Building a competitive advantage thru emotional motivators and customer journey management

1. Building Competitive Advantage thru Emotional
Motivators & Customer Journey Management
Andrew Leone, BS Engineering, MBA, MS Finance
Summary of “The New Science of Customer Emotions” and “Competing on Customer Journeys”

2. New Value
Companies should pursue emotional connection as a science & strategy
• Emotional Motivators: its possible to measure and target feelings that drive customer behavior
• Emotional motivators provide better gauge of customer motivators than any other metric
• Start by creating structured process of learning emotional motivators and run test to leverage insights
• Later leverage Big Data to obtain deep understanding of emotional connection to attract & retail customers
• Broad emotional strategy involves every function in value chain

3. 3
Emotional Motivators
Customers emotionally connected when brand aligns to motivations and help fulfill deep, unconscious desires
I am inspired by a desire to
Brands can leverage by helping
customers
Stand out from the crowd Project a unique social identity
Have confidence in the future Perceive future better than past
Enjoy a sense of well being Life meets expectations
Feel a sense of freedom Act independently w/o restrictions
Feel a sense of thrill Experience pleasure & excitement
Feel a sense of belonging Feel part of a group
Protect the environment Belief environment is sacred
Be the person I want to be On-going self improvement
Feel secure
What have today is there
tomorrow
Succeed in life Lead meaningful lives
Customers become
valuable at each step of a
predictable emotional
pathway
1. Being unconnected
2. Being highly satisfied
3. Perceiving brand
differentiation
4. Being fully connected
Hundreds of emotional motivators influence customers.
Below are ten high impact across all categories

4. 4
Fully Connected Customers Value: +52%
The pathway is an important guide to where companies should invest
Not
emotionally
connected
Highly
satisfied
Perceive
brand
differentiation
Fully
connected
Baseline
Customer Value relative to highly satisfied customers
-18%
+13%
+52%
Household
cleaner
purchases
+103%
Tablet
app
purchases
+82%
Credit
card
swipes
+68%
Online
retailer
purchases
+52%
Hotel
room
stays
+41%
Discount
store
visits
+37%
Consumer
banking
products
+35%
Fast
food
visits
+27%
Casino
gaming
spending
+23%
Highly Satisfied Customer Values for 9
common categories

5. 5
Insights on Building Emotional Connection
Four key insights
Emotional motivators vary by
category & brand
Emotional motivators vary
by customer segment
Vary by brand by industry
by position in journey
Opportunities exist across
the customer experience

6. 6
Four Part Strategy
Identify, understand, and quantify the value of the most emotionally connected customers
1 2 3 4
Target connected
customers
Optimize investments
across functions
Quantify key
motivators
Systematize,
measure & learn
• How valuable are fully connected customers?
• How can you attract more of them?
• What motivators are most influential on purchases?
• What is the company’s position in each?
• Examine every touchpoint & function
• 4 areas: stores, online, merchandising, messages
• Incl. as KPI
• Embed into work streams

7. Streamlining the Decision Journey
Digital technologies have empower consumers
Buy
Enjoy
Advocate
Bond
The Loyalty Loop
Start
Classic
Journey
Consider
Evaluate
Start
New
Journey
Consider
Classic Journey:
Consumers enter into extended
consideration & evaluation phase
before enter into loyalty loop or
proceeding into new round
New Journey:
Compresses the consider step and
shortens or entirely eliminates the evaluate
step, delivering customers directly into
loyalty loop, locking them in

8. 8
Restore the Balance of Power
Create new value for brands and buyers; customers stay w/ brands because they benefit from journey
Shape customer paths: lead rather than follow
Treat journey management as if it were the product
Journeys keys to the brand experience; as important as the product
Understand customer journeys to optimize the touchpoints
Design and refine journeys to attract customers
Customize & refine experience to create permanent engagement

9. 9
Four Key Capabilities
Interconnected capabilities make journey stickier
Automation
Proactive
personalization
Contextual
interaction
Journey
innovation
• Involves streamlining & digitalizing the steps in the journey
• Turn complex back-end ops into simple, engaging, front-end apps
• Analyze customer behavior and tailor next interaction
• Create single view of customers; what they do and the results
• Knowledge about where a customer is in a journey to draw forward
• Enables interactions that further shape & strengthen relations
• Occurs thru ongoing experimentation & active analysis
• Goal is to identify new sources of value for co. & customers

10. 10
Journey Management Organizations
Interconnected capabilities make journey stickier
Journey
Strategist
Chief
Experience /
Digital Officer
DevelopmentDesign Analytics Operations MarketingDesign
Scrum Team Scrum Team Scrum Team
Product
Manager
Journey
Product
Manager
• Designers: conceptualize the look and feel of the journey and shape its user interfaces
• Developers: build the software for apps, websites, and automated journey steps
• Data analysts: track customer interactions and crunch the data to understand individual customer behavior & measure effects
• Operations managers: oversee the back-end support for each piece of the journey, from the supply chain to sales to service
• Marketers: provide customer insight and ensure that brand standards are embedded throughout the journey

11. 11
Recommended Reading
1. Magids, S., Zorfas, A., and Leeman, D. (2015). The New Science
of Emotion: A Better Way to Drive Growth & Profitability. Boston,
Massachusetts: Harvard Business Review Magazine.
2. Edelman, D. and Singer, M. (2015). Competing on Customer
Journeys: You Have to Create New Value at Every Step. Boston,
Massachutes: Harvard Business Review Magazine.

12. 12
Continue the Conversation
www.Governingthought.com