Understanding and Delivering Customer Experiences that Count

Understanding and Delivering Customer Experiences that Count
"Customersdon’talwaysknowwhat they want. The decline in coffee drinking was due to the fact that
most of the coffee people bought was stale and they weren’t enjoying it. Once they tasted ours and
experiencedwhatwe call 'the thirdplace'—agatheringplace betweenhome andworkwhere theywere
treatedwithrespect—theyfoundwe were fillinganeedtheydidn’tknow theyhad." — Howard Schultz,
CEO, Starbucks
"Customerexperience"isone of those amorphoustermsthatisincreasinglyinthe public consciousness
nowadays.It'samorphousbecause ittendstobe under-defined, its meaning shifting according to your
perspective.Often,it'sviewedwithmerelyanoperational orproductlensrather than an understanding
of the nuances of the experience as the sum total of customer interactions and the emotions they
evoke.
Andit’sincreasinglyfront-and-centerrole hasbeenlargelyaresultof the explosioninchannelswith the
digital revolution,whichhascreatedmanymore opportunities to influence, engage, and actually mold
and shape what the experience looks and feels like.
For all that, the ability to create and manage the customer experience is something more businesses
would like to get right. For every Starbucks, Virgin Atlantic, Zappos, Starwood, or Apple—a handful
amongthe manythat do get the nuances and make the most of them—hundreds more only wish they
could come close to the bar that's been set.
It isan attainable goal.All ittakesis the mindsetcombinedwith consistent and thoughtful deployment
of various tools that allowing the experiences being provided to be monitored and optimized.
Understanding Its Scope and Importance
Prophetviewscustomerexperience througha very wide-angle lens. It's all about making an emotional
connectionwithpeople—makingthem"stickier"toyou—asapowerful meansof shapingbehaviors and
advocacy and tightening their relationship with your brand.
It's not just about interactions between customers and the people who power your brand, like sales
staff or customer service representatives. It's about interactions between the environment and the
customer.Betweencommunicationsmaterialsandcustomers.Andwiththe productitself—how the car
feelswhenitdrives, what it sounds like when it starts up or accelerates, or what it smells like right off
the showroom floor.
It all combines to create a feeling in the customer that is integral to how they build their impressions,
loyalty, and emotional connection to the brand.
The quality of the customer experience has the potential to hugely impact the business, as several
studies in recent years have shown.

One surveyedover800 executivesincompaniesaroundthe globe thathadincreasedtheirinvestmentin
customerexperience managementinthe prior three years. All reported higher customer referral rates
and customer satisfaction. Another surveyed 450 large organizations in Europe on their practices and
outcomes. It found that improved performance in the four key business areas of market share,
retention,profitability,andcustomer satisfaction was directly related to their success at managing the
customer experience.
Walk In the Customer's Shoes
Tony Hsiehof Zapposrealizedthattogetpeople tobuyhisshoes,he and everyone whoworked for him
would have to always walk in their shoes first. He understood that a key customer touch point for any
retailerwasat the pointof sale and pointof return. Any breakdown either way would compromise the
customer experience and had the potential to damage the relationship. Zappos' resulting practice of
free shipping, both ways, and a 365-day return policy has created an unheard of 75 percent rate of
repeat business and explosive growth.
Havinga visionaryleaderlikeHsiehwho establishesthe importance of customer-centricityasa keyfacet
of the organization’sculture isahallmark of businesses that have evolved the customer experience to
almost an art form.
Walkinginthe customer'sshoesisa good startingpoint. Having a visionary leader like Hsieh helps. But
it's also important to ensure that mindset is constantly reinforced so it becomes a seamless aspect of
the culture.
At the award-winning resort, The Cosmopolitan of Las Vegas, for example, the dedication to creating
memorable customerexperiences goes way beyond the casino floor. It's evidenced everywhere, from
the unexpected wall murals in the parking garage by renowned graffiti artists like Shepard Fairey to
Droog, a functional artgallerywhere mainlyhands-onisokay. But employees are coached in keeping it
real and fresh. A handbook reminds them of ways to think to ensure they're living this brand promise
every day: Have I put myself in my customers' place? Have I looked outside my world for inspiration,
pushedmyself outof mycomfortzone,takena risk, and considered the impractical? Have I considered
the organization as a whole?
Research Provides Insights for Innovation
No matterwho'ssettingthe directionorhow extensivelyit becomes absorbed in the business' culture,
orientingaroundthe customerexperience isextremelychallenging.Eveninasimpler time of fewer and
more directcustomer touch points, they have never had equal influence and so should not be treated
equally.Byprioritizing,thenleveraging, individual or groups of touch points that matter most to target
audiences,businesseswillnotonly do a better job of creating an experience that matters, but gain the
best returns on investment.

Getting there requires deploying the right tools that help create a deeper understanding of what
resonates with customers in creating an experience that either works or doesn't.
Different forms of research, undertaken consistently, are very important in their ability to render
insights that spur the most innovative customer experiences. A.G. Lafley of Procter & Gamble, for
example, famously demonstrated the power of ethnographic research by personally going into
consumers' homes to observe how they went about their household cleaning chores. The ubiquitous
Swiffer, which removed the mess from mopping, was one of the outcomes.
Basic tools of customer satisfaction tracking are also important to grow a deep understanding of
people'sbehaviorsandimpressionsas a means of improving the customer experience. The upshot can
be insights into revealing moments of truth that occur at the important customer touch points in the
product or service environment.
Researchbythe Starwoodhotel grouphas told them that a key moment of truth occurs within the first
tenminutesof arrival,defining the entire experience. Thus, the lobby environment has become a key
touch pointthroughoutitsproperties.Mostrecently,the latestevolutionof thisfocuswasintroduced—
LeMeredien Hub—at its Barcelona hotel. The multi-faceted concept includes an entryway with high-
impact arrival art and an "interaction zone" with coffeehouse style seating and attitude, with a
collection of books on local cultural highlights and cultural events planned.
Customer Experience—Deconstructed
As the Zappos, The Cosmopolitan, and Starwood experiences exemplify, there is no such thing as a
singularcustomerexperience. It's really comprised of many interactions, moments of truth, and touch
points.Andthe experience isone thatislikelytochange overtime.Thatmakesthe task of evaluating all
the elements that feed into it a daunting task.
It has ledProphettodeveloptechniquestobetterunderstandthe customerexperience,applyelements
of what the brand strategy should be at different points of interaction, and innovate around them in
ways that will engage customers more meaningfully and profitably. We call it Experience Attribute
Mapping(EXAMsm),a meansto deconstruct,evaluate,andchange the very complex customer journey
in a manner that is a lot more manageable.
There are various ways to go about this. Typically, it involves the people in the organization who are
actuallyinvolvedindeliveringthe experience as they know where the bottlenecks are. Applying EXAM
alongthe path to purchase,forexample,we wouldworktogether in identifying the key touchpoints of
the customer’s experience, highlighting their most important elements, and defining their specific
objectives (brand or business).
Thenwe findwaysto measure howwell the experience isbeingdelivered. Click-throughs on a website,
for example, would show how well people are engaged to go to the next level of the transaction.

This is the approach we took to help Emart, South Korea's largest retailer, reinvent the customer
experience in three distinct store formats. One, for electronics, had been set up almost like a
manufacturer'sshowroomora mom-and-popoutlet.Observationshoweditcreatedaless-than-optimal
experience where customers could basically see but not touch or interact with products at hand. To
betterdeliver,the storeswere redesignedtodeliveramore tactile experience—fixturesthatwere more
welcoming,productsoutformore hands-onexperimentation, and knowledgeable employees focused
on one-on-one information sharing.
The Experience Is the Thing
Creatinganddeliveringacustomerexperiencethatwinshearts and minds can be a huge and profitable
differentiator.But at a time when touch points are proliferating and resources are limited, identifying
those that mattermostand can bestbe leveragedformaximumimpactisthe challenge. Understanding
the nuancestakesa blendof insights and creativity and focus. And those that get it and act accordingly
will be the biggest winners.

Understanding and Delivering Customer Experiences that Count

More Related Content

What's hot (19)

Similar to Understanding and Delivering Customer Experiences that Count (20)

Recently uploaded (20)

Understanding and Delivering Customer Experiences that Count