Against the Grain - How Unconventional Customer Experiences may lead to exponential business gains
- 1. Against the Grain How unconventional customer experiences may lead to exponential business gains
- 2. DISCLAIMER We do not endorse any companies herein for purchase of their products, services or stock, nor are we affiliated with them in any way. Our talk focuses on the macro rather than microcosms of an experience and our own interpretations. We do not speak for nor pretend to know the thinking behind the business strategy of a specific company. Co-relation of hypothesis to financial performance is not scientific. Financial data availability varies in some cases.
- 3. WHY CUSTOMER EXPERIENCE? The user experience is already making or breaking the business However, our hypothesis is that this is not enough Superior experiences breaks down customer walls The product is not the product This is a story of a few who refused to follow the rules
- 4. THE STATUS QUO TODAY Product Focus: Quality and Value-Add Financial Focus: Maximize Growth & Shareholder Value Service Consistency Focus
- 6. PURPOSEFUL
- 8. Black Friday Ad, The New York Times, 2011
- 9. One of the most responsible things we can do as a company is to make high-quality stuff that lasts for years and can be repaired, so you dont have to buy more of it
- 10. Why is repair such a radical act? Fixing something we might otherwise throw away is almost inconceivable to many in the heyday of fast fashion and rapidly advancing technology, but the impact is enormous. I tell you this as CEO of a clothing company that, despite a deep commitment to responsible manufacturing, still takes more from the earth than it returns - Rose Marcario
- 12. UNPREDICTABLE
- 14. The power of Its Emotional Addictive Leads to Impul$e, Loyalty
- 15. Others try to make more, we try to make fair - CFO Richard Galanti
- 17. $2.6B in Membership Rev 45M Members
- 18. 0 2 4 6 8 10 12 2011 2012 2013 2014 2015 REVENUE % (5-YEAR AVERAGE) Costco Walmart Target
- 23. Source: Inc. Magazine $2.8B Valuation 2015 Company of the Year (Inc.)
- 25. Opposing the industry trend
- 26. We like to think of ourselves as a Customer Service company that happens to fly airplanes - southwest.com
- 28. 0 2 4 6 8 10 12 14 16 18 20 2011 2012 2013 2014 2015 REVENUE % (5-YEAR AVERAGE) Southwest Delta American United
- 30. If you think we didn't do something right, we'll apologize, refund your money and correct it for the next patient. - David Feinberg, MD
- 31. ENGAGING
- 33. We've made a commitment to have our customers leave with the experience of having been served. They experience of being known and appreciated whether they buy fish or not. - pikeplacefish.com
- 37. From Transaction to Experiences We tend to remember experiences and feelings more than transactions
- 38. INTROSPECTIVE
- 40. Put your staff first, your customers second, and your shareholders third - Richard Branson
- 41. 0 10 20 30 40 50 60 70 80 9/2/11 11/2/11 1/2/12 3/2/12 5/2/12 7/2/12 9/2/12 11/2/12 1/2/13 3/2/13 5/2/13 7/2/13 9/2/13 11/2/13 1/2/14 3/2/14 5/2/14 7/2/14 9/2/14 11/2/14 1/2/15 3/2/15 5/2/15 7/2/15 9/2/15 11/2/15 1/2/16 3/2/16 5/2/16 7/2/16 SHARE PRICE HISTORY Southwest Delta American United Virgin
- 43. Even our parent company, Amazon, has adopted and adapted our "pay to quit" program, in which we offer employees thousands of dollars to leave the company to ensure that the employees who do stay truly want to be here. - Tony Hsieh
- 44. PERFORMANCE $1B in annual sales two years early Acquired by Amazon for $1.2B Revenue of over $1B a year in 2014
- 46. I want the scorecard we have as business leaders to be not about money, but about purpose, impact, and service, I want those to be the things that we judge ourselves on - Dan Price
- 51. Business Model
- 52. Our true competition is not the small trickle of non-Tesla electric cars being produced, but rather the enormous flood of gasoline cars pouring out of the worlds factories every day. - Elon Musk
- 53. Financial Performance -100 0 100 200 300 400 500 2011 2012 2013 2014 2015 REVENUE % (5-YEAR AVERAGE) Tesla GM Ford
- 55. A Method to the Madness - Its no accident: Unconventional CX are consistently inconsistent with the status quo - Customers will pay a premium for the experience - Short term losses can unlock long term profit and market share - Culture trumps strategy: people first - Experience trumps technology and even core product - Companies who adopt these strategies are willing to share insights, even patents and educate for the greater good
- 57. Barriers, Implications & Food for Thought - Risk - Empowerment - Human vs. product experience measurement - Who is your customer really? - Business gains may be best achieved when UX and CX lines are blurred or better yet, eliminated - A happy medium between consistency and disruption can be, well, disruptive!