Transcript Internet Marketing Chapter 6 Lecture Slides

chapter
4
Customer 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
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
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
Experience
1.
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
Point-Counterpoint
Brand Awareness
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
Customer Experience Is
the Key to Success
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
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 …
Stage One: Functionality
Stage Two: Intimacy
Stage Three: Evangelism
Design and information
architecture
Deep understanding of customer
behavior
Platform independence
Efficient transactions
Warehousing and mining
Tailoring of pages and offerings
Overlay human interaction
Integrated data
Consistent performance over
time
Constant innovation and
upgrading (incremental or
significant)
Supports evangelists
Acknowledgment of evangelists

This Is What the Customer
Experiences
Site is easy to use
Quick downloads
Intuitive navigation
Site reliability

Personalization
Increasing trust
Repeated experiences of
exceptional value
A sense of “being in the
know”
Consistent experiences
Significant benefits relative to
other offerings
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
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
Broad Goals for Creating a
Desirable Customer Experience
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
6.
Highly Leverage the Evangelists
Exhibit 4.5: Stages of Customer
Experience for REI.com
Generic Desired Customer
Experience
Functionality

Intimacy

Evangelism

Site is usable
Easy navigation
Quick download
Speedy site
Reliable
High trust
Consistent experience
Quick, effective communication
High personalization
Exceptional value
Consistent with brand message
Takes word to the market
Defends the experience
What REI.com Delivers
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
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
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
Create Rich
Description of
Target Customers
Develop Use-Case
Scenarios for Each
Target Segment
Integrate Online and
Offline Experience
Articulate Stages of
Desired Experience
Assess Levels of
Hierarchy
Leverage the
Evangelists
Monitor and Adjust
Benefit to Customer
Company better able to imagine
customer motivations

Company better able to anticipate
and meet customer needs and
expectations
Customer experiences consistency
across brand and channels
Customer experiences increased
attachment to company, greater
loyalty and potential for evangelism
Customers perceive that they are of
value to the company

Customer participation in brand and
marketing is rewarded by feeling of
belonging and community
Major and incremental changes to
site diminish barriers to good
experience

Benefit to Company
Brings market research to life
Allows shared understanding of customer
types
Site designers put themselves in
customers’ shoes, which helps create
intuitive navigation and ensures usability
Enhanced overall sales, lessening of
perceived channel cannibalization
Company able to map desired outcomes
to product and site deliverables

Company able to consider strategies for
moving customers along the experience
hierarchy
Company gains insight into product uses
and product development; benefits from
viral marketing
Online channel’s full potential is
leveraged

Exhibit 4.7: Stages of Customer
Experience for EBay
Stages
Generic Desired Customer Experience for
Auctions
Functionality

Intimacy

Direct message
Clean layout
Quick browsing, searching, and bidding
Straightforward selling
Good market segmentation (by category,
region, special interests
Reliable
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

Evangelism
Taking word to the market
Defends the experience
Look down on competitors

What eBay Delivers
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

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”

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
EBay’s Score
The Basics
Usability and ease of
navigation
Speed
Reliability
Media accessibility
Security
Intuitive interface guides both buying and selling process
Logical organizational structure reinforces where you are in the
site at all times
Site is light on graphics, making performance quick on dial-up
connections
Item searches are extremely fast
Site can handle 800,000 transactions per minute
Outages, a problem in eBay’s earlier days, have been reduced to
a minimum
EBay Anywhere enables access from any wireless device
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