chapter

Customer Experience
McGraw-Hill/Irwin

2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Customer Experience Todays Objectives

Objectives will be to: Introduce and define the concept of customer experience Explore the seven elements of customer experience Examine the three stages of the customer-experience hierarchy Discuss six broad goals in creating desirable customer experience

Explore how the stages of customer experience apply to eBay

Chapter 4: Customer Experience

The Elements of Customer Experience The Stages of Customer-Experience Hierarchy Broad Goals in Designing Desirable Customer Experience

EBays Customer Experience

Conclusion

Chapter 4: Customer Experience

The Elements of Customer Experience The Stages of Customer Experience Hierarchy Broad Goals in Designing Desirable Customer Experience

EBays Customer Experience

Conclusion

Seven Key Elements of Customer Experience

1. 2. 3. 4. 5. 6.

The Objective Element

A certain level of functionality must exist in order for a site to work; basic standards and expectations must be met Relates to the individuals unique perception of the encounter with the firm More than just the economic transaction - the entire customer encounter experience includes both process and output measures of the shopping experience Includes a customers response to multiple variables, from the tactical layout of the store/site to high-level interpretations of the meaning of the brand To the extent that it is relevant, assessment of the customer experience needs to incorporate all five senses Cognitive responses are thoughtful and evaluative in nature; emotional responses tend to capture moods, attitudes and feelings of the customer Previous, separate experiences can affect a consumers reaction to various stimuli during a shopping experience

The Perception Element

The Encounter Element

The Reactions-to-Stimuli Element

The Sensory Element

The Cognitive and Emotional Element

7.

The Relative Element

Customer Experience vs. Building Brand

Point-Counterpoint
Brand Awareness Is the Key to Success
Building

Customer Experience Is the Key to Success

Focusing

brand awareness leads to traffic Investors need to see site traffic and the likelihood of future profitability
Offering

on customer experience is the single most profitable thing a business can do

a great customer experience when nobody knows about the site is a waste of resources as long as a baseline functional standard is being met

Customers

that have a positive experience with the site are more likely to keep coming back and to tell their peers about it Positive customer experience leads to purchases at commerce sites, exploration at content sites and participation at community sites

Chapter 4: Customer Experience

The Elements of Customer Experience The Stages of Customer Experience Hierarchy Broad Goals in Designing Desirable Customer Experience

EBays Customer Experience

Conclusion

Exhibit 4.1: Stages of Customer Experience

If a Firm Gets This Right Stage One: Functionality Design and information architecture Deep understanding of customer behavior Platform independence Efficient transactions Warehousing and mining Tailoring of pages and offerings Overlay human interaction Integrated data Consistent performance over time Constant innovation and upgrading (incremental or significant) Supports evangelists Acknowledgment of evangelists

This Is What the Customer Experiences Site is easy to use Quick downloads Intuitive navigation Site reliability

Stage Two: Intimacy

Stage Three: Evangelism

Personalization Increasing trust Repeated experiences of exceptional value A sense of being in the know Consistent experiences Significant benefits relative to other offerings Desire to make messages to the market Community benefits

Exhibit 4.2: Stages of Customer Experience Over Time

Exhibit 4.3: Seven Deadly Sins of Customer Experience

Chapter 4: Customer Experience

The Elements of Customer Experience The Stages of Customer Experience Hierarchy Broad Goals in Designing Desirable Customer Experience

EBays Customer Experience

Conclusion

Broad Goals for Creating a Desirable Customer Experience

1. Create a Rich Description of the Target Customer Develop Use-Case Scenarios for Each Target Segment Effectively Integrate the Online and Offline Experience Articulate Clear Stages of Desired Experience

2.

3. 4.

5.

Effectively Assess Relative Levels of Hierarchy Highly Leverage the Evangelists

6.

Exhibit 4.5: Stages of Customer Experience for REI.com

Generic Desired Customer Experience Functionality Site is usable Easy navigation Quick download Speedy site Reliable

What REI.com Delivers Content organized around user needs Easy-to-find gear and activity information Multiple views of products and services Website that rates high on efficiency and fulfillment No crashes and limited downtime Authoritative content and information Kiosks in store link to online channel Easy access to customer service, including live online help E-mail newsletter Member discounts and rebates Product returns to store or by mail Adventure travel service Membership advantages E-mail option for sharing information Community message boards In-store and local events

Intimacy

High trust Consistent experience Quick, effective communication High personalization Exceptional value Consistent with brand message

Evangelism

Takes word to the market Defends the experience

Chapter 4: Customer Experience

The Elements of Customer Experience The Stages of Customer Experience Hierarchy Broad Goals in Designing Desirable Customer Experience

EBays Customer Experience

Conclusion

Exhibit 4.6: Steps in Creating Good Customer Experience

Step
Create Rich Description of Target Customers Develop Use-Case Scenarios for Each Target Segment Integrate Online and Offline Experience Articulate Stages of Desired Experience Assess Levels of Hierarchy Leverage the Evangelists Monitor and Adjust

Benefit to Customer
Company better able to imagine customer motivations

Benefit to Company
Brings market research to life Allows shared understanding of customer types Site designers put themselves in customers shoes, which helps create intuitive navigation and ensures usability Enhanced overall sales, lessening of perceived channel cannibalization Company able to map desired outcomes to product and site deliverables Company able to consider strategies for moving customers along the experience hierarchy Company gains insight into product uses and product development; benefits from viral marketing Online channels full potential is leveraged

Company better able to anticipate and meet customer needs and expectations Customer experiences consistency across brand and channels Customer experiences increased attachment to company, greater loyalty and potential for evangelism Customers perceive that they are of value to the company

Customer participation in brand and marketing is rewarded by feeling of belonging and community Major and incremental changes to site diminish barriers to good experience

Exhibit 4.7: Stages of Customer Experience for EBay

Stages Functionality Generic Desired Customer Experience for Auctions Direct message Clean layout Quick browsing, searching, and bidding Straightforward selling Good market segmentation (by category, region, special interests Reliable

What eBay Delivers Easy-to-locate items Easy-to-upload information about selling Fast auction interactions Easy-to-understand rules and auction interface No crashes and limited downtime Very efficient access User constantly knows status of auction Site is consistent across all areas Quick, effective personalized e-mail responses Users make "My eBay" their main interface with the site Enabling transactions is regarded by eBay community as extremely valuable Businesses use eBay as a distribution channel Active users in personal and companys feedback forums Feedback Forum becomes emotion driven: I wonder what people are saying of me

Intimacy

Effective communication Consistent experience Trustworthy customer service Only the necessary level of personalization Exceptional value Consumption for leisure Channel for selling, especially B2C Active community members Assistance in brand building

Evangelism

Taking word to the market Defends the experience Look down on competitors

Describes eBay as the ultimate experience in terms of great deals and trustworthiness No need to visit other auction websites for better deals or more variety

Exhibit 4.8: EBays Functionality

The Basics Usability and ease of navigation Speed

EBays Score Intuitive interface guides both buying and selling process Logical organizational structure reinforces where you are in the site at all times Site is light on graphics, making performance quick on dial-up connections Item searches are extremely fast Site can handle 800,000 transactions per minute Outages, a problem in eBays earlier days, have been reduced to a minimum EBay Anywhere enables access from any wireless device Security keys for payments separate from eBay passwords, adding extra level of protection Encryption used on all transactions to ensure safe exchanges

Reliability

Media accessibility Security

Chapter 4: Customer Experience

The Elements of Customer Experience The Stages of Customer Experience Hierarchy Broad Goals in Designing Desirable Customer Experience

EBays Customer Experience

Conclusion

Customer Experience Conclusion

Customer experience refers to a customers perception and interpretation of all the stimuli encountered while interacting with a firm There are three stages to the customer experience, which are outlined by the customer-experience hierarchy:

Stage One: Experiencing Functionality The Site Works Well Stage Two: Experiencing Intimacy They Understand Me Stage Three: Experiencing Evangelism I Love to Share the Story

In the process of designing a desirable customer experience, firms should set six broad goals: 1) create a rich description of the target customer, 2) develop use-case scenarios for each target segment, 3) effectively integrate the online and offline experience, 4) articulate clear stages of desired experience, 5) effectively assess relative levels of hierarchy, and 6) highly leverage the evangelists