chapter 4 Customer Experience McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Customer Experience — Today’s Objectives Objectives will be to: Introduce and define the concept of customer experience Explore the seven elements of customer experience Examine the three stages of the customer-experience hierarchy Discuss six broad goals in creating desirable customer experience Explore how the stages of customer experience apply to eBay

The Elements of Customer Experience The Stages of Customer-Experience Hierarchy Broad Goals in Designing Desirable Customer Experience EBay’s Customer Experience Conclusion Chapter 4: Customer Experience

The Elements of Customer Experience The Stages of Customer Experience Hierarchy Broad Goals in Designing Desirable Customer Experience EBay’s Customer Experience Conclusion

Seven Key Elements of Customer Experience A certain level of functionality must exist in order for a site to work; basic standards and expectations must be met Relates to the individual’s unique perception of the encounter with the firm More than just the economic transaction - the entire customer encounter experience includes both process and output measures of the shopping experience Includes a customer’s response to multiple variables, from the tactical layout of the store/site to high-level interpretations of the meaning of the brand To the extent that it is relevant, assessment of the customer experience needs to incorporate all five senses Cognitive responses are thoughtful and evaluative in nature; emotional responses tend to capture moods, attitudes and feelings of the customer Previous, separate experiences can affect a consumer’s reaction to various stimuli during a shopping experience The Objective Element The Perception Element The Encounter Element The Reactions-to-Stimuli Element The Sensory Element The Cognitive and Emotional Element The Relative Element

Customer Experience vs. Building Brand Point-Counterpoint

Chapter 4: Customer Experience The Elements of Customer Experience The Stages of Customer Experience Hierarchy Broad Goals in Designing Desirable Customer Experience EBay’s Customer Experience Conclusion

Exhibit 4.1: Stages of Customer Experience

Exhibit 4.2: Stages of Customer Experience Over Time

Exhibit 4.3: Seven Deadly Sins of Customer Experience

The Elements of Customer Experience The Stages of Customer Experience Hierarchy Broad Goals in Designing Desirable Customer Experience EBay’s Customer Experience Conclusion Chapter 4: Customer Experience

Broad Goals for Creating a Desirable Customer Experience Create a Rich Description of the Target Customer Develop Use-Case Scenarios for Each Target Segment Effectively Integrate the Online and Offline Experience Articulate Clear Stages of Desired Experience Effectively Assess Relative Levels of Hierarchy Highly Leverage the Evangelists

Exhibit 4.5: Stages of Customer Experience for REI.com

Chapter 4: Customer Experience The Elements of Customer Experience The Stages of Customer Experience Hierarchy Broad Goals in Designing Desirable Customer Experience EBay’s Customer Experience Conclusion

Exhibit 4.6: Steps in Creating Good Customer Experience

Exhibit 4.7: Stages of Customer Experience for EBay

Exhibit 4.8: EBay’s Functionality

Chapter 4: Customer Experience The Elements of Customer Experience The Stages of Customer Experience Hierarchy Broad Goals in Designing Desirable Customer Experience EBay’s Customer Experience Conclusion

Customer Experience — Conclusion Customer experience refers to a customer’s perception and interpretation of all the stimuli encountered while interacting with a firm There are three stages to the customer experience, which are outlined by the customer-experience hierarchy: Stage One: Experiencing Functionality — “The Site Works Well” Stage Two: Experiencing Intimacy — “They Understand Me” Stage Three: Experiencing Evangelism — “I Love to Share the Story” In the process of designing a desirable customer experience, firms should set six broad goals: 1) create a rich description of the target customer, 2) develop use-case scenarios for each target segment, 3) effectively integrate the online and offline experience, 4) articulate clear stages of desired experience, 5) effectively assess relative levels of hierarchy, and 6) highly leverage the evangelists