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Understanding Customer Experience

Harvard Business Review 2007
by

Jasmine Chew

on 23 April 2015

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Transcript of Understanding Customer Experience

How Monitored?
Understanding
Customer
Experience

CEM Vs. CRM
Understanding
Customer Experience

Ms. Juliana French
1. Chew Yee Fung 14003206
2. Lau Yee Shian 13086913

Tutorial 4
Please fill up the form given. Be honest. Thank you :)
Customer Experience
Internal and
subjective

response
customers have to any contact with a company.
Direct Contact
occurs during purchase, use and service.
initiated by customers
Indirect Contact
unplanned encounters
with company products, services or brands.
Examples of
Indirect Contact
Word-of-Mouth
Recommendations
Criticisms
Advertising
News Reports
Reviews
http://www.laptopmag.com/t/laptops

http://www.tripadvisor.com.my/SmartDeals-g293951-Malaysia-Hotel-Deals.html

http://www.agfg.com.au/guide/qld/brisbane/north-side/mitchelton/listings/restaurants-dining/


Shaping
Customer
Experience
embedding fundamental
value proposition
of offerings
How does company
differentiate
&
position
itself in the marketplace?
WHY?
HOW?
Value Proposition
Set of
benefits / values
delivered to satisfy target customers' needs
Superior to & more profitable than competition
Functional Benefit
Provide
functional utility
Often fail to differentiate
Self-expressive Benefit
Communicate customers' self-image
Connect
brand &

personality
When I buy or use this brand, I
am
...
Emotional Benefit
Positive feelings
towards purchase & use
Add richness & depth to experience
When I buy or use this brand, I
feel
...
Reduce operational
cost
Greater brand
Loyalty
Better brand
image
in market
What are
the examples given from
the journal?
Social Benefit
Friends, colleagues, family and groups with common interests
Generate immediate and long-term rewards
When I buy or use this brand, the type of
people
I am
relate
to are...
Why was sales to patient undergoing treatment
slower than expected?
Transformed Purchasing Experience over the Internet
Risky Experience
Reliable
Experience
Why was customers
disappointed
when Dell sold plasma HDTV sets online?
In-person sales force
effectively created
positive customer expectations.
Solve customers' problems / improve their situation
prospecting
selling
communicating
servicing
information gathering
relationship building
Salesperson
Represents a company to customers by:
Customer's Expectation are Shaped by:
past experience with company
market conditions
competition
customer's personal situation
company's own brand
Experiences
Data Collection
Touch Point=Point of Contact
Encounter with customers and businesses
Exchange information (representation)
Provide service or handle transactions (direct contact)
Meaningful-company sees opportunity to improve customer experience
"Customers
instinctively

compare
each new experience."
"Companies need to map corridor of touch points and reduce complexity."
Customer Corridor
" gap between
customer expectations and experience
to customer delight."
Why is service interaction more important when core offering is a service?
Characteristics of Service:
Intangibility
Variability
Inseparability
Perishability
Why CEO
Neglect
Customer Experience

1
"Good designs of touch point
make customer experience to be
pleasant and efficient."
CEM & CRM data are different
Customer information from CRM is definitely insufficient
Customer experience needs further study
Original Marketing Strategy emphasized
Advantage of Drugs

New Marketing Strategy emphasized
Lower Incidence of Side Effects
2
Lack of customers'
needs awareness, SO
CRM software is costly, BUT
Respond based on customers' reactions
Prudentially analyze & effective use the data
Make right & adequate marketing decision

3
Christa Carone, CMO of Xerox
Worry that the data may tell
different story, WHAT IF
"It's impossible to measure
human emotions, personal connection,
and the occasional 'ahhhhh' moment;
but those things deliver big-time.

Thus, we have to trust our intuition."
Why organizations make a single
IT-supported customer-facing group to collect and assess customer experience data?
Protects customers from
redundant and annoying solicitations.
Direct comparison
of customers:
location
product choice
Offerings do not meet needs?
Different preferences?
Customers' experiences and company's expectations are different?
Mistake
to assign customer-facing groups
overall accountability
for design, delivery and creation of superior customer experience.
Customer experience data is
IMPORTANT.
Treo
Heavy users complained losing power fast.
Customer service could only offer power-saving tips.
However, product development solved battery problem.
Cross-functional Team
A well-designed survey does not draw out the desired information.
It must avoid becoming an unfortunate aspect of customer experience.

Company Background:
Mini-audit of existing customer-experience programs
1. Vertical-market groups:
Track leads
Analyze buying patterns
2. CEM data from mailed annual customer satisfaction survey (no change for 3 years).
What now?
"fast-prototype" relationship survey.
identify
touch points
that disappointed customers.
Serve every vertical market's financial objectives, while being
compatible
with
company's branding
.
3 Patterns of Customer Experience Information


Relationship with customers deepen, companies tend to collect data with greater frequency.
1. B2B Global Financial Service Provider.
2. Problems faced:
Struggle to create CEM
Top customer shift business to rival
Was It Effective?
No, the solution solves problems in the
short run
.

It does not help increase business sustainability as they
did not address
to underlying problem;
managing customer experience
.
What Now?
Hire executive leader
Budget
Dedicated resources
Sales account executives prep customers receiving survey.
1. Predistribution draft to customers to refine:
issue selection
tone
2. Allowed to compare responses by:
location
service platform
vertical market
What did they uncover from the pilot survey?
Shifted away from individual transaction.
Move towards
relationship development
.
Intro non sales employee
to customers.
"Salespeople began to view jobs more of an organizational process than functional responsibility."
What happens when Customer's feedback are given to Executives?
Defensive
response from executives
Explain
meaning of data
rather than understand
concerns behind them
Demand
for
more data
point
Launch
response before completely understanding
what data mean
Types of Customers:
Model Customers: good summary scores; good revenue
Growth Customers: good summary scores; higher potential revenue (candidates for
cross-selling
and
upselling
).
At-risk Customers: low scores; good revenue (
Intervention
).
Dangling Customers: low scores; low revenue (Rescue/ Abandon)
"Growth Segment had 3 times many customers as any of the others. However, not all purchased as much as other segments."
"Largest customers came from At-Risk Segment."
What are the results from sending transaction surveys of customer experiences and setting experience goals for each team?
ill-informed opinion about companies have been
replaced
.
reviewed customer experience issues and take action before reviewing financial.
relationship issues kicked off quarterly discussions.
defections reduced within each vertical-market group.
Setback
disclosure of high-volume transaction info upset managers responsible
lead to failure of resolving issues
Dashboard to keep track of installation experience issues:
Why was it Selected?
Channeled problems to specialists/ general managers.
Increased analyst staffing
Simplified reporting
Identify new opportunities.
Identify neglected areas.
Full transcript