chapter

44

Customer ExperienceCustomer Experience

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Customer Experience — Today’s Objectives

Objectives will be to:

Introduce and define the concept of customer experience

Explore the seven elements of customer experience

Examine the three stages of the customer-experience hierarchy

Discuss six broad goals in creating desirable customer experience

Explore how the stages of customer experience apply to eBay

The Elements of Customer Experience

The Stages of Customer-Experience Hierarchy

Broad Goals in Designing Desirable Customer Experience

EBay’s Customer Experience

Conclusion

Chapter 4: Customer Experience

Chapter 4: Customer Experience The Elements of Customer Experience

The Stages of Customer Experience Hierarchy

Broad Goals in Designing Desirable Customer Experience

EBay’s Customer Experience

Conclusion

Seven Key Elements of Customer Experience1.

2.

3.

4.

5.

6.

7.

A certain level of functionality must exist in order for a site to work; basic standards and expectations must be met

Relates to the individual’s unique perception of the encounter with the firm

More than just the economic transaction - the entire customer encounter experience includes both process and output measures of the shopping experience

Includes a customer’s response to multiple variables, from the tactical layout of the store/site to high-level interpretations of the meaning of the brand

To the extent that it is relevant, assessment of the customer experience needs to incorporate all five senses

Cognitive responses are thoughtful and evaluative in nature; emotional responses tend to capture moods, attitudes and feelings of the customer

Previous, separate experiences can affect a consumer’s reaction to various stimuli during a shopping experience

The Objective Element

The Perception Element

The Encounter Element

The Reactions-to-Stimuli Element

The Sensory Element

The Cognitive and Emotional Element

The Relative Element

Customer Experience vs. Building Brand

Brand Awareness Is the Key to Success

Customer Experience Is the Key to Success

Building brand awareness leads to traffic Investors need to see site traffic and the

likelihood of future profitability Offering a great customer experience

when nobody knows about the site is a waste of resources as long as a baseline functional standard is being met

Focusing on customer experience is the single most profitable thing a business can do

Customers that have a positive experience with the site are more likely to keep coming back and to tell their peers about it

Positive customer experience leads to purchases at commerce sites, exploration at content sites and participation at community sites

Point-Counterpoint

Chapter 4: Customer Experience The Elements of Customer Experience

The Stages of Customer Experience Hierarchy

Broad Goals in Designing Desirable Customer Experience

EBay’s Customer Experience

Conclusion

Exhibit 4.1: Stages of Customer Experience

If a Firm Gets This Right … This Is What the Customer Experiences

Stage One: Functionality Design and information architecture

Deep understanding of customer behavior

Platform independence Efficient transactions

Site is easy to use Quick downloads Intuitive navigation Site reliability

Stage Two: Intimacy Warehousing and mining Tailoring of pages and offerings Overlay human interaction Integrated data Consistent performance over

time Constant innovation and

upgrading (incremental or significant)

Personalization Increasing trust Repeated experiences of

exceptional value A sense of “being in the

know” Consistent experiences Significant benefits relative to

other offerings Stage Three: Evangelism Supports evangelists

Acknowledgment of evangelists Desire to make messages to

the market Community benefits

Exhibit 4.2: Stages of Customer Experience Over Time

Exhibit 4.3: Seven Deadly Sins of Customer Experience

The Elements of Customer Experience

The Stages of Customer Experience Hierarchy

Broad Goals in Designing Desirable Customer Experience

EBay’s Customer Experience

Conclusion

Chapter 4: Customer Experience

Broad Goals for Creating a Desirable Customer Experience

1.

2.

3.

4.

5.

6.

Create a Rich Description of the Target Customer

Develop Use-Case Scenarios for Each Target Segment

Effectively Integrate the Online and Offline Experience

Articulate Clear Stages of Desired Experience

Effectively Assess Relative Levels of Hierarchy

Highly Leverage the Evangelists

Exhibit 4.5: Stages of Customer Experience for REI.com

Generic Desired Customer Experience What REI.com Delivers

Functionality Site is usable Easy navigation Quick download Speedy site Reliable

Content organized around user needs Easy-to-find gear and activity information Multiple views of products and services Website that rates high on efficiency and

fulfillment No crashes and limited downtime

Intimacy High trust Consistent experience Quick, effective communication High personalization Exceptional value Consistent with brand message

Authoritative content and information Kiosks in store link to online channel Easy access to customer service, including

live online help E-mail newsletter Member discounts and rebates Product returns to store or by mail Adventure travel service

Evangelism Takes word to the market Defends the experience

Membership advantages E-mail option for sharing information Community message boards In-store and local events

Chapter 4: Customer Experience The Elements of Customer Experience

The Stages of Customer Experience Hierarchy

Broad Goals in Designing Desirable Customer Experience

EBay’s Customer Experience

Conclusion

Exhibit 4.6: Steps in Creating Good Customer Experience

Step Benefit to Customer Benefit to Company

Create Rich Description of Target Customers

Company better able to imagine customer motivations

Brings market research to life Allows shared understanding of customer

types Develop Use-Case Scenarios for Each Target Segment

Company better able to anticipate and meet customer needs and expectations

Site designers put themselves in customers’ shoes, which helps create intuitive navigation and ensures usability

Integrate Online and Offline Experience

Customer experiences consistency across brand and channels

Enhanced overall sales, lessening of perceived channel cannibalization

Articulate Stages of Desired Experience

Customer experiences increased attachment to company, greater loyalty and potential for evangelism

Company able to map desired outcomes to product and site deliverables

Assess Levels of Hierarchy

Customers perceive that they are of value to the company

Company able to consider strategies for moving customers along the experience hierarchy

Leverage the Evangelists

Customer participation in brand and marketing is rewarded by feeling of belonging and community

Company gains insight into product uses and product development; benefits from viral marketing

Monitor and Adjust Major and incremental changes to site diminish barriers to good experience

Online channel’s full potential is leveraged

Exhibit 4.7: Stages of Customer Experience for EBay

Stages Generic Desired Customer Experience for Auctions What eBay Delivers

Functionality Direct message Clean layout Quick browsing, searching, and bidding Straightforward selling Good market segmentation (by category,

region, special interests Reliable

Easy-to-locate items Easy-to-upload information about selling Fast auction interactions Easy-to-understand rules and auction interface No crashes and limited downtime Very efficient access

Intimacy Effective communication Consistent experience Trustworthy customer service Only the necessary level of personalization Exceptional value Consumption for leisure Channel for selling, especially B2C Active community members Assistance in brand building

User constantly knows status of auction Site is consistent across all areas Quick, effective personalized e-mail responses Users make "My eBay" their main interface with the site Enabling transactions is regarded by eBay community as

extremely valuable Businesses use eBay as a distribution channel Active users in personal and company’s feedback

forums Feedback Forum becomes emotion driven: “I wonder

what people are saying of me” Evangelism Taking word to the market

Defends the experience Look down on competitors

Describes eBay as the ultimate experience in terms of great deals and trustworthiness

No need to visit other auction websites for better deals or more variety

Exhibit 4.8: EBay’s Functionality

The Basics EBay’s Score

Usability and ease of navigation

Intuitive interface guides both buying and selling process Logical organizational structure reinforces where you are in the

site at all times Speed Site is light on graphics, making performance quick on dial-up

connections Item searches are extremely fast

Reliability Site can handle 800,000 transactions per minute Outages, a problem in eBay’s earlier days, have been reduced to

a minimum Media accessibility EBay Anywhere enables access from any wireless device Security Security keys for payments separate from eBay passwords,

adding extra level of protection Encryption used on all transactions to ensure safe exchanges

Chapter 4: Customer Experience The Elements of Customer Experience

The Stages of Customer Experience Hierarchy

Broad Goals in Designing Desirable Customer Experience

EBay’s Customer Experience

Conclusion

Customer Experience — Conclusion

Customer experience refers to a customer’s perception and interpretation of all the stimuli encountered while interacting with a firm

There are three stages to the customer experience, which are outlined by the customer-experience hierarchy:

Stage One: Experiencing Functionality — “The Site Works Well” Stage Two: Experiencing Intimacy — “They Understand Me” Stage Three: Experiencing Evangelism — “I Love to Share the Story”

In the process of designing a desirable customer experience, firms should set six broad goals: 1) create a rich description of the target customer, 2) develop use-case scenarios for each target segment, 3) effectively integrate the online and offline experience, 4) articulate clear stages of desired experience, 5) effectively assess relative levels of hierarchy, and 6) highly leverage the evangelists