Chapter © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Experience is a fourth economic dimension. Experiences are distinct from goods and services. Experiences have two dimensions – participation and relationship. 11-2

© 2009 Pearson Education, Inc. Publishing as Prentice Hall Participation: Passive – listening to Music Active – Driving a racing car Relationship Absorption – Experience enters mind – Watching TV Immersion – Enter experience – Virtual Reality 11-3

© 2009 Pearson Education, Inc. Publishing as Prentice Hall Commodities resources from animals, mining or harvesting Goods - Tangible Services - Intangible Experiences – Engaging individuals personally 11-4

© 2009 Pearson Education, Inc. Publishing as Prentice Hall Used to describe a state of mind experienced by people who are deeply involved in some activity. Customers who experience flow on the Web perceive the online experience to be compelling. Level of engagement created for customers. 11-5

© 2009 Pearson Education, Inc. Publishing as Prentice Hall Customer experiences tend to be: Sporadic Subject to recency effects (recent impressions are better) Customer initiated Triggered by express needs- car, gift, complaints Opportunities for dialogue (business nurturing customer opportunities) Significant events – deadlines offers, contracts, new technology (iphone4, Android OS) 11-6

© 2009 Pearson Education, Inc. Publishing as Prentice Hall Customers experience organizations largely through technology. (ATM, Banking, POS systems (M/C, VISA, InterAC) What customers know about technology is conditioned by technology. 11-7

© 2009 Pearson Education, Inc. Publishing as Prentice Hall Telephone/IVR (Interactive voice response systems) – CSR Internet Interactive Kiosks Video/DVD Exercise: In small groups discuss your experiences with the above self service technologies? 11-8

© 2009 Pearson Education, Inc. Publishing as Prentice Hall Better than the Alternative – additional benefits provided by the self-service technologies (Such as saving time, saving money, easy to use). Did Its Job – satisfaction with the capabilities of the technology. Solved Intensified Need – urgent situation remedied through self-service technology use. (Maximising M/C bill) 11-9

© 2009 Pearson Education, Inc. Publishing as Prentice Hall Technology Failure – outright technical failure or the technology failed to do its job. (ATM) Poor Design – includes technology design problems and service design problems

© 2009 Pearson Education, Inc. Publishing as Prentice Hall Process Failure – technology interface works, but here is a breakdown in the customer- technology interaction. (product ordered on Ebay but never received) Customer-Driven Failure – failure occurred because of customer actions. (Forgetting PIN) Exercise: Given that you are all IT professionals are there any current self service technologies that you think can be improved at a reasonable budget. Explain? 11-11

© 2009 Pearson Education, Inc. Publishing as Prentice Hall Why should businesses continually watch out for their technological strategies? 1. Eliminate Dissatisfiers as Top Priority 2. Differentiate Transactional and Relational Experiences 3. Design Interfaces for Usability, Navigation and Experience 11-12

© 2009 Pearson Education, Inc. Publishing as Prentice Hall 4. Correct the Obvious Problems with your IVR Systems 5. Enhance your IVR Systems with Technology 6. Create Opportunities for Memorable Satisfying Experiences 11-13

© 2009 Pearson Education, Inc. Publishing as Prentice Hall Technology failure is caused by: - the Technology - its Design - the Underlying Business Process (Find bottlenecks) - the Customer The top three causes of failure should be a management focus

© 2009 Pearson Education, Inc. Publishing as Prentice Hall Technological Failure build in redundancy and the ability to self-monitor Design Failure customers can be unsure how to proceed; assure uniform and consistent high-quality interfaces for all customer interactions. Process Failure ensure the process is well-engineered from beginning to end. Exercise: From what you have learned from previous courses or from experience, given the above remedies to eliminate failure have you seen any corporation where there could be improvement? 11-15

© 2009 Pearson Education, Inc. Publishing as Prentice Hall Transactional encounters should be automatic. (Booking’s, utility bill’s) Web interfaces should have usable and easy to use navigation process. Relational encounters can be ascertained by providing options on introductory Web pages. (Cry for help!) [i.e. Expedia helping customers to book flights, cars, hotels] 11-16

© 2009 Pearson Education, Inc. Publishing as Prentice Hall 3 goals required for design of interfaces should be: i. Usability to meet customer needs ii. Navigation with ease iii. Customer experience Design the technological interface to meld elements of absorption and immersion as well as active and passive participation. Provide a challenge to arouse the customer but not frustrate them

© 2009 Pearson Education, Inc. Publishing as Prentice Hall Use caller-identification software (phone # & information) Pass all information completely through the IVR session.(Account codes) Don’t inform the customer that the session may be recorded to ensure quality unless you inform the customer how to request it not be recorded

© 2009 Pearson Education, Inc. Publishing as Prentice Hall Provide information how long a wait is likely to be. Provide sufficient capacity to queue all calls

© 2009 Pearson Education, Inc. Publishing as Prentice Hall Use the customer database to skip the first levels within the IVR system. Design IVR trees from a customer not an organizational perspective. Overall, make things easy! 11-20

© 2009 Pearson Education, Inc. Publishing as Prentice Hall Excellent Service Recovery – the ability to rectify a failed encounter. Customization and Flexibility are important determinants of satisfaction; technology provides the ability to be tailored to individual customer preferences.(Amazon.com, Expedia, Mypages) 11-21

© 2009 Pearson Education, Inc. Publishing as Prentice Hall Spontaneous Delight occurs when a customer has an unexpected and pleasing experience. (Expert systems help on this) Use customer databases to send recognition rewards or apprise customers of new services and offerings tailored to their individual profile or even a Thankyou! 11-22

© 2009 Pearson Education, Inc. Publishing as Prentice Hall IT is increasingly becoming the face of many organizations. IT design is more than navigation and usability; it includes engaging the customer in experiences