Venture for America Marketing Module

Lewis GoldmanNew Media Consulting, LLC

July 2, 2012

7/2/2012 2

Marketing Module Schedule

11:30 – Outline of the day, Customer Experience12:15 – First Exercise – Best and Worst companies12:45 – Working lunch – Exercise 2 – Customer touchpoints/failpoints1:45 – Presentations – Customer touchpoints/failpoints2:45 – Listen to the Customer3:30 – Break, Survey Monkey3:45 – Results from Survey4:00 – Customer Acquisition and Lifetime Value5:00 – Acquisition Exercise5:30 – Presentations – Acquisitions and LTV

7/2/2012 3

Customer Experience - Outline

• What is Customer Experience?• How do you measure customer satisfaction?• Why is it important?• Case Studies – Twitter and 1800flowers.com,

Zappos, Comcast• Jiu Jitsu and its limitations – Tylenol case study• Customer touchpoints and failpoints• Questions• Workshop

7/2/2012 4

What is Customer Experience

Customer experience* (CX) is the sum of all experiences a customer has with a supplier of goods or services, over the duration of their relationship with that supplier. From awareness, discovery, attraction, interaction, purchase, use, cultivation and advocacy. It can also be used to mean an individual experience over one transaction; the distinction is usually clear in context.

* Wikipedia definition

7/2/2012 5

How do you measure customer satisfaction?

7/2/2012 6

How do you measure customer satisfaction?

• Customer Behavior – do they come back?• Customer Comments – private and public• Advocacy – Referrals• Customer satisfaction metrics

– Satisfaction Level– Net Promoter Score – 10 Point scale, how likely are you to refer the product or service to a

friend, Score of 9 or 10 are advocates, 1-6 are detractors. NPS is the difference between the two.

• Engagement (sometimes)– Likes, people talking specifically about your product or service (Facebook)– Twitter Followers– Pinterest– YouTube Channel subscribers– LinkedIn company followers– Newsletter subscribers– Blog readers– Repeat visitors

7/2/2012 7

Why is Customer Satisfaction Important?

• Colgate-Palmolive – New Assistant Product Managers and the decline of Fab, Dynamo, Ajax

• Impact on enterprise value*:– Brands with great customer experiences command a 7 to 19%

premium vs. competitors.– Portfolio of publically traded companies with top customer

satisfaction scores outperformed all major stock indexes by at least 2X over the last 3 years.

– 82% of people globally are more likely to recommend brands with outstanding customer experiences.

• Top 5 – Google, Amazon, Ikea, McDonalds, Apple• Business impact in the age of social media* 2011 Global Brand Simplicity Index – Siegal+Gale

Case Study – Twitter, 1800flowers.com vs. FTD.com, post Mother’s Day

7/2/2012 9

Case Study - Zappos

• 75% of Zappos sales from repeat customers

• Repeat customers ordered 2.5X vs. new customers in the 12 months following a purchase

• Returning customers spend 26% more than first-time customers

"We actually take a lot of the money that we would have normally spent on paid advertising and put it back into customer experience," says Tony Hsieh, Zappos' CEO. "We've always stuck with customer service, even when it was not a sexy thing to do.

7/2/2012 10

Case Study – Comcast

7/2/2012 11

Case Study:Jiu Jitsu and Tylenol

• Jiu Jitsu – Turning around a negative customer experience into a positive one and as a result creating advocacy.

• Tylenol Case Study– October 1982, 7 people in Chicago died after taking extra-strength Tylenol capsules.

Someone put cyanide into Tylenol capsules, then put the capsules in bottles on the shelf of drug stores.

– At the time, Tylenol was the leading painkiller, with 37% of the market. After the poisoning, their market share dropped to 7%

– Tylenol reacted by pulling all product off the shelf nationwide, being transparent with the media, and creating new, triple sealed packaging which is now standard for virtually all OTC pills.

– Within 5 months of launching the new tamper resistant product, Tylenol’s share was back up to 30%, and the episode is considered the most effective crisis management case study in history and created the roadmap for handling future crisis.

7/2/2012 12

Customer Experience Touchpoints (Failpoints)

• Setting expectations - Awareness– Brand/Product perception pre-launch – e.g. John Carter, The Avengers, the Blackberry

Playbook and no email– Advertising– Word of mouth/Advocacy

• Retail interaction - Consideration– Physical– Virtual

• Purchase– Delivery– Ease of set up/use– Quality versus expectations – Value

• Post Purchase Support– Customer Service support

• Advocacy (or not)– Social Media– Loyalty/Retention programs

7/2/2012 13

Customer TouchPoints vs. Customer Experience

7/2/2012 14

Cross-touchpoint Customer Experiences

7/2/2012 15

Questions?

7/2/2012 16

Workshop Exercise• Break into Groups of 5• Identify and agree upon 3 companies/products with the

best customer experience and 3 with the worst – 10 minutes

• Each group present 3 best and worst quickly – 2 minutes each group

• Map out the Touchpoints/Failpoints for the Best and Worst, explain why the Best works and what the Worst can do to improve each Failpoint. – Lunchtime – 1 hour

• Each group presents Best and Worst Touchpoints/Failpoints – 6 minutes each

7/2/2012 17

Customer Touchpoint Map

Awareness Retail Interaction

Purchase Post Purchase

Advocacy/Loyalty

• Social• Advertising• Etc.

• Physical• Virtual

• Delivery• Set up• Value

• Support • Repeat Purchase

• Social Media