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chapter
44
Customer ExperienceCustomer Experience
McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
Customer Experience — Today’s Objectives
Objectives will be to:
Introduce and define the concept of customer experience
Explore the seven elements of customer experience
Examine the three stages of the customer-experience hierarchy
Discuss six broad goals in creating desirable customer experience
Explore how the stages of customer experience apply to eBay
The Elements of Customer Experience
The Stages of Customer-Experience Hierarchy
Broad Goals in Designing Desirable Customer Experience
EBay’s Customer Experience
Conclusion
Chapter 4: Customer Experience
Chapter 4: Customer Experience
The Elements of Customer Experience
The Stages of Customer Experience Hierarchy
Broad Goals in Designing Desirable Customer Experience
EBay’s Customer Experience
Conclusion
Seven Key Elements of Customer Experience1.
2.
3.
4.
5.
6.
7.
A certain level of functionality must exist in order for a site to work; basic standards and expectations must be met
Relates to the individual’s unique perception of the encounter with the firm
More than just the economic transaction - the entire customer encounter experience includes both process and output measures of the shopping experience
Includes a customer’s response to multiple variables, from the tactical layout of the store/site to high-level interpretations of the meaning of the brand
To the extent that it is relevant, assessment of the customer experience needs to incorporate all five senses
Cognitive responses are thoughtful and evaluative in nature; emotional responses tend to capture moods, attitudes and feelings of the customer
Previous, separate experiences can affect a consumer’s reaction to various stimuli during a shopping experience
The Objective Element
The Perception Element
The Encounter Element
The Reactions-to-Stimuli Element
The Sensory Element
The Cognitive and Emotional Element
The Relative Element
Customer Experience vs. Building Brand
Brand Awareness Is the Key to Success
Customer Experience Is the Key to Success
Building brand awareness leads to traffic Investors need to see site traffic and the
likelihood of future profitability
Offering a great customer experience when nobody knows about the site is a waste of resources as long as a baseline functional standard is being met
Focusing on customer experience is the single most profitable thing a business can do
Customers that have a positive experience with the site are more likely to keep coming back and to tell their peers about it
Positive customer experience leads to purchases at commerce sites, exploration at content sites and participation at community sites
Point-Counterpoint
Chapter 4: Customer Experience
The Elements of Customer Experience
The Stages of Customer Experience Hierarchy
Broad Goals in Designing Desirable Customer Experience
EBay’s Customer Experience
Conclusion
Exhibit 4.1: Stages of Customer Experience
If a Firm Gets This Right … This Is What the Customer
Experiences
Stage One: Functionality Design and information architecture
Deep understanding of customer behavior
Platform independence
Efficient transactions
Site is easy to use
Quick downloads
Intuitive navigation
Site reliability
Stage Two: Intimacy Warehousing and mining
Tailoring of pages and offerings
Overlay human interaction
Integrated data
Consistent performance over time
Constant innovation and upgrading (incremental or significant)
Personalization
Increasing trust
Repeated experiences of exceptional value
A sense of “being in the know”
Consistent experiences
Significant benefits relative to other offerings
Stage Three: Evangelism Supports evangelists
Acknowledgment of evangelists Desire to make messages to
the market
Community benefits
Exhibit 4.2: Stages of Customer Experience Over Time
Exhibit 4.3: Seven Deadly Sins of Customer Experience
The Elements of Customer Experience
The Stages of Customer Experience Hierarchy
Broad Goals in Designing Desirable Customer Experience
EBay’s Customer Experience
Conclusion
Chapter 4: Customer Experience
Broad Goals for Creating a Desirable Customer Experience
1.
2.
3.
4.
5.
6.
Create a Rich Description of the Target Customer
Develop Use-Case Scenarios for Each Target Segment
Effectively Integrate the Online and Offline Experience
Articulate Clear Stages of Desired Experience
Effectively Assess Relative Levels of Hierarchy
Highly Leverage the Evangelists
Exhibit 4.5: Stages of Customer Experience for REI.com
Generic Desired Customer
Experience What REI.com Delivers
Functionality Site is usable
Easy navigation
Quick download
Speedy site
Reliable
Content organized around user needs
Easy-to-find gear and activity information
Multiple views of products and services
Website that rates high on efficiency and fulfillment
No crashes and limited downtime
Intimacy High trust
Consistent experience
Quick, effective communication
High personalization
Exceptional value
Consistent with brand message
Authoritative content and information
Kiosks in store link to online channel
Easy access to customer service, including live online help
E-mail newsletter
Member discounts and rebates
Product returns to store or by mail
Adventure travel service
Evangelism Takes word to the market
Defends the experience
Membership advantages
E-mail option for sharing information
Community message boards
In-store and local events
Chapter 4: Customer Experience
The Elements of Customer Experience
The Stages of Customer Experience Hierarchy
Broad Goals in Designing Desirable Customer Experience
EBay’s Customer Experience
Conclusion
Exhibit 4.6: Steps in Creating Good Customer Experience
Step Benefit to Customer Benefit to Company
Create Rich Description of Target Customers
Company better able to imagine customer motivations
Brings market research to life
Allows shared understanding of customer types
Develop Use-Case Scenarios for Each Target Segment
Company better able to anticipate and meet customer needs and expectations
Site designers put themselves in customers’ shoes, which helps create intuitive navigation and ensures usability
Integrate Online and Offline Experience
Customer experiences consistency across brand and channels
Enhanced overall sales, lessening of perceived channel cannibalization
Articulate Stages of Desired Experience
Customer experiences increased attachment to company, greater loyalty and potential for evangelism
Company able to map desired outcomes to product and site deliverables
Assess Levels of Hierarchy
Customers perceive that they are of value to the company
Company able to consider strategies for moving customers along the experience hierarchy
Leverage the Evangelists
Customer participation in brand and marketing is rewarded by feeling of belonging and community
Company gains insight into product uses and product development; benefits from viral marketing
Monitor and Adjust Major and incremental changes to site diminish barriers to good experience
Online channel’s full potential is leveraged
Exhibit 4.7: Stages of Customer Experience for EBay
Stages Generic Desired Customer Experience for
Auctions What eBay Delivers
Functionality Direct message
Clean layout
Quick browsing, searching, and bidding
Straightforward selling
Good market segmentation (by category, region, special interests
Reliable
Easy-to-locate items
Easy-to-upload information about selling
Fast auction interactions
Easy-to-understand rules and auction interface
No crashes and limited downtime
Very efficient access
Intimacy Effective communication
Consistent experience
Trustworthy customer service
Only the necessary level of personalization
Exceptional value
Consumption for leisure
Channel for selling, especially B2C
Active community members
Assistance in brand building
User constantly knows status of auction
Site is consistent across all areas
Quick, effective personalized e-mail responses
Users make "My eBay" their main interface with the site
Enabling transactions is regarded by eBay community as extremely valuable
Businesses use eBay as a distribution channel
Active users in personal and company’s feedback forums
Feedback Forum becomes emotion driven: “I wonder what people are saying of me”
Evangelism Taking word to the market
Defends the experience
Look down on competitors
Describes eBay as the ultimate experience in terms of great deals and trustworthiness
No need to visit other auction websites for better deals or more variety
Exhibit 4.8: EBay’s Functionality
The Basics EBay’s Score
Usability and ease of navigation
Intuitive interface guides both buying and selling process Logical organizational structure reinforces where you are in the
site at all times
Speed Site is light on graphics, making performance quick on dial-up connections
Item searches are extremely fast
Reliability Site can handle 800,000 transactions per minute Outages, a problem in eBay’s earlier days, have been reduced to
a minimum
Media accessibility EBay Anywhere enables access from any wireless device Security Security keys for payments separate from eBay passwords,
adding extra level of protection
Encryption used on all transactions to ensure safe exchanges
Chapter 4: Customer Experience
The Elements of Customer Experience
The Stages of Customer Experience Hierarchy
Broad Goals in Designing Desirable Customer Experience
EBay’s Customer Experience
Conclusion
Customer Experience — Conclusion
Customer experience refers to a customer’s perception and interpretation of all the stimuli encountered while interacting with a firm
There are three stages to the customer experience, which are outlined by the customer-experience hierarchy:
Stage One: Experiencing Functionality — “The Site Works Well”
Stage Two: Experiencing Intimacy — “They Understand Me”
Stage Three: Experiencing Evangelism — “I Love to Share the Story”
In the process of designing a desirable customer experience, firms should set six broad goals: 1) create a rich description of the target customer, 2) develop use-case scenarios for each target segment, 3) effectively integrate the online and offline experience, 4) articulate clear stages of desired experience, 5) effectively assess relative levels of hierarchy, and 6) highly leverage the evangelists