Experience is the Brand. Presentation to DMAD.

1. THE EXPERIENCE IS THE BRAND.
Tim Copacia
EVP, Dir. of Customer Insights & Engagement
Campbell-Ewald

2. Discussion Guide
Why This is Important?
Experience-based
Differentiation
The Secrets to Sustainable
Business Success
Real World Applications

3. Brands are vulnerable
(and at risk) if the experience
is not a part of their
differentiation

4. the
The CUSTOMER
Defines the Brand...
Not the
ADVERTISING

5. EXPERIENCE
DIRECT
They do so primarily
through...
EXPERIENCE
INDIRECT

6. EXPERIENCE
“STOKES” EMOTION…
Emotion moves people to
Action
Engages
More
SENSES
Overrules
LOGIC
Creates
MEMORIES
Creates
Lasting
STORIES

7. The Customer Experience
No better time than now to
reassess everything that
affects

8. the TRANSITION
UNDERWAYis
Product Sellers Brand storytellers
Breakthrough Invitation
Transactional Relational
Communications Conversations
One-time action Customer lifelong journey
Impressions Customer interactions
Single channel ideas Cross channel experiences
Company controlled Customer controlled
Closed system Open and transparent
Linear path Multiple gateways to the brand

9. DAY
A NEW
for BRANDS
STOP
SHOUTING.
NO ONE IS
LISTENING
PEOPLE
SOLD
DON’T LIKE
TO BE
EVERY
THE BRAND
INTERACTION
REPRESENTS
EACH
A RELATIONSHIP
CAN MAKE
OR BREAK

10. Trust and
confidence is
paramount

11. Make a
pledge to
serve...rather
than sell

12. In a tough market, your number one priority is to take care of your
current customers
They are your most valuable asset
Do everything you can to convert prospects into customers – they
have already said they’re interested
TALKLET’S
LOYALTY…

13. STEM DEFECTION
Don’t leave us
REPURCHASE
Willing to give
us another shot
LOYALTY
They like it and
are willing to
buy again
ADVOCACY
Very happy
customer
CHAMPION
Super influencer
willing to
recommend to
family and friends
TALKLET’S
LOYALTY…

14. IMPROVED
CUSTOMER
EXPERIENCE
Willingness to
repurchase
Reluctance
to switch
Likelihood to
recommend
provides
a direct
correlation
to:

15. there is a
An EXPERIENCE can occur where ever
CUSTOMER
INTERACTION…
ONLINE…OFFLINE…IN-STORE

16. Little things can make a
Big Difference
Especially when they
come from
the heart

17. The New Frontier
Experience-Based Differentiation

18. Experience-Based Differentiation
Obsess about customer
needs… not product features
Forrester
Clearly identify and understand our current
customers and our target customer segments
Get to know customers…personally
Share customer insights broadly across the
organization
Serve customers needs across the entire life-
cycle and throughout life-stage
Create offerings that transcend traditional
boundaries
Core
Tenets

19. Reinforce the brand with every
interaction…not just
communications
Define and widely communicate
brand attributes
Translate brand promise into
interactions requirements
Focus efforts on “moments of truth”
Forrester
Core
Tenets
Experience-Based Differentiation

20. Core
Tenets Get senior executives actively involved
Engage employees in the process
Use the voice of the customer to drive
continuous improvement
Treat customer experience as a
competence…not a function
Forrester
Experience-Based Differentiation

21. Forrester Study
220 Companies in North America
Consumer Surveys – Bad experiences
minus good experiences
Three key metrics:
- Useful in meeting my needs
- Easy to work with
- Enjoyable
EXPERIENCE LEADERS
CUSTOMER2008

22. UNLOCKING the Secrets to
Sustainable Business
Success

24. Customer-Focused Lessons
- Don’t let the naysayers get you down
- Build operations for a “wow” customer experience
- Copy the best
- Focus on rabid early adopters
Core-Market Differentiator
- “Netflix’s relentless focus on customer-driven
innovations will continue to provide the golden keys
to unlock its revolutionary and evolving business”
“If the Starbucks secret
is a smile when you get
your latte, ours is that
the Web site adapts to
the individual’s taste.”
Reed Hastings, CEO
Netflix

25. Unorthodox Customer Service Culture
- Live by 10 Zappos Core Values
- Powered by Service!
- Committed to wowing each customer
- Believe in complete transparency
- Offers new employees $2,000 to quit after first week of
training
- Going the extra mile for a customer generates revenue
- 75% of purchases come from repeat customers
Customer-Centric Differentiator
- Delivering Happiness -- for customers and employees
“Everything we do is
based on the customer
experience.”
Tony Hsieh, CEO
Zappos

26. Brand Activity Filter
- Does the proposed marketing activity respect the
intelligence of Starbucks customers?
- Can Starbucks expertly deliver on all promises made
to customers in the proposed activity?
- Will customers view the activity as being clever,
original, genuine and authentic?
Customer-Centric Differentiator
- Starbucks found that speed of service was crucial to
customer satisfaction, and that highly satisfied
customers spent 9% more than those who were
simply satisfied
“I would say strongly, the
success of Starbucks
demonstrates the fact
we have built an
emotional connection
with our customers.”
Howard Schultz, CEO
Starbucks

27. Key Insights
– “After years of blaming the Japanese, Harley
admitted its troubles were internal …we realized the
problem was us, not them”
– “(It was important to) align with the customer’s
lifestyle or become part of
the way they express their values”
Customer-Centric Differentiator
– Brand Reputation. “It’s the theater you construct
around it that creates the compelling story that
attracts customers to you. We’re not talking PR here.
We’re not talking advertising. We’re talking a themed
customer experience.”
"Harley went up when we
cared about our
customers and
employees. Harley went
down when we stopped
caring about employees
and customers."
Richard Teerlink – Retired
Chairman
Harley-Davidson

28. Culture
– Concern for employees
✓ Wages help keep turnover unusually low,
just 6% after the first year
– Unorthodox business practices
• The traditional retailer will say “I’m selling this for
$10.00 I wonder if I can get $11.00”…
we say, “we’re selling this for $9.00 I wonder if we
can get it down to $8.00”
Customer-Centric Differentiator
– Treating employees and customers exceedingly well
– Investing in employee relationships is good
business
“We always look to see
how much of a gulf we
can put between
ourselves and the
competition. So that the
competitors eventually
say ‘f*** ‘em, these guys
are crazy. We’ll compete
somewhere else.’”
Jim Sinegal, CEO
Founder Costco

29. Strong, yet simple, vision, mission and values…and insistence on living them
Personal involvement from the top
Empowered employees
Application of “humanity”
Foundation of trust
Acting “small, flexible, nimble…building from the inside out”
Big-picture thinking with “radical applications of common sense”
SECRETS to
SUCCESS…
1. Customer-Centric Philosophy Backed by Clearly
Directed Actions:

30. Fulfilling customer dreams and creating unforgettable “magical customer moments”
Using an extraordinary customer experience as a bridge to customer loyalty and
eventually advocacy
Building unique consistency throughout their brand portfolios and customer
touchpoints
Maintaining a culture that strives to “always learn and do better”
SECRETS to
SUCCESS…
2. Relentless Desire to Create the Ultimate Branded
Customer Experience:

31. Leaving indelible impressions at every brand encounter
Understanding the power of sensory experiences
- The more sensory…the more memorable
Staging customer “surprise and suspense” moments
Understanding that Word-of-Mouth is the most powerful and cost-effective influencers of
customer behavior
SECRETS to
SUCCESS…
3. Allowing Consumers the Opportunity to Define
the Brand:

32. How do we apply these
learnings to our business?

33. Give Stakeholders a
“Customers First”
Rallying Cry
Take care of current customers…first!
Reach out to “must-have” customers
through experience-driven interactions
Connect with customers on their terms
Chase the vision...not the sale

34. Tear Down Silos
Identify ways to organize along
customer-centric lines
Appoint a Chief Experience Officer to
lead the charge across enterprise
Think across tiers, channels and
organization -- always from the
consumer’s vantage point
Make decisions based on more
valued customer dialogue and
interactions

35. Create a New
Start... Act Like
A Start-up
Embrace “resized” employee/
retailer base
Extend connection to all
stakeholders (e.g. past
employees, suppliers, retailers,
stockholders)
Reset “culture” - Instill trust. A
new beginning for all.

36. Improve Consumer
Dialogue &
Involvement
Move from “transactional” to “relational”
business model
Listen more. Create deeper emotional
connection
Improve customer dialogue through a
robust Brand eNetwork -- not just
online surveys
Make customers feel like genuine
partners in the brand community

37. Define a Customer
Experience Vision
Conduct Customer Experience
Audit & Mapping across all key
touchpoints
Include all stakeholders
Meet customer needs. Overcome
bottlenecks. Make it easy and
enjoyable to interact with the brand
anytime or anywhere.

38. Use a Simple “Brand
Experience Filter” to
Guide all Actions
Follow the “Big Five” guiding principles
Create process to ensure each marketing
activity is aligned
Measure and monitor results along the way

39. EMPOWERMENT
Provide customers the
ability to interact with
the brand on their terms
Provide employees with
the ability to do what
ever it takes to delight
the customer
EASE
Make it easy and
enjoyable to interact and
do business with the
brand
WOW
Create “surprise
moments” that leave
lasting memories
Make the brand “come
to life” and connect with
people’s passions
BELONGING
Create unique
opportunities to help our
customers bond with
others who share
common passions
Find ways for people to
congregate – including
new social communities
DELIVERY
Consistent and authentic
branded customer
interactions online, offline, and
in-store…and at each tier
Create clear expectations
from the top and insist all
stakeholders adhere to them
Reward positive and
consistent behavior at key
customer touchpoints
The Big Five...

40. Rebalance the
Marketing Mix to
Optimize the
Customer
Experience
Greater concentration on results
and customer retention
Focus on key engagement stages
Increase emphasis on behavioral
change
Bring an element of “touchology”
into each brand interaction

41. Define New Metrics
& New Rewards
Re-evaluate all metrics and scorecards
Evaluate use of Net Promoter as a
simple barometer to advocacy
Create customer feedback scores
across all channels to monitor
experience
Align management compensation to
these goals
Instill a reverence for the customer and
offer rewards and incentives for putting
the customer first...inside and at retail

42. Persevere
Against All
Obstacles
No better time to “reset”
everything that matters
Allow consumers to be the
scriptwriter of their
relationship with us

43. and the world will be a thriving stage
of stories that move hearts, minds,
mountains and business.”
Joe Jaffee
Join the Conversation
“Marketing will be conversations…
brands will be catalysts…
consumers will be participants…

44. THE EXPERIENCE IS THE BRAND.
The Brand is the Experience.
Thank You
Contact me at tcopacia@campbell-ewald.com