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PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop wasting money March 25, 2009 15:00 London - 16:00 Berlin THANK YOU FOR JOINING PLEASE STAND BY Webcast Presented by: IMPORTANT: This session is being broadcast to your desktop, to listen turn up your computer speaker volume or refer to dial-in details in the pop- up box and follow the prompts.

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Page 1: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1

Maritz Research Europe

Brand Promises or Customer Experiences?

- Know how customers choose- Stop wasting money

•March 25, 200915:00 London - 16:00 Berlin

•THANK YOU FOR JOINING•PLEASE STAND BY

Webcast Presented by:

IMPORTANT:This session is being broadcast to your desktop, to listen turn up your computer speaker volume or refer to dial-in details in the pop-up box and follow the prompts.

Page 2: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 2

Maritz Research Europe

Brand Promises or Customer Experiences?

- Know how customers choose- Stop wasting money

Webcast Presented by:

March 25, 200915:00 London - 16:00 Berlin

Page 3: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 3

Commonly Asked Questions

1. Will I be able to get copies of the slides after the event?

2. Is this web seminar being recorded so I or others can view it after the fact?

YES NO

YES NO

Page 4: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 4

Have A Question?

• How to submit questions to the Speaker during this Webcast

Go to Floating Tool Bar

Page 5: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 5

Holistic Relationship Strength:

Brand Promises or Customer Experiences?- Know how customers choose- Stop wasting money

• Webinar, 25th March 2009

Roger SantDVP, Brand Research EuropeMaritz Research

Page 6: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 6

Opinions of brands influence customer loyalty & choice

Without customers, there’s no business!

We know brand is important …

• "Brand. Our least tangible, yet most valuable asset“

• D. Young, GE Chairman 1922-1939

What makes people feel the way they do about brands=

What makes businesses succeed or fail

“Businesses exist through the existence of their customers”

Page 7: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 7

So what does influence the way people feel about brands?

Loyalty decisions(Should I stay or go?)

Direct experience

Advertising Direct experience

Advertising

And what about other uncontrolled communications?

Choice decisions(If I go, where to?)

Page 8: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 8

Customer touch-points

& Moments of truth(delivered)

HolisticRelationship

Strength

Uncontrolled

Brand image &associations

News, reviews,articles, blogs, etc.

Word ofmouth

DirectExperiences

Keeping brand

Promises

Aligning

Brand & Experience

Advertising & Communications

(controlled)

Controlled

Page 9: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 9

What happens when experiences are poor?

Page 10: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

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The impact of a bad experience

What affect did this have on:

•His opinion of the brand?

•The broader brand strength?

He was probably unhappy, but he is only one person

•How consistent was this poor service?

•How many did he tell?

•What was the brand promise?

Page 11: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 11

Brand and experience both influence people’s behaviour

• It is the alignment between brand promises and delivered experiences that companies need to get right

Don’t silo Brand Image and Customer Experience

Deliver your brand promises

Don’t silo marketing and operations

Page 12: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 12

What we need to know

… to fill in the numbers and paint the bigger picture

Page 13: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 13

We need to know …

How this impacts loyalty & choice

The perceived Gap (between promises & beliefs)

What these beliefs are

How people arrived at their brand beliefs

Page 14: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 14

We need to ask …

3. What made them feel that way?

4. How does this compare to what the brand says about itself?

1. How much someone likes the brand

2. What they like/ dislike

Page 15: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 15

We need to ask …

1. How much does someone like the brand?

2. What is it that they like/ dislike?

PRO

ANTI

CustomerRetention

Non-customer

Acquisition

A mixture of brand, service &

product statements

Include strap lines & images

promoted by advertising

Relationship strength

Beliefs

Page 16: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 16

So we need to ask

3. What made them feel that way?

4. How does this compare to what the brand says about itself?

Sources of beliefs

Brand Delivery Gap

Had first hand experience

It’s what the brand stands

for

People I know have told me

Researched on the internet

Etc.

Expectation

100

0Actual

100

0

Familiar but not

usedUsing/used

recently

(adjusted for customer

bias)

Page 17: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 17

Why Brand Delivery Gaps arise …

Brand managers want to make big, emotional promises

•Emotions drive relationships

•Brands want to get closer to customers

Operations strive for efficiency

•Want to deliver minimum ‘required’ experience

•At the lowest cost

Contrasting forces of marketing and operations

Page 18: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 18

Example of a BIG brand promise

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What affect did this have on opinions of the brand?

… depends on whether they invested enough to delivered the promise

If they did If they didn’t

•Frustrated current customers

•Disappointed new customers

•Wasted advertising $$

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What all this tells us

Page 21: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

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Relationship strength

How are we doing on Relationship Strength?

Compared to our competitors?

Competitor A

Competitor B

Competitor C

50%

30%

20%

Where will our vulnerable customers go?

Competitor A

Competitor B

Competitor C 50%

30%

20%

Where will our acquisitions come from?

Gain

from

Lose to

Page 22: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 22

Belief-drivers

Helpfulness of staff (24%)Can always find someone (17%)

Speed of check-in (42%)

Service beliefs

Brand beliefs

Product beliefs

45%35%20%

Comfort of seats (30%)

Entertainment system (35%)

Trustworthy (25%)

Fun (20%)

Innovative (50%)

Food (25%)

Loyalty & choice

ANTI PRO

Page 23: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

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Sources of beliefs

Key belief drivers

Direct experience

Uncontrolled commsWord of mouthAdvertising & controlled communications

Sum of sources of

beliefs

Helpfulness of staff

Speed of check-in

Trustworthy

Innovative

Page 24: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 24

The Brand Delivery Gap

(negative)

Aligning promises &

delivery

Small Big

Over promising

Under delivering

Under promising

Over delivering

Page 25: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

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Don’t underestimate 1 bad experience

•People used to tell 10 others about bad experiences

•… now they can tell tens of thousands

Page 26: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

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Small gap(good)

Big gap(bad)

The Brand Delivery Gap

Prioritise Brand Prioritise Experience

Build presence

Promote promises

Advertising $$ may be wasted until

experience is fixed

Page 27: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 27

Deliverables

ofInfluencers that lead to

BeliefsProfitable behaviour

OperationalDelivery

Advertising

WoM

Brand,Product

& servicedrivers

Retention

Acquisition

Unc. comms

Page 28: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

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So that we can:

3. Evaluate the ‘gap’ between promise & delivery

1. Include both brand & experience drivers when analysing profitable behaviour

4. Prioritise investments between communications and operations as well as within them

2. Identify what’s influencing these drivers

What makes people feel the way they do about brands= What makes businesses succeed or fail

Page 29: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

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Maritz Research Europe

Questions and AnswersRoger Sant

DVP, Brand Research EuropeMaritz Research

Webcast Presented by:

Webinar, 25th March 2009

Page 30: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 30

Have A Question for Roger Sant?

• How to submit questions to the Speaker during this Webcast

Go to Floating Tool Bar

Page 31: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 31

Maritz Research Europe

Questions and AnswersRoger Sant

DVP, Brand Research EuropeMaritz Research

Webcast Presented by:

Webinar, 25th March 2009

Page 32: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

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Thanks for your time and participation today!

For copies of today’s presentation or to replay this webcast

(recording generally available within 24 hours)Go to:

www.maritz.com/News-Events-and-Insights/Events/Webcasts.aspx

To contact today’s Speaker's directly [email protected] receive a copy of the

Maritz Research Forum Quarterly eNewsletter

see www.maritzresearch.com (see left sidebar)

Any questions regarding today’s webcast please contact:

[email protected] +49 40 3698 3320

NOTE: Please add our Research Forum distribution source to your email

‘Safe List’ [email protected]

Page 33: PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop

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