Designing & Managing Experiences Chapter 6. Why care about experiences? Battle for the eyeballs...

Designing & Managing Experiences

Chapter 6

Why care about experiences?• Battle for the “eyeballs”• Increased customer loyalty• Increased focus on experience for product

and services – Product Purchase Process = Experience Service:

• Experience over convenience: Coke in Japan• Try and buy: Xscape Mall in UK and Europe

– Hospitality, retail, entertainment, education, websites, and many other industries

Chapter 6 - Designing & Managing Experiences 1

Economic Progression (Pine & Gilmore, 1998)

Economic Offering

Commodities Goods Services Experiences

Economy Agrarian Industrial Service Experience

Economic Function

Extract Make Deliver Stage

Nature of Offering

Fungible Tangible Intangible Memorable

Key Attribute

Natural Standardize Customized Personal

Method of Supply

Stored in bulk Inventoried after prod

Delivered on Demand

Revealed over time

Seller Trader Manufacturer Provider Stager

Buyer Market User Client Guest

Factors of Demand

Characteristics Features Benefits Sensations


What does it take to create an experience for customers?• What do you consider an experience?

• What creates memorable experience (i.e., pleasure, pain, or extreme challenge)?

• What creates an experience at a mass venue (mall, theme park, concert, or theatre)?

• What creates customised experiences?

• What resources are needed to create these experiences?

3Chapter 6 - Designing & Managing Experiences

Demand for Experiences & Implications

Environment

Industry Bricks Clicks

Traditional Entertainment

Industries

Non- Entertainment

Industries

• Increased Capital Expenditures

• theatres• theme parks• film & TV

• Increase emphasis on experience design

• Increased demand for • New experiences• Eatertainment• Edutainment• Themed Hotels, Malls, &

Restaurants (Shoppertainment) • Try & Buy Retail

• Migration of content• Digital revolution & website

overload• 2D > 3 D issues• Interactive with TV• Bandwidth

• Increased emphasis on experience design

• More challenging to create a rich and memorable experience

World Experience BusinessEconomic Drivers

• Customer Loyalty over satisfaction

• International Opportunities

• Supply & Barriers to Entry

• Universal Appeal

• Technology

• Long term customers4Chapter 6 - Designing & Managing Experiences

Relational Model of Managed Customer Service

Process

Service Provider Customer

Context

Engagement

Time

Outcome

Memory

Loyalty


Engagement

• Personal level– Active: customers affect the performance or event

(skiing or golf)– Passive: customers do not influence the

performance

• Environment– Immersion: customer “goes into” the experience

(Mist computer game or Club Med skit)– Absorption: Experience “goes into” the customer

(watching TV)


Examples

Environment Relationship

Absorption Immersion

Participation Passive Entertainment

Television

Circus

Theatre

Video/DVD

Esthetic

Grand Canyon

Cathedral

Bellegio Water Show

Active Educational

Training

Discussion

Laboratory

Escapist

Mist Computer game

Terminator 2 Ride

Chat rooms

Realms of Experience

Educational

EscapistEsthetic

Entertainment

Sweet Spot

Immersion

Passive Participation

Absorption

ActiveParticipation

Retailment or Shoppertainment


Autostadt• $400 million, 62-acre factory/car

dealership/theme park in Wolfsburg, Germany


Edutainment:Bonfante Gardens, Gilroy, CA.


Context

• Where customers consume the service and everything they interact with in that setting. Starbucks “contemporary bohemian” context

• Relational elements

• Physical elements

Relational Context

• Theme: unifying story or metaphor

• Learnable and Usable

• Mutable: flexibility for customers to create their own use environment or personal experience

Theme Generation

• Joie de Vivre: 18 themed Boutique Hotels in Bay Area

• Method: Take a magazine and generate 5 adjectives to describe it and the people that would read it. Design hotel experience around those words.

• Example: Hotel Rex = New Yorker– Worldly, sophisticated, literate, artistic, & clever– Designed like an arts and literary salon of 1930s.

Clubby lobby with period furnishings, paintings, and old books. Rooms have local artists paintings and contemporary amenities.

Theme: Rolling Stone

• Funky, hip, young-at-heart, irreverent, and adventurous• The Phoenix Hotel has been popular with the entertainment industry for

over a decade. This funky, urban retreat is an unexpected oasis, featuring a landmark pool, original 50s architecture, and island-inspired guestrooms. Backflip, the hotel's poolside cocktail lounge, is drenched in glamorous bachelor pad style and the music of the City's most progressive DJ's.

Theme: Movie Line• Dramatic, nostalgic,

fun-loving, classic, and informal

• Each light and comfortable guestroom is named for a motion picture shot in San Francisco, with original movie stills as decorative room accents


Learnable and Usable

Mutability• Furby• Groundswell Surf

Camp– Surfing instruction for

all ages in a surf camp environment


Physical• Layout: Physical layout and arrangement

of objects (should encourage active participation) and reinforce theme

• Sensory: Sensory elements increase immersion and support theme (T-2)

• Social Interaction: Interaction between guest and service provider and/or fellow guests. Increases identification with service (Club Med and Cirque Du Soleil)


Sensory• Smell• Taste• Touch• Sound• Sight

– Cirque Du Soleil (“O”), T-2 Ride, W Hotels, and IMAX Theaters.

– See www.ideo.com


Social Interaction Yahoo Groups


Social Interaction - Burning Man Event


Time• Memorabilia

– Is a physical reminder of experience, extends memory of it long after

– Generates dialogue about experience– Provides additional revenue

• Continuity– Time aspects of experience as it relates to the

individual (bonding and moving through stages)• Dynamic

– A desirable pattern for experiences revealed over a specific time frame• Long or short term vs. intensity• A script or music score• NOLS or Outward Bound


Creating the Process of Customer Experience

Increase

COMMITMENT & LOYALTY

Memorabilia

Continuity Dynamic

TIME

CONTEXT

RELATIONAL

Learnable – Usable – MutableSocial – Interaction

Increase Emotion & Cognition

PHYSICAL

Theme – Layout – Sensory

Increase Physical Interaction& Cognition

Entertainment Esthetic

Educational Escapist

ABSORBTION IMMERSION

PA

SS

IVE

AC

TIV

EENGAGEMENT

Dimension Hard Rock Café Planet Hollywood

Engagement: Entertainment & Food

Move from passive to active

Move from absorption to immersion

Get guests to stay/return Make experience fun Connect emotionally with

customers Increase thrill, surprise, delight

Offers high quality American diner/pub food

Has 100 Cafes in 40 countries

Appeals to international music enthusiasts

Connects with irreverent, rebellious customer group

Keeps the legends and adds new talent constantly

Refreshes concept constantly and adds new features hardrock.com, performances, CDs, and Hotels

Offered low quality eclectic food, i.e., Cap’n Crunch chicken strips

Had 80 restaurants predominately in US

Appealed to celebrity seekers

Connected with tourists (not locals) seeking stars when stars are available

Depended on star availability at cafe

Kept a stable of celebrity-stock holders who may or may not be in favor

Difficult to refresh concept without constant major investments in hot stars

Added concept with sports stars

Example: Themed Restaurant Successful & Failed Experiences

Dimension Hard Rock Café Planet Hollywood

Context:

Physical and Relational

ThemeLearnable and usableMutableLayoutSensorySocial Interaction

“Authentic keeper of the rock music experience”Updates atmosphere, locations, food, and music constantlyAllows different customers to create use environment and chose musicDesigns layout for dining, drinking and/or concert Offers high quality multi-sensory experienceEncourages social interaction and fan building

“Tribute to Hollywood”Offered easy to understand concept but not well executedDid not offer mutable stars since once star has passed prime or does not want to visit sites, they lose appealDesigned layout for dining and viewing memorabiliaOffered poor quality food experience and unpredictable star viewing experienceOffered limited interaction depending on location and time

Time:

Move from Sequential & Narrative over Synchronic

Move from Static to Dynamic

MemorabiliaContinuityDynamic

Offers constantly refreshed rock music memorabilia, live concerts of new & Legendary artistsProvides customers with many opportunities to enhance initial experience through ongoing activities and international locationsControlled expansion of concept over 30 years with careful location and relocation analysis

Offered Hollywood memorabilia but no updating of merchandiseFound it difficult to attract contemporary stars so lost key demographic customer; suffered from “graying of celebrity stable”Provided limited reason to enhance initial experienceHyper-speed expansion over 8 years and self-cannibalization

Themed Restaurant Successful & Failed Experiences (continued)

Context Engagement Time

Service

Design

What is the theme and how does it

address market segments?

Is the theme reflected in all context with which the customer interacts?

Is the service easy to learn and use?

How effective are navigational materials and guides for different users?

In what ways has flexibility been incorporated into the design?

How can different users customize the services to maximize their experience?

How does the layout and tools encourage active participation ?

How have the five sensory elements been incorporated? Fit theme?

How do sensory elements help shift customer’s reality?

How can sensory elements create transitional areas?

Are there different opportunities for social interaction between employees and guests?

Is there a way to get customers actively engaged (physically, emotionally, or intellectually)?

How can the customers immerse in the design?

How is there a sense that customers have moved to another reality?

In what ways can customers emotionally connect with the services?

Are there opportunities for play, fun, or enjoyment?

Are there opportunities for customers to learn, to create, to increase their depth and breadth of knowledge over time?

Is the context esthetically pleasing?

What will make guests come in and spend time in your setting (virtual or physical)?

How has memorabilia been incorporated?

How does the memorabilia match the theme?

How can the experience be extended or built upon?

How can the experience unfold over time?

How many encounters does it take for the customer to bond with the service?

If the bond is broken, are there opportunities to repair the link?

Are there opportunities for membership clubs, chat rooms, or long term social groups?

What is the duration of the encounter?

How is the experience orchestrated or designed for building emotional commitment during the given time span?

How does the guest see a beginning, middle, and end of the experience in live and virtual environments?

Is there an intended narrative and how is that conveyed to customers?

Employees Do employee behaviors and costume reflect the theme?

How can employees help customers learn the service?

Are employees trained to act as guides?

Are employees trained to read body language and customer intentions for the service and react accordingly?

How are employees trained for interactions with guests?

How do employees help to actively engage the customers?

How do employees help customer immerse in the experience?

How do employees play a role in creating another reality?

How do employees help the guests into the experience and participate in getting them to stay?

Have employees been trained to help orchestrate the experience?

How do employees help deliver the beginning, middle, and end of the experience?

How do employees contribute to the intended narrative?

Are employees empowered to create a customized experience for each customer?

Designing & Managing Experiences Chapter 6. Why care about experiences? Battle for the eyeballs...

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