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Woo, Wow & Win Thomas A. Stewart and Patricia O’Connell Ignite! American Marketing Association, Cincinnati, September 22, 2017 Service Design, Strategy, & the Art of Customer Delight
Woo, Wow & Win
Thomas A. Stewart and Patricia O’Connell Ignite! American Marketing Association, Cincinnati, September 22, 2017
Service Design, Strategy, & the Art of Customer Delight
AMA’s seven big problems in marketing
ü Effectively targeting high-value sources of growth
ü The role of marketing in the firm and the c-suite
ü The digital transformation of the modern corporation
ü Generating and using insight to shape marketing practice
ü Dealing with an omni-channel world
ü Competing in dynamic, global markets
ü Balancing incremental and radical innovation
In the beginning…
The U.I.
What is service design? “Clearly we have had to streamline store design to gain efficiencies of scale and to make sure we had the ROI on sales to investment ratios that would satisfy the financial side of our business. However, one of the results has been stores that no longer have the soul of the past and reflect a chain of stores vs. the warm feeling of a neighborhood store.”
--Howard Schultz memo February 14, 2007
“The America that we’re talking about here are the everyday folks who get things done. They’re unpretentious, comfortable just being themselves, and like to order their coffee in small, medium or large, thank you very much. They’re busy people who use Dunkin’ to get fueled up for work or play. They don’t have time to linger, because they’ve got things to do. But they do like to have fun.”
--Hill Holiday blog 2006
Source: Walker Information, Customers 2020 survey of B2B customer experience leaders
Design thinking is the next competitive advantage -‐‑-‐‑Roger L. Martin
Maximizing satisfaction with customer journeys can increase customer satisfaction by 20%, increase revenue by 15%, and cut costs by 20%
--McKinsey & Company
Design thinking comes of age --Harvard Business Review
By 2017, 89% of marketers expect customer experience to be their primary differentiator. --Gartner
60% of organizations say customer service will be top source of differentiation within the next three years --The Service Council
Service design and customer experience
Ahhs and Ows: Understanding make-‐‑or-‐‑break moments
TOUCHPOINTS: A HIERARCHY
CRITICAL CUSTOMER INTERACTIONS
Make-or-break moments: Why customers choose you
MARKET SEGMENT ESSENTIALS Required to compete in the markets or for the customers
you want
TABLE STAKES Basics every company must
provide
The “ahh” moment-‐‑-‐‑
SeIle in
Restaurant, bar
Check out
Check in
Meeting
Reservation
How you WOO What experience do you want
your customers to have?
Services present unique customer-‐‑experience challenges
• The customer shares in the act of production
• Most services involve multiple interactions—touchpoints, channels, and conversations
• It is hard for customers to know in advance what they are getting
• Customers do not own a service; they experience it
The promise you make: service design archetypes
THE AGGREGATOR We’ve got everything in one place. One-stop shopping. “We’re the Amazon of ____”
THE UTILITY Often regulated and bureau-cratic, we provide essential services—and do it well. “We’re the Ma Bell of ____”
THE CLASSIC We’re the best. Not the hippest, probably not the cutting edge—just the best. “We’re the Mercedes of ____”
THE BARGAIN If price is your problem, we’re your solution. Don’t come here for anything fancy. “We’re the Walmart of ____”
THE SOLUTION Different from the aggregator, we put things together or choreograph others. “We’re the IBM of _____”
THE SAFE CHOICE We’re solid. You might not be thrilled, but you won’t be sorry. Bring your in-laws. “We’re the CBS of _____”
THE SPECIALIST We’re the laser to others’ shotguns. No one is better at what we do. “We’re the Goldman of ___”
THE TRENDSETTER We’re sleek, quick, hip. We give you a dazzling experience. “We’re the Apple of ____”
THE OLD SHOE Decent place, decent price, you know us well, and we know you. “We’re the Cheers of ____”
Wizards of “Ahhs”
THE SAFE CHOICE Bring your in-laws.
THE AGGREGATOR “We’re the Amazon of ____”
THE UTILITY “We’re the Ma Bell of ____”
THE CLASSIC “We’re the Mercedes of ____”
THE BARGAIN “We’re the Walmart of ____”
THE SOLUTION “We’re the IBM of _____”
THE SPECIALIST “We’re the Goldman of ___”
THE TRENDSETTER “We’re the Apple of ____”
THE OLD SHOE “We’re the Cheers of ____”
The mathematics of customer delight
DELIGHT TECHNICAL
EXCELLENCE (BACK STAGE)
CUSTOMER EXPERIENCE (ON STAGE) = X
Working the delight equation
Expectation Engineering
Execution
Elegance
Equivalence
Emotion
Engagement
Experimentation
Empathy
Economics
Your service design report card
Customer Experience
• Empathy (0-4) ____
• Expectation ____
• Emotion ____
• Elegance ____
• Engagement ____
Total ____
Experience GPA () ____
Technical Excellence
• Execution (0-4) ____
• Engineering ____
• Economics ____
• Experimentation ____
• Equivalence ____
Total ____
Excellence GPA () ____
Overall GPA _____
Experience vs. excellence: an example
A white-shoe law firm interviewed
• 76 of its top 200 clients • 227 prospects • 6 recruiters • 101 partners • 141 alumni
Asking, “What are the attributes of a law firm brand?”
“What are the aIributes of a law firm brand?”
…39 in all
Categorizing the brand aIributes
Helps us grow our business Strong lawyers in the areas important to me Understands my industry Understands my business Gives me peace of mind Cost consciousness Makes me feel I made the right choice Makes me look good Cares about my business Socially responsible Communication Approachable Makes me feel safe Delivers excellent value Easy to work with Builds long-term relationships Establishes a strong rapport
Personality Passionate Agile Responsive Proactive
A go-to firm A thought leader Innovative A market leader
Leadership Engagement
Confident Legally excellent Deep bench strength Stays abreast of changes in the law Comprehensive range of services Established reputation Works collaboratively Global Risk management Works seamlessly across offices and practices Consistent results Strong results Business acumen
Skills/Results
Pragmatism Pragmatic
What clients and prospects value most
Key drivers
Exhibits appropriate cost consciousness Is dedicated to corporate social responsibility (including pro bono work, diversity, environment, etc.) Is passionate Is pragmatic Has an in-depth understanding of my specific industry Is proactive Cares about my business Is approachable Has the strongest lawyers in the areas that matter to me Is innovative Delivers excellent value Helps us grow our business Has an in-depth understanding of my business Makes my organization look good Is a thought leader Gives me peace of mind Is easy to work with Known as a go-to firm for the most important cases and transactions Makes clients feel like they are the most important client Communicates effectively
Legend Leadership Personality Engagement Skills/Results Pragmatic
How you WOW The five principles of service
design and delivery
The customer is always right-‐‑-‐‑provided you have the right customer
“The industry too often gets in the way of investor success”
“Convenient face-to-face financial advice to conservative individual investors who delegate their financial decisions”
The First Principle
Don’t surprise and delight your customers—just delight them
The Second Principle
Delight vs. surprise = Expectation vs. execution
The Second Principle
“Expectations are resentments under construction”
—Anne Lamont
IN THE AD ON THE PLATE
Great service must not require heroic efforts by you or your customer
• The Downton Abbey
syndrome
• Lean service design
• Being easy to do
business with
The Third Principle
“Masters of the diving catch” The Third Principle
72% of B2B marketing executives say brand experience is often inconsistent and fragmented across channels and platforms
--DeSantis Breindel
Deliver a coherent experience across all channels and touchpoints
• Why it matters
o Your customers engage with you in many places
o Platform-crossing customers are especially valuable
o You get dinged when you fail
o Consistency across time as well as across space
The Fourth Principle
Deliver a coherent experience across all channels and touchpoints
The Fourth Principle
• What it takes
o Unified view of the customer
o Single face to the customer
o “Feedforward” and feedback loops
o The ability to partner with other providers
80% of companies with strong omnichannel capabilities retain customers, vs.
33% of companies with weak omnichannel capabilities
--Aberdeen Group
Who else affects your brand and your customers’ experience?
The Fourth Principle
LOGISTICS SERVICES PROVIDER
Clients’ customers
Trucking cos.,
drivers, unions
Foreign gov’t (regs,
tax, customs)
Banks (trade
finance, payments)
Insurance
Federal, provincial, local gov’t (regs, tax, customs)
Port and highway
authorities
Container and other
leasing companies
You’re never done: Innovation in services is different
Experience is the locus of innovation
Intuit’s “Design for Delight” framework
The customer is in the mix, part of the process
Innovation can and should happen at touchpoints all along the value chain
Coherence must be maintained • Along the journey • Across channels
Cadence is critical
The Fifth Principle
Designing to
WIN
The service designer’s fundamental questions
o What experience do we want the
customer to have?
o What does the customer see at each
stage of his or her journey?
o What must happen backstage to make
the magic happen every time?
A new, design-‐‑driven marketing agenda
1. Bring the brand from the top of the funnel
deep into the organization
2. Guard the archetype
3. Provide “tangible evidence”
4. Define and own critical customer interactions
5. Coordinate touchpoints
6. Be the trustee of your customer “assets”
Services are experiences. Experiences are journeys. Journeys are designed.
www.woowowwin.com [email protected]
