THE EXPERIENCE IS THE BRAND.

Tim CopaciaEVP, Dir. of Customer Insights & Engagement

Campbell-Ewald

Discussion Guide

Why This is Important?

Experience-based Differentiation

The Secrets to Sustainable Business Success

Real World Applications

Brands are vulnerable (and at risk) if the experience

is not a part of their differentiation

the

The CUSTOMER Defines the Brand...

Not the ADVERTISING

EXPERIENCEDIRECT

They do so primarily through...

EXPERIENCEINDIRECT

EXPERIENCE“STOKES” EMOTION…

Emotion moves people to Action

EngagesMore

SENSES

OverrulesLOGIC

Creates

MEMORIES

CreatesLasting

STORIES

The Customer Experience

No better time than now to reassess everything that

affects

the TRANSITIONUNDERWAYis

Product Sellers Brand storytellers

Breakthrough Invitation

Transactional Relational

Communications Conversations

One-time action Customer lifelong journey

Impressions Customer interactions

Single channel ideas Cross channel experiences

Company controlled Customer controlled

Closed system Open and transparent

Linear path Multiple gateways to the brand

DAYA NEW

for BRANDS

STOPSHOUTING.

NO ONE IS LISTENING

PEOPLE

SOLD

DON’T LIKE

TO BE

EVERY

THE BRAND

INTERACTION

REPRESENTS

EACH

A RELATIONSHIP

CAN MAKE

OR BREAK

Trust and confidence is paramount

Make a pledge to serve...rather than sell

In a tough market, your number one priority is to take care of your current customers

They are your most valuable asset

Do everything you can to convert prospects into customers – they have already said they’re interested

TALKLET’SLOYALTY…

STEM DEFECTION

Don’t leave us

REPURCHASE

Willing to give us another shot

LOYALTY

They like it andare willing to

buy again

ADVOCACY

Very happycustomer

CHAMPION

Super influencer willing to

recommend to family and friends

TALKLET’SLOYALTY…

IMPROVEDCUSTOMER

EXPERIENCEWillingness to

repurchase

Reluctanceto switch

Likelihood to recommend

provides a direct

correlation to:

there is a

An EXPERIENCE can occur where ever

CUSTOMERINTERACTION…

ONLINE…OFFLINE…IN-STORE

Little things can make a Big Difference

Especially when they come fromthe heart

The New FrontierExperience-Based Differentiation

Experience-Based Differentiation

Obsess about customer needs… not product features

Forrester

Clearly identify and understand our current customers and our target customer segments Get to know customers…personally

Share customer insights broadly across the organizationServe customers needs across the entire life-cycle and throughout life-stageCreate offerings that transcend traditional boundaries

CoreTenets

Reinforce the brand with every interaction…not just communications

Define and widely communicate brand attributesTranslate brand promise into interactions requirements

Focus efforts on “moments of truth”

Forrester

CoreTenets

Experience-Based Differentiation

CoreTenets Get senior executives actively involved

Engage employees in the processUse the voice of the customer to drive continuous improvement

Treat customer experience as a competence…not a function

Forrester

Experience-Based Differentiation

Forrester Study

220 Companies in North America

Consumer Surveys – Bad experiences minus good experiences

Three key metrics:

- Useful in meeting my needs

- Easy to work with

- Enjoyable

EXPERIENCE LEADERSCUSTOMER2008

UNLOCKING the Secrets toSustainable Business

Success

Customer-Focused Lessons- Don’t let the naysayers get you down

- Build operations for a “wow” customer experience- Copy the best

- Focus on rabid early adopters

Core-Market Differentiator- “Netflix’s relentless focus on customer-driven

innovations will continue to provide the golden keys to unlock its revolutionary and evolving business”

“If the Starbucks secret is a smile when you get your latte, ours is that the Web site adapts to the individual’s taste.”

Reed Hastings, CEONetflix

Unorthodox Customer Service Culture- Live by 10 Zappos Core Values

- Powered by Service!

- Committed to wowing each customer

- Believe in complete transparency

- Offers new employees $2,000 to quit after first week of training

- Going the extra mile for a customer generates revenue

- 75% of purchases come from repeat customers

Customer-Centric Differentiator- Delivering Happiness -- for customers and employees

“Everything we do is based on the customer experience.”

Tony Hsieh, CEOZappos

Brand Activity Filter- Does the proposed marketing activity respect the

intelligence of Starbucks customers?

- Can Starbucks expertly deliver on all promises made to customers in the proposed activity?

- Will customers view the activity as being clever, original, genuine and authentic?

Customer-Centric Differentiator- Starbucks found that speed of service was crucial to

customer satisfaction, and that highly satisfied customers spent 9% more than those who were simply satisfied

“I would say strongly, the success of Starbucks demonstrates the fact we have built an emotional connection with our customers.”

Howard Schultz, CEOStarbucks

Key Insights– “After years of blaming the Japanese, Harley

admitted its troubles were internal …we realized the problem was us, not them”

– “(It was important to) align with the customer’s lifestyle or become part of the way they express their values”

Customer-Centric Differentiator– Brand Reputation. “It’s the theater you construct

around it that creates the compelling story that attracts customers to you. We’re not talking PR here. We’re not talking advertising. We’re talking a themed customer experience.”

"Harley went up when we cared about our customers and employees. Harley went down when we stopped caring about employees and customers."

Richard Teerlink – RetiredChairmanHarley-Davidson

Culture– Concern for employees

✓ Wages help keep turnover unusually low, just 6% after the first year

– Unorthodox business practices• The traditional retailer will say “I’m selling this for

$10.00 I wonder if I can get $11.00”…we say, “we’re selling this for $9.00 I wonder if we can get it down to $8.00”

Customer-Centric Differentiator– Treating employees and customers exceedingly well– Investing in employee relationships is good

business

“We always look to see how much of a gulf we can put between ourselves and the competition. So that the competitors eventually say ‘f*** ‘em, these guys are crazy. We’ll compete somewhere else.’”

Jim Sinegal, CEOFounder Costco

Strong, yet simple, vision, mission and values…and insistence on living them

Personal involvement from the top

Empowered employees

Application of “humanity”

Foundation of trust

Acting “small, flexible, nimble…building from the inside out”

Big-picture thinking with “radical applications of common sense”

SECRETS toSUCCESS…

1. Customer-Centric Philosophy Backed by Clearly Directed Actions:

Fulfilling customer dreams and creating unforgettable “magical customer moments”

Using an extraordinary customer experience as a bridge to customer loyalty and eventually advocacy

Building unique consistency throughout their brand portfolios and customer touchpoints

Maintaining a culture that strives to “always learn and do better”

SECRETS toSUCCESS…

2. Relentless Desire to Create the Ultimate Branded Customer Experience:

Leaving indelible impressions at every brand encounter

Understanding the power of sensory experiences

- The more sensory…the more memorable

Staging customer “surprise and suspense” moments

Understanding that Word-of-Mouth is the most powerful and cost-effective influencers of customer behavior

SECRETS toSUCCESS…

3. Allowing Consumers the Opportunity to Define the Brand:

How do we apply these learnings to our business?

Give Stakeholders a “Customers First”

Rallying Cry

Take care of current customers…first!

Reach out to “must-have” customers through experience-driven interactions

Connect with customers on their terms

Chase the vision...not the sale

Tear Down Silos

Identify ways to organize along customer-centric lines

Appoint a Chief Experience Officer to lead the charge across enterprise

Think across tiers, channels and organization -- always from the consumer’s vantage point

Make decisions based on more valued customer dialogue and interactions

Create a New Start... Act Like

A Start-upEmbrace “resized” employee/retailer base

Extend connection to all stakeholders (e.g. past employees, suppliers, retailers, stockholders)

Reset “culture” - Instill trust. A new beginning for all.

Improve Consumer Dialogue &

Involvement Move from “transactional” to “relational”

business model

Listen more. Create deeper emotional connection

Improve customer dialogue through a robust Brand eNetwork -- not just online surveys

Make customers feel like genuine partners in the brand community

Define a Customer Experience Vision

Conduct Customer Experience Audit & Mapping across all key touchpoints

Include all stakeholders

Meet customer needs. Overcome bottlenecks. Make it easy and enjoyable to interact with the brand anytime or anywhere.

Use a Simple “Brand Experience Filter” to

Guide all Actions

Follow the “Big Five” guiding principles

Create process to ensure each marketing activity is aligned

Measure and monitor results along the way

EMPOWERMENTProvide customers the ability to interact with the brand on their termsProvide employees with the ability to do what ever it takes to delight the customer

EASEMake it easy and enjoyable to interact and do business with the brand

WOWCreate “surprise moments” that leave lasting memoriesMake the brand “come to life” and connect with people’s passions

BELONGINGCreate unique opportunities to help our customers bond with others who share common passionsFind ways for people to congregate – including new social communities

DELIVERYConsistent and authentic branded customer interactions online, offline, and in-store…and at each tierCreate clear expectations from the top and insist all stakeholders adhere to themReward positive and consistent behavior at key customer touchpoints

The Big Five...

Rebalance the Marketing Mix to

Optimize the Customer

Experience Greater concentration on results

and customer retention

Focus on key engagement stages

Increase emphasis on behavioral change

Bring an element of “touchology” into each brand interaction

Define New Metrics & New Rewards

Re-evaluate all metrics and scorecards

Evaluate use of Net Promoter as a simple barometer to advocacy

Create customer feedback scores across all channels to monitor experience

Align management compensation to these goals

Instill a reverence for the customer and offer rewards and incentives for putting the customer first...inside and at retail

Persevere Against All Obstacles

No better time to “reset” everything that matters

Allow consumers to be the scriptwriter of their relationship with us

and the world will be a thriving stage

of stories that move hearts, minds, mountains and business.”

Joe Jaffee Join the Conversation

“Marketing will be conversations… brands will be catalysts…

consumers will be participants…

THE EXPERIENCE IS THE BRAND.The Brand is the Experience.

Thank You

Contact me at tcopacia@campbell-ewald.com