1. © 2004 Keynote Systems Customer Experience Management (CEM) Bonny Brown, Ph.D. Director, Research & Public Services

2. 2 Customer Experience vs. Usability  Web sites - part software, part marketing medium  Usability is a subset of customer experience  Usability – Can users use it? How can we make it easier?  Customer Experience – Do users like it? How can we better drive conversion, loyalty, and brand?  Areas for Customer Experience insights:  Customer needs, preferences  Barriers to adoption  Drivers of retention and loyalty  Concept testing of new features  Feedback and impact of policies  A/B Testing to make volume predictions

3. 3 Research Phases 1. Discover: Define strategic direction  Business objectives  Core business metrics (sales, leads, traffic, support center data)  Competitive assessment / benchmarking (baseline)  Drivers / Customer insight  Segmentation 2. Explore: Develop concepts and assess user reactions  User interaction / reaction  Unanticipated insights / obstacles / opportunities 3. Evaluate: Refine and perfect solution  Predict user response to implemented solution, prove product success before launch 4. Track: Set goals and monitor success  Competitive assessment / benchmarking (ongoing)  Optimization

4. 4 Metrics to Manage Customer Experience Metrics to measure progress Strategic direction Understand relative strengths and weaknesses In-depth customer feedback Actionable recommendations and best practices Affordable research Customer Needs Ongoing success metrics Driver analysis Apples-to-apples comparison to competitors Attitudes and behaviors reveal “why’s” Analysis conducted by experts Multi-client study reduces research cost per client Keynote Syndicated

5. 5 The Complete Customer Experience Customer Conversion Brand Retention Productivity Customer Service Revenue Maximization Continuous Measurement and Improvement Impact = = Customer Experience Customer Experience Are your customers: Engaged? Frustrated? Confused? Why? + + Advertising Previous Experience Word of Mouth Advertising Previous Experience Word of Mouth Expectation What do users think about you? How do they expect to be treated? What do they want to do? Behavior Thoughts Interaction What do users do? What are they thinking? Do they succeed?

6. 6 Success Indices and Drivers SITE EXPERIENCE METRICS (250+ quantitative metrics gathered per site) DRIVER ANALYSIS (Aspects of the experience are grouped into factors and then regressed against the indices to identify factors most related to brand and conversion) DRIVER ANALYSIS (Aspects of the experience are grouped into factors and then regressed against the indices to identify factors most related to brand and conversion) CONVERSION INDEX CONVERSION INDEX BRAND IMPACT INDEX CUSTOMER SATISFACTION INDEX CUSTOMER SATISFACTION INDEX OVERALL CE RANKINGS (Overall site effectiveness based on equal weighting across each of the three indices)

7. 7 Traditional Methods Intuition Focus Groups Usability Log Server Analysis Web-based Surveys Robotic Agents Customer Experience Customer Experience

8. 8 Integrate the Best of Each Method Users Intent Known Large Samples Qualitative Data Behavior Data Natural Setting Analysis Tools Focus Groups Usability Labs Surveys Traffic Analysis Keynote

9. 9..using our browser companion that captures events …to evaluate site(s) …providing comments and feedback …which are analyzed with our powerful software …performing tasks & answering questions “Find information that meets your needs.” “How satisfied are you with this site?” How Keynote CEM works Panelists are invited or intercepted…

10. 10 Canon vs. Xerox The “client,” Canon, turned to Keynote to evaluate Customer Experience on the Canon.com website…  Home Page  Product Search Capabilities  Online Customer Support Options …benchmarked against top competitor site, Xerox.com

11. 11 A large sample of target and actual customers participated in the evaluation:  800 panelists from the Keynote Research Panel  Majority of panelists significantly involved in purchasing printers, fax machines and copiers for company  37% of panelists actual Canon customers …providing credible Customer Experience data Study Participants

12. 12 Insight Poor Customer Experience on the Canon.com website is resulting in lost revenue 1.Canon.com site is cluttered and difficult to navigate 2.Customers find search engine unhelpful 3.Inadequate product information is provided for customers to evaluate products 4.As a result, customers can’t find products that meet their needs on the site Customer Insight

13. 13 The participant’s view

14. 14 Panelists commonly describe Canon homepage as “busy” and “cluttered” compared to “clean” Xerox homepage

15. 15 Panelists comments reveal that homepage does not provide clear navigation to product information

16. 16 Majority of panelists failed or gave up product search on Canon.com Panelists took very scattered paths trying to find product

17. 17 In contrast, the majority of panelists succeeded in product search on Xerox.com!

18. 18 The majority of panelists used the search engine on Canon.com…

19. 19 …and 99% encountered problems with Canon.com’s search engine!

20. 20 80% of panelists did not find adequate product information to select a product on Canon.com

21. 21 Product Search 80% of all panelists were unable to find a product on Canon.com

22. 22 Panelist provides detailed description of frustrations on Canon.com

23. 23 Spent over 8 minutes Couldn’t find the product Rated Canon.com “Extremely Difficult”

24. 24

25. 25 Only panelists who authorize purchases of faxes, printers and copiers Poor Customer Experience is costly!

26. 26 Actionable Recommendations Improve ease of finding products: Create clearer product classification categories for browsing customers Categorize search engine results Expand product information Impact Increase transactions volume and revenue Canon vs. Xerox

27. 27  Web customer experience is a combination of excellent application design and marketing  Customer Experience research needs to:  Capture the complete Web experience  Explain the “Why” behind the “What”  Combine the best of multiple methods  New tools and methods allow better insight into how to improve the customer experience and the bottom line Conclusions