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Your customers buy your products but they pay for experiences. Presentation Glenn Oberholzer | [email protected]

Your customers buy your products but they pay for experiences

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Page 1: Your customers buy your products but they pay for experiences

Your customers buy your products but they pay for experiences.

Presentation

Glenn Oberholzer | [email protected]

Page 2: Your customers buy your products but they pay for experiences

Stimmt AG | Your clients buy your products but they pay for experiences.

Switzerland exports almost twice as much coffee than cheese

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Source: «Kaffee-Land Schweiz», 10vor10, 9. Juni 2009 and www.nespresso.com, accessed June 24, 2009

Nespresso has ten-folded its revenue since 2000. Welcome to the experience economy.

«At Nestlé Nespresso, we pride ourselves in creating the ultimate coffee experience, moments of genuine pleasure, wherever, whenever, and however you wish.»

Page 3: Your customers buy your products but they pay for experiences

Stimmt AG | Your clients buy your products but they pay for experiences.

The experience economy is becoming a reality in many markets. Are your ready to differentiate on experience?

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Are you tired of competing on price? Try competing on experience. Adapted from: Pine, J. and Gilmore, J. (1999) The Experience Economy. Harvard Business School Press.

Competitive Position

Differentiated

Undifferentiated

Market Premium Pricing

The Progression of Value

Experience

Service

Product

Commodity

Page 4: Your customers buy your products but they pay for experiences

Stimmt AG | Your clients buy your products but they pay for experiences.

8 benefits from competing on experience 1 reason to start becoming an experience company: Profitability

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How to get there? Forget about your company for a while and focus on your stakeholders.

Higher Margins Because people pay more for experiences than for products or services.

Smart cost cutting Because you know where to save without hurting your customers.

Cheaper Development Because you can develop what customers really want and need.

Fewer Complaints Because you fix problems before you go live.

Top Line Bottom Line

High protection of investment Because experience strategies are much harder to copy than products.

Higher recommendation rate Because your customers become your advocates.

Higher customer loyalty Because customers feel listened to and feel cared for.

New segments, new offering Because you can configure your offering and expand it to new experience segments.

More Revenue More Profit Lower Costs

Page 5: Your customers buy your products but they pay for experiences

Stimmt AG | Your clients buy your products but they pay for experiences.

To become an experience company: Put your stakeholders first

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Design for your stakeholders not your company. They will thank you for it.

Know your stakeholders Analyze what they expect, what they think, how they act, what they feel. And how they would like to feel. Then you know where to go.

Design your interactions Design for the user, not for the company. And prototype, prototype, prototype.

Configure your offering Break down your silos and reassemble to enable the desired experiences.

Orchestrate your touchpoints Make yourself consistent and integrate seamlessly into your stakeholders’ lives.

Page 6: Your customers buy your products but they pay for experiences

Stimmt AG | Your clients buy your products but they pay for experiences.

Example: In-depth customer know-how enabled our client to invest where it matters for customers

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Our client’s focus shifted to what matters most to customers: reducing anxiety and fear.

Can you afford to base your decision on assumptions?

Guessing on experiences Knowing about experiences

«This is the first time in my life I’m going abroad on my own. I’m excited and scared.»

«We have very little complaints, and very high customer satisfaction. We suspect only to finetune.»

The client thought that their booking process was like buying a ticket ...

Stimmt project for a large language school operator based on in-depth interviews

... Stimmt found it‘s more like waiting for the roller-coaster to drop.

Page 7: Your customers buy your products but they pay for experiences

Stimmt AG | Your clients buy your products but they pay for experiences.

Example: Our client can redefine its value proposition and expand the market instead of optimizing pricing

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Our client can tailor the offering and pricing to this new segment. Are you sure you know what your customers really want from you?

The 4P approach

«For my family this is the alternative of going skiing for a day and you know how much that costs.»

«How much can a museum ticket cost at max so we don’t shy away my customers»

The client thought that they are primarily a museum to their visitors...

... Stimmt found that many visitors are looking for all day entertainment.

Stimmt project for a large Swiss museum including all day observations, in-depth interviews and surveys

The experience approach

Page 8: Your customers buy your products but they pay for experiences

Stimmt AG | Your clients buy your products but they pay for experiences.

Example: Our client found out how to increase the revenue by serving unmet user needs

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The client can now reposition the intranet to be a sales channel. Are you sure you are not missing out on untapped business?

«Since the intranet is affecting the top-line, it gets much more attention from management.»

... Stimmt found out that it can drive sales.

Stimmt project for a large Swiss company based on in-depth interview, innovation workshops and surveys.

«At our company, the intranet is primarily a cost factor.»

The client thought that his intranet was primarily an information tool...

Unquestioned traditional views New sales opportunities

Page 9: Your customers buy your products but they pay for experiences

Stimmt AG | Your clients buy your products but they pay for experiences.

Example: The client wanted to become more customer centered in its online application and it paid off

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The client profits long term by building the system for the user. Can you afford not to take your client as seriously as your IT?

«We designed for the user. Since the new release, we have 30% fewer support calls.»

«We were never happy with it but did many things because the back-end system demands it this way.»

The client wanted to make the system usable...

... Stimmt helped to save money.

Stimmt project for a large Swiss bank, concept and prototyping in several iterations with users

Engineered inside-out Designed outside-in

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Stimmt AG | Your clients buy your products but they pay for experiences. 10

Convinced about the experience economy? We have been for 11 years.

Glenn Oberholzer Partner

Dipl. Ing. ETH

Stefan Leuthold Partner

dipl. phys.

Marc Blume Senior Consultant

Diplom-Psychologe

Lorenz Ritzmann Consultant

M. Sc. Psychology

Dr. Gudrun Moeller Senior Consultant Dr. sc. nat.

Michael Svoboda Senior Consultant M.Sc.

Interdisciplinary Team

  Intranet redesign for a leading Swiss bank and a large government agency.

 Concept for the global front-end for agents of an insurance company.

 Concept and prototype for the ordering process of a large telco.

 Concept for the Future of Online Banking for a large Swiss bank.

Johanna Elster Senior Consultant Dipl.-Medienwiss.

Helmut Kazmaier Senior Consultant Dipl. Ing.

Lukas Karrer Partner

Dipl. Ing. ETH

Patrick Keller Consultant M. Sc. Psychology

A Selection of Our Clients

Recent Projects

 Axpo (Energy)  Coop (Retail)  Credit Suisse (Banking)  Direktion für Entwicklungszusammenarbeit (Government)  Helsana (Insurance)  Mettler Toledo (Industry)  Migros (Retail)  Raiffeisen (Banking)  Swisscom (Telecommunications)  Zürcher Kantonalbank (Banking)  Zürich Versicherungen (Insurance)

You are looking for concepts to bring you to the next level of competition? Contact us.

Page 11: Your customers buy your products but they pay for experiences

Stimmt AG | Your clients buy your products but they pay for experiences.

A good customer experience doesn‘t happen by accident. Stimmt.

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We are looking forward supporting you in delighting your customers.

Glenn Oberholzer| +41 44 562 10 17 | [email protected]