Experience marketing

Lea Ward, Director of Customer Experience, C•note

C note Customer driven results

•

Lecture for Masters Students, Vrije Universiteit Amsterdam January 2013

How to create ‘Experience Marketing’ that works

© C.Note Consultants BV

01 Introduction 02 What is ‘experience marketing’?

break 03 What works in experience marketing? 04 Measuring experience marketing

Agenda

#BUCKUP


01 INTRODUCTION

About C.Note

We design services and products that add meaning to daily life.

We do this by designing from the customer’s perspective.


C.Note designed the self-service transfer experience at Schiphol.


C.Note designed the customer experience for fashion brand and retailer Expresso.

from in-store to online


C.Note improves how senior citizens get in-home help in The Hague.


Why consider ‘experience marketing?’ The customer today is harder to reach than ever.

The social media report - Nielsen 2012

02 WHAT IS EXPERIENCE MARKETING?

An old concept with increasingly innovative execution

© C.Note Consultants BV Santa Claus at Macy’s, Miracle of 34th St - 1947

Santa Claus at Schiphol Airport, popping out of a moving Chirstmas Tree - 2102

QUIZ Is this Experience Marketing?

YES

NO

R

T


Albert Heijn supermarket App for grocery list and walking route through store


Lego Amusement theme parks in the US and Europe


Princess Traveller 2 free tickets with purchase of a luggage set


Expresso Loyal customer evening with make-up artist & styling advice


Coke Friendship Machine

You Tube

2 Cokes for the price of 1 if you can pay for it


Leading Golf Tournament in the Netherlands


Lady Gaga Pop-up store at Barneys


Pepsi Challenge You Tube


Private Banking Lecture series with Dutch thought leaders


Victoria’s Secret App Photo yourself with Wings & upload


Experience Marketing

²  Engages the customer, in a meaningful way ²  Outside the tradi8onal marke8ng path ²  O;en company sponsored ²  O;en a sensory component ²  Can take many forms

-‐ Big, small -‐ One event, ongoing -‐ Sales related, brand related



Brand / PR

Big ini8a8ve

Small ini8a8ve

Sales

can take many shapes

and sizes depending on

goals



? © C.Note Consultants BV


Yes, because.. ü  Guides the customer in

orientation, starting at home through store, and in cooking (recipes)

ü  It adds value to the core shopping experience

No, because.. ü  Apps are now traditional

marketing…

ü  It’s an ordering channel



Brand / PR

Big ini8a8ve

Small ini8a8ve

Sales





Yes, because.. ü  It brings Lego to life

outside of the play room ü  It’s enormously engaging

No, because.. ü  It has become its own

business



Brand / PR

Big ini8a8ve

Small ini8a8ve

Sales


Princess Traveller 2 free tickets with purchase of a luggage set ?


Princess Traveller 2 free tickets with purchase of a luggage set

No, because.. ü  It’s a traditional sales

promotion



Brand / PR

Big ini8a8ve

Small ini8a8ve

Sales


Expresso Loyal customer evening with make-up artist & styling advice ?


Expresso Loyal customer evening with make-up artist & styling advice

Yes, because.. ü  It’s an additional event to

interact with the clothes above and beyond traditional marketing channels



Brand / PR

Big ini8a8ve

Small ini8a8ve

Sales



You Tube

2 Cokes for the price of 1 if you can pay for it



You Tube

2 Cokes for the price of 1 if you can pay for it Yes, because..

ü  It’s engaging and

meaningful ü  It’s a twist on the

traditional TV marketing



Brand / PR

Big ini8a8ve

Small ini8a8ve

Sales





Yes, because.. ü  When you fly, you play

golf..?

No, because.. ü  It’s too far away from

the actual customer journey

ü  It’s more sponsorship of sports



Brand / PR

Big ini8a8ve

Small ini8a8ve

Sales





Yes, because.. ü  It adds meaning to the

Lady Gaga musical experience

ü  It is outside traditional marketing of her music

No, because.. ü  It’s a line extension



Brand / PR

Big ini8a8ve

Small ini8a8ve

Sales





Yes, because.. ü  It engages customers to decide for

themselves what tastes best ü  While it was used in traditional

media, it was one of the first things that went outside and engage customers in a new way



Brand / PR

Big ini8a8ve

Small ini8a8ve

Sales





Yes, because.. ü  It adds meaning to the

customer journey ü  It is outside traditional

marketing



Brand / PR

Big ini8a8ve

Small ini8a8ve

Sales





Yes, because.. ü  It engages the

customer in doing something fun with the brand

No, because.. ü  It’s also a sales channel ü  It’s a traditional app



Brand / PR

Big ini8a8ve

Small ini8a8ve

Sales


What is Experience Marketing?

Engages the customer in a meaningful way outside of traditional approaches


break

03 WHAT MAKES “GOOD” EXPERIENCE MARKETING?


“Good” starts from with a definition

ü what’s the goal?

ü  for whom?

ü what does the customer want?


Expresso customer evening

Goal: For whom: What does customer want?

Extra sales, commitment “Dress me!” customers •  Total style solution •  Spoiling / me time •  Advice on body shape •  Confidence to wear


Experience Scan ™ Tool to evaluate customer experiences


Expresso customer evening

1. Does it work? Wants: •  Style solu8on •  Confidence •  Advice body shape

2. Understands me? An8cipates my ques8ons & situa8on

3. Wow! So special I will tell everyone

What’s the experience: Expresso customer styling evening Goal? Extra sales, committing loyal customers Who is it for: Loyalty card owners (> €500)

A+ A B C F Very OK Not so FAIL well well

+ 0 − YES! Neutral

Irritatingly

NOT

A Very well

Showed me how to look even better

+ 0 YES! Didn’t happen

Felt special, personal aVen8on

For some this might be a wow, to others not

+ YES

!

0 Didn’t

happen


Coke friendship machine

Goal: For whom: What does the customer want?

Brand engagement Students

•  Want free stuff •  BoVle of Coke •  Fun with friends


Coke friendship machine




What’s the experience: Get 2 boVles of coke by joint efforts Goal? Extra sales, brand engagement Who is it for: Every customer in store, everyone online

A++ A B C F Very OK Not so FAIL well well


Irritatingly

NOT

A Very well

Direct fun en indirect engagement through social media


Funny, engaging

This you’lll post to FB

+ YES

!

+ YES


Victoria’s Secret app

Goal: For whom: What does the customer want?

More sales, brand engagement Teenage girls •  Be part of the brand •  Show off


Victoria’s Secret app




What’s the experience: Shopping app with ‘get your wings’ feature Goal? Extra onine sales, brand engagement Who is it for: Women

C- A B C F Very OK Not so FAIL well well


Irritatingly

NOT

C Not so

well

Lots of issues, bugs


Extremely slow, irrita8ng

− NOT

0 Didn’t

happen


EXERCISE ü  In pairs, explain your experience marke>ng idea

ü  Have your partner evaluate it: •  What grade would you give?

•  What would make it beVer?


Experience Scan ™




What’s the experience: ________________________________________ Goal? ________________________________________ Who is it for: ________________________________________

Grade? A B C F Very OK Not so FAIL well well


Irritatingly

NOT



“Good” starts out with definitions

ü  Clear definition of §  Goal §  Group §  needs

ü  A or B + evaluation

§  does it work §  does it understand customer situation §  wow


04 HOW TO MEASURE EXPERIENCE MARKETING?


Why measure?

ü  Effect vs. cost & 8me ?

ü  Effect vs : §  Other possible marke8ng investments? §  Similar experience marke8ng over 8me?

© C.Note Consultants BV © C.Note Consultants BV

What you measure depends on your goals


If goal is primarily Brand / PR then

Measure Coke Traffic / exposure to experience

Direct (actual use/engagement in the event) ??

Indirect (you tube, tweets, etc)

Brand vs. control

Core brand values Happiness & Friendship up

Trust in company & brand Up


If goal is primarily direct Sales/ Loyalty then

Measure Expresso evening out

Direct (actual use/engagement in the event) 100-‐200

Measure vs. control

Sales ++

Net promoter score Up

Re-purchase intent Up

trust in company & brand Up


Remember the sales component. Fantastic windows at Lord & Taylors. Much traffic outside, but ….


No one in the store? Why not offer incentive at end of line to go inside?


Measuring

Why measure? §  vs. cost & effort §  vs. other marketing options §  vs. other experience marketing

What to measure?

§  for all, exposure & impact on brand/trust §  Otherwise, depends on goal

§  brand – brand values §  sales – financials, NPS


Great experience marketing over time

Instead of experience marketing, just

create a great experience


One final thought

Experience Marketing around a

coffee machine

Senseo -> great experience marketing


Experience Marketing around a

coffee machine

A total coffee

experience

Nespresso -> a great experience Senseo


Nespresso is so successful at creating the Starbucks café coffee experience, that now Starbucks has launched Verismo, a Nespresso-like machine for at-home use.


Blog www.buildingtrustequity.com TrustEquity

@Learw

C·Note Consultants BV Jacob Obrechtstraat 20 I Amsterdam www.cnote.nl [email protected]

C note Customer driven results

•

Thank you and good luck.

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Experience marketing

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