The Customer Experience: a journey not a destination

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The Customer Experience a journey not a
destination
Colin Shaw Founding Partner Beyond Philosophy
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85 of senior business leaders say that just
differentiating on the Physical - traditional is
no longer sustainable
Source Marketing Forum 2002 Original Research
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The Experience..
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Customer Experience Definition
A Customer Experience is an interaction between
an organization and a Customer. It is a blend of
an organizations physical performance, the senses
stimulated and emotions evoked, each intuitively
measured against Customer Expectations across all
moments of contact.
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Seven Philosophies for Building a Great Customer
Experience

• Great Customer Experiences are
• A source of long-term competitive advantage
• Created by consistently exceeding Customers
  physical emotional expectations
• Differentiated by focussing on stimulating
  planned emotions
• Enabled through inspirational leadership, an
  empowering culture and empathetic people who are
  happy and fulfilled
• Designed Outside In rather than Inside Out
• Revenue generating and can significantly reduce
  costs
• An embodiment of the brand

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Seven Philosophies for Building a Great Customer
Experience

• Great Customer Experiences are
• A source of long-term competitive advantage
• Created by consistently exceeding Customers
  physical emotional expectations
• Differentiated by focussing on stimulating
  planned emotions

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69 of customers say emotions account for over
half of their Customer Experience
Source Marketing Forum 2002 Original Research
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Can companies be trusted?
Can you trust companies?
Males and Females who say companies cannot be
trusted
Source Marketing Forum 2002 Original Research
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Seven Philosophies for Building a Great Customer
Experience

• Great Customer Experiences are
• A source of long-term competitive advantage
• Created by consistently exceeding Customers
  physical emotional expectations
• Differentiated by focussing on stimulating
  planned emotions
• Enabled through inspirational leadership, an
  empowering culture and empathetic people who are
  happy and fulfilled

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Seven Philosophies for Building a Great Customer
Experience

• Great Customer Experiences are
• A source of long-term competitive advantage
• Created by consistently exceeding Customers
  physical emotional expectations
• Differentiated by focussing on stimulating
  planned emotions
• Enabled through inspirational leadership, an
  empowering culture and empathetic people who are
  happy and fulfilled
• Designed Outside In rather than Inside Out

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Consumer Terrorist!
You get the Customers you deserve
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Seven Philosophies for Building a Great Customer
Experience

• Great Customer Experiences are
• A source of long-term competitive advantage
• Created by consistently exceeding Customers
  physical emotional expectations
• Differentiated by focussing on stimulating
  planned emotions
• Enabled through inspirational leadership, an
  empowering culture and empathetic people who are
  happy and fulfilled
• Designed Outside In rather than Inside Out
• Revenue generating and can significantly reduce
  costs
• An embodiment of the brand

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Every 3 hours we lose 5,000 Customers!
Gross Customer Loss
4MM per annum
2.4bn p.a.
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(1) Prevent Profitable Customer Defection
Our research shows that two-thirds of our
customers who cancelled their contract, did so
for reasons that could have been prevented
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The Opportunity
What if
we delight and retain an additional 2-pts of
defecting profitable customers
we increase the cross-sell ratio from 1.1 to
1.2 products per customer
we leverage superior experiences into just 5
in additional lead referrals, and convert 30 of
those leads to business
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Annual Impact on Operating Profit By Year 3
121M
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The Opportunity - Revisited
Now, what if
3-pts
we delight and retain an additional 2-pts of
defecting profitable customers
1.3
we increase the cross-sell ratio from 1.1 to
1.2 products per customer
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we leverage superior experiences into just 5
in additional lead referrals, and convert 30 of
those leads to business
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Annual Impact on Operating Profit By Year 3 -
Revisited
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Impact On Valuation
Market Cap
38.9B
Current Valuation
Increased Operating Profit (By Year 3)
(Not considering impact of external factors)
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Seven Philosophies for Building a Great Customer
Experience

• Great Customer Experiences are
• A source of long-term competitive advantage
• Created by consistently exceeding Customers
  physical emotional expectations
• Differentiated by focussing on stimulating
  planned emotions
• Enabled through inspirational leadership, an
  empowering culture and empathetic people who are
  happy and fulfilled
• Designed Outside In rather than Inside Out
• Revenue generating and can significantly reduce
  costs
• An embodiment of the brand

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Food for thought

• We are moving into an experience economy. What
  are you doing to prepare yourself?
• 95 of senior business leaders recognise
  Customer Experience is the next competitive
  battleground. How is your company doing?
• Is your Customer Experience DELIBERATE?
• Emotions count for over half of Customer
  Experiences. Which emotions are you planning to
  evoke?
• What actions are your people taking to evoke
  these emotions?

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Downloads from today

Todays presentation. Chapter 1 of both
books. Market Research. Limited Naïve to
Natural Assessment.
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