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Unlocking Opportunity at the Intersection of Brand and Customer Experience Kevin Perlmutter Senior Director, Brand Strategy September 14, 2009


Why should we care about brand?

High Quality Coffee Excellent Flavor

High Quality Coffee Excellent Flavor

Branded Price Premium

Non-branded

$1.00

$3.00

Strong brands drive awareness, stimulate demand and positively impact earnings 2 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009


84% of companies don’t know the cost of a customer complaint 65% don’t know the length of an average customer relationship

Source: Stativity Group 3 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009


Customer experience is impacting the behavior of potential customers

“Waiter, there’s a fly in my soup (and I have an iPhone).” New York Times Headline, 9/2/09

5 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009


Engagement in social media correlates to financial performance Top 10 Brands Engaged in Social Media 1.Starbucks 2.Dell 3.eBay 4.Google 5.Microsoft 6.Thomson Reuters 7.Nike 8.Amazon 9.SAP 10.Tie – Yahoo/Intel

Sources: ENGAGEMENTdb: The World’s Most Valuable Brands. Who’s most engaged? July 2009 & “New Study Finds Correlation Between Social Media and Financial Success”, Sarah Perez, Read Write Web 6 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009

Brands engaging communities through social media grew revenues by 18%, those that didn’t sunk 6%


Our role is to improve the quality of the relationships that people have with our brands to improve business performance.

7 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009


A relationship is‌

The way in which two or more people or organizations regard and behave toward each other.

8 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009


In human relationships there is a correlation of relationship quality and behavior

Great Relationships

Bad Relationships

1. I want to spend more time with you

1. I want to spend less time with you

2. I want to be devoted to you

2. I prefer to see other people

3. I want to tell everyone you’re great

3. I want to tell everyone I don’t like you

9 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009


Brand relationships work the same way

Customer experience affects the bottom line

10 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009


Customer experience impact revenue

Customer experience affects the bottom line

Average impact of a 10% improvement in Forrester’s Customer Experience Index for a $10 billion company. 11 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009


Strong brands drive choice, loyalty and value Brand influences customer’s choice

Role of Brand

Higher level of earnings

Value Brand is a key competitive asset Brand Strength

Higher security of future earnings

12 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009


Opportunity does exist at the intersection of Brand and Customer Experience Brand Evolution

Customer Experience Analysis

13 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009

It’s an ongoing loop of needs analysis and fulfillment, just like any good relationship.


Focus Area #1: How does your brand work today? Brand Evolution

Customer Experience Analysis

14 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009

How well is your brand aligned with the drivers of choice?


To unlock opportunity, we need to analyze the customer journey

How People Engage

Passively aware

Relevance triggerneed/want

Evaluating Selecting options

How People Buy

Deciding where to buy

Shopping

Confirming Buying Decision

How People Commit

Activating

Using

What are the key drivers, pain points, experience enhancers and experience gaps? 15 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009

Committing Advocating


What is the quality of the relationship?

Decision Process Touchpoint Usage

Messages

16 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009


How can the experience be better?

How People Engage

How People Buy

How People Commit

Continue: What positive things should we continue doing Stop: What experience detractors should we stop doing Start: What new things should we start doing

17 17 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009


How can your brand work better?

Brand Strategy

How People Engage

Passively aware

Relevance triggerneed/want

Evaluating Selecting options

How People Buy

Deciding where to buy

Shopping

Confirming Buying Decision

Business Performance

18 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009

How People Commit

Activating

Using

Committing Advocating


Focus Area #2: Created branded customer experiences Brand Evolution

Customer Experience Analysis

19 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009

What follows are 5 opportunities to improve the experience and evolve the brand


1. Eliminate pain points


Understanding and eliminating pain points

21 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009


2. Link the brand to a top driver


My Deals

Ordering

Ink & Toner

My Rewards

Easy Solutions


Staples delivers on its promise of Easy. The Easy Button desktop application has become a huge success with small business – tens of thousands have been downloaded yielding tremendous loyalty and repeat usage. My Deals

Source: Klipfolio

Ordering

Ink & Toner

My Rewards

Easy Solutions


3. Create Hero Products or Services

Westin Heavenly Bed


Westin drives demand for the Heavenly offering inside and outside the hotel. They have sold about 30,000 full Heavenly Beds, 100,000 pillows and 32,000 sheet sets for home use. Nordstrom alone has sold $20 million worth of Heavenly Beds. Source: USA Today, 5/14/09


4. Innovation


Within 4 years of launch, Dyson became the fastest selling vacuum in the UK, and overtook Hoover’s category leading market share in the US going from 0% to 20.7%. Source: NPD


5. Redefine the category experience


Mini has an incredibly loyal following thanks to a highly desirable end-to-end customer experience. Despite a down economy, US sales grew 29% in the 2008 to 54,000 – more than double 2002. Source: Business Week, 9/1/09


Brand is an evolving relationship and a driver of business performance Brand Evolution

1. Distinctive and Engaging Promise 2. Fulfilling Brand Experience 3. Customer-centric Evolution Customer Experience Analysis

34 | Unlocking Opportunity at the Intersection of Brand and Customer Experience | September 14, 2009


Thank you. Kevin Perlmutter Senior Director, Brand Strategy 212-798-7542 kevin.perlmutter@interbrand.com


Unlocking Opportunity at the Intersection of Brand and Customer Experience