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Designing & Managing Experiences Chapter 6. Why care about experiences? Battle for the eyeballs Increased customer loyalty Increased focus on experience.

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Presentation on theme: "Designing & Managing Experiences Chapter 6. Why care about experiences? Battle for the eyeballs Increased customer loyalty Increased focus on experience."— Presentation transcript:

1 Designing & Managing Experiences Chapter 6

2 Why care about experiences? Battle for the eyeballs Increased customer loyalty Increased focus on experience for product and services –Product Purchase Process = Experience Service: Experience over convenience: Coke in Japan Try and buy: Xscape Mall in UK and Europe –Hospitality, retail, entertainment, education, websites, and many other industries Chapter 6 - Designing & Managing Experiences1

3 Economic Progression (Pine & Gilmore, 1998) Chapter 6 - Designing & Managing Experiences2

4 What does it take to create an experience for customers? What do you consider an experience? What creates memorable experience (i.e., pleasure, pain, or extreme challenge)? What creates an experience at a mass venue (mall, theme park, concert, or theatre)? What creates customised experiences? What resources are needed to create these experiences? 3Chapter 6 - Designing & Managing Experiences

5 Demand for Experiences & Implications Increased Capital Expenditures theatres theme parks film & TV Increase emphasis on experience design Increased demand for New experiences Eatertainment Edutainment Themed Hotels, Malls, & Restaurants (Shoppertainment) Try & Buy Retail Migration of content Digital revolution & website overload 2D > 3 D issues Interactive with TV Bandwidth Increased emphasis on experience design More challenging to create a rich and memorable experience

6 World Experience Business Economic Drivers Customer Loyalty over satisfaction International Opportunities Supply & Barriers to Entry Universal Appeal Technology Long term customers 4Chapter 6 - Designing & Managing Experiences

7 Relational Model of Managed Customer Service Process Service Provider Customer Context Engagement Time Outcome Memory Loyalty Chapter 6 - Designing & Managing Experiences5

8 Engagement Personal level –Active: customers affect the performance or event (skiing or golf) –Passive: customers do not influence the performance Environment –Immersion: customer goes into the experience (Mist computer game or Club Med skit) –Absorption: Experience goes into the customer (watching TV) Chapter 6 - Designing & Managing Experiences6

9 Examples Environment Relationship AbsorptionImmersion Participation PassiveEntertainment Television Circus Theatre Video/DVD Esthetic Grand Canyon Cathedral Bellegio Water Show ActiveEducational Training Discussion Laboratory Escapist Mist Computer game Terminator 2 Ride Chat rooms

10 Realms of Experience Sweet Spot Immersion Passive Participation Absorption Active Participation

11 Retailment or Shoppertainment 8Chapter 6 - Designing & Managing Experiences

12 Autostadt $400 million, 62-acre factory/car dealership/theme park in Wolfsburg, Germany Chapter 6 - Designing & Managing Experiences9

13 Edutainment: Bonfante Gardens, Gilroy, CA. 10Chapter 6 - Designing & Managing Experiences

14 Context Where customers consume the service and everything they interact with in that setting. Starbucks contemporary bohemian context Relational elements Physical elements

15 Relational Context Theme: unifying story or metaphor Learnable and Usable Mutable: flexibility for customers to create their own use environment or personal experience

16 Theme Generation Joie de Vivre: 18 themed Boutique Hotels in Bay Area Method: Take a magazine and generate 5 adjectives to describe it and the people that would read it. Design hotel experience around those words. Example: Hotel Rex = New Yorker –Worldly, sophisticated, literate, artistic, & clever –Designed like an arts and literary salon of 1930s. Clubby lobby with period furnishings, paintings, and old books. Rooms have local artists paintings and contemporary amenities.

17 Theme: Rolling Stone Funky, hip, young-at-heart, irreverent, and adventurous The Phoenix Hotel has been popular with the entertainment industry for over a decade. This funky, urban retreat is an unexpected oasis, featuring a landmark pool, original 50s architecture, and island-inspired guestrooms. Backflip, the hotel's poolside cocktail lounge, is drenched in glamorous bachelor pad style and the music of the City's most progressive DJ's.

18 Theme: Movie Line Dramatic, nostalgic, fun-loving, classic, and informal Each light and comfortable guestroom is named for a motion picture shot in San Francisco, with original movie stills as decorative room accents Chapter 6 - Designing & Managing Experiences12

19 Learnable and Usable

20 Mutability Furby Groundswell Surf Camp –Surfing instruction for all ages in a surf camp environment 13Chapter 6 - Designing & Managing Experiences

21 Physical Layout: Physical layout and arrangement of objects (should encourage active participation) and reinforce theme Sensory: Sensory elements increase immersion and support theme (T-2) Social Interaction: Interaction between guest and service provider and/or fellow guests. Increases identification with service (Club Med and Cirque Du Soleil) Chapter 6 - Designing & Managing Experiences14

22 Sensory Smell Taste Touch Sound Sight –Cirque Du Soleil (O), T-2 Ride, W Hotels, and IMAX Theaters. –See 15Chapter 6 - Designing & Managing Experiences

23 Social Interaction Yahoo Groups Chapter 6 - Designing & Managing Experiences16

24 Social Interaction - Burning Man Event 17Chapter 6 - Designing & Managing Experiences

25 Time Memorabilia –Is a physical reminder of experience, extends memory of it long after –Generates dialogue about experience –Provides additional revenue Continuity –Time aspects of experience as it relates to the individual (bonding and moving through stages) Dynamic –A desirable pattern for experiences revealed over a specific time frame Long or short term vs. intensity A script or music score NOLS or Outward Bound Chapter 6 - Designing & Managing Experiences18

26 Creating the Process of Customer Experience Increase COMMITMENT & LOYALTY Memorabilia ContinuityDynamic TIME CONTEXT RELATIONAL Learnable – Usable – Mutable Social – Interaction Increase Emotion & Cognition PHYSICAL Theme – Layout – Sensory Increase Physical Interaction & Cognition EntertainmentEsthetic EducationalEscapist ABSORBTIONIMMERSION PASSIVE ACTIVE ENGAGEMENT

27 DimensionHard Rock CaféPlanet Hollywood Engagement: Entertainment & Food Move from passive to active Move from absorption to immersion Get guests to stay/return Make experience fun Connect emotionally with customers Increase thrill, surprise, delight Offers high quality American diner/pub food Has 100 Cafes in 40 countries Appeals to international music enthusiasts Connects with irreverent, rebellious customer group Keeps the legends and adds new talent constantly Refreshes concept constantly and adds new features, performances, CDs, and Hotels Offered low quality eclectic food, i.e., Capn Crunch chicken strips Had 80 restaurants predominately in US Appealed to celebrity seekers Connected with tourists (not locals) seeking stars when stars are available Depended on star availability at cafe Kept a stable of celebrity- stock holders who may or may not be in favor Difficult to refresh concept without constant major investments in hot stars Added concept with sports stars Example: Themed Restaurant Successful & Failed Experiences

28 DimensionHard Rock CaféPlanet Hollywood Context: Physical and Relational Theme Learnable and usable Mutable Layout Sensory Social Interaction Authentic keeper of the rock music experience Updates atmosphere, locations, food, and music constantly Allows different customers to create use environment and chose music Designs layout for dining, drinking and/or concert Offers high quality multi-sensory experience Encourages social interaction and fan building Tribute to Hollywood Offered easy to understand concept but not well executed Did not offer mutable stars since once star has passed prime or does not want to visit sites, they lose appeal Designed layout for dining and viewing memorabilia Offered poor quality food experience and unpredictable star viewing experience Offered limited interaction depending on location and time Time: Move from Sequential & Narrative over Synchronic Move from Static to Dynamic Memorabilia Continuity Dynamic Offers constantly refreshed rock music memorabilia, live concerts of new & Legendary artists Provides customers with many opportunities to enhance initial experience through ongoing activities and international locations Controlled expansion of concept over 30 years with careful location and relocation analysis Offered Hollywood memorabilia but no updating of merchandise Found it difficult to attract contemporary stars so lost key demographic customer; suffered from graying of celebrity stable Provided limited reason to enhance initial experience Hyper-speed expansion over 8 years and self-cannibalization Themed Restaurant Successful & Failed Experiences (continued)

29 ContextEngagementTime Service Design What is the theme and how does it address market segments? Is the theme reflected in all context with which the customer interacts? Is the service easy to learn and use? How effective are navigational materials and guides for different users? In what ways has flexibility been incorporated into the design? How can different users customize the services to maximize their experience? How does the layout and tools encourage active participation ? How have the five sensory elements been incorporated? Fit theme? How do sensory elements help shift customers reality? How can sensory elements create transitional areas? Are there different opportunities for social interaction between employees and guests? Is there a way to get customers actively engaged (physically, emotionally, or intellectually)? How can the customers immerse in the design? How is there a sense that customers have moved to another reality? In what ways can customers emotionally connect with the services? Are there opportunities for play, fun, or enjoyment? Are there opportunities for customers to learn, to create, to increase their depth and breadth of knowledge over time? Is the context esthetically pleasing? What will make guests come in and spend time in your setting (virtual or physical)? How has memorabilia been incorporated? How does the memorabilia match the theme? How can the experience be extended or built upon? How can the experience unfold over time? How many encounters does it take for the customer to bond with the service? If the bond is broken, are there opportunities to repair the link? Are there opportunities for membership clubs, chat rooms, or long term social groups? What is the duration of the encounter? How is the experience orchestrated or designed for building emotional commitment during the given time span? How does the guest see a beginning, middle, and end of the experience in live and virtual environments? Is there an intended narrative and how is that conveyed to customers? Employees Do employee behaviors and costume reflect the theme? How can employees help customers learn the service? Are employees trained to act as guides? Are employees trained to read body language and customer intentions for the service and react accordingly? How are employees trained for interactions with guests? How do employees help to actively engage the customers? How do employees help customer immerse in the experience? How do employees play a role in creating another reality? How do employees help the guests into the experience and participate in getting them to stay? Have employees been trained to help orchestrate the experience? How do employees help deliver the beginning, middle, and end of the experience? How do employees contribute to the intended narrative? Are employees empowered to create a customized experience for each customer?

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