3. … it is because i have stood on the shoulders of giants…”
joe pine & kim
simon sinek korn, “authenticity”
“start with why” & “infinite
possibilities”
roger martin
(various works) daniel pink
“why right brained
sean hayes thinkers will rule
ax dev group the future”
reid brownscombe,
bmo financial
group
4.
5. w h e r e a r e w e g o i n g t o d a y?
Semantics, taxonomies &
definitions What can we do?
What’s changed & why?
Who’s doing it?
6. where we are going, depends on agreeing where we are at.
11. t h e 3 X ’s
Customer don’t
care about…
product experience (pX)
advocation is about function & utility
is what you do
life size &
share service experience (sX)
service is about access & ease of use
loyalty is about how you do it
product
life experience (lX)
is about emotion & result
is about why you do it
16. lX not the same as sX
service experience is: life experience is:
about access to products (24-7) what products & service facilitate
the ticket to the game the game trophy
easily replicable unique
knowledgeable, friendly staff understanding why customers need products
responsiveness & professionalism a journey
enables a transaction about a result
17. n e e d s v s . b e n e f i t s : a b a n k i n g e xa m p l e .
need a… benefit is…
mortgage. a home.
school loan. to learn.
car loan. transport.
credit card. to buy the iPad 3.
small business loan. to follow a dream.
RRSP to retire.
equities & bonds. to help my kids go to school.
loan. to travel the world.
what we believe are experiences. what are really experiences.
20. w a r r e n ’s d o n e a l r i g h t . s o h a s m a r s h a l l .
“What got you to
where you are, may
not be enough to get
you to where you
want to go.”
42. axioms of authenticity …
If you are authentic, you don't have to say you're authentic.
If you say you're authentic, you better be authentic.
It is easier to be authentic, if you don't say you're authentic.
48. k p i ’s , m e t r i c s & q u e s t i o n s
closed ended questions, get closed ended answers…
would you…
will you…
un-engaging questions, get unengaged responses…
rate us…
on scale of 1-10…
57. “If you want your employees to drive
loyalty, you’ve got to give them the
wheel…”
(Bryan Pearson, CEO LoyaltyONE)
58. command + control to inspire + release
the way it was the way it is
command + control inspire + release
converge + cost cut diverge + revenue generate
exploit + optimize explore + pioneer
benchmark competitors benchmark yourself
grow customer base
61. t h e e x p e r i e n c e p r o c e s s (a s - i s )
Why? How? What? Finance.
Marriage Experience
Our customers have a dream. Our customers figure out how to Our customers source the pieces. And by this point, the
make it real. experience has been designed
and financing of it a
transaction…
Where
Where we are
Where the experience occurs. decision are
engaged.
made.
Loyalty & Emotion. Transaction & function.
64. prefrontal lobe
full- spectrum thinking
anticipatory + pro-active neocortex
communication
creativity
adaptability
limbic system
emotions
long-term memory
reptilian brain
reactive
fight vs. flight
65. “Asking people why they choose you over another may provide
wonderful evidence of how they have rationalized the
decisions, but it does not shed much light on the true
motivation for the decision.
It’s not that people don’t know, it’s that they have trouble
explaining why they do what they do.
Decision- making and the ability to explain those decisions
exist in different parts of the brain.”
~ Simon Sinek, Start With Why.
66. SERVICE DESIGN
EXPERIENCE DESIGN
PRODUCT
LIFE DESIGN DESIGN
68. t h e e x p e r i e n c e p r o c e s s (c o u l d - b e ? )
Why? How? What? Finance.
Marriage Experience
Our customers have a dream. Our customers come to us to figure Collaboratively, we source the pieces. And we then provide the
out how. finances to pay for the pieces.
Channel Interface
And as side, generate business
for commercial clients, which
requires more financing for
Marriage Experience Business Experience Home Experience Retirement Experience School Experience Travel Experience Baby Experience
them.
Segmentation
& Tagging
Commercial
Client Db
69. p e o p l e b u y e x p e r i e n c e s . t h e y b u y w h y. n o t w h a t .
Baby Experience
Marriage Experience
School Experience
Home Experience
Travel Experience
Business Experience
Retirement Experience
70. the banking experience as it could be?
Self- Service Centre
Making Money Make Sense Training Centre Networking Centre
Figuring it all out centre…
Experience Theme of the week Marriage Experience Centre Retirement Experience Centre
71. i t ’s n o t a d i g i t a l o r r e a l e x p e r i e n c e .
73. T i m e - S p a c e - M a t t e r.
“My intention in this book is to give new
meaning to time, space, and matter in shaping
tomorrow’s business and organization. In the
industrial economy managers considered time,
space, and matter as constraints, whereas in
the new economy they will come to think of
them as resources. This will require profound
transformations in the way we think about time,
space, and matter.”
No-Matter: “In the new economy, the value
added will come increasingly from intangibles. .
. whose importance does not lie in their material
existence.”
Source: Stan Davis, Future Perfect (Reading, MA: Addison-Wesley, 1987), p. 5. & p. 92
78. w h e r e d i d w e g o t o d a y?
Semantics, taxonomies &
definitions What can we do?
What’s changed & why?
Who’s doing it?
79. t h e t a ke a w a y s .
1. are different “types” of customers & “experiences”
require there own engagement model
integration with other “types” key
2. loyalty is based on the experience eco-system
traditional contract is broken
product & service differentiation are no longer unique
get back to basics- be authentic (don’t sell it)
3. cX is not a divisional responsibility
breakdown the traditional organizational models
provide boundaries, not controls
And the irony of quoting Isaac Newton, in reference to building on other’s work is not lost.
A disclaimer, like us all, I have built my thoughts on the back of others ideas and theories. I have expanded, and adapted, and added my own contributions, but it is important to acknowledge a few others…Ps. the irony of quoting Isaac Newton, in reference to building on other’s work is not lost.
Kenichi Ohmae (Ken-e-chi Omae)The CorporationThe CustomerThe CompetitorsConsumeris the person(s) with whom the transaction is established. They use the product/ service. They are looking for product experience.Clientis the person(s) with whom the relationship is established. They want you to understand/ predict their needs. They are looking for service experience.Customeris the person(s) with whom the objective is established. They are looking for customer experience.
Theconsumer of a cell phone, might be a child/ teenager.The client of a cell phone, however, may be the parent.The customer of the cell phone, is after what the cell phone enables, connecting with friends + family.
product: does the “wiget” do what it is supposed to do? does the phone work? does the bank card work? does my plane work?service: can I access the product by the channel I want, at the time I want?customer life: does the product doing what it is supposed to do, via the medium I wish to access it, help achieve my life experience goals?if yes, then I will be interested in what other products, via appropriate service channels can further help me achieve my life experiences… and that is foundation for loyalty, which feeds not just share of wallet but the size of my wallet I am willing to share, and as such breeds advocation.
Your product, tangible or not, is NOT unique.What you sell does not differentiate you, in a sustainable way.Your service proposition, is not unique either.How you sell, whether you call it channel or competitive advantage, does not differentiate you either.
Your product, tangible or not, is NOT unique.What you sell does not differentiate you, in a sustainable way.
Your service proposition, is not unique either.How you sell, whether you call it channel or competitive advantage, does not differentiate you either.
Warren Buffet.Marshall Goldsmith.
But this behaviour by vendors is nothing new. So what’s changed?
Customers don’t trust us. And why should they?
The social contract, between customers and vendors, is fundamentally broken.
Banks have repossessed people’s homes… then sold them for less that what the owner could have paid…Energy companies have manipulated markets to raise commodity prices…Oil companies have polluted the environment by taking risks in their operations…Gyms have refused to stop direct payments, even after contracts severed… Telcos have vastly over- charged for roaming fees…And many of those tasked with monitoring the activities of others, have been the ones who facilities destroying trust with customers…
Social media has provided the tool, for those fed-up with the treatment received by vendors, to vent, congregate, and mobilize.But social was the medium. A powerful one at that, that allowed anyone with tenacity and an internet connection, the power to reach a vast audience. Where once we were limited to the physical community around us, SM has open our community to a global audience. One, many times, our vendors aren’t even aware of…The truth is, anyone with internet access and tenacity, can dramatically affect an organizations brand.
In 2007, more than 5,000 students got the bank to reverse its decision to stop free overdrafts for graduates after joining Facebook's Stop the Great HSBC Rip-Off!!! groupCosts metrics are sparse, but 40,000 students, times1,500, times 9.9% = ½ million dollars in potential lost income. Deep assumptions, full 1.5, all in o/d, the figures show that incorrectly administered strategies can quickly be brought down via sm.
ZapposAnecdotal story goes as thus,women orders shoes.women has dog.dog needs to be walked.zappos delivery delayed, cancelledpoor comms with usershe tweatsceo + ups president are having lunchnext day, zappos hand delivers parcel, with box of dog biscuits.MyBarakObama.comChris Hughes, co-founder of fb20072c million accounts created400,000 user generated articles400,000 videos posted to youtube35,000 volunteer groups self formed30$ million raised by 70,000 user generated fundraising pages3 million calls made through voip
French RevolutionEgypt’s recent governmental reforms (Mubarak)Women’s rightsAnti- Vietnam war protestsMartin Luther King’s million man march for equalityGhandi’s work to free India from British ruleRussian revolution of 1917Apartheid in South AfricaCanadian Rebellion of 1837
We are social creatures. As such we seek out those who have similar values, beliefs, wishes, and, frustrations, to validate our beliefs, and create a collective momentum to realize our desires.
This is nothing new. Abraham Maslow in 1943, neatly outlined our social needs in his hierarchy. Right above our survival needs for shelter, food, water is our instinctual need for a sense of belonging and safety.Globalization, genetically modified food enabling larger crop outputs, water + sanitation…. whatever the cause, most/ all of our consumers have ample choice around the basic needs.There in is the opportunity and the challenge. The difference being only perception.Shifting to intangibles, emotional, experiential marketing + branding, etc. takes more than a shift in skills. It’s a fundamental change in operating model, at all levels.
PC:Of 8 million plus hits, only .0093% disliked.P&G (Hardest Job):http://youtu.be/FMunV1Y4X2o<object width="1280" height="720"><param name="movie" value="http://www.youtube.com/v/FMunV1Y4X2o?version=3&amp;hl=en_US&amp;rel=0"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/FMunV1Y4X2o?version=3&amp;hl=en_US&amp;rel=0" type="application/x-shockwave-flash" width="1280" height="720" allowscriptaccess="always" allowfullscreen="true"></embed></object>
But we are social, engaged animals. Nothing will change that. No matter how well we screw things up.
Fundamentally….
Axioms of Authenticity -- If you are authentic, you don't have to say you're authentic. If you say you're authentic, you better be authentic.It is easier to be authentic, if you don't say you're authentic.But beyond this, the organization needs to define what it is, what it wants to be, and the type of customer it needs to be that. And everyone else…. Should be turned away.
In fact. It’s in yours, and their, best interest.If they aren’t the customer that fits your company’s why. You won’t be able to delivery their desired experience.And here’s the important point. Why would you want to?Authenticity is established not by what we say, but what we do. Business is no different. If you say you want to be 'this' to your customers, and they don't want that, then maybe they aren't your target customer segment. You will get more authenticity from that customer, your existing customer and your potential customers when you do turn away business. It demonstrates a commitment to what you want to be to your customers.
But the numbers have been validated.
A modest increase in customer experience can result in a gain over three years of up to $382 million for US companies and up to £263 million for UK firms, depending on the industry.
The challenge? A fish cannot change it’s own water. Worse still, if you try to change it for them, they won’t see the shiny new bowl with fresh water you are trying to get them to, they will only see the that you are taken away the water they know and are comfortable with.So its an evolution, not a revolution. Afterall, we have spent years focused on efficiency and operational re- engineering, and establishing a command + control framework. And that all needs to change? That’s not a paradigm shift. That’s an EVERYTHING change.
If you want to change the output. Change the inputs.Different types of bread aren’t made with the same mix of ingredients. Neither are customer experiences.
Operating models are not aligned to customer experience strategy.Pillars.Silos.Fiefdoms.Centralization.Decentralization.Whatever re- engineering we attempt, is a variation of the existing model that is based on command + control, and process optimization. All of which, remove dis- empower the front-line staff from understanding, responding, and enabling customer understanding and, as such, experience.Now, many will argue you cannot leave the decision making authority in the hands of the customer staff. They may provide a product/ service that is not in line with the financial goals of the company. True. But it’s not about control OR anarchy. It’s about the grey in between. Provide the guidelines of what you want to be to your customers, and then give them trust, tools and guidance to provide solutions within those boundaries, but without rules within those boundries.
1970 foundedRevenues of $700m in 201023 business units400 FTE25-30% of all tomatoes processed within USPast 20 years as seen annual double-digit revenue, volume and profit growth3 processing plantsTrucking company that moves 2 million tons of tomatoes annuallyNo bossesEmployees negotiate their responsibilities with peers (documented in Colleague Letter of Understanding) aligned to the company’s visionEmployees purchase their own resources (people, tools)No titlesNo promotionsCompensation review peer basedHOWEveryone rights a mission statement to be reviewed by peersIdentify and roll back processes that “hinder” achievement of their missionEquip each team with a P&LRe- allocate snr management meetings to juniors- get them to run, track and manage the meetings with snr. CoachingShare info in formats easily referenced again, eg. intranets, social media forumsRecognize those that proactively provide feedback and deviate from the pack/ consensusLet peers manage conflcit resolution via established process and review teamsFreedom WITH responsibility is difference between command and control and inspire and release.I quote a great Canadian: “Right now, we've got freedom and responsibility. It's a very groovy time.” -Austin Powers
Provide the boundaries, not the rules, of what an experience can be, that aligns to what you want to be to your customers. Those boundaries allow your staff to make their own decisions as to what is a desired customer (and what is not), and what they can do to help them.
1/4ly check in callsIntegrated systems (online, offline, mobile)Data analytics used to predict what I want (not what can be sold to me)Multi- channel support & communicationsEmpowered loyalty departments (no escalation needed)
No one knew they wanted a car, until Ford made it available. No one wanted a device between a phone and notebook, until Apple created one (sorry about the Apple reference). No one wanted confectionary from a gas station until ESSO created "break stations".Focus groups will only tell us what they know to be true. Not what could be true.
Henry Ford once said: “If I had asked people what they wanted, they would have said faster horses.”Steve Jobs, in 2001, while launching the i-pod, said it offered "1,000 songs in your pocket,“, while Apple’s competitors told their customers they wanted more ram, hd space and the latest software.Giorgio Armanionce said, “In the end, the customer doesn’t know, or care, if you are small or large as an organisation. She or he only focuses on the garment hanging on the rail in the store.”Howard Schultz, Chairman and CEO Starbucks: “Customers don’t always know what they want. The decline in coffee-drinking was due to the fact that most of the coffee people bought was stale and they weren’t enjoying it. Once they tasted ours and experienced what we call “the third place”.. a gathering place between home and work where they were treated with respect.. they found we were filling a need they didn’t know they had.”
A note of caution. In our organizational pursuit of reliability, we seek out absolutes. We seek out definitive answers. We pendulum, in this case between, the customer is always right, so give they whatever they ask for (so we don’t need to tell them), or we think the customer has no idea what they want, so lets shove it down their throat. It’s not about one or the other, it’s the hybrid in between. It’s about working with them to understand why they make the decisions they do, and from there design what they need to satisfy that why, and how is the best way to do so.
It’s simple.It’s clean.It’s about what YOU want. Not what google can sell you.It starts with the consumers need and wants. Then it moves them to how to facilitate the need.
augmented reality– gps, augments your physical experience (driving) with a digital overlayaugmented virtualiy– mskinect, augments your digital experience (video game) with physical engagementalternate reality– go car, allows you run your tour experience to your schedule and with the digital guide to see what you wantwarped reality– black creek village, provides an environment to move fwd/ back in time to experience history in an interactive wayphysical reality– pizza hut, allows you to build an experience in a digital format, that than can be produced in realitymirrored virtuality– google flu trends, tracks experiences in the real world, translating them into bits/ bytes for analysis + insights not possible in real world
Owned by Matel. Founded by a teacher to teach girls about American history.Average time spent in their stores is 4 hours.More time spent is more money spent.Average spend of over $150, without buying a single product.DiningTheatrePartiesCooking classesExcursions to museums and parksHair salon + spasShoppingDoctor appointmentsPhoto shoot
Theatre is key to this.Experience is not possible without emotion. Joy. Anger. Excitement. Fear. Whatever the emotion, without one, you cannot have an experience, and ergo no loyalty.PC<object width="960" height="720"><param name="movie" value="http://www.youtube.com/v/h7tORf-DEyM?version=3&amp;hl=en_US&amp;rel=0"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/h7tORf-DEyM?version=3&amp;hl=en_US&amp;rel=0" type="application/x-shockwave-flash" width="960" height="720" allowscriptaccess="always" allowfullscreen="true"></embed></object>
Theatre is key to this.Experience is not possible without emotion. Joy. Anger. Excitement. Fear. Whatever the emotion, without one, you cannot have an experience, and ergo no loyalty.PC<object width="960" height="720"><param name="movie" value="http://www.youtube.com/v/h7tORf-DEyM?version=3&amp;hl=en_US&amp;rel=0"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/h7tORf-DEyM?version=3&amp;hl=en_US&amp;rel=0" type="application/x-shockwave-flash" width="960" height="720" allowscriptaccess="always" allowfullscreen="true"></embed></object>
Apple stores were considered completely inappropriate when launched 11 years ago. They are a manufacturer + designer. What do they know about retail space? No 1. retail store in the world, with a avg revenue of 4k/ per square foot ($2.7k is Tiffany’s, avg retailer is $150/ sq foot). It’s more than their retail space. It’s their experience eco-system.Everything about their products, services, channels, screams cool, elite, special, the best. The scream, price is irrelevant.Interesting to see response of consumer on new iPhone 5 configuration, and recent contract expiry (not to be renewed) for youtube, google maps.
Every ChristmasP+G has the Charmin toilet experience in Time Square.They offer the various charmint.p. to “try”, the bear to dance with, the world’s biggest toilet… etc.In their first year, 220,000 people were exposed to the Charmin brand. The end result? 15% increase in sales.Gone so far as to get 4.5/ 5 rating on yelp.com!