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Branded Customer Experience – Bridging promise and fulfillment

As customers lose trust in traditional message oriented forms of marketing, it becomes more important what a brand does than what it says. As a new way to build brand preference, Branded Experiences are combining the traditional branding approach with the method of service design. Based on brand positioning and customer needs it designs and optimizes the customer-brand relationship by creating encounters and touchpoints with the company that are pleasant, useful, and beneficial for people. At the same time, these encounters are designed to bring the brand promise to life. This approach offers a modern and sustainable form of marketing and brand building.

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Branded Customer Experience – Bridging promise and fulfillment

  1. 1. Brand Management Brand Strategy Service Design Experience Design Customer Experience Branded Customer Experiences – 
 Bridging promise and fulfillment White Paper and Case Study by Rlevance Consulting
  2. 2. 2 Marketing has become increasingly difficult your brand
  3. 3. 3 Shorter innovation cycles Competition from multiple sides Higher demand for 
 new products 1. More and more competition More offers per category Strong rivalry between offers
  4. 4. 4 using an ever increasing amount of media channels constantly changing values & interests fragmented 
 target groups 2. Audience harder to reach
  5. 5. 5 Source: Nielsen Global Trust in Advertising Recommendations from people I know Consumer opinions posted online Editorial content (e.g. in newspapers) Ads on TV Ads in magazines Billboards / outdoor advertising Ads in radio Ads served in search engine results Online banner ads 0 50 100 67 60 58 53 53 53 42 30 8 33 40 42 47 47 47 58 70 92 Trust completely / somewhat Don’t trust much/at all 3. Lack of trust in corporate messages
  6. 6. 6 Source: Convergys Customer Scorecard, 2014; 
 3.000 U.S. consumers, ages 18-74 (industries: banking, credit cards, health insurance, Internet service providers, retail, satellite/cable, mobile service, technology) 2011 2013 2014 60% Loyal 52% Loyal 55% Loyal 4. Decreasing brand loyalty – „The Switching Economy“
  7. 7. Our usual recipes? 7
  8. 8. 8 Painting: Michiel van der Born More communications We communicate more and louder
  9. 9. 9 We »innovate« and create more variations
  10. 10. 10 More communications We engage in price wars
  11. 11. 11 Price wars »Innovation« and more variations More and louder communications Decreasing 
 brand loyalty Lack of trust in corporate messages More and more competition Audience harder 
 to reach increasing the noise, decreasing value, losing the customer
  12. 12. 12 Print Ads TV Commercials Billboard SEO Targeting/
 Re-Targeting Corporate Design Direct Mail Events Roadshows Trade Marketing Social Media Native Advertising Advertorials Something is missing in the way we do Marketing today
  13. 13. 13 How companies make customers feel is more important than what they say about themselves How companies make customers feel 
 is more important than 
 what they say about themselves
  14. 14. Why experience matters 14
  15. 15. 15 As humans have two different operating modes, experience is needs to be considered separately Remembering Self Memories and stories factual, often altered to fit 
 self-perception Experiencing Self Holistic experiences basis of emotional evaluation Source: Daniel Kahneman & Jason Riis: „Living, and thinking about it: two perspectives on life“, 2005
  16. 16. 16 Customer Experience: Holistic impressions from regular interactions, clearly located in space and time Regular experience when dealing with a company, its product or touchpoints Sum of impressions: conscious & subconscious, rational & emotional aspects Situational, located in space and a time
  17. 17. 17 Source: Forrester Research;
 North American Technographics Customer Experience Online Survey, Q4 2011, Base: US Online consumer Positive experiences increase loyalty and recommendation Low 0 0.71 0.65 MediumHigh Low Medium High Willingness to consider the company for another purchase Likelihood to recommend 
 to a friend or colleague Correlation with Customer Experience
  18. 18. 18 US company Zappos is »delivering Wow« through service – 75% customers return, resulting in steep increase of revenue

  19. 19. 19 vs. German drug store market: Two brands with similar price point
  20. 20. 20 More communications dm in-store experience
  21. 21. 21 More communications Schlecker in-store experience
  22. 22. 22 vs. While »dm« is Germany‘s most loved drugstore chain, competitor »Schlecker« must close down 5,8 5,1 4,5 4,1 3,8 Revenue 2009 2010 2011 20122008 0 4,44,64,84,7 bankrupt Revenue 2009 2010 2011 20122008 Source: dm, Schlecker
  23. 23. 23 Forbes Magazine sees customer experience as the new benchmark

  24. 24. 24 providing positive experiences when dealing with the company giving promises through media messages We should move on from only giving promises to also providing positive experiences

  25. 25. 25 More communications Human Centered Design helps creating need-based, easy-to- use & pleasant experiences Source: LUMA Institute: Innovating for people
  26. 26. 26 However: Taking humans as primary measure doesn‘t come without downsides ideal solution 
 for [person × situation] task: 
 designing for a commercial situation similar solutions for competing brands HCD Brand A = Brand B = Brand C
  27. 27. 27 Positive is not enough because human centered design methods lead to similar results Source: Rupert Platz, http://de.slideshare.net/r000pert/why-youre-a-brand-shaper-knowingly-or-not-and-what-you-can-do-about-it?
  28. 28. 28 More communications Still true: Strong brands make companies successful by anchoring offers in the mind of customers
  29. 29. Branded Customer Experience unites strengths of both approaches 29
  30. 30. 30 Great customer experience makes companies successful by making offers beneficial for customers
  31. 31. 31 Strong brands make companies successful by anchoring offers in the mind of customers through meaning
  32. 32. 32 Great customer experience beneficial offers Strong brands meaning loyalty building brands&
  33. 33. Creating loyalty while building brands 33 Making these improvements expressions of the brand values – to anchor it the in the mind of customers Improving the experience – when dealing with a brand in a regular way –  so it is beneficial for customers & Branded Experience
  34. 34. 34 Using the brand idea to »speak to people« through situations of product/service usage Situation A Brand Idea Situation B Situation C Situation D
  35. 35. How do we create a Branded Experience? 35
  36. 36. 36 Case Brand Experience Airlines
 – Airlines strive to be brands, but mostly distinguish via design and communication, the experience they provide are more or less the same – Conducted an ethnographic study of 8 European airlines: experience journey, pain points, brand perception – Created service branding ideas for Lufthansa & easyJet
  37. 37. 37 Two very different brand positionings
 Bringing German reliability and precision into air-travel* *) from interviews and communication analysis Helping yo to enjoy your time away affordably*
  38. 38. 38 Insight and brand idea Creating value for the user The brand idea An air-trip is a complex process full of uncertainties. For most travelers, predictability and being in the know helps a lot. Bringing German reliability and precision into air-travel +
  39. 39. Opportunity to create value There is a trade-off between not wanting to wait too long at the airport and not wanting to miss your flight. This dilemma is a source of stress.
  40. 40. Idea To take away the feeling of insecurity, Lufthansa helps with the Travel Companion: An app that provides necessary information. It also shows how long it takes to airport with different modes of transport.
  41. 41. Opportunity to create value Settling in your seat is when you have finally made it after all the stop and go, and the journey is about to begin. This is a very sensitive moment.
  42. 42. Idea Lufthansa celebrates this with a new ritual, a very simple printed schedule of the services planned –  taking away uncertainty, as many people like to sleep, but do not want to miss food and drinks.
  43. 43. 43 Insight and brand idea Creating value for the user The brand idea Any air trip offers the opportunity to do exciting things, meet friends and enjoy your time away. Helping yo to enjoy your time away affordably +
  44. 44. Opportunity to create value People are often looking for getaways, and not necessarily need to travel to a certain destination. Also, it is more about activities and weather than a specific destination. This is why they are flexible with dates but have a fixed budget.
  45. 45. Idea easyJet provides the Trip Alert: Users define certain criteria, including a price point. When all criteria are matched, the user is notified about his ideal trip, providing the feeling of great value.
  46. 46. Opportunity to create value An air-flight is about the things you do at the destination. For private travelers this is meeting people and doing great things. Although planning is fun most find the time for it only in the plane.
  47. 47. Idea The easyJet Trip Planner finds friends at the destination through Facebook. It is also a bookmarking tool for activities, restaurants etc. at the destination. It increases the joy when looking forward to the trip.
  48. 48. Idea The easyJet Trip Planner works in offline mode, so people can finally plan the trip in the plane, matching people and activities and create an itinerary. This way, easyJet increases the enjoyment of the trip.
  49. 49. 49 Branding experiences results in two very different stories delivered
 an enjoyable time away, affordably German reliability and precision
  50. 50. 50 More Service Branding projects by Rlevance

  51. 51. 51 making companies more relevant for people Rlevance Consulting GmbH Christian Vatter, Managing Director
 cv@rlevance.com, +49 151 2520 5043 Berlin, Germany www.rlevance.com all intellectual property rights reserved Get in contact: Illustrators Icons (Nounproject): Wilson Joseph / Herbert Spencer / Dalpat Prajapati / Austin Condiff / Francielly Costantin Senra / Rediffusion / Diego Naive / Les vieux garçons / Murali Krishna / Johanna / Dara Ullrich / Melonnie Manohar / Nicolò Bertoncin