1. Internet Marketing, 2nd Ed Mohammed, Fisher, Jaworski, Paddison Chapter 4 Lecture SlidesCustomer ExperienceExhibits and TablesCopyright 2003 by Marketspace LLC

2. Customer Experience Todays Objectives To understand how the desired customer experience influences marketing choices Chapter 3 Formulating theMarketing StrategyChapter 4Designing the CustomerExperienceChapters 6-14Designing theMarketing Program Last Updated: 04/10/03Copyright 2003 by Marketspace LLC 3. Chapter 4: Customer Experience Defining the customer experience - the seven elements The Experience Hierarchy - stages of customer experience Steps in the process of creating desirable customer experience Case Study: eBay Conclusion Last Updated: 04/10/03Copyright 2003 by Marketspace LLC 4. Chapter 4: Customer Experience Defining the Customer Experience - the seven elements The Experience Hierarchy - stages of customer experience Steps in the process of creating desirable customer experience Case Study: eBay Conclusion Last Updated: 04/10/03Copyright 2003 by Marketspace LLC 5. Supporting Slide 4A: What is Customer Experience?Customer Experience is a target customers perception and interpretation of all the stimuli encountered while interacting with a firm CompetitorsCustomer TransactionExperience Product Quality Reviews AdvertisingPrice Expectations HomePage Hearsay TrustSite Reliability Speed of Delivery Last Updated: 04/10/03Copyright 2003 by Marketspace LLC 6. Supporting Slide 4B: Seven Key Elements of Customer Experience Site must meet basic functionality requirements The Objective Element Individuals will note and care about certainThe Perceived Element aspects of the encounter based on their ownunique perceptions The entire customer encounter element includesThe Encounter Element both process and output measures Customers respond to multiple variables, fromThe Reactions to Stimuli Elementthe tactical layout of the site to high-levelinterpretations of the meaning of the brand The customer experience can incorporate all five The Sensory Elementsenses Cognitive responses are thoughtful andThe Cognitive and Emotional Element evaluative in nature; emotional responses tend tocapture moods, attitudes and feelings of thecustomer Previous, separate experiences can affect a The Relative Element consumers reaction to various stimuli during anew experienceLast Updated: 04/10/03 Copyright 2003 by Marketspace LLC 7. Supporting Slide 4C: Role of Customer Experience Articulating a desired customer experience connects high-level positioning strategy to program-level tactics Desired Customer Experience How we are positioned What marketingto win in the market activities we will where we will competeengage inLast Updated: 04/10/03 Copyright 2003 by Marketspace LLC 8. Supporting Slide 4D: Point-Counterpoint: Brand Building vs. Customer ExperiencePoint-Counterpoint Brand Awareness Customer Experience IsIs the Key to Success the Key to Success Building brand awareness leads to traffic Focusing on customer experience is the Investors need to see site traffic and the single most profitable thing a businesslikelihood of future profitability can do Offering a great customer experience Customers that have a positivewhen nobody know s about the site is a experience with the site are more likelywaste of resources as long as a baseline to keep coming back and to tell theirfunctional standard is being met peers about it Positive customer experience leads to purchases at commerce sites, exploration at content sites and participation at community sites Last Updated: 04/10/03Copyright 2003 by Marketspace LLC 9. Chapter 4: Customer Experience Defining the Customer Experience - the seven elements The Experience Hierarchy - stages of customer experience Steps in the process of creating desirable customer experience Case Study: eBay Conclusion Last Updated: 04/10/03Copyright 2003 by Marketspace LLC 10. Exhibit 41: Stages of Customer Experience The Experience Hierarchy outlines the three stages of customer experience, from a users first click on a site to the point at which that user experiences site loyaltyStagesIf a Firm Gets This RightThis Is What the Customer ExperiencesStage One: Design and information architecture Site is easy to use Functionality Deep understanding of customer needs Quick downloads Platform independenceIntuitive navigation Efficient transactions Site reliability Stage Two: Warehousing and mining Personalization Intimacy Tailoring of pages and offerings Increasing trust Overlay human interaction Repeated experiences of exceptional value Integrated data A sense of being in the know Consistent performance over time Consistent experiences Constant innovation and upgrading Significant benefits relative to other offerings(incremental or significant) Stage Three: Supportof evangelists Desire to take message to the market Evangelism Acknowledgment of evangelists Community benefits Last Updated: 04/10/03Copyright 2003 by Marketspace LLC 11. Supporting Slide 4E: Stage 1: FunctionalityA firm must fulfill certain responsibilities at each stage of customer experience in order to deepen customer involvement Stage 1: The Site Works WellFirm ResponsibilitiesCustomer Experience Great design and information Usable sitearchitecture Quick, speedy downloads Deep understanding of customer Easy navigationbehavior Reliability Platform independence Server transactions Last Updated: 04/10/03Copyright 2003 by Marketspace LLC 12. Supporting Slide 4F: Stage 2: IntimacyOnce the functionality hurdle has been met, firms can distinguish themselves by establishing a more individualized connection Stage 2: They Understand MeFirm ResponsibilitiesCustomer Experience Warehousing and mining of data Personalized information Tailoring of pages and offerings Increasing trust Overlay human interaction Consistent experiences Integrate data with web page activityLast Updated: 04/10/03 Copyright 2003 by Marketspace LLC 13. Supporting Slide 4G: Stage 3: EvangelismLoyal long-term customers serve to bring other target customers into the brandStage 3: I Love to Share the Story Firm Responsibilities Customer Experience Acknowledge evangelists Wants to take message to the Support evangelists market Enjoys benefits of community Last Updated: 04/10/03Copyright 2003 by Marketspace LLC 14. Exhibit 42: Stages of the Customer Experience Over Time Last Updated: 04/10/03Copyright 2003 by Marketspace LLC 15. Exhibit 43: The Seven Deadly Sins of Customer Experience No search feature. Customers must navigate a company-specified path or consult a site map in order to find what theyre looking for. No indication until checkout that an item is out of stock. Hard-to-find contact information. The absence of phone numbers is especially irritating to customers, even though the company may find it beneficial. No gift certificates or gift shipping options. No shipping information or costs until the end of checkout process. This is one of the top reasons that shopping carts are abandoned. So-called opt-in marketing buttons. When check boxes default to settings in the companys favor, customers have to uncheck them to avoid unwanted marketing messages. No printer-friendly feature. This results in hard-to-read printouts and wasted paper.Last Updated: 04/10/03 Copyright 2003 by Marketspace LLC 16. Chapter 4: Customer Experience Defining the Customer Experience - the seven elements The Experience Hierarchy - stages of customer experience Steps in the process of creating desirable customer experience Case Study: eBay Conclusion Last Updated: 04/10/03Copyright 2003 by Marketspace LLC 17. Supporting Slide 4H: Seven Steps in the Process of Creating a Desirable Customer ExperienceCreate a Rich Description of the Target Customer Develop Use Case Scenarios for Each Target SegmentIntegrate the Online and Offline Experience Articulate Clear Stages of the Desired ExperienceAssess Relative Levels of HierarchyHighly Leverage the Evangelists Continuously Monitor and Adjust Last Updated: 04/10/03 Copyright 2003 by Marketspace LLC 18. Exhibit 44: REI.com Organizes Around Customer NeedsSearch box is Customers canprominentlyTab navigation view products by displayed. sorts content into activity type,intuitive sections. equipment type, age/gender, or usage occasion.Subnavigationoffersadditionaldetail.Third-party recommendations enhance customers trust in products. Last Updated: 04/10/03 Copyright 2003 by Marketspace LLC 19. Exhibit 45: Stages of Customer Experience for REI.com Stages Generic Desired Customer Experience What REI.com Delivers Functionality Site is usable Content organized around user needs Easy navigation Easy-to-find gear and activity information Quick download Multiple views of products and services Speedy site Website that rates high on efficiency and fulfillment Reliable No crashes and limited downtimeIntimacy High trust Authoritative content and information Consistent experience Kiosks in store link to online channel Quick, effective communication Easy access to customer service, including live online help High personalization E-mail newsletter Exceptional value Member discounts and rebates Consistent with brand message Product returns to store or by mail Adventure travel serviceEvangelism Takes word to the market Membership advantages Defends the experience E-mail option for sharing information Community message boards In-store and local events Last Updated: 04/10/03Copyright 2003 by Marketspace LLC 20. Exhibit 46: Summary of Steps in Creating Good Customer Experience StepBenefit to Customer Benefit to Company Company better able to imagine customer Brings market research to life Create Rich Descriptionmotivations of Target Customers Allows shared understanding of customer types Company better able to anticipate and meet Site designers put themselves in Develop Use Casecustomer needs and expectationscustomers shoes, which helps create Scenarios for Each intuitive navigation and ensures usability Target Segment Customer experiences consistency Enhanced overall sales, lessening ofacross brand and channelsperceived channel cannibalization Integrate Online and Offline Experience Customer experiences increased Company able to map desired Articulate Stages of Desired attachment to company, greater loyalty outcomes to product and site Experience and potential for evangelism deliverables Customers perceive that they are of Company able to consider strategies Assess Levels of Hierarchy value to the company for moving customers along the experience hierarchy Customer participation in brand and Company gains insight into product Leverage the Evangelistsmarketing is rewarded by feeling ofuses and product development;belonging and communitybenefits from viral marketing Major and incremental changes to site Online channels full potential is Monitor and Adjustdiminish barriers to good experience leveragedLast Updated: 04/10/03 Copyright 2003 by Marketspace LLC 21. Chapter 4: Customer Experience Defining the Customer Experience - the seven elements The Experience Hierarchy - stages of customer experience Steps in the process of creating desirable customer experience Case Study: eBay Conclusion Last Updated: 04/10/03Copyright 2003 by Marketspace LLC 22. Exhibit 47: Stages of Customer Experience for eBayStagesGeneric Desired CustomerWhat eBay DeliversExperience for Auctions Functionality Direct message Easy-to-locate items Clean layout Easy-to-upload information about selling Quick browsing, searching, and bidding Fast auction interactions Straightforward selling Easy-to-understand rules and auction interface Good market segmentation (by category, No website crashes and limited downtime region, or special interests) Very efficient access Reliable Intimacy Effective communication User constantly knows status of auction Consistent experience Site is consistent across all areas Trustworthy customer service Quick, effective personalized e-mail responses Only the necessary level of personalization Users make My eBay" their main interface with the site Exceptional value Enabling transactions is regarded by eBay community as Consumption for leisure extremely valuable Channel for selling, especially B2C Businesses use eBay as a distribution channel Active community membersActive users in personal and companys feedback forums Assistance in brand buildingFeedback forum becomes emotion-driven: I wonder what people are saying about me Evangelism Takes word to the marketDescribes eBay as the ultimate experience in terms of Defends the experiencegreat deals and trustworthiness Look downs on competitors No need to visit other auction websites for better deals or more variety Last Updated: 04/10/03 Copyright 2003 by Marketspace LLC 23. Exhibit 48: EBays Functionality The Basics EBays ScoreUsability and ease of navigation Intuitive interface guides both buying and selling process Logical organizational structure reinforces where you are in the site at all timesSpeed Site is light on graphics, making performance quick on dial-up connections Item searches are extremely fastReliability Site can handle 800,000 transactions per minute Outages, a problem in eBays earlier days, have been reduced to a minimumMedia 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 exchangesLast Updated: 04/10/03 Copyright 2003 by Marketspace LLC 24. Exhibit 49: EBay Tailors the User Experience to the Individual UserLast Updated: 04/10/03 Copyright 2003 by Marketspace LLC 25. Exhibit 410: EBay Community Resources Last Updated: 04/10/03Copyright 2003 by Marketspace LLC 26. Chapter 4: Customer Experience Defining the Customer Experience - the seven elements The Experience Hierarchy - stages of customer experience Steps in the process of creating desirable customer experience Case Study: eBay Conclusion Last Updated: 04/10/03Copyright 2003 by Marketspace LLC 27. Customer Experience Conclusion Customer experience encompasses a customers perception andinterpretation of all the stimuli encountered while interacting with a firm The Experience Hierarchy is the three stages a customer can passthrough as their relationship with the product evolves Stage One: Experiencing Functionality: The Site Works Stage Two: Experiencing Intimacy: They Understand Me Stage Three: Experiencing Evangelism: I Love to Share the Story Designing the ideal customer experience through each of the threestages can assist marketers in making the transition from high levelpositioning strategy to program level tacticsLast Updated: 04/10/03 Copyright 2003 by Marketspace LLC