A brief overview of Customer Experience.

1. Customer
Experience
Overview
Nancy Yaklich
08.28.2015

2. The Origin of
Customer
Experience
Pine and Gilmore are credited with describing the
experience economy, the next economy following the
agrarian economy, the industrial economy, and the most
recent service economy.
They argued businesses must orchestrate memorable
events for their customers, and that memory itself
becomes the product — the "experience".
More advanced experience businesses can begin charging
for the value of the "transformation" that an experience
offers. This is a natural progression in the value added by
the business over and above its inputs.

3. Progression
of Value:
Coffee Example

4. The Age of the
Customer

5. Age of the
Customer
Ushers In a Shift
In Power

6. Customer
Experience
Definition
Forrester and Temkin both define
Customer Experience as
How Customers Perceive Their
Interactions with Your Company.

7. The Path to
Differentiation
Success in the age of the customer requires the ability to
design, implement and manage customer experience in a
disciplined way.
Companies can build this capability by following a four-
phased path: Repair, Elevate, Optimize and Differentiate.
Each phase requires employees to adopt new, increasingly
sophisticated customer experience management practices
that fix what’s broken and prevent future problems.
Repair
Getting good at finding
and fixing experience
issues.
Elevate
Making delivering good
experiences the norm.
Optimize
Adopting advanced
practices that set a
company apart in their
industry.
Differentiate
Best-in-class and known
for experiences.

8. Six Disciplines
of Customer
Experience
Consistent, shared understanding
of customers, their perception of
interactions with the brand – real,
actionable insights
CUSTOMER
UNDERSTANDING
A experience strategy that aligns
with the business strategy and
brand purpose and attributes.
Becomes the decision—making
guide, “the North Star”, across
the organization.
STRATEGY
A system of shared values and
behaviors. Focuses employees on
delivering a great experience.
Falls into three categories:
(1) hiring; (2) socialization;
and (3) rewards.
CULTURE
Manage experience in a proactive
and systematic way. Assigns
responsibilities for changing
business processes.
GOVERANCE
Envision and implement
interactions to meet/exceed needs
– includes people, products,
interfaces, services and spaces
across multiple touchpoints.
DESIGN
Quantify experience quality
consistently across the enterprise,
give actionable insights to
employees and partners.
MEASUREMENT

9. Defining and
Delivering the
Right Customer
Experience
Raising performance requires a disciplined approach.
Customer experience performance is defined as how well an
organization routinely performs practices across all six
disciplines.
CUSTOMER
UNDERSTANDING
CULTURE
Consistently Deliver and Improve the Right Customer Experience
Define the Right Customer Experience
STRATEGY DESIGN
MEASUREMENT GOVERNANCE

10. The Business
Case for
Customer
Experience
Forrester found that better customer experience drives
millions in revenues benefit across industries

11. Customer
Experience
Index Score (Cxi)
Impacts
Company Stock
Performance
“A great customer experience can deliver tremendous
strategic and economic value to a business, in a way that’s
difficult for competitors to replicate.”*
Higher revenues – due to better retention, less price
sensitivity, greater wallet share and positive word-of-mouth.
Lower expenses – due to reduced acquisition costs, fewer
complaints, and the less intense service requirements of
happy, loyal customers
*SOURCE: The 2015 Customer Experience ROI Study, Watermark Consulting.
http://www.watermarkconsult.net/docs/Watermark-Customer-Experience-ROI-Study.pdf

12. Customer
Experience
Overview
Nancy Yaklich
08.28.2015