1. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 1 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop wasting money March 25, 2009 15:00 London - 16:00 Berlin THANK YOU FOR JOINING PLEASE STAND BY Webcast Presented by: IMPORTANT: This session is being broadcast to your desktop, to listen turn up your computer speaker volume or refer to dial-in details in the pop-up box and follow the prompts.

2. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 2 Maritz Research Europe Brand Promises or Customer Experiences? - Know how customers choose - Stop wasting money Webcast Presented by: March 25, 2009 15:00 London - 16:00 Berlin

3. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 3 Commonly Asked Questions 1. Will I be able to get copies of the slides after the event? 2.Is this web seminar being recorded so I or others can view it after the fact? YESNO YESNO

4. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 4 Have A Question? How to submit questions to the Speaker during this Webcast Go to Floating Tool Bar

5. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 5 Holistic Relationship Strength: Brand Promises or Customer Experiences? - Know how customers choose - Stop wasting money Webinar, 25 th March 2009 Roger Sant DVP, Brand Research Europe Maritz Research

6. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 6  Opinions of brands influence customer loyalty & choice  Without customers, there’s no business! We know brand is important … "Brand. Our least tangible, yet most valuable asset“ D. Young, GE Chairman 1922-1939 What makes people feel the way they do about brands = What makes businesses succeed or fail “Businesses exist through the existence of their customers”

7. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 7 So what does influence the way people feel about brands? Loyalty dec isi ons (Should I stay or go?) Direct experience Advertising Direct experience Advertising And what about other uncontrolled communications? Choice decisions (If I go, where to?)

8. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 8 Customer touch-points & Moments of truth (delivered) Holistic Relationship Strength Uncontrolled Brand image & associations News, reviews, articles, blogs, etc. Word of mouth Direct Experiences Keeping brand Promises Aligning Brand & Experience Advertising & Communications (controlled) Controlled

9. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 9 What happens when experiences are poor?

10. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 10 The impact of a bad experience What affect did this have on: His opinion of the brand? The broader brand strength? He was probably unhappy, but he is only one person How consistent was this poor service? How many did he tell? What was the brand promise?

11. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 11 Brand and experience both influence people’s behaviour It is the alignment between brand promises and delivered experiences that companies need to get right Don’t silo Brand Image and Customer Experience Deliver your brand promises Don’t silo marketing and operations

12. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 12 What we need to know … to fill in the numbers and paint the bigger picture

13. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 13 We need to know … How this impacts loyalty & choice The perceived Gap (between promises & beliefs) What these beliefs are How people arrived at their brand beliefs

14. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 14 We need to ask … 3.What made them feel that way? 4.How does this compare to what the brand says about itself? 1.How much someone likes the brand 2.What they like/ dislike

15. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 15 We need to ask … 1.How much does someone like the brand? 2.What is it that they like/ dislike?  PRO ANTI  Customer Retention Non-customer Acquisition A mixture of brand, service & product statements Include strap lines & images promoted by advertising Relationship strength Beliefs

16. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 16 So we need to ask 3.What made them feel that way? 4.How does this compare to what the brand says about itself? Sources of beliefs Brand Delivery Gap Had first hand experience It’s what the brand stands for People I know have told me Researched on the internet Etc. Expectation 100 0 Actual 100 0 Familiar but not used Using/used recently (adjusted for customer bias)

17. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 17 Why Brand Delivery Gaps arise … Brand managers want to make big, emotional promises Emotions drive relationships Brands want to get closer to customers Operations strive for efficiency Want to deliver minimum ‘required’ experience At the lowest cost Contrasting forces of marketing and operations

18. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 18 Example of a BIG brand promise

19. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 19 What affect did this have on opinions of the brand? … depends on whether they invested enough to delivered the promise If they did If they didn’t Frustrated current customers Disappointed new customers Wasted advertising $$

20. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 20 What all this tells us

21. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 21 Relationship strength How are we doing on Relationship Strength?  Compared to our competitors?    Competitor A Competitor B Competitor C 50% 30% 20% Where will our vulnerable customers go? Competitor A Competitor B Competitor C 50% 30% 20% Where will our acquisitions come from? Gain from Lose to

22. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 22 Belief-drivers  Helpfulness of staff (24%) Can always find someone (17%) Speed of check-in (42%) Service beliefs Brand beliefs Product beliefs 45% 35% 20% Comfort of seats (30%) Entertainment system (35%) Trustworthy (25%) Fun (20%) Innovative (50%) Food (25%) Loyalty & choice ANTI PRO

23. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 23 Sources of beliefs Key belief drivers Direct experience Uncontrolled comms Word of mouth Advertising & controlled communications Sum of sources of beliefs Helpfulness of staff Speed of check-in Trustworthy Innovative

24. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 24 The Brand Delivery Gap (negative) Aligning promises & delivery SmallBig Over promising Under delivering Under promising Over delivering

25. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 25 Don’t underestimate 1 bad experience People used to tell 10 others about bad experiences … now they can tell tens of thousands

26. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 26 Small gap (good) Big gap (bad) The Brand Delivery Gap Prioritise BrandPrioritise Experience Build presence Promote promises Advertising $$ may be wasted until experience is fixed

27. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 27 Deliverables of Influencers that lead to Beliefs Profitable behaviour Operational Delivery Advertising WoM Brand, Product & service drivers Retention Acquisition Unc. comms

28. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 28 So that we can: 3.Evaluate the ‘gap’ between promise & delivery 1.Include both brand & experience drivers when analysing profitable behaviour 4.Prioritise investments between communications and operations as well as within them 2.Identify what’s influencing these drivers What makes people feel the way they do about brands = What makes businesses succeed or fail

29. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 29 Maritz Research Europe Questions and Answers Roger Sant DVP, Brand Research Europe Maritz Research Webcast Presented by: Webinar, 25 th March 2009

30. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 30 Have A Question for Roger Sant? How to submit questions to the Speaker during this Webcast Go to Floating Tool Bar

31. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 31 Maritz Research Europe Questions and Answers Roger Sant DVP, Brand Research Europe Maritz Research Webcast Presented by: Webinar, 25 th March 2009

32. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 32 Thanks for your time and participation today! For copies of today’s presentation or to replay this webcast (recording generally available within 24 hours) Go to: www.maritz.com/News-Events-and-Insights/Events/Webcasts.aspx To contact today’s Speaker's directly roger.sant@maritzresearch.co.ukoger.sant@maritzresearch.co.uk To receive a copy of the Maritz Research Forum Quarterly eNewsletter see www.maritzresearch.com (see left sidebar) Any questions regarding today’s webcast please contact: Christian.Vorwerck@maritzresearch.co.uk +49 40 3698 3320 NOTE: Please add our Research Forum distribution source to your email ‘Safe List’ info@.mr-2.us

33. PROPRIETARY AND CONFIDENTIAL, MARITZ COPYRIGHT 2008 33