Optimizing Customer Experience

Proprietary & Conﬁden0al
brand growth strategy
Optimizing the Customer Experience

Tutorial workshop prepared for and facilitated on behalf of:
American Marketing Association
2014 Annual Conference, Inspired Marketing

Michael Million
mmillion@fullsurge.com

PROPRIETARY AND CONFIDENTIAL
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You’ve got to start with the
customer experience and work
back toward the technology –
not the other way around

Steve Jobs

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We see our customers as
invited guests to a party, and
we are the hosts

It’s our job everyday to make
every important aspect of the
customer experience a little
bit better
Jeﬀ Bezos

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Starbucks spent less than
$10MM on advertising from
1987 to 1998 yet added over
2,000 new stores to
accommodate growing sales

Starbucks' popularity is based
on the experience that drove its
customers to highly recommend
their store to friends and family
Howard Shcultz

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A trio of anthropologists recently
published an article based on
observations at three independently
owned coffee shops and three Starbucks
locations around Boston.

Their intention was to determine how
effectively Starbucks are able to provide
the same community-based social
environment associated with traditional
coffee shops.

How Starbuck’s drives loyalty - a study in customer
experience

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The biggest surprise was that Starbucks
actually provided a more welcoming
environment than any of the three local
coﬀee houses.

They credited one Starbucks with having
the most vibrant sense of community, and
observed that the baristas there knew
many patrons by name and could
anticipate their orders.

The anthropologists also noted that the
Starbucks baristas were friendlier to new
customers than the bespoke hipsters
behind the counter at the local places.
Same everywhere, but we still make you feel special

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§  Warm up Exercise 15
§  Foundational Terms & Focus for Today 15
§  Inspirations & Examples 15
§  Methodology Applied to a Case 30
§  Break-outs & Report-backs 45
§  Conclusions
Agenda

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What are some of examples of great customer experiences?

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What makes them so great?

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Where does customer experience sit in your company?
How much of a priority is it?
How is it viewed in the organization?

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Where does customer experience sit in your company?
Who’s responsibility is it?
How is it managed?

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§  Conclusions
Agenda

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What is customer experience?
Cumulative Impact Deﬁnition
Multiple touchpoints over time, which
result in a real relationship feeling, or lack
of it.
- Wikipedia

A set of expressions, impressions, and
interactions between a customer and
company that result in certain perceptions
of that company that, in turn, drive some
type of action in the near or long long-term
- M. Million

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Distinct Economic Offer Definition
A personal and memorable experience
that creates a distinct economic offer
different from the goods sold and services
delivered
A company's ability to deliver an
experience that sets it apart in the eyes of
its customers serves to increase the
amount of consumer spending with the
company and, optimally, inspire loyalty to
its brand
- Pine and Gilmore, Experience Economy

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Psychological Underpinning Deﬁnition
An interaction between an organization and
a customer as perceived through the
customer’s conscious and subconscious
A blend of an organization’s rational
performance, the senses stimulated and the
emotions evoked and intuitively measured
against customer expectations across all
moments of contact
•  Not just about the rational ”what” but also about the
emotional “how”
•  More than 50% is subconscious, or how a customer
feels
•  Factors such as the emotional, cultural, social, and
physical aspects are often over-looked

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Different approaches toward customer experience
Like segmentation, the right approach depends on knowing specifically
what the business challenges are and objectives you seek
§  Financial – how do we squeeze costs out of
the system, get customers to pay more (e.g.
airlines charging for pillows), or expedite
transactions (path to purchase)?
§  Operational – how do we streamline
operations to make it more efficient from end
to end (e.g. process reengineering)?
§  Technical – how do we enable the system to
be more productive, manageable, and
interconnected (digital enablement)?
Internally Oriented Externally Oriented

§  Functional path – how do we make
customers’ journeys easy, informative, and
helpful throughout?
§  Emotional path – how do we address
customers’ changing psychological or
emotional needs as their decision-making
evolves (e.g. decision anxiety, confusion,
frustration, boredom)?

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An argument for a “Brand Experience” Approach
The world is growing increasingly complex and fast-paced
We are inundated by more and more marketing messages (and yet, we don’t trust
them any more than we used to)
Technology improvements are enabling more and more companies to get the basics
right (e.g. convenience, reduced wait times)
Copying is becoming increasingly easy – “sameness” of more and more products and
services / making diﬀerentiation ever more diﬃcult

Brand experiences will drive tomorrow’s success and allow companies to stand out
(products, services, and even “good” experiences aren’t enough anymore)
We look for and value what is personally meaningful to us - experiences we have with
companies seem to matter more

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So, what is a “Brand Experience”?
Interactions so impactful and uniquely identifiable to a particular company, that
they define the brand in customers’ minds, distinguish the company far and away
from its competitors, and have a high influence on future behaviors
§  Nordstrom's sales representatives going above and beyond
§  Tumi’s lifelong repair policy
§  Apple’s Genius Bar
§  Uber’s payment system
§  Others????

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Beneﬁts of a “Brand Experience”
According to studies by McKinsey, brand
experiences are the most powerful form
of word of mouth driving activity -
accounting for 50 to 80 percent in any
given product category.

Brand experience is inherently social, it's
built on ideas that people want to spend
time with and that people want to share.

50% to 80%
of word of mouth -
driven by brand
experience

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70% of consumers trust brand
recommendations from friends, but only
10% trust advertising.

UK Energy supplier, E.ON developed EON Open
House, a store in Nottingham, UK that educates local
customers about smart meters, which are being ﬁtted
for free across Nottingham.

The project proves the power of brand experience by
delivering positive advocacy when traditional methods
had previously failed the brand; Net Promoter Scores
of +88% vs. E.ON Customers control of -17.7%.
- The Guardian

70%
trust brand
recommendations
from friends

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The Keller Fay Group research shows that
good brand experiences are three times
more likely to spark conversations than
an ad.

Furthermore, over 50% of conversations
triggered by an in-person experience
account for pass along and purchase.

>50%
Account for pass along
and purchase
3X
More likely to spark
conversations than
advertising

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I don’t want to be sold to
when I walk into a store.

The job is to be a brilliant brand
ambassador. Don’t sell! No!
Because that’s a turn-oﬀ.

Build an amazing brand
experience, and then it will just
naturally happen.

Angela Ahrendt

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A great brand experience is about knowing and interpreting
Know thyself
(inside-out)
§  Who you are
§  Where you’re going
§  What your brand
stands for
Know thy customer
(outside-in)
§  Who they are
§  What’s most
important to them
§  What their journey
is like
Interpret Interpret
Brand
Experience
§  WHAT can we do for
customers that makes
their journey better
§  HOW can we do it in a
way that is uniquely us

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Great brand experiences have six things in common
1.  Brand ﬁrst, transact second
2.  Distinguishes customer types
3.  Focuses on what matters most
4.  Makes people feel special in some way, at some point
5.  Designs for continuity and intent (across channels, platforms, and path
to purchase)
6.  Measures, manages, and continuously improves

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§  Conclusions
Agenda

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VIDEO

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hEps://www.youtube.com/watch?v=Y1nzWY3JFJQ

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?
How would you characterize the Virgin America experience?

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Grab a pillow, take a nap
The Swedish manufacturer of hand-made
luxury beds, strives to make consumers’
experience transformative, from the
ﬁrst time they lay on the bed until the
bed arrives in their bedroom.
Guests are encouraged to take oﬀ their
shoes, pick their own personal pillow, and
even take a private nap on the bed of
their choice.
This simulation coupled with the highest
level of hospitality distinguishes Hästens
and burnishes the brand like no other
form of marketing can.
Winner of Sweden’s prestigious Signum award for
quality of long-term branding in 2013

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I’m here to take care of you
Each customer service representative is
available around the clock and
empowered to act on customer issues.
They are assigned to customers, stay with
them throughout their problem resolution
process, and get to know them as
individuals.
They often provide a personal touch, like
occasionally sending ﬂowers to a customer
or their partner to mark a birthday.
These gestures turn a faceless and cold
experience into something more special,
and give the brand a real heart and soul.

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Non-stop coffee
Through remote diagnostics each
Nespresso machine is technologically
enabled to feed up-to-the-minute
information of its status including rate of
consumption, water temperature,
pressure, extraction, etc., so local
Nespresso service offices get warning to
proactively address issues vs. waiting for a
service call.
This preventative maintenance has
significantly increased the uptime of its
machines and allows Nespresso to more
continuously brew great coffee for
discriminating guests.

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§  Conclusions
Agenda

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Roadmap to build a brand experience
DIAGNOSE (customer, journey, brand)
•  Know thy customer, their journey, and their contexts
•  Know thy customer pain points / improvement opportunities throughout the journey
•  Know thy brand, what makes it special, and what type of experiences it should provide
CREATE & BUILD (messy innovation, front-end design, engineering)
•  Interpret what you know about the target customer and your brand
•  Envision the impression and interaction / look, feel, etc.
•  Build out how things ﬁt together to turn the vision into a reality
STRATEGIZE (business, brand, prioritization, plan)
•  Clarify business objectives and growth strategy
•  Determine brand intent / role of brand in driving business objectives
•  Pinpoint interactions that matter most (what, when, and where you should spend eﬀorts on)
•  Determine “your” CE principles
EXECUTE & OPERATIONALIZE (systematize / routinize, manage, monitor)

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Decimated by the ﬁnancial crisis, a miracle was needed
In 2005, the US power boating industry was
307K units …. by 2011 it was 139K units – a
decline of 55%
24’-36’ Sport Cruisers (Sea Ray’s core) was
down even more – the hardest hit
The 50’-70’ yacht class ($3M boats - custom
homes that ﬂoat) represented the best
opportunity for Sea Ray to begin growing
again, as it was expected to recover the
fastest, but ….
Sea Ray had very little presence or product
in the category, and …..

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Opportunity in the small yacht class, but so much was unknown
…. the organization knew very little about
the market from a consumer perspective:
•  Who were the consumers for these
products?
•  How did they perceive Sea Ray?
•  What kind of experience did they expect
and weren’t receiving from strong
competitors?

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Approach
DIAGNOSE (consumer, journey, brand)

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In-depth research with target consumers around the world
§  Industry reports
§  Boating life social media
§  Competitor websites
§  Executive interviews
§  Product development plans
§  Ethnographic interviews at the
world’s largest Marina’s
§  Dealer / broker interviews

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Know thy customer
Observations Traits What they Value Expectations
Buyers are
surprisingly
grounded
Wealthy people
Who also
Work hard
In it for the long haul
Sharp, quick studies who understand
customer service. Those who keep them
from wasting their time will earn credit.
Responsive
Buyers are
restless and
driven
Self-made
Who also
Respect their roots
What has been earned
They’re not famous and they’re not blue-
bloods. They’re searching for ‘superior’
things have true merit.
Real
Cruisers are
emotional
ampliﬁers
Stretched thin
Who also
Crave relationships
Their time, above all else
Boating gives them a meaningful way to
connect with who they are, with those they
love, and with the natural world.
Connected
Every buyer is
unique in
personality and
expectations
Characters
Who also
Appreciate details
Cultivating rapport through
graciousness
Treating them with same thoughtfulness
and attention to detail that they strive to
uphold matters to them a great deal.
Personal
Genuinely
rooting for Sea
Ray
Nostalgic
Who also have
Discriminating tastes
Familiar things reinvented

Evolutionary

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Know thy customer journey
Service Area Pain
Prep & Strike •  People just want to get out on the water—prep tasks take up valuable time for owners
and their guests
•  Even the smallest issue discovered during prep can spark frustration when people are
waiting to leave the dock
Maintenance •  Owners have little faith in the quality of maintenance and suspect corners are cut
Repair •  The repair process feels opaque and lacks responsiveness
•  Owners don’t know who they are supposed to call when certain boat parts fail
Enhancement •  Pricing for a post-production change is often a negotiation that feels like being “nickel
and dimed”
•  There is very little support from the manufacturer, most of the load is on the owner
Hospitality •  Taking a boat out isn’t a spontaneous adventure—it requires signiﬁcant planning to
account for things out of a boater’s control (e.g., weather)
•  People want to enjoy themselves on the boat with food, drinks, and various other
provisions, but it requires a lot of time
Crewing •  The responsibility of operating a boat isn’t something people want to take on all the
time—there are many ways to enjoy a boat, and some owners feel locked into one

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Know thy brand
PARENTAGE
“Who” is behind the
business
PURCHASER
“Who” buys it
PURPOSE
What it’s designed
for
PROCESS
Custom vs.
Production
PLACE
Where it’s built
draws heavily from parent
LMVH to give the brand a
“luxe hotel” feel
long-standing association with 007
solidifies position in the market -
British quality with polarizing
attitude
the romantic side of old Italy
the modern, flashy, sexy side of Italy
draws heavily upon its
roots in fishing / known
for tank-like
construction and
sports car-like muscle
Opportunity
for Sea Ray

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Roadmap toward brand experience

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Know thy brand intent
Purpose
§  To re-energize the business by establishing a strong foothold in the luxury yacht class
§  Drive $X in revenues at %Y margins over the next three years
§  Engage consumers who historically wouldn’t have considered Sea Ray for a purchase in the
class level
Positioning
§  For those who have earned it along the way and are never satisﬁed
§  Sea Ray L-Class provides both the style and substance they seek in a 50’–70’ yacht class
§  By being responsive, real, connected, personal, and authentically Sea Ray
Persona
§  ARCHETYPE: The Warrior King
§  Relentless progress
§  Conﬁdent outlook
§  Passionate about craft
§  Connected to what’s important
§  “Bring it on” attitude
§  Respectful and respected

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Know thy brand intent
Grit & Grace
Here’s to those who started small. To the
ones who made it to the top without putting
people below them. The ones who climbed the
corporate ladder, or just built their own.
Here’s to the best of us, who never think
themselves better than anyone. To ones who
put class in the working class. The ones who
started small. But have gone big. This is the
yacht for people who’ll simply call it a boat.
Essence

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Determine “your” Customer Experience principles
Service Area Promise
Prep & Strike Easy
Arrive at the dock, get in your boat and go. When you’re finished, throw your keys to
the valet, and they will take care of the rest. It’s that simple.
Maintenance Dependable
Owners can trust their maintenance crew to keep the boat safe, pristine and ready for
use.
Repair Responsive
Owners experience no hesitation around how to get something fixed. Repairs are as
fast as possible, very transparent, and resolve every issue entirely.
Enhancement Adaptable
Direct manufacturer support to make sure owners are confident in their ability to make
changes without negatively impacting the quality of the boat.
Hospitality Informative
The boat isn’t just ready for operation, it’s ready for enjoyment and comfort. Owners
step on to the boat understanding the most pertinent information about their trip
before they leave and know there’s someone they can trust.
Crewing Liberating
Owners, particularly operators, can easily hire a trustworthy captain, first mate or any
other support person to fill in when operation feels like a burden.

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Determine “your” overarching Brand Experience principle

From To

SCALED PERSONALIZED
This guided the entire customer experience including awareness, web
site, events, manufacturing plant, customer care & service, delivery,
personal touches, ongoing management

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Examples of how “scaled” to “personalized” will play out
AWARENESS Special interactions vs. a broad campaign / let the new boat be discovered
by targets vs. blasted to the masses
WEB SITE Concierge service that put prospects directly in touch with a Sea Ray
representatives to do a proper job of introducing the new yacht and inviting
users into a dealer where both would meet with them
EVENTS Intimate, luxury-ﬁlled settings of ~100 attendees at unique locations along
the coast.
DELIVERY Sea Ray captain to come with boat / walking customers through vessel in
detail, dealer training
PLANT Turning it into a design / experience center where prospects can tour the
site / hands-on selection of materials (vs. picking out of a catalogue –
getting the “feel” of the material)
BUILDING
PROCESS
VIP parties, emailed pictures of progress, extending into a bound book,
construction manager attention
PERSONAL
TOUCHES
•  Anniversary of purchase celebration
•  Scaled models
•  Stocking refrigerator

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The Coastal Tour
Events that let boaters experience these
boats in a personal, familiar setting to paint a
picture of the brand and how it will ﬁt in with
their lives.
A variety of casual cocktail parties on the
back of a boat to larger gatherings at yacht
clubs and posh private residence.
Hosted in a way that highlights each region
through food and culture but oﬀers a hint of
signature Sea Ray style (Maine lobster in
Montauk, stone crab in Miami).
Sotheby’s to coordinate parties at multi-
million dollar homes one the coast; other
partners included Aston Martin, and Merrill
Lynch to make events about luxury, not only
Sea Ray

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Tours of the Design Center (annex of the manufacturing plant)
Reception
Grab a drink and get to know each other
Current Models/ Options Gallery
A seasonal and customized approach for each
customer visit and model they are interested in
The Lab
Give customers an inside look
at customization possibilities
or new ideas that the design
team is experimenting
Test Drive
Give them an in- person at
how it all comes together

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The Design Center – Getting There
Make the entire experience surrounding the
factory tour as seamless and enjoyable as
possible, while maintaining ‘our version’ of
luxury. It should feel more like a courtship
and less like a traditional sales experience.

Arrange for all the travel to and from the
facility. Treat them to the kinds of privileges
they are used to receiving in when they
make other purchases at this scale.

Entertain them beyond the facility. The
relationships built will create meaningful
connections that Sea Ray needs with this
group.

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Pop-up Showroom
Creating a portable showroom is an efficient
way to bring the best of Sea Ray (and this
new sub-brand) on the road in an impactful
and immersive way.
Mobile pop-up container can be quickly
setup at marinas, dealer events or anywhere
else SR has opportunity to connect.
Coffee, wifi and iPads available to view and/
or download SR app.
Build a brand gallery that echoes the
platform of Determined Spirit: product,
lifestyle, innovation, etc.

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Boat Shows
Approach boat shows from a more
conceptual standpoint. Certainly the boats
themselves are on stage, but we are selling
the Sea Ray lifestyle too.
This is not just an opportunity to show a
huge inventory of boats and short period of
time. This is a time to tell the story of Sea
Ray’s future.
Consider a genius bar approach where
customers interact with Sea Ray experts in a
controlled environment and explore the
boat of their dreams.
General rules of authentic hospitality go a
long way at crowded places like this.
Consider unexpected drinks and
refreshments.

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Digital
Leverage digital as much as possible during
this time. Put oﬀ publishing print material
until the full ﬂeet is launched in 2014.
Leverage digital now in order to get out
ahead and spread your message farther
faster.
1.  A dream app built for bragging
2.  An owner’s app built for use

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Yacht Delivery
A Sea Ray expert/captain should meet the
owner at their slip and deliver the boat,
complete with stocked fridge and snacks.
Every boat should be delivered with a tablet
featuring an interactive owner’s manual.

The captain should stay with the owner and
take them for an expansive test drive
making sure that they are comfortable with
every aspect of their new yacht at the helm,
below deck and in the engine room.

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Execute & Operationalize
CUSTOMER
CARE
§  Best in class warranties, prioritization of issues – rise to the top of ﬁrst
handled
§  Sea Ray individual assigned to resolving issue / seeing it through -
accountability
ONGOING
MANAGEMENT
§  Dealer certiﬁcation
§  Elaborate customer surveys

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Results, so far
§  Launch at the 2014 Fort Lauderdale International Boat Show (FLIB) was
extremely successful
§  Sales have exceeded goals by +25% to date
§  Business is sold out until next year
§  Interest generated for next new models carrying the L-Class brand and
experience

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Agenda
§  Conclusions

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Break-out Exercise (30 minutes to discuss / 15 minutes to report)
1.  Pick one of your session mate’s company
2.  Flip chart what the company’s brand stands for / what makes it special
3.  Flip chart a proﬁle of the company’s target customer
4.  Flip chart the primary phases in the customer journey
5.  Select 1 – 2 touchpoints that provide good opportunities to improve the
experiences and inject the brand
6.  Brainstorm ideas for making the touchpoint a brand experience

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Agenda
§  Conclusions

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Three things to remember from today’s session
1
2
3
Brand experiences will become increasingly important
in driving business outcomes
You must know your customers from the outside in,
know yourself from the inside out, and interpret both
to build an eﬀective brand experience
Establishing ”your” customer experience principles that
stem from a brand-driven business strategy is key in
guiding developments and operational change

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Click to edit Master title style
1603 Orrington
Evanston IL 60201
MMillion@fullsurge.com
fullsurge.com

Thank you

Optimizing Customer Experience

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