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03.18.09
Go Beyond Best Practices: Evolving Next Practices to Prosper in the 21st Century

                                                                      MIX09




                                                                                     Date
                                                                The Venetian
                                                               Las Vegas, NV
© 2009 All Rights Reserved. Experience Engineering, Inc.
           Any use, copying or distribution without
               written permission is prohibited.
lou carbone – founder & ceo
minneapolis, minnesota




                   © 2009 All Rights Reserved. Experience Engineering, Inc.
                              Any use, copying or distribution without
                                  written permission is prohibited.
at experience engineering

we live, eat, sleep, breathe and unravel the riddle that is
human experience for a select group of clients who want to
manage experience – and the value that experience can
create.




                                                       © 2009, All Rights Reserved. Experience Engineering, Inc.
                                                                  Any use, copying or distribution without
                                                                      written permission is prohibited.
© 2009 All Rights Reserved. Experience Engineering, Inc.
           Any use, copying or distribution without
               written permission is prohibited.
How does your business
cause its customers to feel?


                     © 2007, All Rights Reserved. Experience Engineering, Inc.
                                Any use, copying or distribution without
                                    written permission is prohibited.
© 2009 All Rights Reserved. Experience Engineering, Inc.
           Any use, copying or distribution without
               written permission is prohibited.
© 2009 All Rights Reserved. Experience Engineering, Inc.
           Any use, copying or distribution without
               written permission is prohibited.
“Emotions are important determinants of
economic behavior - more so than rationality.”



                                       Dr. Daniel Kahneman,
                             Princeton Psychology Professor
                       Nobel Prize Winner in Economics 2002

                                       © 2009, All Rights Reserved. Experience Engineering, Inc.
                                                  Any use, copying or distribution without
                                                      written permission is prohibited.
“the tangible attributes of a product
or service have far less influence
on consumer preference than the
sub-conscious sensory and
emotional elements derived from
the total experience.”

                           Dr. Gerald Zaltman
                   Harvard Business School
            Laboratory of the Consumer Mind


                           © 2009, All Rights Reserved. Experience Engineering, Inc.
                                      Any use, copying or distribution without
                                          written permission is prohibited.
“Firms of Endearment”




                        © 2009, All Rights Reserved. Experience Engineering, Inc.
                                   Any use, copying or distribution without
                                       written permission is prohibited.
Stock Price Performance of FoE versus GtG versus S&P 500

        1400
        1200
        1000
         800                                                                      FoE
                                                                                  GtG
         600
                                                                                  S&P 500
         400
         200
          0
                 10 Years                5 Years              3 Years
               3 to 1 Ratio             1.7 to 1 Ratio

                                Source: Adapted from Firms of Endearment;
                              by Raj Sisodia, Jagdish Sheth and David B. Wolfe   © 2009, All Rights Reserved. Experience Engineering, Inc.
                                                                                            Any use, copying or distribution without
                                     (2007; Wharton School Publishing)                          written permission is prohibited.
Firms of Endearment                                                 Investors




    S ociety                                                                                    Customers
                                   Partners
                                                                     Experiential
                                                                        Firms
    P artners                                                           Value
                                                                          Of
                                                                     Associated
                                                                     Endearment
    I nvestors                                                       with Brand


    C ustomers
    E mployees                                  Society                         Employees




                        Source: Adapted from Firms of Endearment;
                      by Raj Sisodia, Jagdish Sheth and David B. Wolfe          © 2009, All Rights Reserved. Experience Engineering, Inc.
                                                                                           Any use, copying or distribution without
                             (2007; Wharton School Publishing)                                 written permission is prohibited.
© 2009 All Rights Reserved. Experience Engineering, Inc.
           Any use, copying or distribution without
               written permission is prohibited.
the brand canyon™




                    © 2009, All Rights Reserved. Experience Engineering, Inc.
                               Any use, copying or distribution without
                                   written permission is prohibited.
the brand canyon™


     brand                       service                          experience

what customers feel   “ladies and gentlemen, serving        what customers feel
 about company!           ladies and gentlemen.”             about themselves!
                      Ritz Carlton


    product                    treatment                                feelings




                                                       © 2009, All Rights Reserved. Experience Engineering, Inc.
                                                                  Any use, copying or distribution without
                                                                      written permission is prohibited.
value relationships




                             how I feel about the
               brand value
                                        company

                                how I feel in and
               customer
                                       about the
               value
                                     experience



                                            © 2009, All Rights Reserved. Experience Engineering, Inc.
                                                       Any use, copying or distribution without
                                                           written permission is prohibited.
types of clues that customers experience

                             what we see


                             what we hear


                             what we smell


                             what we taste


                             what we feel


                                             © 2009 All Rights Reserved. Experience Engineering, Inc.
                                                        Any use, copying or distribution without
                                                            written permission is prohibited.
categories of clues


                                                          humanic clues
   functional clues            mechanic clues
                                                        stimuli associated with
 functionality of the good   stimuli associated with
                                                        people – choice of words,
 or service                  things – sights, smells,
                                                        tone of voice, level of
                             sounds, textures
                                                        enthusiasm, appearance,
                                                        body language


                                                                emotional
        rational                   emotional




                                                            © 2009 All Rights Reserved. Experience Engineering, Inc.
                                                                       Any use, copying or distribution without
                                                                           written permission is prohibited.
© 2009 All Rights Reserved. Experience Engineering, Inc.
           Any use, copying or distribution without
               written permission is prohibited.
© 2009 All Rights Reserved. Experience Engineering, Inc.
           Any use, copying or distribution without
               written permission is prohibited.
what if we of experience doclues? clues create?
     kind managed these these




                                             © 2009 All Rights Reserved. Experience Engineering, Inc.
                                                        Any use, copying or distribution without
                                                            written permission is prohibited.
“you cannot NOT have an experience…



                       …the question is, how managed or
                       haphazard is that experience?”

                                                    Lou Carbone,
                                                 President & CEO
                                      Experience Engineering, Inc.




                                           © 2009 All Rights Reserved. Experience Engineering, Inc.
                                                      Any use, copying or distribution without
                                                          written permission is prohibited.
Experience Engineering …
…helps understand, align & manage experience clues to optimize the
 value of experiences create




                                                                 do
                              create
       learn
    • assessment              •motif              • implementation
    • experience audit        •design             • stewardship




                                                  © 2009, All Rights Reserved. Experience Engineering, Inc.
                                                             Any use, copying or distribution without
                                                                 written permission is prohibited.
© 2009, All Rights Reserved. Experience Engineering, Inc.
        Any use, copying or distribution without
           written permission is prohibited.
using the motif as a northstar to generate experience designs
embedded with clues
• eliminate or abate negative clues
• improve neutral clues
• dial up or create preference clues



                                                      preference
        rejection               acceptance
                                                     Positive Differentiation
     Negative Differentiation   No Differentiation



              -                 commodity
                                                                      +
                                  zone


                                                      © 2009, All Rights Reserved. Experience Engineering, Inc.
                                                                 Any use, copying or distribution without
                                                                     written permission is prohibited.
engineering customer experiences


            •   move from “make and sell” to “sense and respond”
            •   customer back (emotional/rational bond)
            •   understand and leverage role of the unconscious mind
            •   clue conscious
            •   rigorous systems to develop and manage clues
ROY Obsession
ROI
  Y Are We Doing It (Effect)
  Y Will it Make A Difference
  Y Wouldn’t We Do It
  Y Does it Make Sense




                                © 2009 All Rights Reserved. Experience Engineering, Inc.
                                           Any use, copying or distribution without
                                               written permission is prohibited.
quot;People will forget what you said. They will forget what
you did, but they will never forget how you made them
feel.quot;
                                     Eleanor Roosevelt




                                          © 2009, All Rights Reserved. Experience Engineering, Inc.
                                                     Any use, copying or distribution without
                                                         written permission is prohibited.
For Further Information On
Managing Experience
as a Value Proposition Contact:
lcarbone@expeng.com
952.942.8880



          © 2009, All Rights Reserved. Experience Engineering, Inc.
                     Any use, copying or distribution without
                         written permission is prohibited.
© 2009, Experience Engineering, Inc.
All rights are reserved. No portion of this document may be reproduced
in any form or used in anyway without the express written permission of:

Experience Engineering, Inc.
7808 Creekridge Circle, Suite 320
Minneapolis, MN 55439

952 942-8880
www.experienceengineering.com




                                                                                                                      31
                                                                 © 2009, All Rights Reserved. Experience Engineering, Inc.

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Go Beyond Best Practices: Evolving Next Practices to Prosper in the 21st Century

  • 1. 03.18.09 Go Beyond Best Practices: Evolving Next Practices to Prosper in the 21st Century MIX09 Date The Venetian Las Vegas, NV
  • 2. © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 3. lou carbone – founder & ceo minneapolis, minnesota © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 4. at experience engineering we live, eat, sleep, breathe and unravel the riddle that is human experience for a select group of clients who want to manage experience – and the value that experience can create. © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 5. © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 6. How does your business cause its customers to feel? © 2007, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 7. © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 8. © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 9. “Emotions are important determinants of economic behavior - more so than rationality.” Dr. Daniel Kahneman, Princeton Psychology Professor Nobel Prize Winner in Economics 2002 © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 10. “the tangible attributes of a product or service have far less influence on consumer preference than the sub-conscious sensory and emotional elements derived from the total experience.” Dr. Gerald Zaltman Harvard Business School Laboratory of the Consumer Mind © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 11. “Firms of Endearment” © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 12. Stock Price Performance of FoE versus GtG versus S&P 500 1400 1200 1000 800 FoE GtG 600 S&P 500 400 200 0 10 Years 5 Years 3 Years 3 to 1 Ratio 1.7 to 1 Ratio Source: Adapted from Firms of Endearment; by Raj Sisodia, Jagdish Sheth and David B. Wolfe © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without (2007; Wharton School Publishing) written permission is prohibited.
  • 13. Firms of Endearment Investors S ociety Customers Partners Experiential Firms P artners Value Of Associated Endearment I nvestors with Brand C ustomers E mployees Society Employees Source: Adapted from Firms of Endearment; by Raj Sisodia, Jagdish Sheth and David B. Wolfe © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without (2007; Wharton School Publishing) written permission is prohibited.
  • 14. © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 15. the brand canyon™ © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 16. the brand canyon™ brand service experience what customers feel “ladies and gentlemen, serving what customers feel about company! ladies and gentlemen.” about themselves! Ritz Carlton product treatment feelings © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 17. value relationships how I feel about the brand value company how I feel in and customer about the value experience © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 18. types of clues that customers experience what we see what we hear what we smell what we taste what we feel © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 19. categories of clues humanic clues functional clues mechanic clues stimuli associated with functionality of the good stimuli associated with people – choice of words, or service things – sights, smells, tone of voice, level of sounds, textures enthusiasm, appearance, body language emotional rational emotional © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 20. © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 21. © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 22. what if we of experience doclues? clues create? kind managed these these © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 23. “you cannot NOT have an experience… …the question is, how managed or haphazard is that experience?” Lou Carbone, President & CEO Experience Engineering, Inc. © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 24. Experience Engineering … …helps understand, align & manage experience clues to optimize the value of experiences create do create learn • assessment •motif • implementation • experience audit •design • stewardship © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 25. © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 26. using the motif as a northstar to generate experience designs embedded with clues • eliminate or abate negative clues • improve neutral clues • dial up or create preference clues preference rejection acceptance Positive Differentiation Negative Differentiation No Differentiation - commodity + zone © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 27. engineering customer experiences • move from “make and sell” to “sense and respond” • customer back (emotional/rational bond) • understand and leverage role of the unconscious mind • clue conscious • rigorous systems to develop and manage clues
  • 28. ROY Obsession ROI Y Are We Doing It (Effect) Y Will it Make A Difference Y Wouldn’t We Do It Y Does it Make Sense © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 29. quot;People will forget what you said. They will forget what you did, but they will never forget how you made them feel.quot; Eleanor Roosevelt © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 30. For Further Information On Managing Experience as a Value Proposition Contact: lcarbone@expeng.com 952.942.8880 © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.
  • 31. © 2009, Experience Engineering, Inc. All rights are reserved. No portion of this document may be reproduced in any form or used in anyway without the express written permission of: Experience Engineering, Inc. 7808 Creekridge Circle, Suite 320 Minneapolis, MN 55439 952 942-8880 www.experienceengineering.com 31 © 2009, All Rights Reserved. Experience Engineering, Inc.