Copyright © 2003 by Marketspace LLC

Mohammed, Fisher, Jaworski, Paddison

Internet Marketing, 2nd Ed

Chapter 4 Lecture Slides

Customer Experience

Exhibits and Tables

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

Customer Experience — Today’s Objectives

To understand how the desired customer experience influences marketing choices

Formulating the Marketing Strategy

Formulating the Marketing Strategy

Designing the Customer

Experience

Designing the Customer

Experience

Designing the Marketing Program

Designing the Marketing Program

Chapter 3

Chapter 4

Chapters 6-14

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

Chapter 4:

Customer Experience

Defining the customer experience - the seven elements

The “Experience Hierarchy” - stages of customer experience

Steps in the process of creating desirable customer experience

Case Study: eBay

Conclusion

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

Defining the Customer Experience - the seven elements

The “Experience Hierarchy” - stages of customer experience

Steps in the process of creating desirable customer experience

Case Study: eBay

Conclusion

Chapter 4:

Customer Experience

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

Supporting Slide 4–A: What is Customer Experience?

Customer Experience is a target customer’s perception and interpretation of all the stimuli encountered while interacting with a firm

Transaction Competitors

AdvertisingReviews

Hearsay

Product Quality

HomePage

Customer Experience

Price

Expectations

Site Reliability

Speed of Delivery

Trust

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

The Sensory ElementThe Sensory Element

The Reactions to Stimuli ElementThe Reactions to Stimuli Element

The Encounter ElementThe Encounter Element

The Objective ElementThe Objective Element

The Perceived ElementThe Perceived Element

Supporting Slide 4–B: Seven Key Elements of Customer Experience

The Cognitive and Emotional ElementThe Cognitive and Emotional Element

The Relative ElementThe Relative Element

Site must meet basic functionality requirements

Individuals will note and care about certain aspects of the encounter based on their own unique perceptions

The entire customer encounter element includes both process and output measures

Customers respond to multiple variables, from the tactical layout of the site to high-level interpretations of the meaning of the brand

The customer experience can 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 new experience

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

Supporting Slide 4–C: Role of Customer Experience

Articulating a desired customer experience connects high-level positioning strategy to program-level tactics

How we are positioned to win in the market

where we will compete

How we are positioned to win in the market

where we will compete

What marketing activities we will

engage in

What marketing activities we will

engage in

Desired Customer Experience

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

Supporting Slide 4–D:

Point-Counterpoint: Brand Building vs. Customer Experience

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

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

Defining the Customer Experience - the seven elements

The “Experience Hierarchy” - stages of customer experience

Steps in the process of creating desirable customer experience

Case Study: eBay

Conclusion

Chapter 4:

Customer Experience

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

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 needs

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

Personalization

Increasing trust

Repeated experiences of exceptional value

Consistent performance over time

Constant innovation and upgrading(incremental or significant)

A sense of being “in the know”

Consistent experiences

Significant benefits relative to other offerings

Support of evangelists

Acknowledgment of evangelists

Desire to take message to the market

Community benefits

Stage Three:

Evangelism

Stages

The “Experience Hierarchy” outlines the three stages of customer experience, from a user’s first click on a site to the point at which that user experiences site loyalty

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

Supporting Slide 4–E:

Stage 1: Functionality

A firm must fulfill certain responsibilities at each stage of customer experience in order to deepen customer involvement

Firm ResponsibilitiesFirm ResponsibilitiesFirm ResponsibilitiesFirm Responsibilities

Great design and information architecture

Deep understanding of customer behavior

Platform independence Server transactions

Great design and information architecture

Deep understanding of customer behavior

Platform independence Server transactions

Customer ExperienceCustomer ExperienceCustomer ExperienceCustomer Experience

Usable site Quick, speedy downloads Easy navigation Reliability

Usable site Quick, speedy downloads Easy navigation Reliability

Stage 1: “The Site Works Well”

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

Supporting Slide 4–F:

Stage 2: Intimacy

Once the functionality hurdle has been met, firms can distinguish themselves by establishing a more individualized connection

Firm ResponsibilitiesFirm ResponsibilitiesFirm ResponsibilitiesFirm Responsibilities

Warehousing and mining of data Tailoring of pages and offerings Overlay human interaction Integrate data with web page activity

Warehousing and mining of data Tailoring of pages and offerings Overlay human interaction Integrate data with web page activity

Customer ExperienceCustomer ExperienceCustomer ExperienceCustomer Experience

Personalized information Increasing trust Consistent experiences

Personalized information Increasing trust Consistent experiences

Stage 2: “They Understand Me”

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

Supporting Slide 4–G:

Stage 3: Evangelism

Loyal long-term customers serve to bring other target customers into the brand

Firm ResponsibilitiesFirm ResponsibilitiesFirm ResponsibilitiesFirm Responsibilities

Acknowledge evangelists Support evangelists

Acknowledge evangelists Support evangelists

Customer ExperienceCustomer ExperienceCustomer ExperienceCustomer Experience

Wants to take message to the market

Enjoys benefits of community

Wants to take message to the market

Enjoys benefits of community

Stage 3: “I Love to Share the Story”

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

Exhibit 4–2: Stages of the Customer Experience Over Time

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

Exhibit 4–3: The Seven Deadly Sins of Customer Experience

• No search feature. Customers must navigate a company-specified path or consult a site map in order to find what they’re looking for.

• No indication until checkout that an item is out of stock.

• Hard-to-find contact information. The absence of phone numbers is especially irritating to customers, even though the company may find it beneficial.

• No gift certificates or gift shipping options.

• No shipping information or costs until the end of checkout process. This is one of the top reasons that shopping carts are abandoned.

• So-called ‘opt-in’ marketing buttons. When check boxes default to settings in the company’s favor, customers have to uncheck them to avoid unwanted marketing messages.

• No printer-friendly feature. This results in hard-to-read printouts and wasted paper.

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

Defining the Customer Experience - the seven elements

The “Experience Hierarchy” - stages of customer experience

Steps in the process of creating desirable customer experience

Case Study: eBay

Conclusion

Chapter 4:

Customer Experience

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

Supporting Slide 4–H:

Seven Steps in the Process of Creating a Desirable Customer Experience

Highly Leverage the EvangelistsHighly Leverage the Evangelists

Assess Relative Levels of HierarchyAssess Relative Levels of Hierarchy

Articulate Clear Stages of the Desired ExperienceArticulate Clear Stages of the Desired Experience

Create a Rich Description of the Target CustomerCreate a Rich Description of the Target Customer

Integrate the Online and Offline ExperienceIntegrate the Online and Offline Experience

Continuously Monitor and AdjustContinuously Monitor and Adjust

Develop Use Case Scenarios for Each Target SegmentDevelop Use Case Scenarios for Each Target Segment

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

Exhibit 4–4: REI.com Organizes Around Customer Needs

Customers can view products by activity type, equipment type, age/gender, or usage occasion.

Customers can view products by activity type, equipment type, age/gender, or usage occasion.

Search box is prominently displayed.

Search box is prominently displayed.

Tab navigation sorts content into intuitive sections.

Tab navigation sorts content into intuitive sections.

Subnavigation offers additional detail.

Subnavigation offers additional detail.

Third-party recommendations enhance customers’ trust in products.

Third-party recommendations enhance customers’ trust in products.

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

Exhibit 4–5: Stages of Customer Experience for REI.com

Stages 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

Website that rates high on efficiency and fulfillment

No crashes and limited downtime

Intimacy High trust

Consistent experience

High personalization

Authoritative content and information

Kiosks in store link to online channel

Exceptional value

Consistent with brand message

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

Easy access to customer service, including live online help

E-mail newsletter

Multiple views of products and services

Quick, effective communication

In-store and local events

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

Exhibit 4–6: Summary of Steps in Creating Good Customer Experience

Step Benefit to Customer Benefit to Company

• Company better able to imagine customer motivations

Integrate Online and Offline Experience

• Customer experiences consistency across brand and channels

• Enhanced overall sales, lessening of perceived channel cannibalization

Create Rich Description of Target Customers

Develop Use Case Scenarios for Each Target Segment

• Customer experiences increased attachment to company, greater loyalty and potential for evangelism

Articulate Stages of Desired Experience

Assess Levels of Hierarchy

Leverage the Evangelists

Monitor and Adjust

• Customers perceive that they are of value to the company

• Customer participation in brand and marketing is rewarded by feeling of belonging and community

• Major and incremental changes to site diminish barriers to good experience

• Company better able to anticipate and meet customer needs and expectations

• Company able to map desired outcomes to product and site deliverables

• Company able to consider strategies for moving customers along the experience hierarchy

• Company gains insight into product uses and product development; benefits from viral marketing

• Online channel’s full potential is leveraged

• Site designers put themselves in customers’ shoes, which helps create intuitive navigation and ensures usability

• Brings market research to life

• Allows shared understanding of customer types

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

Defining the Customer Experience - the seven elements

The “Experience Hierarchy” - stages of customer experience

Steps in the process of creating desirable customer experience

Case Study: eBay

Conclusion

Chapter 4:

Customer Experience

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

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, or special interests) Reliable

Easy-to-locate items Easy-to-upload information about selling Fast auction interactions Easy-to-understand rules and auction interface No website 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 about me”

Evangelism Takes word to the market Defends the experience Look downs 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

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

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

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

Exhibit 4–9: EBay Tailors the User Experience to the Individual User

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

Exhibit 4–10: EBay Community Resources

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

Defining the Customer Experience - the seven elements

The “Experience Hierarchy” - stages of customer experience

Steps in the process of creating desirable customer experience

Case Study: eBay

Conclusion

Chapter 4:

Customer Experience

Last Updated: 04/10/03Copyright 2003 by Marketspace LLC

Customer Experience — Conclusion

Customer experience encompasses a customer’s perception and interpretation of all the stimuli encountered while interacting with a firm

The “Experience Hierarchy” is the three stages a customer can pass through as their relationship with the product evolves

– Stage One: Experiencing Functionality: “The Site Works”

– Stage Two: Experiencing Intimacy: “They Understand Me”

– Stage Three: Experiencing Evangelism: “I Love to Share the Story”

Designing the ideal customer experience through each of the three stages can assist marketers in making the transition from high level positioning strategy to program level tactics