SlideShare ist ein Scribd-Unternehmen logo
1 von 7
The Gemba Company Buying Experience

Robert Jacobson, Ph.D.
© Gemba Innovation 2008


Introduction

The Company Buying Experience is at the core of every Company’s
marketing and selling campaign. It is the constant, managed,
always evolving relationship between a Company and its customers.

Every Company’s Buying Experience has four elements:

   1. Company themes are the basic ingredients of the desired
      buying experience that the company wants for its customers.
   2. Once established, Company themes are translated into
      customer value propositions, arguments for the customer’s
      business.
   3. Touchpoints are moments or events where a Company and its
      customers connect, where customer value propositions are
      offered. Touchpoints are identified, described, mapped,
      scored, activated, and measured for effect.
   4. A score or composition shapes and relates the touchpoints,
      based on the Company themes and the customers’ prior
      experience, to create the overall desired buying experience.

Another term used to describe the Buying Experience is the
customer experience plan. The concept is the same.

Each occurrence, situation, and location where a company and its
customers connect (also its investors, suppliers, regulators, and
other stakeholders) is identified and characterized. This is called an
audit or a survey. Specialized designers then use different media of
communication and other social tools to build a network of
touchpoints and create experiences for their customers. Done well,
this leads the customers to adopt desired behaviors, including
buying products and services; and desired attitudes and beliefs, like
Company loyalty.

A Company’s Buying Experience development process is inclusive.
It considers all connections between a Company and its customer in
physical locations (e.g, stores), a virtual environment (e.g., on the
Web), or in the customer’s own mind – for example, developing an
attitude. With the exception of what happens in the customer’s
head, all of these are touchpoints can be manipulated.
Many touchpoints are formal: advertising, public relations, and
organized events, customer involvement in Company operations
and new product development, and so forth. Other touchpoints are
informal: gossip and rumor (now professionally called, “word of
mouth” advertising), spontaneous events and occurrences (like
assembling a product at home), talking on the phone with a service
representative, reading an account in the paper that mentions the
Company or its products, and when a customer uses a product sold
by the Company. Retailing involves one set of touchpoints;
maintaining supply and value chain relationships, another.

Common touchpoints include listening to the radio, watching TV or
cable, reading a billboard, sharing a rumor, attending public
ceremonies, recommending the Company or its products to
someone, and so forth. In fact, touchpoints are so many, the
problem is not to find them, but rather to know which one’s to work
with and how in any particular situation.

Touchpoints are neither good nor bad. They are simply
opportunities to continue a conversation with the customer that is
intended to lead to a sale and continued business with the
customer.

Crafting touchpoint compositions is still an art form akin to brand
management, though the number of practitioners is. We call them
designers of experience (DoE).1 To be successful in this line of
work, designers must have a keen understanding of human
perception, cognition, and behavior; the ability to extrapolate
futures from current conditions; and the ability to shape how others
perceive, consider, emote, and finally act – thus, to design
experiences.

It is the DoE’s job to manage the touchpoints – gossip mills, online
blogs, broadcast TV advertising, planes towing banners, riding a
mountain bike, listening to a radio account, climbing a mountain –
creating in the customer’s mind an impression that Company wants
him or her to remember and act on, now or in the future. But
because the customer can choose to acknowledge or ignore
touchpoints (often unintentionally), and because a score can be
interrupted or disturbed by “noise” in the information environment,
the customer’s ultimate Buying Experience may differ from what the
Company or the DoE intended. This is true of all marketing. There
is no absolute certainty when dealing with human beings


1
  Designers of experience are also called “experience designers,” but this can be
confusing since website developers have used this term to describe what they do to
the exclusion of designers working in other media.


                                         2
Although the tools for designing experiences are still primitive, it is
      possible to imagine a future when the Company or the customer will
      be able to turn on or turn off touchpoints at will (perhaps for
      reasons of privacy). But the overall Buying Experience will survive,
      because it does not rely on technology alone but is created in the
      mind of the customer where perception, cognition, memory,
      anticipation, and action form continuously changing meanings.


      The Gemba Buying Experience Process

      Gemba’s process for crafting a client’s Buying Experience is
      straightforward.

      Before doing anything else, it’s important to organize a Buying
      Experience team comprising staff from all relevant departments and
      members of the executive corps. The staff provides specific
      expertise and labor; the executive members keep top management
      involved and informed, and muster necessary resources (including
      time allotments, funding, and official support) for the team’s
      success. Once organized, the team, aided by Gemba expert
      consultants, undertakes the following tasks.



A.         B.            C.           D.          E.          F.          G.
Define     Develop       Audit        Compose     Prototype   Activate    Evaluate
Company    Customer      Existing     the         The         the Full    and Revise
Themes     Value         Touchpoint   Buying      Buying      Buying      the Buying
           Proposition   s            Experienc   Experienc   Experienc   Experience
           s                          e           e           e
                                      Score




      Here the tasks are presented sequentially, but in a complex
      organization, there may be several Buying Experiences operating
      concurrently. In that case, the team will continuously be working
      with Buying Experiences at different points in their development.
      The team therefore must be appropriately organized to permit
      dealing with different tasks simultaneously.


      A. Define Company themes

          1. Collect information that describes the Company environment
             and situation: local, global, or both. These are its current
             coordinates.
          2. Identify and describe trends in the world that bear on the
             Company’s operations and growth, based on its current
             coordinates.


                                         3
3. Divide individual and small groups of trends into clusters
     called meta-trends.
  4. Based on the meta-trends, choose themes that describe the
     Company goals and aspirations for the future. These themes
     are the basis of the Company’s “marching orders”: its
     strategic, marketing, and Buying Experience plans.

  Themes can be as broad or narrow as a Company’s scope and
  aspirations. As an option, scenarios – portraits of alternative
  possible futures – can be created to test the themes and their
  implementation within these possible futures. How well do they
  play out for the Company and each of its key stakeholders:
  management, labor, investors, customers, and regulators?


B. Develop customer value propositions

  1. Describe how the themes, when implemented, translate into
     tangible benefits for the customers. These benefits can be
     personal, social, or both.
  2. Test the benefits against customers’ current perceived needs
     using surveys, focus groups, or most effectively, by having
     customers work with the Company to describe these benefits
     (co-creation).
  3. Adjust the benefits to meet customers’ needs, keeping in
     mind that these needs may change and that the Company can
     play a part in changing them.
  4. Translate the benefits into customer value propositions –
     arguments that can be made for customers to adopt the
     Company’s themes as their own and ultimately, to buy the
     Company’s products and services.


C. Audit existing touchpoints (also called “mapping” or
“inventorying” the touchpoints)

  1. Identify where the Company currently provides customer
     value propositions for its customers’ consideration, instances
     or events where the Company and its customers come into
     contact with one another directly or indirectly, by design or
     serendipity.
  2. Describe these touchpoints and evaluate their effectiveness
     for the Company
  3. Develop a net customer asset index (NCAI) as a measurement
     tool – the proportion of existing and sought-after future
     customers who are positively affected by each critical
     touchpoint.


                                 4
Calculating on a continuous basis the Company’s overall NCAI is
   one way to measure the effectiveness of its Buying Experience.
   Individual touchpoints can be evaluated with touchpoint type-
   specific metrics.


D. Compose the Buying Experience score

   1. Fully understand how the most important touchpoints
      contribute to the Buying Experience (plus or minus) and then
      determine how they can be harmonized for greatest
      effectiveness.
   2. Decide where Company resources can best be deployed
      among the most important touchpoints to ensure that the
      Buying Experience is achieves its purpose.
   3. Score the touchpoints, optimizing those that provide greatest
      value to the Company, neutralizing unproductive or negative
      touchpoints, and creating required new ones.
   4. Review the score to ensure that there are no inherent conflicts
      and that all essential touchpoints are covered. The team does
      a virtual walkthrough accompanied by representative sample
      customers.


E. Prototype the Buying Experience

   1. For each type of touchpoint, on a controlled basis, “turn on”
      the experience (e.g., store personnel adopt new techniques,
      advertising broadcasts the message, internal Company
      procedures – like enhanced CRM systems – are initiated, and
      so forth).
   2. The team visits all physical and virtual touchpoints to ensure
      their proper operation.
   3. Customers are observed and interviewed to ensure that their
      experiences meet or exceed the intended consequences of
      each touchpoint.
   4. Make necessary revisions to the score and adjust the
      touchpoints.


F. Activate the full Buying Experience

   1. Do all of the above, “turning on” the touchpoints to their full
      capacity (for example, extend services prototyped at a few
      stores to an entire chain of outlets or from a few webpages to
      an entire website).


                                 5
2. Monitor the touchpoints as before.
   3. Be prepared to make quick changes where unanticipated
      insufficient or negative results are produced. Have alternative
      solutions already prepared or procedures in place for their
      rapid development, prototyping, and deployment.


G. Evaluate and revise the Buying Experience

   1. Apply the NCAI and determine the effectiveness of the Buying
      Experience per se.
   2. Calibrate the NCAI findings with conventional objective
      measures of business success like sales per product or per
      line, revenues, gross income, and EBITA (earning before
      interest, taxes, and amortization expense), per period and
      over the entire run of the Buying Experience.
   3. Calibrate the NCAI with conventional subjective measures of
      business success like customer satisfaction, employee moral,
      competitors’ reactions, press coverage of the Company and its
      products, policy developments, and communications online
      (e.g., in forums and chat rooms) and offline (word of mouth).
   4. Make revisions in the continuing Buying Experience; prepare
      for the next Buying Experience that proposes similar customer
      value propositions; or repeat all of these steps to create a
      new Buying Experience that better responds to changing
      themes within the Company, changes in the business
      environment, the pursuit of new customers, or any
      combination of these factors.


Timing the Buying Experience Endeavor

Each company will tackle the challenge of creating useful and
productive Buying Experiences at its own pace, depending the
degree of urgency it feels and its resources available for the task –
keeping in mind that few major investments get cheaper with time.
Larger companies have many more touchpoints to incorporate in a
Buying Experience score than do smaller firms, but they also can
bring to bear more labor and greater investment. Each company
must look to its own needs in carrying out this relatively new
process, unless a competitor beats it to the punch, in which case it
may be forced to move quickly.

On average, from start to finish, a single, discreet Buying
Experience will take a small company three months, a midsized
company four to six months; and a large company, six months or
more. This does not include prior decisionmaking to go ahead with


                                  6
a Buying Experience project, nor does it include evaluation of the
Buying Experience from a larger strategic, post-Buying Experience
perspective. But these things should be occurring constantly,
anyway, so that the Buying Experience can be slotted into a
company’s schedule without a great deal of external involvement
(for example, by executives or staff who are not part of the Buying
Experience team




                                 7

Weitere ähnliche Inhalte

Was ist angesagt?

Coach Marketing
Coach MarketingCoach Marketing
Coach Marketingtombagwell
 
How to Optimize Lead Generation
How to Optimize Lead GenerationHow to Optimize Lead Generation
How to Optimize Lead GenerationDun & Bradstreet
 
Promoting Chambers Whitepaper
Promoting Chambers WhitepaperPromoting Chambers Whitepaper
Promoting Chambers Whitepapercatherine_bailey
 
Creative strategy: planning and development
Creative strategy: planning and developmentCreative strategy: planning and development
Creative strategy: planning and developmentRahul Barwe
 
Owning the Customer Experience: A new view of sales effectiveness today
Owning the Customer Experience: A new view of sales effectiveness todayOwning the Customer Experience: A new view of sales effectiveness today
Owning the Customer Experience: A new view of sales effectiveness todayAchieveGlobal
 
Go2 Market, Start With A Lead
Go2 Market, Start With A LeadGo2 Market, Start With A Lead
Go2 Market, Start With A LeadMarcVanWonterghem
 
Customer Ambassadors Final Marketing In The Oilfield
Customer Ambassadors   Final Marketing In The OilfieldCustomer Ambassadors   Final Marketing In The Oilfield
Customer Ambassadors Final Marketing In The OilfieldBrownja12
 
Sales Leadership Linking Sales Strategy To Sales Results
Sales Leadership Linking Sales Strategy To Sales ResultsSales Leadership Linking Sales Strategy To Sales Results
Sales Leadership Linking Sales Strategy To Sales ResultsLakesia Wright
 
Module marketing 1.1
Module   marketing 1.1Module   marketing 1.1
Module marketing 1.1Arjun Khosla
 
Start witha leadebook
Start witha leadebookStart witha leadebook
Start witha leadebookAkshay Samant
 
R Li40 Mktg 2011concept
R Li40 Mktg 2011conceptR Li40 Mktg 2011concept
R Li40 Mktg 2011conceptpfandrews
 
Following Your Customers Purchasing Process
Following Your Customers Purchasing ProcessFollowing Your Customers Purchasing Process
Following Your Customers Purchasing Processpmmcleod
 
Is Your Marketing Organization Ready to Change Its MO?
Is Your Marketing Organization Ready to Change Its MO?Is Your Marketing Organization Ready to Change Its MO?
Is Your Marketing Organization Ready to Change Its MO?ClearAction Continuum
 
Growth Propositions for MSPs
Growth Propositions for MSPsGrowth Propositions for MSPs
Growth Propositions for MSPsDaniel Steeves
 

Was ist angesagt? (18)

Sales Force Tune Up
Sales Force Tune UpSales Force Tune Up
Sales Force Tune Up
 
Coach Marketing
Coach MarketingCoach Marketing
Coach Marketing
 
How to Optimize Lead Generation
How to Optimize Lead GenerationHow to Optimize Lead Generation
How to Optimize Lead Generation
 
Promoting Chambers Whitepaper
Promoting Chambers WhitepaperPromoting Chambers Whitepaper
Promoting Chambers Whitepaper
 
Creative strategy: planning and development
Creative strategy: planning and developmentCreative strategy: planning and development
Creative strategy: planning and development
 
Owning the Customer Experience: A new view of sales effectiveness today
Owning the Customer Experience: A new view of sales effectiveness todayOwning the Customer Experience: A new view of sales effectiveness today
Owning the Customer Experience: A new view of sales effectiveness today
 
Go2 Market, Start With A Lead
Go2 Market, Start With A LeadGo2 Market, Start With A Lead
Go2 Market, Start With A Lead
 
Promo selling pricing
Promo selling pricingPromo selling pricing
Promo selling pricing
 
Customer Ambassadors Final Marketing In The Oilfield
Customer Ambassadors   Final Marketing In The OilfieldCustomer Ambassadors   Final Marketing In The Oilfield
Customer Ambassadors Final Marketing In The Oilfield
 
Sales Leadership Linking Sales Strategy To Sales Results
Sales Leadership Linking Sales Strategy To Sales ResultsSales Leadership Linking Sales Strategy To Sales Results
Sales Leadership Linking Sales Strategy To Sales Results
 
Module marketing 1.1
Module   marketing 1.1Module   marketing 1.1
Module marketing 1.1
 
Start witha leadebook
Start witha leadebookStart witha leadebook
Start witha leadebook
 
R Li40 Mktg 2011concept
R Li40 Mktg 2011conceptR Li40 Mktg 2011concept
R Li40 Mktg 2011concept
 
Following Your Customers Purchasing Process
Following Your Customers Purchasing ProcessFollowing Your Customers Purchasing Process
Following Your Customers Purchasing Process
 
Bulldog Buyer Persona
Bulldog Buyer PersonaBulldog Buyer Persona
Bulldog Buyer Persona
 
Building The Perfect Offer
Building The Perfect OfferBuilding The Perfect Offer
Building The Perfect Offer
 
Is Your Marketing Organization Ready to Change Its MO?
Is Your Marketing Organization Ready to Change Its MO?Is Your Marketing Organization Ready to Change Its MO?
Is Your Marketing Organization Ready to Change Its MO?
 
Growth Propositions for MSPs
Growth Propositions for MSPsGrowth Propositions for MSPs
Growth Propositions for MSPs
 

Ähnlich wie The Buying Experience V.1 12 May 2008

Deliver A Compelling Brand Experience
Deliver A Compelling Brand ExperienceDeliver A Compelling Brand Experience
Deliver A Compelling Brand ExperienceJames Wylie
 
Customer Experience Optimization Consulting
Customer Experience Optimization ConsultingCustomer Experience Optimization Consulting
Customer Experience Optimization ConsultingClearAction
 
MKT 421 EDU Achievement Education--mkt421edu.com
MKT 421 EDU Achievement Education--mkt421edu.comMKT 421 EDU Achievement Education--mkt421edu.com
MKT 421 EDU Achievement Education--mkt421edu.comkopiko163
 
MKT 421 EDU Education Counseling -- mkt421edu.com
MKT 421 EDU Education Counseling -- mkt421edu.comMKT 421 EDU Education Counseling -- mkt421edu.com
MKT 421 EDU Education Counseling -- mkt421edu.comkopiko97
 
MKT 421 EDU Redefined Education--mkt421edu.com
MKT 421 EDU Redefined Education--mkt421edu.comMKT 421 EDU Redefined Education--mkt421edu.com
MKT 421 EDU Redefined Education--mkt421edu.comkopiko182
 
Business and digital marketing, 7ps of marketing.
Business and digital marketing, 7ps of marketing.Business and digital marketing, 7ps of marketing.
Business and digital marketing, 7ps of marketing.let's learn
 
MKT 421 EDU Education Planning--mkt421edu.com
MKT 421 EDU Education Planning--mkt421edu.comMKT 421 EDU Education Planning--mkt421edu.com
MKT 421 EDU Education Planning--mkt421edu.comWindyMiller27
 
TeXchange 2011 Recap Strategy for Growth
TeXchange 2011 Recap Strategy for GrowthTeXchange 2011 Recap Strategy for Growth
TeXchange 2011 Recap Strategy for GrowthCharles Bedard
 
Why brand experience depends on organizational alignment
Why brand experience depends on organizational alignmentWhy brand experience depends on organizational alignment
Why brand experience depends on organizational alignmentJack Morton Worldwide
 
Strategic planning best practices checklist - Carlos Raúl Castro - SC&S Consu...
Strategic planning best practices checklist - Carlos Raúl Castro - SC&S Consu...Strategic planning best practices checklist - Carlos Raúl Castro - SC&S Consu...
Strategic planning best practices checklist - Carlos Raúl Castro - SC&S Consu...Carlos Raul Castro
 
Balance Score Card
Balance Score CardBalance Score Card
Balance Score Cardmaruhope
 
Abell's 3 dimensions critical sucess factor-kpi
Abell's 3 dimensions critical sucess factor-kpiAbell's 3 dimensions critical sucess factor-kpi
Abell's 3 dimensions critical sucess factor-kpiDr. Vardhan choubey
 
Growing with Purpose: How to Improve Your Software Company's Evaluation
Growing with Purpose: How to Improve Your Software Company's EvaluationGrowing with Purpose: How to Improve Your Software Company's Evaluation
Growing with Purpose: How to Improve Your Software Company's EvaluationVolaris Group
 
OperatingModelForProductCos
OperatingModelForProductCosOperatingModelForProductCos
OperatingModelForProductCosRavi Padaki
 
Navigating the journey ahead
Navigating the journey aheadNavigating the journey ahead
Navigating the journey aheadBen Sutton
 

Ähnlich wie The Buying Experience V.1 12 May 2008 (20)

Biz Growth Series
Biz Growth SeriesBiz Growth Series
Biz Growth Series
 
Deliver A Compelling Brand Experience
Deliver A Compelling Brand ExperienceDeliver A Compelling Brand Experience
Deliver A Compelling Brand Experience
 
Customer Experience Optimization Consulting
Customer Experience Optimization ConsultingCustomer Experience Optimization Consulting
Customer Experience Optimization Consulting
 
Measuring Brand Equity 101
Measuring Brand Equity 101Measuring Brand Equity 101
Measuring Brand Equity 101
 
Business strategy
Business strategy Business strategy
Business strategy
 
MKT 421 EDU Achievement Education--mkt421edu.com
MKT 421 EDU Achievement Education--mkt421edu.comMKT 421 EDU Achievement Education--mkt421edu.com
MKT 421 EDU Achievement Education--mkt421edu.com
 
MKT 421 EDU Education Counseling -- mkt421edu.com
MKT 421 EDU Education Counseling -- mkt421edu.comMKT 421 EDU Education Counseling -- mkt421edu.com
MKT 421 EDU Education Counseling -- mkt421edu.com
 
MKT 421 EDU Redefined Education--mkt421edu.com
MKT 421 EDU Redefined Education--mkt421edu.comMKT 421 EDU Redefined Education--mkt421edu.com
MKT 421 EDU Redefined Education--mkt421edu.com
 
Business and digital marketing, 7ps of marketing.
Business and digital marketing, 7ps of marketing.Business and digital marketing, 7ps of marketing.
Business and digital marketing, 7ps of marketing.
 
MKT 421 EDU Education Planning--mkt421edu.com
MKT 421 EDU Education Planning--mkt421edu.comMKT 421 EDU Education Planning--mkt421edu.com
MKT 421 EDU Education Planning--mkt421edu.com
 
Week 3
Week 3Week 3
Week 3
 
TeXchange 2011 Recap Strategy for Growth
TeXchange 2011 Recap Strategy for GrowthTeXchange 2011 Recap Strategy for Growth
TeXchange 2011 Recap Strategy for Growth
 
Why brand experience depends on organizational alignment
Why brand experience depends on organizational alignmentWhy brand experience depends on organizational alignment
Why brand experience depends on organizational alignment
 
Strategic planning best practices checklist - Carlos Raúl Castro - SC&S Consu...
Strategic planning best practices checklist - Carlos Raúl Castro - SC&S Consu...Strategic planning best practices checklist - Carlos Raúl Castro - SC&S Consu...
Strategic planning best practices checklist - Carlos Raúl Castro - SC&S Consu...
 
Balance Score Card
Balance Score CardBalance Score Card
Balance Score Card
 
Abell's 3 dimensions critical sucess factor-kpi
Abell's 3 dimensions critical sucess factor-kpiAbell's 3 dimensions critical sucess factor-kpi
Abell's 3 dimensions critical sucess factor-kpi
 
Growing with Purpose: How to Improve Your Software Company's Evaluation
Growing with Purpose: How to Improve Your Software Company's EvaluationGrowing with Purpose: How to Improve Your Software Company's Evaluation
Growing with Purpose: How to Improve Your Software Company's Evaluation
 
OperatingModelForProductCos
OperatingModelForProductCosOperatingModelForProductCos
OperatingModelForProductCos
 
WP_BrandCouncil
WP_BrandCouncilWP_BrandCouncil
WP_BrandCouncil
 
Navigating the journey ahead
Navigating the journey aheadNavigating the journey ahead
Navigating the journey ahead
 

Mehr von Bob Jacobson

BH&L Group US Pavilion for Shanghai 2010 World Expo, Jan 2009
BH&L Group US Pavilion for Shanghai 2010 World Expo, Jan 2009BH&L Group US Pavilion for Shanghai 2010 World Expo, Jan 2009
BH&L Group US Pavilion for Shanghai 2010 World Expo, Jan 2009Bob Jacobson
 
Merlin Report Final 050708
Merlin Report Final 050708Merlin Report Final 050708
Merlin Report Final 050708Bob Jacobson
 
Skunk Works Nine Steps (From Me)
Skunk Works Nine Steps (From Me)Skunk Works Nine Steps (From Me)
Skunk Works Nine Steps (From Me)Bob Jacobson
 
Strategic Design + Co Creation Innovation For Services 22 Feb 2008
Strategic Design + Co Creation Innovation For Services 22 Feb 2008Strategic Design + Co Creation Innovation For Services 22 Feb 2008
Strategic Design + Co Creation Innovation For Services 22 Feb 2008Bob Jacobson
 
Wayfinding Paper 2004
Wayfinding Paper 2004Wayfinding Paper 2004
Wayfinding Paper 2004Bob Jacobson
 
Mod Viz Angels Forum 050103
Mod Viz Angels Forum 050103Mod Viz Angels Forum 050103
Mod Viz Angels Forum 050103Bob Jacobson
 
Mod Viz Es Q2 2003
Mod Viz Es Q2 2003Mod Viz Es Q2 2003
Mod Viz Es Q2 2003Bob Jacobson
 
Climate Change Metaverse For Cop15
Climate Change Metaverse For Cop15Climate Change Metaverse For Cop15
Climate Change Metaverse For Cop15Bob Jacobson
 
Medea Presentation 17 Nov 2009
Medea Presentation 17 Nov 2009Medea Presentation 17 Nov 2009
Medea Presentation 17 Nov 2009Bob Jacobson
 

Mehr von Bob Jacobson (9)

BH&L Group US Pavilion for Shanghai 2010 World Expo, Jan 2009
BH&L Group US Pavilion for Shanghai 2010 World Expo, Jan 2009BH&L Group US Pavilion for Shanghai 2010 World Expo, Jan 2009
BH&L Group US Pavilion for Shanghai 2010 World Expo, Jan 2009
 
Merlin Report Final 050708
Merlin Report Final 050708Merlin Report Final 050708
Merlin Report Final 050708
 
Skunk Works Nine Steps (From Me)
Skunk Works Nine Steps (From Me)Skunk Works Nine Steps (From Me)
Skunk Works Nine Steps (From Me)
 
Strategic Design + Co Creation Innovation For Services 22 Feb 2008
Strategic Design + Co Creation Innovation For Services 22 Feb 2008Strategic Design + Co Creation Innovation For Services 22 Feb 2008
Strategic Design + Co Creation Innovation For Services 22 Feb 2008
 
Wayfinding Paper 2004
Wayfinding Paper 2004Wayfinding Paper 2004
Wayfinding Paper 2004
 
Mod Viz Angels Forum 050103
Mod Viz Angels Forum 050103Mod Viz Angels Forum 050103
Mod Viz Angels Forum 050103
 
Mod Viz Es Q2 2003
Mod Viz Es Q2 2003Mod Viz Es Q2 2003
Mod Viz Es Q2 2003
 
Climate Change Metaverse For Cop15
Climate Change Metaverse For Cop15Climate Change Metaverse For Cop15
Climate Change Metaverse For Cop15
 
Medea Presentation 17 Nov 2009
Medea Presentation 17 Nov 2009Medea Presentation 17 Nov 2009
Medea Presentation 17 Nov 2009
 

The Buying Experience V.1 12 May 2008

  • 1. The Gemba Company Buying Experience Robert Jacobson, Ph.D. © Gemba Innovation 2008 Introduction The Company Buying Experience is at the core of every Company’s marketing and selling campaign. It is the constant, managed, always evolving relationship between a Company and its customers. Every Company’s Buying Experience has four elements: 1. Company themes are the basic ingredients of the desired buying experience that the company wants for its customers. 2. Once established, Company themes are translated into customer value propositions, arguments for the customer’s business. 3. Touchpoints are moments or events where a Company and its customers connect, where customer value propositions are offered. Touchpoints are identified, described, mapped, scored, activated, and measured for effect. 4. A score or composition shapes and relates the touchpoints, based on the Company themes and the customers’ prior experience, to create the overall desired buying experience. Another term used to describe the Buying Experience is the customer experience plan. The concept is the same. Each occurrence, situation, and location where a company and its customers connect (also its investors, suppliers, regulators, and other stakeholders) is identified and characterized. This is called an audit or a survey. Specialized designers then use different media of communication and other social tools to build a network of touchpoints and create experiences for their customers. Done well, this leads the customers to adopt desired behaviors, including buying products and services; and desired attitudes and beliefs, like Company loyalty. A Company’s Buying Experience development process is inclusive. It considers all connections between a Company and its customer in physical locations (e.g, stores), a virtual environment (e.g., on the Web), or in the customer’s own mind – for example, developing an attitude. With the exception of what happens in the customer’s head, all of these are touchpoints can be manipulated.
  • 2. Many touchpoints are formal: advertising, public relations, and organized events, customer involvement in Company operations and new product development, and so forth. Other touchpoints are informal: gossip and rumor (now professionally called, “word of mouth” advertising), spontaneous events and occurrences (like assembling a product at home), talking on the phone with a service representative, reading an account in the paper that mentions the Company or its products, and when a customer uses a product sold by the Company. Retailing involves one set of touchpoints; maintaining supply and value chain relationships, another. Common touchpoints include listening to the radio, watching TV or cable, reading a billboard, sharing a rumor, attending public ceremonies, recommending the Company or its products to someone, and so forth. In fact, touchpoints are so many, the problem is not to find them, but rather to know which one’s to work with and how in any particular situation. Touchpoints are neither good nor bad. They are simply opportunities to continue a conversation with the customer that is intended to lead to a sale and continued business with the customer. Crafting touchpoint compositions is still an art form akin to brand management, though the number of practitioners is. We call them designers of experience (DoE).1 To be successful in this line of work, designers must have a keen understanding of human perception, cognition, and behavior; the ability to extrapolate futures from current conditions; and the ability to shape how others perceive, consider, emote, and finally act – thus, to design experiences. It is the DoE’s job to manage the touchpoints – gossip mills, online blogs, broadcast TV advertising, planes towing banners, riding a mountain bike, listening to a radio account, climbing a mountain – creating in the customer’s mind an impression that Company wants him or her to remember and act on, now or in the future. But because the customer can choose to acknowledge or ignore touchpoints (often unintentionally), and because a score can be interrupted or disturbed by “noise” in the information environment, the customer’s ultimate Buying Experience may differ from what the Company or the DoE intended. This is true of all marketing. There is no absolute certainty when dealing with human beings 1 Designers of experience are also called “experience designers,” but this can be confusing since website developers have used this term to describe what they do to the exclusion of designers working in other media. 2
  • 3. Although the tools for designing experiences are still primitive, it is possible to imagine a future when the Company or the customer will be able to turn on or turn off touchpoints at will (perhaps for reasons of privacy). But the overall Buying Experience will survive, because it does not rely on technology alone but is created in the mind of the customer where perception, cognition, memory, anticipation, and action form continuously changing meanings. The Gemba Buying Experience Process Gemba’s process for crafting a client’s Buying Experience is straightforward. Before doing anything else, it’s important to organize a Buying Experience team comprising staff from all relevant departments and members of the executive corps. The staff provides specific expertise and labor; the executive members keep top management involved and informed, and muster necessary resources (including time allotments, funding, and official support) for the team’s success. Once organized, the team, aided by Gemba expert consultants, undertakes the following tasks. A. B. C. D. E. F. G. Define Develop Audit Compose Prototype Activate Evaluate Company Customer Existing the The the Full and Revise Themes Value Touchpoint Buying Buying Buying the Buying Proposition s Experienc Experienc Experienc Experience s e e e Score Here the tasks are presented sequentially, but in a complex organization, there may be several Buying Experiences operating concurrently. In that case, the team will continuously be working with Buying Experiences at different points in their development. The team therefore must be appropriately organized to permit dealing with different tasks simultaneously. A. Define Company themes 1. Collect information that describes the Company environment and situation: local, global, or both. These are its current coordinates. 2. Identify and describe trends in the world that bear on the Company’s operations and growth, based on its current coordinates. 3
  • 4. 3. Divide individual and small groups of trends into clusters called meta-trends. 4. Based on the meta-trends, choose themes that describe the Company goals and aspirations for the future. These themes are the basis of the Company’s “marching orders”: its strategic, marketing, and Buying Experience plans. Themes can be as broad or narrow as a Company’s scope and aspirations. As an option, scenarios – portraits of alternative possible futures – can be created to test the themes and their implementation within these possible futures. How well do they play out for the Company and each of its key stakeholders: management, labor, investors, customers, and regulators? B. Develop customer value propositions 1. Describe how the themes, when implemented, translate into tangible benefits for the customers. These benefits can be personal, social, or both. 2. Test the benefits against customers’ current perceived needs using surveys, focus groups, or most effectively, by having customers work with the Company to describe these benefits (co-creation). 3. Adjust the benefits to meet customers’ needs, keeping in mind that these needs may change and that the Company can play a part in changing them. 4. Translate the benefits into customer value propositions – arguments that can be made for customers to adopt the Company’s themes as their own and ultimately, to buy the Company’s products and services. C. Audit existing touchpoints (also called “mapping” or “inventorying” the touchpoints) 1. Identify where the Company currently provides customer value propositions for its customers’ consideration, instances or events where the Company and its customers come into contact with one another directly or indirectly, by design or serendipity. 2. Describe these touchpoints and evaluate their effectiveness for the Company 3. Develop a net customer asset index (NCAI) as a measurement tool – the proportion of existing and sought-after future customers who are positively affected by each critical touchpoint. 4
  • 5. Calculating on a continuous basis the Company’s overall NCAI is one way to measure the effectiveness of its Buying Experience. Individual touchpoints can be evaluated with touchpoint type- specific metrics. D. Compose the Buying Experience score 1. Fully understand how the most important touchpoints contribute to the Buying Experience (plus or minus) and then determine how they can be harmonized for greatest effectiveness. 2. Decide where Company resources can best be deployed among the most important touchpoints to ensure that the Buying Experience is achieves its purpose. 3. Score the touchpoints, optimizing those that provide greatest value to the Company, neutralizing unproductive or negative touchpoints, and creating required new ones. 4. Review the score to ensure that there are no inherent conflicts and that all essential touchpoints are covered. The team does a virtual walkthrough accompanied by representative sample customers. E. Prototype the Buying Experience 1. For each type of touchpoint, on a controlled basis, “turn on” the experience (e.g., store personnel adopt new techniques, advertising broadcasts the message, internal Company procedures – like enhanced CRM systems – are initiated, and so forth). 2. The team visits all physical and virtual touchpoints to ensure their proper operation. 3. Customers are observed and interviewed to ensure that their experiences meet or exceed the intended consequences of each touchpoint. 4. Make necessary revisions to the score and adjust the touchpoints. F. Activate the full Buying Experience 1. Do all of the above, “turning on” the touchpoints to their full capacity (for example, extend services prototyped at a few stores to an entire chain of outlets or from a few webpages to an entire website). 5
  • 6. 2. Monitor the touchpoints as before. 3. Be prepared to make quick changes where unanticipated insufficient or negative results are produced. Have alternative solutions already prepared or procedures in place for their rapid development, prototyping, and deployment. G. Evaluate and revise the Buying Experience 1. Apply the NCAI and determine the effectiveness of the Buying Experience per se. 2. Calibrate the NCAI findings with conventional objective measures of business success like sales per product or per line, revenues, gross income, and EBITA (earning before interest, taxes, and amortization expense), per period and over the entire run of the Buying Experience. 3. Calibrate the NCAI with conventional subjective measures of business success like customer satisfaction, employee moral, competitors’ reactions, press coverage of the Company and its products, policy developments, and communications online (e.g., in forums and chat rooms) and offline (word of mouth). 4. Make revisions in the continuing Buying Experience; prepare for the next Buying Experience that proposes similar customer value propositions; or repeat all of these steps to create a new Buying Experience that better responds to changing themes within the Company, changes in the business environment, the pursuit of new customers, or any combination of these factors. Timing the Buying Experience Endeavor Each company will tackle the challenge of creating useful and productive Buying Experiences at its own pace, depending the degree of urgency it feels and its resources available for the task – keeping in mind that few major investments get cheaper with time. Larger companies have many more touchpoints to incorporate in a Buying Experience score than do smaller firms, but they also can bring to bear more labor and greater investment. Each company must look to its own needs in carrying out this relatively new process, unless a competitor beats it to the punch, in which case it may be forced to move quickly. On average, from start to finish, a single, discreet Buying Experience will take a small company three months, a midsized company four to six months; and a large company, six months or more. This does not include prior decisionmaking to go ahead with 6
  • 7. a Buying Experience project, nor does it include evaluation of the Buying Experience from a larger strategic, post-Buying Experience perspective. But these things should be occurring constantly, anyway, so that the Buying Experience can be slotted into a company’s schedule without a great deal of external involvement (for example, by executives or staff who are not part of the Buying Experience team 7