Unlocking Opportunity at the Intersection of Brand and Customer Experience Kevin Perlmutter Senior Director, Brand Strategy September 14, 2009
Why should we care about brand?
High Quality Coffee Excellent Flavor
High Quality Coffee Excellent Flavor
Branded Price Premium
Non-branded
$1.00
$3.00
Strong brands drive awareness, stimulate demand and positively impact earnings 2 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
84% of companies don’t know the cost of a customer complaint 65% don’t know the length of an average customer relationship
Source: Stativity Group 3 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
Customer experience is impacting the behavior of potential customers
“Waiter, there’s a fly in my soup (and I have an iPhone).” New York Times Headline, 9/2/09
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Engagement in social media correlates to financial performance Top 10 Brands Engaged in Social Media 1. Starbucks 2. Dell 3. eBay 4. Google 5. Microsoft 6. Thomson Reuters 7. Nike 8. Amazon 9. SAP 10. Tie – Yahoo/Intel
Sources: ENGAGEMENTdb: The World’s Most Valuable Brands. Who’s most engaged? July 2009 & “New Study Finds Correlation Between Social Media and Financial Success”, Sarah Perez, Read Write Web 6 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
Brands engaging communities through social media grew revenues by 18%, those that didn’t sunk 6%
Our role is to improve the quality of the relationships that people have with our brands to improve business performance.
7 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
A relationship is‌
The way in which two or more people or organizations regard and behave toward each other.
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In human relationships there is a correlation of relationship quality and behavior
Great Relationships
Bad Relationships
1. I want to spend more time with you
1. I want to spend less time with you
2. I want to be devoted to you
2. I prefer to see other people
3. I want to tell everyone you’re great
3. I want to tell everyone I don’t like you
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Brand relationships work the same way
Customer experience affects the bottom line
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Customer experience impact revenue
Customer experience affects the bottom line
Average impact of a 10% improvement in Forrester’s Customer Experience Index for a $10 billion company. 11 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
Strong brands drive choice, loyalty and value Brand influences customer’s choice
Role of Brand
Higher level of earnings
Value Brand is a key competitive asset Brand Strength
Higher security of future earnings
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Opportunity does exist at the intersection of Brand and Customer Experience Brand Evolution
Customer Experience Analysis
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It’s an ongoing loop of needs analysis and fulfillment, just like any good relationship.
Focus Area #1: How does your brand work today? Brand Evolution
Customer Experience Analysis
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How well is your brand aligned with the drivers of choice?
To unlock opportunity, we need to analyze the customer journey
How People Engage
Passively aware
Relevance triggerneed/want
Evaluating Selecting options
How People Buy
Deciding where to buy
Shopping
Confirming Buying Decision
How People Commit
Activating
Using
What are the key drivers, pain points, experience enhancers and experience gaps? 15 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
Committing Advocating
What is the quality of the relationship?
Decision Process Touchpoint Usage
Messages
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How can the experience be better?
How People Engage
How People Buy
How People Commit
Continue: What positive things should we continue doing Stop: What experience detractors should we stop doing Start: What new things should we start doing
17 17 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009
How can your brand work better?
Brand Strategy
How People Engage
Passively aware
Relevance triggerneed/want
Evaluating Selecting options
How People Buy
Deciding where to buy
Shopping
Confirming Buying Decision
Business Performance
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How People Commit
Activating
Using
Committing Advocating
Focus Area #2: Created branded customer experiences Brand Evolution
Customer Experience Analysis
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What follows are 5 opportunities to improve the experience and evolve the brand
1. Eliminate pain points
Understanding and eliminating pain points
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2. Link the brand to a top driver
My Deals
Ordering
Ink & Toner
My Rewards
Easy Solutions
Staples delivers on its promise of Easy. The Easy Button desktop application has become a huge success with small business – tens of thousands have been downloaded yielding tremendous loyalty and repeat usage. My Deals
Source: Klipfolio
Ordering
Ink & Toner
My Rewards
Easy Solutions
3. Create Hero Products or Services
Westin Heavenly Bed
Westin drives demand for the Heavenly offering inside and outside the hotel. They have sold about 30,000 full Heavenly Beds, 100,000 pillows and 32,000 sheet sets for home use. Nordstrom alone has sold $20 million worth of Heavenly Beds. Source: USA Today, 5/14/09
4. Innovation
Within 4 years of launch, Dyson became the fastest selling vacuum in the UK, and overtook Hoover’s category leading market share in the US going from 0% to 20.7%. Source: NPD
5. Redefine the category experience
Mini has an incredibly loyal following thanks to a highly desirable end-to-end customer experience. Despite a down economy, US sales grew 29% in the 2008 to 54,000 – more than double 2002. Source: Business Week, 9/1/09
Brand is an evolving relationship and a driver of business performance Brand Evolution
1. Distinctive and Engaging Promise 2. Fulfilling Brand Experience 3. Customer-centric Evolution Customer Experience Analysis
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Thank you. Kevin Perlmutter Senior Director, Brand Strategy 212-798-7542 kevin.perlmutter@interbrand.com