Customer Experience Design Summit

S E R V I C E E X P E R I E N C E S U M M I T 2 0 1 4 / V E R Y D A Y . C O M

Walking in the
customers shoes
When you have to
storyboard something,
the more realistic it is,
the more decisions
you have to make.
Brian Chesky
“
To shape the future of Airbnb, CEO Brian Chesky used
storyboards to map existing and future customer journeys.

Design for
Services
3 | 09 August 2014 | Service Experience Summit | Shanghai | @st_moritz

Searching
for a flight
to Shanghai. Not only does the appearance of
Click to edit Master title s﬚le
the online booking feel old
fashioned, the way the booking
practically works is very limited.
Example

The Kayak service on the other hand offers a vastly be﬙er experience.
You can choose very simply what your parameters are and get the best
options at the best price.

*Theory by Daniel Kahneman
Experience Continuum
Before Experience/Occasion After
Anticipated Self
Decisions based on anticipated memories.
Inspire, motivate, restrict
Experiencing self
Emotions in the present.
Positive, negative, neutral
Reflective Self (The Storyteller)
What we take away from the experience. The
stories we tell. Changes, significant moments,
endings
Better
experience
Worse
experience
Peak-End Rule*
Reflected experience based
almost entirely on highs and
lows, and how it ended.

The Opportuni﬚
Customer Experience is the next frontier for
differentiation, value creation and growth.

Everything is more connected and complex than ever.
New customer expectations arise and cross boundaries.

Digital
Mobile
Social
Big data
1. Everything is more connected and complex than ever
2. New expectations across boundaries
3. Easy to loose focus through distraction and disruption An accelerating storm of change

The eye of the storm
1. Everything is more connected and complex than ever
2. New expectations across boundaries
3. Easy to loose focus through distraction and disruption

Your Point of Differentiation
The customer

People perspective (Employees, clients, customers, users)
Why can´t they remember
what I like from time to time?
Why is it always so difficult
to find my way to what I
want!
It would be great if I could
know more about this before
I decide to buy it!
I want to know that they have
the products I want in store.

CRM
Governance
Regulations
Supply Chain
Database
Loyal﬚
Program
Portfolio
Management
Diversi﬚
Forecasting
LEAN
Investment
Planning
Business Process
Optimization
Channels
SOX
Integrated
Marketing
Solution
Rightshoring
Core
Competency
Alignment
Streamline
6Sigma
The corporate world is a different world

Bridging the gap
Process Operating
Model Technology Leadership
& Culture Employees
Legislation
CSR
Strategy
Customer Experience Journey
Business Operations

80% of companies believe they
deliver outstanding value and
a superior customer experience.
8% of their customers agree.
Source: Bain & Company

Age of
Manufacturing
Age of
Distribution
1900–1960 1960–1990 1990–2010 2010–?
| 09 August 2014 | Service Experience Summit | Shanghai | @st_moritz
Age of
Information
Age of
The Customer
Forrester. Outside In: The Power of Pu﬙ing Customers at the Center of Your Business
Mass manufacturing boosts
industrial powerhouses.
Global connections make
distribution key.
Connected PCs benefit those
who control information.
Empowered buyers demand a
customer focus.
Ford, RCA, GE, Boeing,
P&G, Sony, Atlas Copco
Walmart, Toyota,
UPS, CSX, IKEA
Microsoﬅ, Google, Dell,
Capital One, Ericsson
Southwest Airlines,
Amazon, USAA, ...
Source of dominance and differentiation
16

Growing share of the economy
| 09 August 2014 | Service Experience Summit | Shanghai | @st_moritz
1.2%
e.g. JAPAN
CIA World Factbook
10.0% AGGRICULTURE
43.9% INDUSTRY
46.1%
CHINA
71.4%
27.5%
SERVICES
17

+ Customer Centrici﬚
+ Customer Focus
= Competitive advantage
= Loyal satisfied customers
= Higher profit margins

Great experience can reduce costs
Flickr 4834842581_ec9a451a0c_o
Progressive Insurance ‘Immediate Roadside Assistance’
creates a fantastic care and support experience as well as brand
awareness. It also reduces possibilities for fraud and legal
issues, both significant costs that can be drastically reduced
which goes beyond funding the great experience.

Service Design
Methodology to help improve or innovate
service experiences that result in
more satisfied customers and
more profitable enterprises.
Service Design – Practical access to an evolving field, 2005

SERVICE DESIGN
01. Curiosi﬚ what people need and want
02. Imagine and dream up a be﬙er future
03. Find ways to do something about it

SERVICE DESIGN
01. You have to be there
02. It happens over time
03. You don’t own it but use it

SERVICE DESIGN
01. Human Empathy
02. Holistic Thinking
03. Experience Proto﬚ping

What is the difference?
I N D U ST R I A L S E R V I C E
Produced Performed
Material Immaterial
Tangible Intangible
No involvement Client participation
Ownership Experience
M E T H O D O LOGY
Journey
System design
For All Senses
Co-creation
Service blueprint

HOLISTIC
THINKING
HUMAN
EMPATHY
EXPERIENCE
PROTOTYPES

HUMAN
EMPATHY

HOLISTIC
THINKING

EXPERIENCE
PROTOTYPES

Team Collaboration
“Open Door Analysis”
participatory format to engage
stakeholders at all levels.
Using emotional design research
methodology, we expose people
to real consumer needs and
deliver key insights about
consumer’s drivers and
aspirations.
Share learnings and unite teams
around global insights.
Translate findings into new
customer propositions.
OBSERVATIONS STORIES & INSIGHTS EMOTIONAL EXPERIENCE MAP

Framing the problem together

Opportuni﬚ Mapping and Vision Building
Effective customer and stakeholder engagement

Re-imagine the customer experience

Total Experience Proto﬚ping
Co-creation with users drove the
design of solutions with stronger
emotional resonance.
Proto﬚ping new total experience
concept offerings (‘protocepts’).
Working across 6 markets,
sharing insights in real time.

Source: Forrester
Customer Experience
How customers perceive
their interactions
with your company.

Based on McKinsey research, 2009
Customer Experience
INTER
ACTION LOYALTY DECISION

Customer Decision Journey
INTER
ACTION LOYALTY DECISION
Click to edit Master title s﬚le Drop out
Based on McKinsey research, 2009
Consideration
Trigger
Experience
Satisfaction Evaluation

Feel: Emotional
Is this desirable and trustworthy?
Think: Behavioural
Will this help me achieve my goals?
Do: Functional
Is this useful and easy to use?

Uncovering deep insights

Emotional Experience Mapping
Experience in context over time

Emotional Experience Mapping
Experience in context over time
Before During Aﬅer

The really big missed opportuni﬚…
Get closer
to people and create
be﬙er experiences
Outside In
Truly understanding
what’s actually going on
in people’s lives.

Mutual Value
The creation of systemic solutions that
increase value for several stakeholders.
Building win-win solutions for brands and people.

Why do your customers choose you?
What do they truly value?
SMALL EXERCISE

What you could you do to
enhance, add or reinvent
to create mutual value?
SMALL EXERCISE

Value for the organization
Product
Value for customers
Commodi﬚
Service
Experience
Creating
Mutual Value

DELIVERING VALUE
OPTIMIZE RE-IMAGINE
Reduce cost with improved
customer experience
Reduce churn and
increase life-time value
Innovation of new business
models and offerings
Reduce risk, time to market
and cost
EXPAND
New or be﬙er services
for todays customers
New customers through
improving todays service

Source: Forrester
Great experience at a great price
Forrester Cxi 2012 / 2013
1. How enjoyable were they to do business with?
2. How easy were they to do business with?
3. How effective were they at meeting your needs?
| 09 August 2014 | Service Experience Summit | Shanghai | @st_moritz 47

A stock portfolio of Forrester’s Customer
Experience Index (CXi) leaders had a
cumulative 43% gain in performance over a
six-year period (2007 to 2012), compared
with a 14.5% increase for the S&P 500 Index
and a 33.9% decrease for a portfolio
of customer experience laggards.
Source: Forrester Research

Behavioral metrics
Eg Sharing frequency, שּׂme spent
Business metrics
Increase revenue, Market share
What people
pay for
What people
do/use
CX
What people
say/think
Subjective metrics
NPS, SUS, Subjective satisfaction
Experience Index
Drive service development around
robust & meaningful metrics

The Challenges
The pursuit of implementing the service design
approach successfully in the organization requires
the right leadership and culture change – however
outputs as well as outcomes are worth the effort.

KEY CHALLENGES
01. Collaboration across departments
02. Ge﬙ing out of old ways of working and thinking
03. Uncertain﬚ of specific outcomes

UNCERTAINTY
Image Credit: Sayaka Ganz Yatzer

People Driven Digital Transformation
PEOPLE INSIGHTS
Deep insights into needs and wants
DIGITAL TECHNOLOGY
BUSINESS
TRANSFORMATION
PROCESS
OPERATING MODEL
Leveraging data and connectivi﬚
Creating new business value
TALENT Agile

6 Practical שּׂps
Creating mutual value by providing great customer
experiences requires focus, passion and teamwork.
Here are six tips to help you lead the way forward.

Leading to great experiences
1. Empathy – Spend time with customers to get a feeling for their latent needs

2. Envision – Create a shared sense of purpose and future vision

3. Engage – Involve people, work agile and adapt to the environment

4. Empower – Support the organization to deliver and exceed expectations

5. Experience – Build, share and leverage knowledge

5. Experience – Build, share and leverage knowledge
6. Evaluate – Measure what ma﬙ers and make the tough choices

S T O C K H O L M / N E W Y O R K / L O N D O N / S H A N G H A I / V E R Y D A Y . C O M

Customer Experience Design Summit

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