designing & managing experiences chapter 6. why care about experiences? battle for the eyeballs...
TRANSCRIPT
Designing & Managing Experiences
Chapter 6
Why care about experiences?• Battle for the “eyeballs”• Increased customer loyalty• Increased focus on experience for product
and services – Product Purchase Process = Experience Service:
• Experience over convenience: Coke in Japan• Try and buy: Xscape Mall in UK and Europe
– Hospitality, retail, entertainment, education, websites, and many other industries
Chapter 6 - Designing & Managing Experiences 1
Economic Progression (Pine & Gilmore, 1998)
Economic Offering
Commodities Goods Services Experiences
Economy Agrarian Industrial Service Experience
Economic Function
Extract Make Deliver Stage
Nature of Offering
Fungible Tangible Intangible Memorable
Key Attribute
Natural Standardize Customized Personal
Method of Supply
Stored in bulk Inventoried after prod
Delivered on Demand
Revealed over time
Seller Trader Manufacturer Provider Stager
Buyer Market User Client Guest
Factors of Demand
Characteristics Features Benefits Sensations
Chapter 6 - Designing & Managing Experiences 2
What does it take to create an experience for customers?• What do you consider an experience?
• What creates memorable experience (i.e., pleasure, pain, or extreme challenge)?
• What creates an experience at a mass venue (mall, theme park, concert, or theatre)?
• What creates customised experiences?
• What resources are needed to create these experiences?
3Chapter 6 - Designing & Managing Experiences
Demand for Experiences & Implications
Environment
Industry Bricks Clicks
Traditional Entertainment
Industries
Non- Entertainment
Industries
• Increased Capital Expenditures
• theatres• theme parks• film & TV
• Increase emphasis on experience design
• Increased demand for • New experiences• Eatertainment• Edutainment• Themed Hotels, Malls, &
Restaurants (Shoppertainment) • Try & Buy Retail
• Migration of content• Digital revolution & website
overload• 2D > 3 D issues• Interactive with TV• Bandwidth
• Increased emphasis on experience design
• More challenging to create a rich and memorable experience
World Experience BusinessEconomic Drivers
• Customer Loyalty over satisfaction
• International Opportunities
• Supply & Barriers to Entry
• Universal Appeal
• Technology
• Long term customers4Chapter 6 - Designing & Managing Experiences
Relational Model of Managed Customer Service
Process
Service Provider Customer
Context
Engagement
Time
Outcome
Memory
Loyalty
Chapter 6 - Designing & Managing Experiences 5
Engagement
• Personal level– Active: customers affect the performance or event
(skiing or golf)– Passive: customers do not influence the
performance
• Environment– Immersion: customer “goes into” the experience
(Mist computer game or Club Med skit)– Absorption: Experience “goes into” the customer
(watching TV)
Chapter 6 - Designing & Managing Experiences 6
Examples
Environment Relationship
Absorption Immersion
Participation Passive Entertainment
Television
Circus
Theatre
Video/DVD
Esthetic
Grand Canyon
Cathedral
Bellegio Water Show
Active Educational
Training
Discussion
Laboratory
Escapist
Mist Computer game
Terminator 2 Ride
Chat rooms
Realms of Experience
Educational
EscapistEsthetic
Entertainment
Sweet Spot
Immersion
Passive Participation
Absorption
ActiveParticipation
Retailment or Shoppertainment
8Chapter 6 - Designing & Managing Experiences
Autostadt• $400 million, 62-acre factory/car
dealership/theme park in Wolfsburg, Germany
Chapter 6 - Designing & Managing Experiences 9
Edutainment:Bonfante Gardens, Gilroy, CA.
10Chapter 6 - Designing & Managing Experiences
Context
• Where customers consume the service and everything they interact with in that setting. Starbucks “contemporary bohemian” context
• Relational elements
• Physical elements
Relational Context
• Theme: unifying story or metaphor
• Learnable and Usable
• Mutable: flexibility for customers to create their own use environment or personal experience
Theme Generation
• Joie de Vivre: 18 themed Boutique Hotels in Bay Area
• Method: Take a magazine and generate 5 adjectives to describe it and the people that would read it. Design hotel experience around those words.
• Example: Hotel Rex = New Yorker– Worldly, sophisticated, literate, artistic, & clever– Designed like an arts and literary salon of 1930s.
Clubby lobby with period furnishings, paintings, and old books. Rooms have local artists paintings and contemporary amenities.
Theme: Rolling Stone
• Funky, hip, young-at-heart, irreverent, and adventurous• The Phoenix Hotel has been popular with the entertainment industry for
over a decade. This funky, urban retreat is an unexpected oasis, featuring a landmark pool, original 50s architecture, and island-inspired guestrooms. Backflip, the hotel's poolside cocktail lounge, is drenched in glamorous bachelor pad style and the music of the City's most progressive DJ's.
Theme: Movie Line• Dramatic, nostalgic,
fun-loving, classic, and informal
• Each light and comfortable guestroom is named for a motion picture shot in San Francisco, with original movie stills as decorative room accents
Chapter 6 - Designing & Managing Experiences 12
Learnable and Usable
Mutability• Furby• Groundswell Surf
Camp– Surfing instruction for
all ages in a surf camp environment
13Chapter 6 - Designing & Managing Experiences
Physical• Layout: Physical layout and arrangement
of objects (should encourage active participation) and reinforce theme
• Sensory: Sensory elements increase immersion and support theme (T-2)
• Social Interaction: Interaction between guest and service provider and/or fellow guests. Increases identification with service (Club Med and Cirque Du Soleil)
Chapter 6 - Designing & Managing Experiences 14
Sensory• Smell• Taste• Touch• Sound• Sight
– Cirque Du Soleil (“O”), T-2 Ride, W Hotels, and IMAX Theaters.
– See www.ideo.com
15Chapter 6 - Designing & Managing Experiences
Social Interaction Yahoo Groups
Chapter 6 - Designing & Managing Experiences 16
Social Interaction - Burning Man Event
17Chapter 6 - Designing & Managing Experiences
Time• Memorabilia
– Is a physical reminder of experience, extends memory of it long after
– Generates dialogue about experience– Provides additional revenue
• Continuity– Time aspects of experience as it relates to the
individual (bonding and moving through stages)• Dynamic
– A desirable pattern for experiences revealed over a specific time frame• Long or short term vs. intensity• A script or music score• NOLS or Outward Bound
Chapter 6 - Designing & Managing Experiences 18
Creating the Process of Customer Experience
Increase
COMMITMENT & LOYALTY
Memorabilia
Continuity Dynamic
TIME
CONTEXT
RELATIONAL
Learnable – Usable – MutableSocial – Interaction
Increase Emotion & Cognition
PHYSICAL
Theme – Layout – Sensory
Increase Physical Interaction& Cognition
Entertainment Esthetic
Educational Escapist
ABSORBTION IMMERSION
PA
SS
IVE
AC
TIV
EENGAGEMENT
Dimension Hard Rock Café Planet Hollywood
Engagement: Entertainment & Food
Move from passive to active
Move from absorption to immersion
Get guests to stay/return Make experience fun Connect emotionally with
customers Increase thrill, surprise, delight
Offers high quality American diner/pub food
Has 100 Cafes in 40 countries
Appeals to international music enthusiasts
Connects with irreverent, rebellious customer group
Keeps the legends and adds new talent constantly
Refreshes concept constantly and adds new features hardrock.com, performances, CDs, and Hotels
Offered low quality eclectic food, i.e., Cap’n Crunch chicken strips
Had 80 restaurants predominately in US
Appealed to celebrity seekers
Connected with tourists (not locals) seeking stars when stars are available
Depended on star availability at cafe
Kept a stable of celebrity-stock holders who may or may not be in favor
Difficult to refresh concept without constant major investments in hot stars
Added concept with sports stars
Example: Themed Restaurant Successful & Failed Experiences
Dimension Hard Rock Café Planet Hollywood
Context:
Physical and Relational
ThemeLearnable and usableMutableLayoutSensorySocial Interaction
“Authentic keeper of the rock music experience”Updates atmosphere, locations, food, and music constantlyAllows different customers to create use environment and chose musicDesigns layout for dining, drinking and/or concert Offers high quality multi-sensory experienceEncourages social interaction and fan building
“Tribute to Hollywood”Offered easy to understand concept but not well executedDid not offer mutable stars since once star has passed prime or does not want to visit sites, they lose appealDesigned layout for dining and viewing memorabiliaOffered poor quality food experience and unpredictable star viewing experienceOffered limited interaction depending on location and time
Time:
Move from Sequential & Narrative over Synchronic
Move from Static to Dynamic
MemorabiliaContinuityDynamic
Offers constantly refreshed rock music memorabilia, live concerts of new & Legendary artistsProvides customers with many opportunities to enhance initial experience through ongoing activities and international locationsControlled expansion of concept over 30 years with careful location and relocation analysis
Offered Hollywood memorabilia but no updating of merchandiseFound it difficult to attract contemporary stars so lost key demographic customer; suffered from “graying of celebrity stable”Provided limited reason to enhance initial experienceHyper-speed expansion over 8 years and self-cannibalization
Themed Restaurant Successful & Failed Experiences (continued)
Context Engagement Time
Service
Design
What is the theme and how does it
address market segments?
Is the theme reflected in all context with which the customer interacts?
Is the service easy to learn and use?
How effective are navigational materials and guides for different users?
In what ways has flexibility been incorporated into the design?
How can different users customize the services to maximize their experience?
How does the layout and tools encourage active participation ?
How have the five sensory elements been incorporated? Fit theme?
How do sensory elements help shift customer’s reality?
How can sensory elements create transitional areas?
Are there different opportunities for social interaction between employees and guests?
Is there a way to get customers actively engaged (physically, emotionally, or intellectually)?
How can the customers immerse in the design?
How is there a sense that customers have moved to another reality?
In what ways can customers emotionally connect with the services?
Are there opportunities for play, fun, or enjoyment?
Are there opportunities for customers to learn, to create, to increase their depth and breadth of knowledge over time?
Is the context esthetically pleasing?
What will make guests come in and spend time in your setting (virtual or physical)?
How has memorabilia been incorporated?
How does the memorabilia match the theme?
How can the experience be extended or built upon?
How can the experience unfold over time?
How many encounters does it take for the customer to bond with the service?
If the bond is broken, are there opportunities to repair the link?
Are there opportunities for membership clubs, chat rooms, or long term social groups?
What is the duration of the encounter?
How is the experience orchestrated or designed for building emotional commitment during the given time span?
How does the guest see a beginning, middle, and end of the experience in live and virtual environments?
Is there an intended narrative and how is that conveyed to customers?
Employees Do employee behaviors and costume reflect the theme?
How can employees help customers learn the service?
Are employees trained to act as guides?
Are employees trained to read body language and customer intentions for the service and react accordingly?
How are employees trained for interactions with guests?
How do employees help to actively engage the customers?
How do employees help customer immerse in the experience?
How do employees play a role in creating another reality?
How do employees help the guests into the experience and participate in getting them to stay?
Have employees been trained to help orchestrate the experience?
How do employees help deliver the beginning, middle, and end of the experience?
How do employees contribute to the intended narrative?
Are employees empowered to create a customized experience for each customer?