PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop wasting money March 25, :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.

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop wasting money Webcast Presented by: March 25, :00 London - 16:00 Berlin

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PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT Holistic Relationship Strength: Brand Promises or Customer Experiences? - Know how customers choose - Stop wasting money Webinar, 25 th March 2009 Roger Sant DVP, Brand Research Europe Maritz Research

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT  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 What makes people feel the way they do about brands = What makes businesses succeed or fail “Businesses exist through the existence of their customers”

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT So what does influence the way people feel about brands? Loyalty dec isi ons (Should I stay or go?) Direct experience Advertising Direct experience Advertising And what about other uncontrolled communications? Choice decisions (If I go, where to?)

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT Customer touch-points & Moments of truth (delivered) Holistic Relationship Strength Uncontrolled Brand image & associations News, reviews, articles, blogs, etc. Word of mouth Direct Experiences Keeping brand Promises Aligning Brand & Experience Advertising & Communications (controlled) Controlled

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT What happens when experiences are poor?

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 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?

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 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

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT What we need to know … to fill in the numbers and paint the bigger picture

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 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

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 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

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT We need to ask … 1.How much does someone like the brand? 2.What is it that they like/ dislike?  PRO ANTI  Customer Retention Non-customer Acquisition A mixture of brand, service & product statements Include strap lines & images promoted by advertising Relationship strength Beliefs

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 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 Actual Familiar but not used Using/used recently (adjusted for customer bias)

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 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

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT Example of a BIG brand promise

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 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 $$

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT What all this tells us

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 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

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 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

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT Sources of beliefs Key belief drivers Direct experience Uncontrolled comms Word of mouth Advertising & controlled communications Sum of sources of beliefs Helpfulness of staff Speed of check-in Trustworthy Innovative

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT The Brand Delivery Gap (negative) Aligning promises & delivery SmallBig Over promising Under delivering Under promising Over delivering

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT Don’t underestimate 1 bad experience People used to tell 10 others about bad experiences … now they can tell tens of thousands

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT Small gap (good) Big gap (bad) The Brand Delivery Gap Prioritise BrandPrioritise Experience Build presence Promote promises Advertising $$ may be wasted until experience is fixed

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT Deliverables of Influencers that lead to Beliefs Profitable behaviour Operational Delivery Advertising WoM Brand, Product & service drivers Retention Acquisition Unc. comms

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 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

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT Maritz Research Europe Questions and Answers Roger Sant DVP, Brand Research Europe Maritz Research Webcast Presented by: Webinar, 25 th March 2009

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT Have A Question for Roger Sant? How to submit questions to the Speaker during this Webcast Go to Floating Tool Bar

PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT Maritz Research Europe Questions and Answers Roger Sant DVP, Brand Research Europe Maritz Research Webcast Presented by: Webinar, 25 th March 2009

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