ama customer experience workshop: optimizing the customer experience

Propr ietary & Confiden0al

brandgrowthstrategy

OptimizingtheCustomerExperienceTutorialworkshoppreparedforandfacilitatedonbehalfof:

AmericanMarketingAssociation2014AnnualConference,InspiredMarketing

MichaelMillion

mmillion@fullsurge.com

PROPRIETARYANDCONFIDENTIAL

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You’vegottostartwiththecustomerexperienceandworkbacktowardthetechnology–nottheotherwayaround

SteveJobs

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Weseeourcustomersasinvitedgueststoaparty,andwearethehostsIt’sourjobeverydaytomakeeveryimportantaspectofthecustomerexperiencealittlebitbetter

JeffBezos

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Starbucksspentlessthan$10MMonadvertisingfrom1987to1998yetaddedover2,000newstorestoaccommodategrowingsalesStarbucks'popularityisbasedontheexperiencethatdroveitscustomerstohighlyrecommendtheirstoretofriendsandfamily

HowardShcultz

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AtrioofanthropologistsrecentlypublishedanarticlebasedonobservationsatthreeindependentlyownedcoffeeshopsandthreeStarbuckslocationsaroundBoston.TheirintentionwastodeterminehoweffectivelyStarbucksareabletoprovidethesamecommunity-basedsocialenvironmentassociatedwithtraditionalcoffeeshops.

HowStarbuck’sdrivesloyalty-astudyincustomerexperience

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ThebiggestsurprisewasthatStarbucksactuallyprovidedamorewelcomingenvironmentthananyofthethreelocalcoffeehouses.TheycreditedoneStarbuckswithhavingthemostvibrantsenseofcommunity,andobservedthatthebaristasthereknewmanypatronsbynameandcouldanticipatetheirorders.TheanthropologistsalsonotedthattheStarbucksbaristaswerefriendliertonewcustomersthanthebespokehipstersbehindthecounteratthelocalplaces.

Sameeverywhere,butwestillmakeyoufeelspecial

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§  WarmupExercise 15

§  FoundationalTerms&FocusforToday 15

§  Inspirations&Examples 15

§  MethodologyAppliedtoaCase 30

§  Break-outs&Report-backs 45

§  Conclusions

Agenda

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Whataresomeofexamplesofgreatcustomerexperiences?

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Whatmakesthemsogreat?

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Wheredoescustomerexperiencesitinyourcompany?

Howmuchofapriorityisit?

Howisitviewedintheorganization?

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Wheredoescustomerexperiencesitinyourcompany?

Who’sresponsibilityisit?

Howisitmanaged?

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§  Conclusions

Agenda

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Whatiscustomerexperience?

CumulativeImpactDefinition

Multipletouchpointsovertime,whichresultinarealrelationshipfeeling,orlackofit.

-Wikipedia

Asetofexpressions,impressions,andinteractionsbetweenacustomerandcompanythatresultincertainperceptionsofthatcompanythat,inturn,drivesometypeofactioninthenearorlonglong-term

-M.Million

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DistinctEconomicOfferDefinition

Apersonalandmemorableexperiencethatcreatesadistincteconomicofferdifferentfromthegoodssoldandservicesdelivered

Acompany'sabilitytodeliveranexperiencethatsetsitapartintheeyesofitscustomersservestoincreasetheamountofconsumerspendingwiththecompanyand,optimally,inspireloyaltytoitsbrand

-PineandGilmore,ExperienceEconomy

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PsychologicalUnderpinningDefinition

Aninteractionbetweenanorganizationandacustomerasperceivedthroughthecustomer’sconsciousandsubconscious

Ablendofanorganization’srationalperformance,thesensesstimulatedandtheemotionsevokedandintuitivelymeasuredagainstcustomerexpectationsacrossallmomentsofcontact

•  Notjustabouttherational”what”butalsoabouttheemotional“how”

•  Morethan50%issubconscious,orhowacustomerfeels

•  Factorssuchastheemotional,cultural,social,andphysicalaspectsareoftenover-looked

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Differentapproachestowardcustomerexperience

Likesegmentation,therightapproachdependsonknowingspecificallywhatthebusinesschallengesareandobjectivesyouseek

§  Financial–howdowesqueezecostsoutofthesystem,getcustomerstopaymore(e.g.airlineschargingforpillows),orexpeditetransactions(pathtopurchase)?

§  Operational–howdowestreamlineoperationstomakeitmoreefficientfromendtoend(e.g.processreengineering)?

§  Technical–howdoweenablethesystemtobemoreproductive,manageable,andinterconnected(digitalenablement)?

InternallyOriented ExternallyOriented§  Functionalpath–howdowemake

customers’journeyseasy,informative,andhelpfulthroughout?

§  Emotionalpath–howdoweaddresscustomers’changingpsychologicaloremotionalneedsastheirdecision-makingevolves(e.g.decisionanxiety,confusion,frustration,boredom)?

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Anargumentfora“BrandExperience”ApproachTheworldisgrowingincreasinglycomplexandfast-paced

Weareinundatedbymoreandmoremarketingmessages(andyet,wedon’ttrustthemanymorethanweusedto)

Technologyimprovementsareenablingmoreandmorecompaniestogetthebasicsright(e.g.convenience,reducedwaittimes)

Copyingisbecomingincreasinglyeasy–“sameness”ofmoreandmoreproductsandservices/makingdifferentiationevermoredifficult

Brandexperienceswilldrivetomorrow’ssuccessandallowcompaniestostandout(products,services,andeven“good”experiencesaren’tenoughanymore)

Welookforandvaluewhatispersonallymeaningfultous-experienceswehavewithcompaniesseemtomattermore

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So,whatisa“BrandExperience”?Interactionssoimpactfulanduniquelyidentifiabletoaparticularcompany,thattheydefinethebrandincustomers’minds,distinguishthecompanyfarandawayfromitscompetitors,andhaveahighinfluenceonfuturebehaviors

§  Nordstrom'ssalesrepresentativesgoingaboveandbeyond

§  Tumi’slifelongrepairpolicy

§  Apple’sGeniusBar

§  Uber’spaymentsystem

§  Others????

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Benefitsofa“BrandExperience”

AccordingtostudiesbyMcKinsey,brandexperiencesarethemostpowerfulformofwordofmouthdrivingactivity-accountingfor50to80percentinanygivenproductcategory.Brandexperienceisinherentlysocial,it'sbuiltonideasthatpeoplewanttospendtimewithandthatpeoplewanttoshare.

50%to80%ofwordofmouth-drivenbybrandexperience

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70%ofconsumerstrustbrandrecommendationsfromfriends,butonly10%trustadvertising.UKEnergysupplier,E.ONdevelopedEONOpenHouse,astoreinNottingham,UKthateducateslocalcustomersaboutsmartmeters,whicharebeingfittedforfreeacrossNottingham.Theprojectprovesthepowerofbrandexperiencebydeliveringpositiveadvocacywhentraditionalmethodshadpreviouslyfailedthebrand;NetPromoterScoresof+88%vs.E.ONCustomerscontrolof-17.7%.

-TheGuardian

70%trustbrand

recommendationsfromfriends

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TheKellerFayGroupresearchshowsthatgoodbrandexperiencesarethreetimesmorelikelytosparkconversationsthananad.Furthermore,over50%ofconversationstriggeredbyanin-personexperienceaccountforpassalongandpurchase.

>50%Accountforpassalong

andpurchase

3XMorelikelytosparkconversationsthan

advertising

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Idon’twanttobesoldtowhenIwalkintoastore.Thejobistobeabrilliantbrandambassador.Don’tsell!No!Becausethat’saturn-off.Buildanamazingbrandexperience,andthenitwilljustnaturallyhappen.

AngelaAhrendt

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Agreatbrandexperienceisaboutknowingandinterpreting

Knowthyself(inside-out)

§  Whoyouare

§  Whereyou’regoing

§  Whatyourbrandstandsfor

Knowthycustomer(outside-in)

§  Whotheyare

§  What’smostimportanttothem

§  Whattheirjourneyislike

InterpretInterpret BrandExperience

§  WHATcanwedoforcustomersthatmakestheirjourneybetter

§  HOWcanwedoitinawaythatisuniquelyus

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Greatbrandexperienceshavesixthingsincommon

1.  Brandfirst,transactsecond

2.  Distinguishescustomertypes

3.  Focusesonwhatmattersmost

4.  Makespeoplefeelspecialinsomeway,atsomepoint

5.  Designsforcontinuityandintent(acrosschannels,platforms,andpathtopurchase)

6.  Measures,manages,andcontinuouslyimproves

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§  Conclusions

Agenda

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hEps://www.youtube.com/watch?v=Y1nzWY3JFJQ

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?HowwouldyoucharacterizetheVirginAmericaexperience?

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Grabapillow,takeanap

TheSwedishmanufacturerofhand-madeluxurybeds,strivestomakeconsumers’experiencetransformative,fromthefirsttimetheylayonthebeduntilthebedarrivesintheirbedroom.

Guestsareencouragedtotakeofftheirshoes,picktheirownpersonalpillow,andeventakeaprivatenaponthebedoftheirchoice.

ThissimulationcoupledwiththehighestlevelofhospitalitydistinguishesHästensandburnishesthebrandlikenootherformofmarketingcan.

WinnerofSweden’sprestigiousSignumawardforqualityoflong-termbrandingin2013

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I’mheretotakecareofyou

Eachcustomerservicerepresentativeisavailablearoundtheclockandempoweredtoactoncustomerissues.

Theyareassignedtocustomers,staywiththemthroughouttheirproblemresolutionprocess,andgettoknowthemasindividuals.

Theyoftenprovideapersonaltouch,likeoccasionallysendingflowerstoacustomerortheirpartnertomarkabirthday.

Thesegesturesturnafacelessandcoldexperienceintosomethingmorespecial,andgivethebrandarealheartandsoul.

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Non-stopcoffee

ThroughremotediagnosticseachNespressomachineistechnologicallyenabledtofeedup-to-the-minuteinformationofitsstatusincludingrateofconsumption,watertemperature,pressure,extraction,etc.,solocalNespressoserviceofficesgetwarningtoproactivelyaddressissuesvs.waitingforaservicecall.

ThispreventativemaintenancehassignificantlyincreasedtheuptimeofitsmachinesandallowsNespressotomorecontinuouslybrewgreatcoffeefordiscriminatingguests.

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§  Conclusions

Agenda

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Roadmaptobuildabrandexperience

DIAGNOSE(customer,journey,brand)•  Knowthycustomer,theirjourney,andtheircontexts•  Knowthycustomerpainpoints/improvementopportunitiesthroughoutthejourney•  Knowthybrand,whatmakesitspecial,andwhattypeofexperiencesitshouldprovide

CREATE&BUILD(messyinnovation,front-enddesign,engineering)•  Interpretwhatyouknowaboutthetargetcustomerandyourbrand•  Envisiontheimpressionandinteraction/look,feel,etc.•  Buildouthowthingsfittogethertoturnthevisionintoareality

STRATEGIZE(business,brand,prioritization,plan)•  Clarifybusinessobjectivesandgrowthstrategy•  Determinebrandintent/roleofbrandindrivingbusinessobjectives•  Pinpointinteractionsthatmattermost(what,when,andwhereyoushouldspendeffortson)•  Determine“your”CEprinciples

EXECUTE&OPERATIONALIZE(systematize/routinize,manage,monitor)

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Decimatedbythefinancialcrisis,amiraclewasneeded

In2005,theUSpowerboatingindustrywas307Kunits….by2011itwas139Kunits–adeclineof55%

24’-36’SportCruisers(SeaRay’score)wasdownevenmore–thehardesthit

The50’-70’yachtclass($3Mboats-customhomesthatfloat)representedthebestopportunityforSeaRaytobegingrowingagain,asitwasexpectedtorecoverthefastest,but….

SeaRayhadverylittlepresenceorproductinthecategory,and…..

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Opportunityinthesmallyachtclass,butsomuchwasunknown

….theorganizationknewverylittleaboutthemarketfromaconsumerperspective:

•  Whoweretheconsumersfortheseproducts?

•  HowdidtheyperceiveSeaRay?

•  Whatkindofexperiencedidtheyexpectandweren’treceivingfromstrongcompetitors?

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Approach

DIAGNOSE(consumer,journey,brand)

STRATEGIZE(business,brand,prioritization,plan)

CREATE&BUILD(messyinnovation,front-enddesign,engineering)

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In-depthresearchwithtargetconsumersaroundtheworld

§  Industryreports

§  Boatinglifesocialmedia

§  Competitorwebsites

§  Executiveinterviews

§  Productdevelopmentplans

§  Ethnographicinterviewsattheworld’slargestMarina’s

§  Dealer/brokerinterviews

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Knowthycustomer

Observations Traits WhattheyValue Expectations

Buyersaresurprisinglygrounded

WealthypeopleWhoalsoWorkhard

Initforthelonghaul

Sharp,quickstudieswhounderstandcustomerservice.Thosewhokeepthemfromwastingtheirtimewillearncredit.

Responsive

Buyersarerestlessanddriven

Self-madeWhoalsoRespecttheirroots

Whathasbeenearned

They’renotfamousandthey’renotblue-bloods.They’researchingfor‘superior’thingshavetruemerit.

Cruisersareemotionalamplifiers

StretchedthinWhoalsoCraverelationships

Theirtime,aboveallelse

Boatinggivesthemameaningfulwaytoconnectwithwhotheyare,withthosetheylove,andwiththenaturalworld.

Connected

Everybuyerisuniqueinpersonalityandexpectations

CharactersWhoalsoAppreciatedetails

Cultivatingrapportthroughgraciousness

Treatingthemwithsamethoughtfulnessandattentiontodetailthattheystrivetoupholdmatterstothemagreatdeal.

Personal

GenuinelyrootingforSeaRay

NostalgicWhoalsohaveDiscriminatingtastes

Familiarthingsreinvented

Evolutionary

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Knowthycustomerjourney

ServiceArea Pain

Prep&Strike •  Peoplejustwanttogetoutonthewater—preptaskstakeupvaluabletimeforownersandtheirguests

•  Eventhesmallestissuediscoveredduringprepcansparkfrustrationwhenpeoplearewaitingtoleavethedock

Maintenance •  Ownershavelittlefaithinthequalityofmaintenanceandsuspectcornersarecut

Repair •  Therepairprocessfeelsopaqueandlacksresponsiveness•  Ownersdon’tknowwhotheyaresupposedtocallwhencertainboatpartsfail

Enhancement •  Pricingforapost-productionchangeisoftenanegotiationthatfeelslikebeing“nickelanddimed”

•  Thereisverylittlesupportfromthemanufacturer,mostoftheloadisontheowner

Hospitality •  Takingaboatoutisn’taspontaneousadventure—itrequiressignificantplanningtoaccountforthingsoutofaboater’scontrol(e.g.,weather)

•  Peoplewanttoenjoythemselvesontheboatwithfood,drinks,andvariousotherprovisions,butitrequiresalotoftime

Crewing •  Theresponsibilityofoperatingaboatisn’tsomethingpeoplewanttotakeonallthetime—therearemanywaystoenjoyaboat,andsomeownersfeellockedintoone

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Knowthybrand

PARENTAGE“Who”isbehindthebusiness

PURCHASER“Who”buysit

PURPOSEWhatit’sdesignedfor

PROCESSCustomvs.Production

PLACEWhereit’sbuilt

drawsheavilyfromparentLMVHtogivethebranda“luxehotel”feel

long-standingassociationwith007solidifiespositioninthemarket-Britishqualitywithpolarizingattitude

theromanticsideofoldItaly

themodern,flashy,sexysideofItaly

drawsheavilyuponitsrootsinfishing/knownfortank-likeconstructionandsportscar-likemuscle

OpportunityforSeaRay

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Roadmaptowardbrandexperience

DIAGNOSE(customer,journey,brand)

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KnowthybrandintentPurpose§  Tore-energizethebusinessbyestablishingastrongfootholdintheluxuryyachtclass

§  Drive$Xinrevenuesat%Ymarginsoverthenextthreeyears

§  Engageconsumerswhohistoricallywouldn’thaveconsideredSeaRayforapurchaseintheclasslevel

Positioning§  Forthosewhohaveearneditalongthewayandareneversatisfied

§  SeaRayL-Classprovidesboththestyleandsubstancetheyseekina50’–70’yachtclass§  Bybeingresponsive,real,connected,personal,andauthenticallySeaRay

Persona§  ARCHETYPE:TheWarriorKing

§  Relentlessprogress§  Confidentoutlook§  Passionateaboutcraft

§  Connectedtowhat’simportant

§  “Bringiton”attitude§  Respectfulandrespected

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Knowthybrandintent

Grit&Grace

Here’stothosewhostartedsmall.Totheoneswhomadeittothetopwithoutputtingpeoplebelowthem.Theoneswhoclimbedthecorporateladder,orjustbuilttheirown.Here’stothebestofus,whoneverthinkthemselvesbetterthananyone.Tooneswhoputclassintheworkingclass.Theoneswhostartedsmall.Buthavegonebig.Thisistheyachtforpeoplewho’llsimplycallitaboat.

Essence

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Determine“your”CustomerExperienceprinciples

ServiceArea Promise

Prep&Strike EasyArriveatthedock,getinyourboatandgo.Whenyou’refinished,throwyourkeystothevalet,andtheywilltakecareoftherest.It’sthatsimple.

Maintenance DependableOwnerscantrusttheirmaintenancecrewtokeeptheboatsafe,pristineandreadyforuse.

Repair ResponsiveOwnersexperiencenohesitationaroundhowtogetsomethingfixed.Repairsareasfastaspossible,verytransparent,andresolveeveryissueentirely.

Enhancement AdaptableDirectmanufacturersupporttomakesureownersareconfidentintheirabilitytomakechangeswithoutnegativelyimpactingthequalityoftheboat.

Hospitality InformativeTheboatisn’tjustreadyforoperation,it’sreadyforenjoymentandcomfort.Ownersstepontotheboatunderstandingthemostpertinentinformationabouttheirtripbeforetheyleaveandknowthere’ssomeonetheycantrust.

Crewing LiberatingOwners,particularlyoperators,caneasilyhireatrustworthycaptain,firstmateoranyothersupportpersontofillinwhenoperationfeelslikeaburden.

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Determine“your”overarchingBrandExperienceprinciple

From To

SCALED PERSONALIZED

Thisguidedtheentirecustomerexperienceincludingawareness,website,events,manufacturingplant,customercare&service,delivery,personaltouches,ongoingmanagement

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Examplesofhow“scaled”to“personalized”willplayout

AWARENESS Specialinteractionsvs.abroadcampaign/letthenewboatbediscoveredbytargetsvs.blastedtothemasses

WEBSITE ConciergeservicethatputprospectsdirectlyintouchwithaSeaRayrepresentativestodoaproperjobofintroducingthenewyachtandinvitingusersintoadealerwherebothwouldmeetwiththem

EVENTS Intimate,luxury-filledsettingsof~100attendeesatuniquelocationsalongthecoast.

DELIVERY SeaRaycaptaintocomewithboat/walkingcustomersthroughvesselindetail,dealertraining

PLANT Turningitintoadesign/experiencecenterwhereprospectscantourthesite/hands-onselectionofmaterials(vs.pickingoutofacatalogue–gettingthe“feel”ofthematerial)

BUILDINGPROCESS

VIPparties,emailedpicturesofprogress,extendingintoaboundbook,constructionmanagerattention

PERSONALTOUCHES

•  Anniversaryofpurchasecelebration•  Scaledmodels•  Stockingrefrigerator

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TheCoastalTour

Eventsthatletboatersexperiencetheseboatsinapersonal,familiarsettingtopaintapictureofthebrandandhowitwillfitinwiththeirlives.

Avarietyofcasualcocktailpartiesonthebackofaboattolargergatheringsatyachtclubsandposhprivateresidence.

HostedinawaythathighlightseachregionthroughfoodandculturebutoffersahintofsignatureSeaRaystyle(MainelobsterinMontauk,stonecrabinMiami).

Sotheby’stocoordinatepartiesatmulti-milliondollarhomesonethecoast;otherpartnersincludedAstonMartin,andMerrillLynchtomakeeventsaboutluxury,notonlySeaRay

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ToursoftheDesignCenter(annexofthemanufacturingplant)ReceptionGrabadrinkandgettoknoweachother

CurrentModels/OptionsGalleryAseasonalandcustomizedapproachforeachcustomervisitandmodeltheyareinterestedin

TheLabGivecustomersaninsidelookatcustomizationpossibilitiesornewideasthatthedesignteamisexperimenting

TestDriveGivethemanin-personathowitallcomestogether

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TheDesignCenter–GettingThere

Maketheentireexperiencesurroundingthefactorytourasseamlessandenjoyableaspossible,whilemaintaining‘ourversion’ofluxury.Itshouldfeelmorelikeacourtshipandlesslikeatraditionalsalesexperience.Arrangeforallthetraveltoandfromthefacility.Treatthemtothekindsofprivilegestheyareusedtoreceivinginwhentheymakeotherpurchasesatthisscale.Entertainthembeyondthefacility.TherelationshipsbuiltwillcreatemeaningfulconnectionsthatSeaRayneedswiththisgroup.

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Pop-upShowroom

CreatingaportableshowroomisanefficientwaytobringthebestofSeaRay(andthisnewsub-brand)ontheroadinanimpactfulandimmersiveway.

Mobilepop-upcontainercanbequicklysetupatmarinas,dealereventsoranywhereelseSRhasopportunitytoconnect.

Coffee,wifiandiPadsavailabletoviewand/ordownloadSRapp.

BuildabrandgallerythatechoestheplatformofDeterminedSpirit:product,lifestyle,innovation,etc.

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BoatShows

Approachboatshowsfromamoreconceptualstandpoint.Certainlytheboatsthemselvesareonstage,butwearesellingtheSeaRaylifestyletoo.

Thisisnotjustanopportunitytoshowahugeinventoryofboatsandshortperiodoftime.ThisisatimetotellthestoryofSeaRay’sfuture.

ConsiderageniusbarapproachwherecustomersinteractwithSeaRayexpertsinacontrolledenvironmentandexploretheboatoftheirdreams.

Generalrulesofauthentichospitalitygoalongwayatcrowdedplaceslikethis.Considerunexpecteddrinksandrefreshments.

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Digital

Leveragedigitalasmuchaspossibleduringthistime.Putoffpublishingprintmaterialuntilthefullfleetislaunchedin2014.Leveragedigitalnowinordertogetoutaheadandspreadyourmessagefartherfaster.

1.  Adreamappbuiltforbragging

2.  Anowner’sappbuiltforuse

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YachtDelivery

ASeaRayexpert/captainshouldmeettheownerattheirslipanddelivertheboat,completewithstockedfridgeandsnacks.Everyboatshouldbedeliveredwithatabletfeaturinganinteractiveowner’smanual.Thecaptainshouldstaywiththeownerandtakethemforanexpansivetestdrivemakingsurethattheyarecomfortablewitheveryaspectoftheirnewyachtatthehelm,belowdeckandintheengineroom.

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Execute&Operationalize

CUSTOMERCARE

§  Bestinclasswarranties,prioritizationofissues–risetothetopoffirsthandled

§  SeaRayindividualassignedtoresolvingissue/seeingitthrough-accountability

ONGOINGMANAGEMENT

§  Dealercertification§  Elaboratecustomersurveys

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Results,sofar

§  Launchatthe2014FortLauderdaleInternationalBoatShow(FLIB)wasextremelysuccessful

§  Saleshaveexceededgoalsby+25%todate

§  Businessissoldoutuntilnextyear

§  InterestgeneratedfornextnewmodelscarryingtheL-Classbrandandexperience

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Agenda

§  Conclusions

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Break-outExercise(30minutestodiscuss/15minutestoreport)

1.  Pickoneofyoursessionmate’scompany

2.  Flipchartwhatthecompany’sbrandstandsfor/whatmakesitspecial

3.  Flipchartaprofileofthecompany’stargetcustomer

4.  Flipcharttheprimaryphasesinthecustomerjourney

5.  Select1–2touchpointsthatprovidegoodopportunitiestoimprovetheexperiencesandinjectthebrand

6.  Brainstormideasformakingthetouchpointabrandexperience

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Agenda

§  Conclusions

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Threethingstorememberfromtoday’ssession

Brandexperienceswillbecomeincreasinglyimportantindrivingbusinessoutcomes

Youmustknowyourcustomersfromtheoutsidein,knowyourselffromtheinsideout,andinterpretbothtobuildaneffectivebrandexperience

Establishing”your”customerexperienceprinciplesthatstemfromabrand-drivenbusinessstrategyiskeyinguidingdevelopmentsandoperationalchange

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ClicktoeditMastertitlestyle

1603OrringtonEvanstonIL60201MMillion@fullsurge.comfullsurge.com

Thankyou

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