is essential to any CX effort. It is a satisfaction measurement taken from asking customers how likely they are to recommend your product or service. Scale 0-10. On a scale from 0-10, How likely are you to recommend this company to a friend or colleague? 65 INTERNAL Why Net Promoter Score (NPS) is important?. When your NPS is high you know you have a healthy relationship with your customers. NPS Calculation Example 500 Customers 100 Detractors. 200 Passive. 200 Promoter. 20%. 40%. 40%. NPS = % of promoters – % of detractors NPS = 40% – 20% = 20% 66 INTERNAL What is a good Net Promoter Score (NPS). A NPS above zero (Positive score) is good for a company. It means that the number of people who speak well of the company is higher than the number who speak badly of it. Healthy companies’ NP score is over 50%. 67 INTERNAL 10. Customer Journey Mapping 68 INTERNAL Customer Journey The customer journey is the complete sum of experiences that customers go through when interacting with your company and brand. In other words, since the very first interaction with our brand or company, until the purchase or payment or any kind of conversion. We can look at customer journey as a single purchase process or consider the whole customer experience with the brand. 69 INTERNAL Benefits of Customer Journey Research 1. Better understand your customers: Put yourself in your customer shoes. Or even better - ask real customers. 2. Identify marketing wastefulness: Optimizing customer experience 3. Connect company’s departments: encourages the crossdepartmental coordination needed to give the best customer experience 4. Build a differentiated experience: Stand out from competitors 5. And the most important one…. It is the best tool to provide a seamless customer experience. 70 INTERNAL Customer Journey Elements or Layers 1. Stages: awareness, consideration, acquisition, purchase/service, loyalty/advocacy (for example) 2. Steps: steps taken by the customers during each stage (first time heard about a brand/product, looked for information, talked to a friend, etc.) 3. Touchpoint: each interaction with a client happens during a step (ads, blog, banner, face-to-face,..) 4. Channel: place/channel where each interaction (touchpoint) with a client happens (SM, website, on-site,…) 5. Departments: marketing, sales, customer service, etc. 6. KPIS - measurements: web visits, nº of purchases, nº of complaints/praises, etc. 7. Moments of truth: fill out an application, download, book a reservation, make a payment, etc. 8. Mood: how a customer feels regarding a brand or product at that particular step To create your customer journey layers can be removed, modified or other layers can be added 71 INTERNAL (Bright Vessel, 2018) 72 INTERNAL Customer Journey Example 1 (Stages & Touchpoints) 73 INTERNAL Customer Journey Example 2: LEGO Experience Wheel (Temkin, 2009) 74 INTERNAL Mapping the Customer Journey 1. Educate and involve all people within the organization about the customer journey. 2. Confirm stages - they may be different depending on the industry. 3. Identify moments of truth. 4. Map potential clients’ emotions, better through real customers’ research. 5. Summarize frontstage touchpoints such as call center, frontline employee, website, word-of-mouth, etc. 6. Map backstage departments within the company. 7. Conduct performance assessment once you have identified your customer emotions related to the customer journey. 8. Set up an action plan. 75 INTERNAL Exercise Restaurant experience: 1. Work in teams. Use your own experience at a restaurant of your choice. 2. Think of the customer journey of you as a buyer persona for a chosen restaurant. Focus on a single experience (e.g. before/during/after stages only). 3. Map your customer’s experience with customer journey levels: stages, steps, touchpoints, departments involved, etc. 4. 76 Include mood level in every touchpoint. INTERNAL References • Bright Vessel. (2018, January 5). Customer Journey Map. https://www.brightvessel.com/customer-journey-map-2018/ • Hubspot. (n.d.). How to Create an Effective Customer Journey Map [Examples + Template]. https://blog.hubspot.com/service/customer-journey-map • Kotler, P., Bowen, J.T., Makens, J.C., & Baloglu, S. (2021). Marketing for hospitality and tourism (8th ed.). Harlow, UK: Pearson. • Temkin, B. (2009, March 3). LEGO’s Building Block For Good Experiences. https://experiencematters.wordpress.com/2009/03/03/legos-building-block-for-good-experiences/ • Tong Wu, I. (n.d.). Travel Mate: Customer Journey & UX Project. http://iristongwu.com/travel-mate#anchor-link-top 77 INTERNAL