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©

www.thinkintrepid.com

HOW DO YOU KNOW WHAT KIND OF EXPERIENCE YOU REALLY DELIVER?AN OVERVIEW

PREPARED FOR: It’s Not Magic | Woburn Safari Park | June 2008 [CONFIDENTIAL}

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If something gets to be a billion-dollar brand, there is more going on than just a rational attachment. My feeling is that all the billion-dollar brands occupy a very special place among some consumers’

Jim Strengel, Global Marketing Officer, P&G

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WHAT CAN YOU FOCUS ON?

SOMETHING ELSE?• The whole ‘customer ecosystem’• Making emotive connections with people• Beyond your customers

LOYALTY• Rooted in the existing customer base

& retention of that base is around ‘calculative or value based drivers’

SATISFACTION• Measurement &

understanding is based around ‘quality perceptions’ and focuses on specific experiences & transactions

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Customer propensity to try new things…

defend you…

recommend you…

overlook mistakes…

give you feedback to help you improve…

participate & contribute…

support others to help them get more out using your products and services

HOW DO YOU KNOW YOU’RE DOING WELL?

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SOME CUSTOMER MEASUREMENT DATA

Likelihood to defend the brand (Top ratings)

Likelih

ood t

o r

epurc

hase

(Top

rati

ngs)

0

10

20

30

40

50

60

70

80

0 10 20 30 40 50

VirginNintendo

Direct Line

Dell

Sony

AOL

John Lewis

Gap

BAAverage

Hilton O2

EggSky

NatWestBritish Gas

Curry’s Digital

Tesco

Microsoft

Compete on price Focus on service

Sell experiencesDon’t compete: lock customers in

Source: Intrepid Customer Experience Benchmarking Survey 2007

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Customers influenced through tools to better understand products

and services.

This is where the customer experience is

not driven by experience or emotion but on a needs based push or pull premise.

SATISFIED

Influencing customers to engage with your

products is important but given many options would it be enough to

get them to stay?

Customers driven by basic level determiners.

This is where the customer experience

and repeat purchase is driven by basic factors

such as price, convenience and

proximity

CALCULATIVE

Would people hesitate to switch to another cut-price airline offering a

cheaper price? Or a new convenience store closer to home?

Customers are encouraged to remain

loyal through a focus on repeat purchase

behaviour

Driving loyalty is increasingly difficult to achieve based on brand

alone.

If your customer has enrolled in similar

loyalty programs with 3 of your competitors is it really driving loyalty?

LOYAL

Customers have an emotive connection with these brands that goes

beyond the product based experience. The

experience is NOT just linked to the product .

This is where customerslove their interactionswith a company andeagerly refer others

If Starbucks no longer offered the 11th coffee for

free would customers really leave them?

EMOTIONALLY CONNECTED

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DNA OF SUCCESSFUL CUSTOMER EXPERIENCES

Identity

Invo

lvem

ent

Know

ledg

e

Bel

ongin

g

Perform

ance

IDENTITY

Helps establish and communicate desired social status in a way that coincides with a person’s own values, beliefs and principles, thereby enabling them to achieve important current and future personal life-goals and priorities

BELONGINGPlaces and times that I can interact with people of like-mind to exchange and co-create knowledge and experiences of the brand, or passion, we share. Creating a feeling of emotional security and clear membership boundaries that differentiate from other interest groups

KNOWLEDGE

Access to specialised and privileged information and resources that deepen my understanding, experience and admiration for the values of the brand

PERFORMANCE

A trusted reputation in delivering on its quality standards and promises (functional, aesthetic and social), providing a unique, stimulating product and service experience that I cannot find anywhere else

INVOLVEMENT

Anticipation and enjoyment from interacting regularly with the brand, developing a familiarity and ongoing human and personal dialogue that is valued

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SOME PRACTICE

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WHICH IS THE ODD ONE OUT?

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MARKETEERS HAVE GENERATED ‘000S OF DEFINITIONS FOR CUSTOMER INSIGHT…

“A fresh and not yet obvious understanding of customer beliefs, values, habits, desires, motives, emotions or needs and can

become the basis for competitive advantage” (Kellogg School of Management)

“Penetrating discovery about consumer

motivations that can be applied to drive growth” (Diageo)

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CUSTOMER INSIGHTS – WHAT WE KNOW

They’re not immediately apparent

They often come from unusual sources

They’re often discovered accidentally

They can be rooted in observed anomalies

They are NOT a number, a fact or a quote from a customer

Do not in themselves drive competitive advantage

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FROM DATA TO….

Data

Information

Data analysis and reduction

FindingsCarefully

considering project objectives

InsightsInterpretation of

findings

InnovationNew understanding that is

actionable and competitively unique

This is your challenge

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WHERE’S THE VALUE?

InformationThink Gartner reports. Information informs but offers no indication of relative importance to a business

Findings Selected information that is of interest, but lacking in implications

Insights Fresh understanding of your customers or markets

Think database extracts…Data

InnovationOf most value because it offers new ways of doing things that lead to competitive advantage

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There are dangers in treating customers as ‘fonts of all wisdom’, especially where the future is concerned

Why?:

• Customers’ ideas can be incremental

• Customer contexts mean their feedback is rooted in what they know rather than what is happening in the world

• Because they focus on what they think is doable

• Asking people to tell us what they want tends to screw up what they think they want

• Because they often get it wrong!

CAN CUSTOMERS INNOVATE FOR US?

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Findings Selected information that is of interest, but lacking in implications

Data Think database extracts…

Information Think Gartner reports. Information informs but offers no indication of relative importance to a business

Insight New learning about your customers or markets

Innovation The basis for competitive advantage

Ethnographicoutputs

Primary or ‘traditional’

research

‘Raw’ internal

workshop outputs

Parallel worlds or

competitors

A one line idea or

challenge

Fuel

This is still your

challenge

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A one line idea or

challenge

Insights from…

GETTING FROM INSIGHT TO INNOVATION

Parallel worlds or

competitors

Raw internal workshop outputs

Primary or ‘traditional’

research

Ethnographicoutputs

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AN EXERCISE

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MAKING INNOVATION ACCESSIBLE – CREATE INNOVATION ‘FILTERS’

BRAINSTORMING OR THINKING ‘OUTSIDE THE BOX’?

CREATE YOUR OWN INNOVATION ‘FILTERS’ TO

CHALLENGE YOUR INSIGHTS

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What would need to happen to the product if customers were charged 20GBP per month in charges?