1. Date 03.18.09 MIX09 The Venetian Las Vegas, NV Go Beyond Best Practices: Evolving Next Practices to Prosper in the 21st Century

2. © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.

3. © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited. lou carbone – founder & ceo minneapolis, minnesota

4. © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited. we live, eat, sleep, breathe and unravel the riddle that is human experience for a select group of clients who want to manage experience – and the value that experience can create. at experience engineering

5. © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.

6. © 2007, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited. How does your business cause its customers to feel?

7. © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.

8. © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.

9. © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited. “ Emotions are important determinants of economic behavior - more so than rationality.” Dr. Daniel Kahneman, Princeton Psychology Professor Nobel Prize Winner in Economics 2002

10. © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited. “the tangible attributes of a product or service have far less influence on consumer preference than the sub-conscious sensory and emotional elements derived from the total experience.” Dr. Gerald Zaltman Harvard Business School Laboratory of the Consumer Mind

11. © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited. “Firms of Endearment”

12. © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited. Stock Price Performance of FoE versus GtG versus S&P 500 Source: Adapted from Firms of Endearment; by Raj Sisodia, Jagdish Sheth and David B. Wolfe (2007; Wharton School Publishing) 3 to 1 Ratio 1.7 to 1 Ratio

13. © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited. Firms of Endearment Source: Adapted from Firms of Endearment; by Raj Sisodia, Jagdish Sheth and David B. Wolfe (2007; Wharton School Publishing) S P I C E Society Partners Investors Customers Employees Firms Of Endearment Experiential Value Associated with Brand S ociety P artners I nvestors C ustomers E mployees

14. © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.

15. © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited. the brand canyon ™

16. © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited. “ladies and gentlemen, serving ladies and gentlemen.” Ritz Carlton the brand canyon ™ what customers feel about company! what customers feel about themselves! brand product service treatment experience feelings

17. © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited. value relationships brand value how I feel about the company customer value how I feel in and about the experience

18. © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited. types of clues that customers experience what we taste what we feel what we see what we hear what we smell

19. © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited. categories of clues stimuli associated with people – choice of words, tone of voice, level of enthusiasm, appearance, body language humanic clues emotional mechanic clues stimuli associated with things – sights, smells, sounds, textures emotional functional clues functionality of the good or service rational

20. © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.

21. © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.

22. © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited. what kind of experience do these clues create? what if we managed these clues?

23. © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited. “you cannot NOT have an experience… …the question is, how managed or haphazard is that experience?” Lou Carbone, President & CEO Experience Engineering, Inc.

24. © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited. learn create do assessment experience audit motif design implementation stewardship Experience Engineering … …helps understand, align & manage experience clues to optimize the value of experiences create

25. © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited.

26. © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited. using the motif as a northstar to generate experience designs embedded with clues eliminate or abate negative clues improve neutral clues dial up or create preference clues acceptance No Differentiation rejection Negative Differentiation - commodity zone + preference Positive Differentiation

27. engineering customer experiences move from “make and sell” to “sense and respond” customer back (emotional/rational bond) understand and leverage role of the unconscious mind clue conscious rigorous systems to develop and manage clues

28. © 2009 All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited. ROI Obsession ROY Obsession Y Are We Doing It (Effect) Y Will it Make A Difference Y Wouldn’t We Do It Y Does it Make Sense

29. © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited. "People will forget what you said. They will forget what you did, but they will never forget how you made them feel." Eleanor Roosevelt

30. © 2009, All Rights Reserved. Experience Engineering, Inc. Any use, copying or distribution without written permission is prohibited. For Further Information On Managing Experience as a Value Proposition Contact: lcarbone@expeng.com 952.942.8880 thank you

31. © 2009, All Rights Reserved. Experience Engineering, Inc. 31 © 2009, Experience Engineering, Inc. All rights are reserved. No portion of this document may be reproduced in any form or used in anyway without the express written permission of: Experience Engineering, Inc. 7808 Creekridge Circle, Suite 320 Minneapolis, MN 55439 952 942-8880 www.experienceengineering.com