31
4 WAYS BRANDS CAN EXCEED CUSTOMER EXPECTATIONS APRIL 2015

4 Ways Brands Can Exceed Customer Expectations

  • Upload
    dt

  • View
    1.455

  • Download
    0

Embed Size (px)

Citation preview

4 WAYS BRANDS CAN EXCEED CUSTOMER EXPECTATIONS APRIL 2015

“EVERYTHING IS AMAZING RIGHT NOW AND NOBODY IS HAPPY.” !

– LOUIS C.K.View the video here: https://www.youtube.com/watch?v=uEY58fiSK8E

Despite the impressive changes in technology and accessibility, customers are feeling underwhelmed and unsatisfied by brands that fail to exceed their expectations.

Due to these evolving expectations, brands are continually playing catch up.

This presentation aims to provide insight on:

Why customer expectations have drastically increased

What this means for brands

How brands can meet customer expectations

INTRODUCTION

WHY DO CUSTOMERS EXPECT SO MUCH?

THE CURRENT SITUATION

“Customer expectations have increased by 28%. Meanwhile brands have only managed to improve their ability to satisfy customers’ expectations by 7%.”

The Annual Customer Loyalty Engagement Index by Brand Keys measures brands ability to meet customers growing expectations better than competitors. The survey analysed brands in 64 categories chosen by customers in North America.

Source: IEEE Spectrum

WHAT CAN WE LEARN FROM THE RESULTS?

1. Customers want an emotional engagement with brands

2. Customers are on the hunt for new brands that will meet their needs

With the proliferation of new devices being bombarded onto customers everyday, customers have grown to expect the brands they interact with to adapt at the same speed.

Customers have the channels of communication at their fingertips to share their experiences. Experiences which will reach their entire network.

Brands are falling behind in the knowledge and resources that their customers hold and will evidently create either brand advocates or antagonists through the level to which they satisfy their customers.

RELEVANCE TARGETED

& PERSONAL VALUE

SPEED FLEXIBILITY OF INTERACTION

CHOICE CUSTOMERS BELIEVE THE PERFECT CHOICE

EXISTS

TECHNOLOGY DEVICES TO ENHANCE THE

EXPERIENCE

EXPERIENCE

WHAT DOES THIS MEAN FOR BRANDS?

“UNJUSTIFIED TECHNOLOGICAL EXPECTATIONS” With the constant flood of new devices, customers not only expect brands to integrate these devices into customer experiences, but also expect these devices to perform perfectly. How can you ensure devices are enhancing your customers’ experience? !

1. TECHNOLOGY

Source: IEEE Spectrum

USHUAIA IBIZA BEACH HOTEL & HARD ROCK HOTEL IBIZATwo Ibiza hotels have integrated technology seamlessly to ease their customers experience.

The wearable device replaces both the room card and the customers credit card to remove the nuisance when customers want to ‘party, dine and relax during the summer season’ but need carry their wallet while they do so.

http://www.psfk.com/2014/04/hotel-wearable-bracelets-worry-free-stays.html

JOHNNIE WALKER SMART BOTTLESJohnnie Walker is connecting the bottle of whiskey to your smart phone through the use of NFC and printed chips on bottles.

The app will tell the customer if the bottle has been opened, as well as provide personalised promotions and communications.

This layer of technology ensures a level of authenticity across the supply chain and allows customers to connect with the brand during consumption.

http://www.diageo.com/en-row/ourbrands/infocus/Pages/diageo-and-thinfilm-unveil-the-connected-smart-bottle.aspx

“CHOICE SEDUCES THE MODERN CONSUMER AT EVERY TURN” Customers are faced with an abundance of choices to make in virtually every product and service category. How can you compete with niche and specialist players?

2. CHOICE

Source: The Economist

Tesco’s South Korean store Homeplus, created a Virtual Subway Store which gives Koreans (the second hardest working people in the world) the choice of when and how to do their shopping.

It allows customers to utilise wasteful time waiting for a train, to do grocery shopping and have it delivered to their door.

HOMEPLUS VIRTUAL SUBWAY STORE

https://www.youtube.com/watch?v=nJVoYsBym88

Warby Parker has aligned the benefits of brick and mortar stores with those of online stores.

‘Home Try-On’ and ‘Virtual Try-On’ provide the customer with the same array of choices they would be offered in store. These features present the customer with the convenience of choosing when and how they shop whilst still replicating the in-store experience, online.

WARBY PARKER

https://www.warbyparker.com/

“IT’S IMPOSSIBLE TO IMAGINE A FUTURE 10 YEARS FROM NOW WHERE A CUSTOMER COMES UP AND SAYS, ‘JEFF I LOVE AMAZON, I JUST WISH YOU’D DELIVER A LITTLE MORE SLOWLY’. IMPOSSIBLE.” !

Customers want to interact anytime they want. We have a plethora of products and services that can beavailable to us at the drop of a hat...literally. !

How can brands meet customers ‘need it now’ attitude?

3. SPEED

Source: Jeff Bezos

THE ICONIC

The Iconic has revolutionised customers expectations in regards to delivery.

They have taken last minute shopping to new realms, allowing 3 hour delivery within Sydney and Saturday morning deliveries for last minute weekend outfits.

http://www.theiconic.com.au/

INSTACARTInstacart enlists couriers to hand select and deliver groceries to its customers within an hour.

The app allows customers to select products from large supermarket chains as well as smaller independents.

It has managed to replicate same-day and 3 hour delivery that consumer goods retailers provide and pushed it to the grocery industry.

http://www.forbes.com/sites/briansolomon/2015/01/21/americas-most-promising-company-instacart-the-2-billion-grocery-delivery-app/

“YOU KNOW THIS ABOUT ME, BUT WHAT AM I GETTING IN RETURN?” !

Customers want targeted and personalised value back from the data they provide. How do we ensure we are providing customers enough value in return for their data?

4. RELEVANCE

Source: DigiDay

SOSH“What should we do?”

Sosh aims to answer this question for its database of customers by using their preferences and interests to recommend activities.

Sosh Concierge, “the Uber equivalent for dining”, allows its customers to dine at exclusive restaurants, no advance booking required, with prepaid menu options.

This plays on exclusivity that customers desire and removes the less appealing transaction conducted after your meal.

http://sosh.com/

GILTGilt is an online retailer ensuring each aspect of the customer journey is personalised

- 2,500 versions of daily sales emails

- Gilt concierges offering personal shopping for top tier members

- ‘Your personal sale’ suggests sale items based on previous purchases, geographic location and browsing behaviour

http://www.gilt.com/

CARVALHO HOSKEN: THE SOCIAL HOME TOUR

Carvalho Hosken revolutionised the impersonal and repetitive task of home tours by integrating aspects of the customers personal life into the display home.

By requesting Facebook access this allowed the real estate agent to leverage data on their interests and personal photos.

Customers were greeted by a home pre populated with moments from their own life and even their favourite food delivered to end the tour.

https://www.thinkwithgoogle.com/campaigns/carvalho-hosken-the-social-home-tour.html

HOW CAN BRANDS MEET CUSTOMER EXPECTATIONS?

SHAPING OUR EXPERIENCES

When we see and hear of brands doing and creating amazing experiences for their customers, using the latest technology, leveraging relevant data, providing their customers with choice and doing all this at incredible rates, these shape our expectations.

We take one experience from an industry and expect this to rollout across all brands in all industries. The bar has been set in our minds of what can be achieved, so why can’t all brands live up to these expectations?

“THE FIRST STEP IN EXCEEDING YOUR CUSTOMER’S EXPECTATIONS IS TO KNOW THOSE EXPECTATIONS.”Source: Roy Hollister Williams

WHAT DO CUSTOMERS WANT?

Brands need to go beyond the satisfied customer and towards the brand advocate. A customer whose expectations have been truly surpassed that they want their entire network to experience the same feeling.

We want personal experiences.

We want our expectations to be exceeded.

Based on the work of Abraham Maslow & Stephen P. Anderson

THE “CONVENIENT CHASM” (few rise above this point)

EXPERIENCES (people, activities, context)

TASKS (products, features)

Objec

tive

/ Qua

ntifi

able

Subj

ectiv

e / Q

ualit

ative

A memorable experience worth sharing

Can be used without difficulty

Is available and accurate

Works as programmed

Super easy to use, works like I think

Has personal significance

PLEASURABLE

USABLE

RELIABLE

FUNCTIONAL (USEFUL)

CONVENIENT

MEANINGFUL

THE EXPERIENCE HIERARCHY

THE EXPERIENCE HIERARCHY

There is a divide between where customers and brands are situated on the pyramid.

When we consider the four factors that are shaping customers experiences and the select brands who are leveraging these influences, we can understand why customer expectations are set so high.

Customers want personal and memorable experiences worth sharing. However, many brands are stuck at the bottom of the pyramid doing the bare minimum not to disappoint customers but just to keep them satisfied.

As Apple’s Angela Ahrens said, “I don’t want to be sold to when I walk into a store. Don’t sell! No! Because that’s a turn-off. Build an amazing brand experience, and then it will just naturally happen.”

TIPS FOR MARKETERS

TECHNOLOGY SPEED CHOICE RELEVANCE- Identify the most

popular devices that customers use to interact with your brand.

- Technology should never be the idea, but rather the enabler to an idea.

- Every touchpoint in the customer journey should aid a seamless transition to the next stage.

- Understand when fast delivery and service, although costly, will lead to loyal customers.

- Identify the niche and specialist brands you are competing with.

- Provide your customers with reason, beyond product offering, to choose you.

- Identify the most convenient way customers want to interact with your brand.

- Understand your customers behaviours and how they interact with you across all touchpoints.

- If customers are providing you with their personal data, use it to create a better experience for them.

STEP 1: REVIEW CUSTOMER DATA

WHAT CAN YOUR BRAND DO NOW?

STEP 2: CUSTOMER RESEARCH

STEP 3: AUDIT CHANNELS

STEP 4: DEVELOP STRATEGY

Analyse existing data to identify how your customers behave and what they want.

Data around how customers interact with every touchpoint will result in efficient customer research.

Gain first-hand feedback straight from customers through methods like surveys.

Customer research will provide insight into brand perceptions and market expectations.

Understand customer behaviours by analysing the efficacy of all touchpoint – particularly when it comes to technology, speed, choice and relevance.

An audit will identify gaps where the customer experience is not aligning with expectations.

Develop a strategy that will address customer experience gaps identified in the audit and customer research insights.

A strategy with clearly defined actions will ensure that your brand can work towards delivering better customer experiences that surpass customer expectations – across technology, speed, choice and relevance.

“OWN THE CUSTOMER MOMENT. TURN DATA INTO INSIGHT, TURN THAT INSIGHT INTO ACTION. FINALLY, UNITE BRAND AND EXPERIENCE.”Source: Carlton Doty

THANK YOU For more information please email [email protected] !

dt.com.au facebook.com/dtdigital twitter.com/dtdigital