Week 3 Flashcards
What is the subject of week 3?
The service Experience “This tells us that mediocre customer experience is the norm, and that great customer experience is rare. What this means is that customer experience is a powerful differentiator for the very few companies that do it well. This situation presents an incredible near-term opportunity for gaining a competitive advantage. We see entire industries where simply being adequate at customer experience makes a company stand out.” “More and more, customers expect the levels of satisfaction they receive from leaders such as Amazon, Apple, and Google — and they expect this from even the sleepiest corners of markets across all industries. … Across industries, successful projects for optimizing the customer experience typically achieve revenue growth of 5 to 10 percent and cost reductions of 15 to 25 percent within just two or three years. Moreover, companies offering an exceptional customer experience can exceed the gross margins of their competitors by more than 26 percent while they make their employees happier and simplify their end-to-end operations.
What is the customer experience?
“Customer experience is a multidimensional construct focusing on a customer’s cognitive, emotional, behavioral, sensorial, and social responses to a firm’s offerings during the customer’s entire purchase journey.”
Current customer experience model ( not a reading)
Example
Example 2
Give examples of experiences that involve all senses
When customers smell “Christmas smells” in a store, they are more likely to buy baked Christmas ham
Car dealers spray a mixture of leather, fresh plastic and air fresheners into second-hand cars
Nike found that customers are more willing to buy shoes when they can try them in a floral-scented dressing area
Victoria’s Secret uses fragrance as part of the sensory environment in its stores
Singapore Airlines developed a unique scent, Stefan Floridian Waters, that is used in the stewardesses’ perfume, hot towels – basically all over the airplane
Casinos use scent to put people at ease
Dentists use the scent of orange in their waiting rooms to make patients feel less anxious
Japanese credit card company JCB launched a scented credit card, Linda Sweet, that is guaranteed to smell like grapefruit, lemon and mandarin for at least three years
A hospital in Florida designed its MRI exam room as a virtual beach with a wooden floor, the MRI unit designed as a sand castle, sounds of waves and birds, and smells of ocean and coconut oil
Why are customer experiences in B2B are rated lower dan in B2C
B2B customer is more complex because:
- Not one single customer
- Buyer and users are not the same
- B2B companies have a much larger number of critical customer journeys
- And the journey experiences are fragmented across accounts, locations and teams.
- B2B expectations rise because digitization and increasing use of smartphones establish new standards for service experience
- B2B executives also experience B2C services
–> this will further increase the gap
Parasuraman et al. (1985) model for Percieved service quality:
Perceived service quality = perceived performance – expected performance
How are expectations formed and influenced?
internal factors: Customer needs, customer involvement, past experiences
External factors: Competing alternatives, social context, word-of-mouth
situational factors: Time pressure, reason for purchase
Supplier factors: Marketing activities, image, brand
How can you manage expectations of delivery?
Before delivery: Research what customers expect, communicate what customers might expect.
During delivery: Communicate consistantly with customer, if possible adapt service delivery to customer expectation.
Afster delivery: Ask is expectations where met, use a follow-up program, deal with unsatisfied customers
Manage the players in your customer experience ecosystem
(Manning & Bodine, 2012)
Reworking touchpoints is
A good start:
Touchpoints are a good start, but what really effects business outcomes?
Delivering an distinctive customer journey:
Good companies improve journey, not just touchpoints, why?
Bad touchpoint can still result in bad score, see picture.
What is Design Thinking?
Service design is an iterative process of defining, creating, prototyping, testing and learning:
- Empathize – with the users of the service
- Define – the user’s needs & problems, and your insights
- Ideate – challenge assumptions, create ideas for innovative solutions
- Prototype – create Minimum Viable Service prototypes
- Test – test the MVS solutions and collect customer feedback
