Product Chemistry: Connecting with Customers’ Emotions Pat Dawson CongaCX Consulting 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 CX LANDSCAPE 19 What is Customer Experience? • Sum of all interactions between a customer and a company 20 Customer journey extends beyond control of an organization Image source: customerthink.com 21 How do we evaluate our customer experiences? EFFORT How easy was it to succeed? SUCCESS EMOTION Did I achieve what I wanted to? How did my experience cause me to feel? 22 Emotions are the missing ingredient in CX design • Neuroscience has demonstrated the impact of emotion on human behavior • Use of functional MRI (‘heat maps’) in brain studies quantify the impact of emotion (vs. rational thought) Key Insight “Emotion is the weakest component of experience. Across all 20 industries measured, the emotion scores fall well below those of success and effort.” Bruce Temkin, Founder of CXPA, commenting on 2015 Temkin Experience Ratings 23 In nearly all industries, emotion (green) statistically exceeds cognition (yellow) in impacting behavior Product Category Alcohol Beverage Apparel Autos Banks Computers Fast Food Food Oil Companies Financial Institutions Pharmaceutical Restaurant Retail Stores Telephone Companies Conative Attitude (Acting on thoughts & feelings) Brand Interest Purchase Intent Purchase Intent Brand Interest Purchase Intent Purchase Intent Brand Interest Purchase Intent Purchase Intent Purchase Intent Purchase Intent Brand Interest Purchase Intent Brand Interest Purchase Intent Purchase Intent Brand Interest Purchase Intent Purchase Intent Affective (Emotions) Cognitive (Intelligence) Visual Measure Verbal Measure R2 R2 30.10* 12.60 14.40 20.30 16.40 19.70 12.60 3.30 10.90 17.30 8.60 17.00 11.20 18.90 15.40 19.30 20.40 18.40 16.20 6.60 7.20 4.70 6.80 5.20 3.30 5.30 6.10 2.80 6.50 2.30 4.90 9.20 5.80 7.90 7.20 13.00 8.60 2.60 Source: University of Florida 2011 24 Why Customer Experience Matters • “Experience is the new Marketing” • Steve Cannon, President & CEO of Mercedes-Benz USA • Shift in power has occurred – Companies still own brands…but customers now define brands • ‘Word of mouth’ - the most powerful advertising tool in history – has been scaled through social media – With empowerment comes expectations • Brand promise is replaced by experience reality • Experience leaders set a bar even for companies in other sectors 25 Financial impact prioritizing CX action ➢ 93%: top 3 priority ➢ 97%: critical to success ➢ Cost of failure is large: 20% of annual revenue ➢ Rising customer expectations enabled by social media Global Insights on Succeeding in the Customer Experience Era, 2013 26 Financial payout ‘CX Leaders’ are achieving 27 DESIGNING THE CX YOUR CUSTOMERS DESIRE 28 Begin with Journey Mapping… 29 Move from Your Journey Map to Your CX Destination • • Intersection where the experience desired by customers – and the experience offered by your company – meet ACUMEN is both descriptive and prescriptive – Confirms existing journey – Prioritizes importance of each stage – Rates how well you’re performing at each stage • Fuels ‘speed to market’ improvements – Identifies where your company should focus its CX efforts – Aligns allocation of human and capital resources where the potential ROE (Return on Effort) will be greatest 30 How ACUMEN Works • • Explore each stage of customer journey with target audience Elicit both rational and emotional feedback – How well did the actual experience aligned with the desired experience? – Told through words and images selected by customers • Evaluate each journey stage based on level of importance and current performance – Apply principle of Net Promotion to score relative importance of each stage – Prescribe action required for each stage 31 ACUMEN Prescriptions Higher Substantial Impact Moderate Impact Cease and Desist Reward and Replicate Immediate corrective action with long-term sustainable plan Leverage essence for consistent, repeatable performance Look and Learn Track and Train Monitor for potential improvement Proactive pulse-taking and empowerment programs Minimal Impact Lower Immediacy and intensity Annoyance Avoidance Approve and Ignore Monitoring for themes and improvement opportunities Cursory monitoring for consistent performance Consistently Negative Generally Negative Generally Positive Consistently Positive 32 ACUMEN CASE STUDY World Education Services 33 Insight, Design, Measurement • 23 customers; 3 customer journeys; 17 countries; 3-day online dialog • Words and images from customers provided unprecedented insight re customer emotions • Customer scored each stage and identified CX ‘hot spots’ for triage • 3-pronged CX strategy now being executed by cross-functional CX Action Team • CX Balanced Scorecard to focus leadership on key customer and operational metrics 34 How I felt during the experience… “While I was waiting for the answer, I was extremely nervous because I was giving a significant amount of money to WES with the expectation that I would receive a result I could trust.” 35 How I felt during the experience… “Most people asking for these services are going through a big transition in their lives, whether it be for employment, education, or a big move. There's a lot of uncertainty and hope associated with the journey. WES represents a faceless and emotionless obstacle in this journey.” 36 How I felt during the experience… “I was hopeful they would render the services I paid for on time as advertised without any hassle. During the evaluation process, I was disappointed so many times. There was no instant means of getting support. I had to wait DAYS to get replies to my e-mails.” 37 How I felt during the experience… “I am the boy with the blue shorts thinking, ‘Surely there's a better way.” Working with the company felt like a big wall. Just one-way communication with a giant barrier to make sure they didn't have to deal with me after the initial commitment for their services.” 38 How I wanted to feel… “I would liked to have felt that I, as a customer, mattered.” 39 How I wanted to feel… “I would have liked to have felt that I was working with an institution I could trust, and with good communication…I would have liked to have felt that we were playing on the same team.” 40 Adapting Theory of Net Promoter Score Q: “How likely is it that you would recommend [brand] to a friend or colleague? (Scale 10-0; 10-9 Promoters; 8-7 Passives; 6-0 Detractors) NPS = (% of Promoters) - (% of Detractors) Net Promotion 16 23 6 -35 36 42 3 Strategic Pillars MOVE BEYOND INFORMING TO COMMUNICATING SHIFT MINDSET FROM ENFORCING TO ENABLING • • • Help customers … help Company… help them HARNESS TECHNOLOGY TO GUIDE CUSTOMER EXPERIENCE Mindset is reflected in tonality of communication, ease of interacting, commitment to resolving questions – a sense of collaboration Communicating focuses on audience comprehension vs. ‘company speak’ Technology – Company has rich technology. Harnessing existing assets from a ‘customer-centric’ perspective will guide and enhance the CX. 42 SUCCESS METRICS 43 CX Balanced Scorecard – February 2017 On a scale of 0-10, how likely are you to recommend WES to family or friends? (% of 9-10) – (% 0-6) = NPS Pct. of customers who complete evaluation process without emailing and/or calling Completely agree: “WES made it easy for me to understand what to do throughout the process…” Net Customer Promoter Effort Score Score (NPS) (CES) Operating Call Model Center Score Service (OMS) Metrics © 2016 World Education Services. All rights reserved. Average Speed of Answer 1st Time Callers 1st Call Resolution Tier 1 Resolution Tier 2 Escalation 44 CLOSING THOUGHTS 45 46 47 Food for thought… • “No one can do a thing about feelings. They exist and there’s no way to censor them.” – Milan Kundera, Writer • “One can be the master of what one does, but never of what one feels.” – Gustave Flaubert, Novelist • "Great companies that build an enduring brand have an emotional relationship with customers that has no barrier.“ – Howard Schultz, CEO 48 Thank You! 49
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