1、Total Customer Experience Brand Optimization Program Socratic Technologies, Inc. 2003Page 1 TCE Brand Optimization Program A Methodological White Paper Socratic Technologies, Inc. has developed this customer-based brand optimization program in association with nelsonbranding to identify and correct
2、brand experience problems that may lead to reduced customer satisfaction, retention, and lower brand equity. Key Deliverables: A comprehensive audit of background materials, perceived competitive brand capabilities and commonly held brand beliefs by management, employees and value-chain partners. An
3、 explicit view of the fundamental actions by which brands compete in strategic (business-level) markets. A quantification of customer segment characteristics and the key motivators of brand affinity. An integrated map of competitive brand positioning and the customers existing brand expectations and
4、 experiences. A quantitative system for understanding the issues driving satisfaction and loyalty, both in the market and within the brands customer base. Identifying At Risk customers and underlying indicators of brand- switching potential. Prioritization of brand optimization strategies and progra
5、ms that will maximize the likelihood of customer retention and loyalty. A system for tracking the results of corrective strategies and programs, competitive reaction and changes in the fundamental nature of brand competition in the market. The Changing Concept of Brand The nature and concept of bran
6、d has changed radically over the past 60 years. During the first days of formal marketing, brand was used in the same way as ranchers branded cattle; to make a statement that this product is mine. Over time, the approach to branding grew to accommodate concepts of brand perception, in which intangib
7、le emotional aspects of a firms products and services could be embodied within the brand name. Brand awareness, recognition and preference were common measurements to understand how well the brand was working in the marketplace. Today, the concept of brand is being expanded to represent the implied
8、promise that a firm makes to the customer that the value represented through the sum of all experiences with the firm, will be satisfactory. The Total Customer Experience approach maintains that brand is larger than a name, graphic design or advertising phrase; it is the filter through which all int
9、eractions with the customer are passed. Brand represents the foundation of the firms relationship Total Customer Experience Brand Optimization Program Socratic Technologies, Inc. 2003Page 2 with its customers. Every customer experience is a brand experience and each one impacts the perception of the
10、 brand, and by extension, the firm itself. How Does Brand Work in Todays Market? In every Firm/Customer relationship there is an inherent conflict. The objectives of the firm are to create sufficient value to gain the customers business while maximizing profits. Customers seek to maximize the value
11、they receive by paying the lowest amount possible for the goods and services procured. Although there are many overt details that enter into a transaction, many unknowns and uncertainties remain for the customer. Will I receive the best possible deal? Will the product and service perform as specifie
12、d? To what degree will the firm support me if there are problems? Will the working relationship be stressful or pleasant? If each of the myriad uncertainties were negotiated and contractually specified, little commerce would exist. How then do the parties reach a successful resolution to uncertainty
13、? The answer is trust in the firms brand. Brand bridges the competing objectives of the firm and the customer by interjecting a silent promise that the customers experience will be a positive one and that the uncertainties will be made less risky, because the firm will make things right. As describe
14、d by Reichheld (The Loyalty Effect 1996) satisfied and loyal customers are less costly to serve, are less price sensitive, tend to allocate more of their category dollars to the brand and are, in the long-run, your best “salespeople.” Reichheld shows how the following cost and revenue elements contr
15、ibute to net lifetime value of loyal customers: Chart 0.0.1: Sources of Profit from a Loyal Customer Over Time Reichheld illustrates the risks of not paying attention to these critical issues by citing that on average, U. S. corporations now lose half their customers in five years, half their employ
16、ees in four, and half their investors in less than one. 01234567 Years Price Premium Referrals Cost Savings Revenue Growth Base Profit Acquisition Cost Total Customer Experience Brand Optimization Program Socratic Technologies, Inc. 2003Page 3 Experience has shown us that disloyalty at current rates
17、 stunts corporate performance by 25 to 50%, sometimes more. Contrary to some beliefs, loyalty is by no means dead; it remains one of the greatest engines of business success. Because of the supreme economic importance of maintaining the trust of customers, brand must be measured beyond the simple na
18、me and logo level and should be considered at every significant touchpoint at which the customer experiences an interaction or transaction with the firm. Identifying TCE Brand Gaps A brand gap occurs when some aspect(s) of the total customer experience is not satisfactory. This means that within som
19、e area of the firms relationship with the customer, some aspect of the brand promise is not being fulfilled. If too many of these brand gaps occur, the customers overall sense of satisfaction declines and the level of commitment to the relationship (loyalty) may dropeither of which can signal the po
20、tential for brand switching (moving to a competitive product) or category abandonment (finding a completely new way of doing the job the firm is currently performing.) The model in Diagram 1 shows how the various ways a firm offers value have corresponding issues relating to how the customers percei
21、ve value. Brand gaps can occur whenever the two matched objectives are out-of-sync. For example, if the way a firm chooses to communicate its brand value is not clearly understood or appreciated by the customers, a brand gap occurs. Diagram 0.0.2: Customer Value Expectations vs Firms Value Offer Mod
22、eled on The Connected Marketing Process Mohan Sawheny, Kellogg School of Management Total Customer Experience Brand Optimization Program Socratic Technologies, Inc. 2003Page 4 Brand gaps are not all of the same level of seriousness. Some may be critical to the relationship with the customer; others
23、trivial. Understanding the difference between the varying levels of urgency helps the firm increase its return on investment by working on the most serious gaps first. The TCE Brand Optimization Program approach consists of four succinct phases of measurement that: Identifies brand competition varia
24、bles. Benchmarks the markets existing brand expectations and experiences. Measures brand gaps and produces recommended brand strategies and programs. Monitors the effectiveness of corrective actions. These phases are described in the following sections. Phase 1: Identifying Key Brand Competition Variables All brand promises are set within the context of the market segment in which the firm and customer are conducting transactions. Rarely is the firm the only sourc
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