BUILDING A CUSTOMER EXPERIENCE FRAMEWORK2015 HIGH FIVE CONFERENCE

WORKSHOP:

Worksheets included

KATE WILLIAMSON

WELCOME WE’RE A BUNCH OF CX JUNKIES FROM CENTERLINE DIGITAL

@CENTERLINE DIGITAL

CAIT VLASTAKIS SMITH

JOHN LANE STEVEN KEITH

@kateawilliamson

@johnvlane

@caitvsmith

@stevenkeith

WHAT IS A CUSTOMER EXPERIENCE FRAMEWORK?

A fancy name for a set of tools designed to help

you create viable customer experience maps1

A way to make sure that that our deliverable is

telling a true story2

A method for ensuring our thinking maintains a

customer-centric focus3

THERE ARE THREE THINGS WE MUST EXPLORE TO HONE OUR UNDERSTANDING AND SHAPE OUR TOOLS.

OUR AUDIENCE

1

OUR CUSTOMER JOURNEY

2

OUR USER STORIES

3

THINK OF IT LIKE A PLAY.

THE CASTTHE STAGE

THE SCENES

OUR AUDIENCE

1

OUR CUSTOMER JOURNEY

2

OUR USER SCENARIOS

3

THESE WORK TOGETHER TO CREATE THE BUILDING BLOCKS OF OUR CX MAP

CUSTOMER EXPERIENCE MAP

THESE ARE ALL INPUTS INTO OUR CUSTOMER EXPERIENCE MAP.

CAST

STAGE

SCENES

where and how our customers interact

with our brand

the group of actors that play the role of our

customers

roles

contextgo

als

what our customers are

actually trying to achieve

Illustration adapted from: David Bessenhoffer & Matt Wilczynski

HOW DO THESE TOOLS PLAY INTO EXPERIENCE MAPS?

CONSIDER DECIDE PURCHASE

the stage

the actor

the scene

the person having the experience

the story of that experience

the foundational journey stages on which we map the experience

ADVOCATE

BOTTOM LINE:

WE NEED THESE BUILDING BLOCKS IN PLACE IN ORDER FOR OUR CUSTOMER EXPERIENCE MAPS TO BE VIABLE, AND IN ORDER TO ESTABLISH THE RIGHT METRICS.

LET’S BEGIN!

HERE’S YOUR BUSINESS SCENARIO…

THE CAST

I.E. YOUR AUDIENCE

THE CAST is your audience.

The cast is not only your buyers, it is

comprised of anyone who has an impact on the customer experience.

THE CAST

Identify “The Cast” of Fabian’s MotorSports

GROUP EXERCISE: PART I

THE CAST

Let’s segment the cast by our “lead actor” and supporting actors.

THE CAST

Our Lead Actor for today’s workshop:

First-time luxury car buyer

ANDY JENKINS

THE CAST

Build empathy and understanding of your Lead Actor by understanding his traits, behaviors, needs and pain points.

DEMOGRAPHICS:

PSYCHOGRAPHICS:

Answers: “Who?”

Answers: “How do they think?” “How do they behave?” “What keeps them up at night?” “What motivates them?”

Good

Gold

THE CAST

Complete the Actor Profile

GROUP EXERCISE: PART II

THE CAST

GROUP EXERCISE: PART II

LEAD ACTOR

What does he want to achieve?

What key personality attributes should we consider?

What are his thoughts and sentiments toward

the car buying experience?

What are his biggest needs/worries/anxieties?

THE CAST

GROUP EXERCISE: PART II

LEAD ACTOR

Confidently knows what he likes and dislikes in a luxury vehicle

STRONG PREFERENCES

Considers research “fun;” values other people’s reviews and insights

THOROUGH

Carefully thinks things through before making a big decision; numbers-driven

ANALYTICAL

To own his dream car: a 1965 Maserati Sebring

To negotiate the purchase price within his luxury budget

To have the car within his possession by Spring

• First time purchasing a vehicle at the luxury car price point; feels green to the process; Not a collector, but would like to be treated like one.

• Wants the car buying experience to feel personalized, since this is his first (and likely only) luxury purchase

• Can’t find a single source of information to compare prices and information

• Doesn’t have expert-level auto knowledge

• Is unsure about who to trust

ANDY JENKINS

THE CAST

THE STAGE

I.E. YOUR CUSTOMER JOURNEY PHASES

THE STAGE is a comprehensive customer journey.

Laying a foundational model of what

phases our customers go through during

their relationship with us gives us a way to categorize behaviors and needs

at certain points in time.

THE STAGE

Provides a foundation for all possibilities of customer journeys and accommodates all possible scenes

Shows a comprehensive view of all potential customer interactions with Fabian’s Motorsports

Gives us a tool for aligning customer needs across touch points, allowing us to identify gaps and friction in specific customer journeys

THE STAGE gives our stories a place to land.

THE STAGE

THE STAGE should be set from your audience’s perspective.

Purchase vs. Sell

Decide vs. Convince

THE STAGE

Let’s take a look at an example of what we’re talking about.

NEED SHOP BUY

BECOME AWARE IDENTIFY SELECT JUSTIFY PURCHASE ANTICIPATE

USE

INITIATE LEARN MAINTAIN

ADVOCATE

EVANGELIZE NETWORK

perspectivewhat the customer is doing, not the company

actionsphase labels describe customer actions

relevancedetailed sub-phases add context specific to our company

THE STAGE

Customer Journey Phases

Shop

Buy Use

Advocate

Become AwareIdentify

Select

Justify

Purchase

Anticipate Initiate

Learn

Maintain

Evangelize

Network

Need

Journey phases are not always a linear process.

THE STAGE

Identify the customer journey phases for

Fabian’s Motorsports customers.

GROUP EXERCISE

THE STAGE

GROUP EXERCISE

journey phase namesub-phase name sub-phase name

What are customers doing during this phase?

What questions will customers have during this phase?

What emotions will customers be experiencing during this phase?

What content will help the customer most at this point in the journey?

THE STAGE

Example of a filled-in journey phase worksheet.

THE STAGE

EXAMPLE FABIAN’S MOTORSPORTS CUSTOMER JOURNEY

DESIRE EXPLORE SELECT

ACKNOWLEDGE JUSTIFY RESEARCH CONSULT NARROW SCRUTINIZE

ACQUIRE

PURCHASE ANTICIPATE

ENJOY

ADOPT

…the idea of owning a luxury

car

…the idea to self or to others

…options casually and seek the

opinions of others

…with influencers and experts

(human and non)

…narrow down choices

NEGOTIATE

…those options thoroughly

…terms of deal

…selected option

VALIDATE

…final ownership

SHARE

…lifestyle of ownership

…decision (intrinsic or otherwise)

…and promote decision and lifestyle with

others

THE STAGE

THE SCENES

I.E. SCENARIO PLANNING

THE SCENES are the common actions of your audience.

Descriptions of actions your audience is

currently taking — the specific steps —will help you better understand

motivation and mindset, and therefore

help you craft better experiences.

THE SCENES

SCENARIOS should be based in reality.

What common actions are revealed throughweb, email or social analytics?

What repeating questions or requests

are being fielded by your sales staff?

THE SCENES

The process for creating SCENARIOS:

1. Identify Potential Scenarios

Be picky. Not every scenario identified is common enough to spend time on.

2. Assign A Lead Actor For Each Scenario

The lead actor represents the mindset and perspective within the scene.

3. Write The Narrative Of Each Scenario

Write the story of the actors thought and action as they complete the scene.

THE SCENES

Identify 3 “Scenes” of potential customers of Fabian’s MotorSports

GROUP EXERCISE: PART I

THE SCENES

Find potential SCENARIOS in data…

THE SCENES

Find potential SCENARIOS in data…

Based on Web AnalyticsBased on Social

ListeningBased on Common Questions to Sales

Person is searching Google for a specific car that is in our inventory.

Person is looking for advice on best places to find a high-end broker.

Person is looking for validation of quality… wants to understand the level of expertise of on-staff mechanics/restoration leads.

THE SCENES

Assign a lead actor and write the scene for 1 of those common actions

GROUP EXERCISE: PART II

THE SCENES

ACTOR

Andy Jenkins

The Potential Scene For First Time Buyers:

THE SCENES

ACTOR

Andy Jenkins

The Potential Scene For First Time Buyers:

Andy is looking for a specific car – a 1965 Maserati Sebring.

As a first-time luxury/collectable car buyer, Andy has turned to Google because he doesn’t know where to start. He takes the approach of a specific search, but without context. (E.G. “1965 Maserati Sebring” rather than “1965 Maserati Sebring For Sale.”)

The search results lead him to our site because we had a 1965 Maserati Sebring that sold last month, and we have kept the listing up. We’ve done that to ensure we continue to capture traffic for specific autos, as it gives us a chance to let people know that we can help them find something that might not be in inventory.

So Andy clicks the “Let Us Help You Find The Car Of Your Dreams” button on the site and is directed to our Broker Services page. From there, he fills out a form to be contacted by one of our sales staff to talk through his details of

THE SCENES

NOW, LET’S BUILD AN EXPERIENCE MAP.

CUSTOMER EXPERIENCE METRICS

Customer Lifetime Value is a great way to measure Customer Experience delivery.

CLV should be used to help you understand how much to spend to acquire new customers and more generally, how well your spend is retaining existing customers.

THE METRICS

CLV figures are like credit scores. There are three main ways and you can average them all to get the best score.

1 (a) × t t (1 × s × c × p) (1 + i + r )alpha beta gamma

m r

Here are the two steps in the calculation:

Step 1: Average variables. • average a sampling of customer expenditures per visit • determine number of visits per year • average customer value per year (expenditures X visits)

Step 2: Calculate and average the three CLV outcomes

Customer Lifetime Value as a metric “North Star”=

THE METRICS

customer 1 customer 2 customer 3 customer 4 customer 5 average

expenditures per visit $4,500 $5,000 $4,000 $3,350 $6,650 $4,700 (s)

visits per year 3 2.5 6 5 3.5 4 (c)

average customer value

per year$13,500 $12,500 $24,000 $16,750 $23,275 $18,005 (a)

Calculating Customer Lifetime Value. First we need to gather a sampling of five customers.

=

THE METRICS

1 (a) × t t (1 × s × c × p) (1 + i + r )alpha beta gamma

m r

(a) Average Customer Value per Year = $18,500.

(c) Average Customer Visits per Year = 4.

(s) Average Expenditure per Visit = $4,700.

(t) The Average Customer Lifespan (how long someone remains a customer) = 20 years.

(r) Customer Retention Rate. The percentage of customers, who, over a given period of time, repurchase, when compared to an equal and preceding period of time. = 67%.

(i) The Rate of Discount. The “rate of discount” is the interest rate used in discounted cash flow analysis to determine the present value of future cash flows. Usually this number falls between 8% and 15%. = 15%.

(p) Profit Margin per Online Customer National Instruments: 15%

(m) Avg. Gross Margin per Customer Lifespan. Fictional profit margin of 15% (see constant “p”). If the average customer spends $270,000 during their time as a customer (“t”), = gross margin per customer lifespan of $40,500.

=

THE METRICS

CLV alpha = (a) × t t (1 × s × c × p) (1 + i - r )alpha beta gamma

m r

CLV alpha = ($18,005) × 20

CLV alpha = $360,100

CLV beta = 20 ($4,700 X 4 X .15) CLV beta = 20 ($4,700 X 4 X .15)

CLV beta = $56,400

(i) = 10% (r) = 67% (t) = 20 years (a) = $18,005 (c) = 4 (s) = $4,700

(m) = $40,500 (p) = 15%

CLV gamma = $40,500 (67%/ 1 + 15% - 67%) CLV gamma = $40,500 (.67/ 1 + .15 - .67) CLV gamma = $40,500 (1.15 - .67) CLV gamma = $40,500 (.48)

CLV gamma = $19,440

Average CLV = $360,100 + $56,400 + $19,440 / 3

Average CLV = $145,313

=

THE METRICS

What is the Relationship Between Customer Lifetime Value and Customer Experience?

A. How well we deliver CE influences all the variables used to calculate CLV 1. Average Customer Value per Year 2. Average Customer Visits per Year 3. Average Expenditure per Visit 4. The Average Customer Lifespan 5. Customer Retention Rate 6. Profit Margin per Online Customer 7. Avg. Gross Margin per Customer Lifespan

B. Positive customer experiences delivered are reflected in the variables C. The better the experience delivered, the better the CLV outcome D. The better the CLV outcome, the better the revenue picture

Correlation Causation

By better understanding CLV, we can better understand how to invest in better customers.

=

THE METRICS

CX FRAMEWORK WORKSHEETS

Notes:

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Thanks for checking out the CX Framework!