The document discusses how to create customer loyalty through delivering experiences that create "The Long Wow," which means repeatedly creating notably great experiences for customers over time by planning and staging "wow" moments that delight, anticipate needs, or surprise customers, and by managing a platform to reliably deliver these experiences while evolving the process and drawing inspiration from unmet customer needs.

1. SUBJECT TO CHANGE
creating great products and services for an uncertain world

2. Containerization
Manufacturing costs
plummet
Global communication
The world gets smaller
Digitalization
Products get more complex

3. Media is a mess
Craigslist took the classifieds
Everyone took a piece of the ads
Blogs are taking the readers
Music is in metamorphosis
iTunes is the #1 retailer
Labels are losing their grip
Travel is turbulent
The three top quality carriers
are all low-fair airlines

4. predicting the future has never been easy,
but it’s never been more difficult

5. Predicting the future won’t work.
Meeting about it won’t work.
Instead, seek approaches that will
continue to work no matter which
prediction comes true.

6. A Brief History Lesson

7. A new photographic apparatus

8. A NEW PHOTOGRAPHIC APPARATUS.
This apparatus consists of a box containing a camera, A, and
a frame, C, containing the desired number of plates, each
held in a small frame of black Bristol board. The camera
contains a mirror, M, which pivots upon an axis and is
maneuvered by the extreme bottom, B. This mirror stops at
an angle of 45°, and sends the image coming from the
objective to the horizontal plate, D, at the upper part of the
camera. The image thus reflected is righted upon this plate.
s beyondInobjective isofofthree yards from operator situatedin
hotographic apparatu nearer the object to be photographed, the focusing would be
As the short focus, every object
A new p
a distance the apparatus is
focus. exceptional cases, where the might be
done by means of the rack of the objective. The latter can
also slide up and down, so that the apparatus need not be
inclined when buildings or high trees are being photographed.
The door, E, performs the role of a shade. When the
apparatus has been fixed upon its tripod and properly
directed, all the operator has to do is to close the door, P and
,
raise the mirror, M, by turning the button, B, and then expose
the plate. The sensitized plates are introduced into the
apparatus through the door, I, and are always brought
automatically to the focus of the objective through the
pressure of the springs, R. The shutter of the frame, B, opens
through a hook, H, with in the pocket, N. After exposure, each
plate is lifted by means of the extractor, K, into the pocket,
whence it is taken by hand and introduced through a slit, S,
behind the springs, R, and the other plates that the frame
contains. All these operations are performed in the interior of
the pocket, N, through the impermeable, triple fabric of which
no light can enter.
An automatic marker shows the number of plates exposed.
When the operations are finished, the objective is put back in
the interior of the camera, the doors, P and E, are closed, and
the pocket is rolled up. The apparatus is thus hermetically
closed, and, containing all the accessories, forms one of the
most practical of systems for the itinerant photographer.

9. “You press the button,
we do the rest.”

11. 1 2 3

12. Why is this story important?
Because this focus on the customer experience
made Kodak successful for years.
And when they’ve stumbled it’s been because
they lost this focus.

13. user interface
logic
data

14. user interface
MAGIC

15. user interface
nte
nt
g
logic
data

16. user interface
logic
data

17. The experience is the product.

18. The experience is the product.
Focus on the lives of customers.
Engage in design as an activity.
Think systems, not artifacts.
Deliver the Long Wow.

19. The experience is the product.
Focus on the lives of customers.
» Understand people as people.
Engage in design as an activity.
Think systems, not artifacts.
Deliver the Long Wow.

20. No!
Compare this to a focus
group set up

21. Companies tend to oversimplify
their view of people

22. 4
old ways of
thinking

23. #1
$
At worst:
“a gullet whose only purpose in life is to gulp
products and crap cash.”
Ruthlessly stolen from The Cluetrain Manifesto

24. #2
Sheep
Docile and gullible
Stories and messaging
Preferences!

25. #3
Homo Economicus
Highly rational
Maximizes utility
Quantity!

26. #4
Type A Personality
Task oriented
Goal driven
Efficiency!

27. Not all wrong, not really right.
We are evolving our approaches.

28. What’s been missing?

29. The messy complexity of human life

30. photo by
Windell
Oskay
People regularly mix
and match products
with little regard for
“suggested use.”

31. They challenge social
and cultural boundaries
in unexpected ways.

32. Understand people as people.
(Understand them as we understand ourselves.)

33. What’s been missing?
Behavior
Motivation
Context
Emotion

34. Motivation
Concepts Compare Banks Compare Products Evaluate Future Products
Understand
Product Details
Run scenarios
Get Overview of with tools
Products
Research
Read bank specific loan
brochures options
Get business Look at
Research
loan info in mortgage
Research Products branch
Look at specific
rates
Banks Across Banks items
Read Research Learn about Research
Read Conduct Evaluate Long
promotional checking bill pay business
Learn About Research Bank brochures Followup Term Banking
mail needs features insurance
Process Locations Negotiate Research Options
Review Consider types
Attend home Look for Research Research Negotiate in refinance Research fees Mark funds for Research of business
buyng seminar Define Personal Call Bank About branches banks online Research credit line branch Become Aware further review checking services
Realize
options
Needs Product Technology of Products unreadiness
Learn the Talk to BofA Research Seek Look for Evaluate long
home buying Create mental about Look for safety banks in Compatibility Compare Negotiate over Seek mutual funds/ Research Follow up over Research IRAs term banking Realize
process list of needs mortgage deposit box person with MSN rates phone promotions IRAs specific funds phone options unreadiness
Financial Financial Compare Compare
planning planning Contact Locations Offers FAQ Products Contact Offers Product info Rates Checklist Products Welcome kit
resource resource Mental Space Mental Space
Calculator Live chat Quarterly Help Locations Product list Product list Comparison Contact
report
Locations Contact Feature list Locations
Community Locations Fees Live chat
info
LOB info Product demo Terms
Opt-in Line info Eligibility
Form
Case study list Product specs
Case study Feature info Security
detail
Product Feature specs Use process
selector
Live chat Product demo Calculator

35. 2: online
multi-session
1: convenience research
research
Motivation
online first
bank
convenience
site experience indicates ease of working with bank
online
go online first to conveniently get convenience
knowledge
fear of being ion
consolidat
3: knowledge
evaluating
Concepts Compare Banks manipulated Compare Products Evaluate Future Products
future
products 2: online
multi-session
1: convenience knowledge is research
power research
need to be a Understand
Product Details online first
responsible
consumer no clear end Get Overview of
Products
Run scenarios
with tools
state Read bank
Research
go online first to conveniently get knowledge
fear of being 3: knowledgespecific loan
brochures options
manipulated
Get business Look at
Research
loan info in mortgage
Research Products branch
Look at specific
rates
Banks Across Banks items
knowledge is
Read Research power
Learn about
Conduct Research
Evaluate Long
Learn About Research Ban
ch B
h Bank promotional
mail
Read
brochures
need to be a checking
needs
bill pay
features Followup
business
insurance Term Banking
Negotiate
Process tions
Locations responsible going through Research Options
consumer the motionsend
no clear Review Consider types
Attend home Look for
k Research Research Negotiate in refinance Research fees Mark funds for Research of business
buyng seminar Define Personal Call Bank About branches
ches banks online Research credit line branch Become Aware further review checking Realize
e
Needs Product Technology of Products stateoptions services
ess
unreadiness
Learn the Talk to BofA Research Seek Look for get knowledge before talking to a person Evaluate long
home buying Create mental about Look for safety
r banks in Compatibility Compare Negotiate over Seek mutual funds/ Research Follow up over Research IRAs term banking Realize
process list of needs mortgage deposit box
it person with MSN rates compelledphone seek bargains
to promotions IRAs specific funds phone options unreadiness
ss
Financial Financial Compare
going through Compare
planning
resource
planning
resource
Contact Locations
tions Offers FAQ Products
Mental Space
Contact Offers
the motions
Product info Rates Checklist Products
Mental Space
Welcome kit
emotional
get knowledge before
Calculator Live chat Quarterly
report
Help Locations compelled to seek bargains list
Product list Product requirements talking to a person
Comparison Contact
Locations Contact Feature list Locations
emotional
Community Locations Fees
requirements
Live chat
info
sensitivity to multi-channel
LOB info cost Product demo Terms
process
sensitivity to multi-channel
Opt-in Line info Eligibility
Form cost identification process
with personas
Case study list Product specs identification
with personas
privacy and
Case study
detail
Feature info Security
security privacy and serious
Product
security specs
Feature Use process serious
selector transactionss
transaction
notnot online
online
Live chat Product demo Calculator
4: ion
4: emotemotion

36. "Medical device manufacturers are stuck in a
bygone era; they continue to design these
products in an engineering-driven, physician-
centered bubble. They have not yet grasped the
concept that medical devices are also life
devices, and therefore need to feel good and
look good for the patients using them 24/7, in
addition to keeping us alive."
Amy Tenderich, Diabetes Mine blog

37. She has a point...

38. We talked to diabetics

39. Easy to learn and teach/No numbers
Make better use of data
Less stuff
Keep users in control
Help keep users motivated
Wear it during sex

41. Behavior
Tasks
Motivation
Goals
Context
Preferences
Emotion

42. More insight
By changing the size and shape
of our research filters, more
and better information gets
through the sifting process.

43. ple?
rs as peo
custome
your
derstand
Do you un

44. The experience is the product.
Focus on the lives of customers.
» Understand people as people.
Engage in design as an activity.
» Design becomes an organizational competency.
Think systems, not artifacts.
Deliver the Long Wow.

45. Five ways of thinking of design

46. 1. Design as aesthetics

47. 2. Design as a distinct role

48. 3. Design as a thing

49. 4. Design as a rock star

50. Five ways of thinking of design
1. Design as aesthetics
2. Design as a distinct role
3. Design as a thing
4. Design as a rock star
5. ???

51. Design as an activity
Design can be an
activity that an
organization
embraces, that
everyone can be
involved in.

52. Designers become facilitators
Design can be an
activity that an
organization
embraces, that
We engage can be
everyone
cross-functional
involved in.
teams, get design
ideas out of
them, and then
work to refine
and hone them

53. Complexity warrants design approaches
iteration

55. Complexity warrants design approaches
iteration prototyping
and making

57. Complexity warrants design approaches
iteration prototyping deep/wide
and making collaboration
Finance Co.
Statement Phone Print Advisor Web

58. roac hes?
ign app
g des
emb racin
are you
How

59. The experience is the product.
Focus on the lives of customers.
» Understand people as people.
Engage in design as an activity.
» Design becomes an organizational competency.
Think systems, not artifacts.
» Embrace complexity, and expose appropriately
Deliver the Long Wow.

60. You press the
button…

61. You press the
button…
...and we do
the rest.

62. Experiences cross boundaries
Finance Co.
Statement Phone Print Advisor Web

63. Experiences cross boundaries
Finance Co.
Statement Phone Print Advisor Web

64. A safer drug delivery system

65. The ClearRx system
pill bottle
pharmacists ClearRX marketing
Customer-facing experience
POS system training
CRM supply chain
IT systems and operations

66. The ClearRx system
ces?
pill bottle
exp erien
port
pharmacists ClearRX marketing
t sup
s tha
Customer-facing experience
stem
ng sy
u de signi
Are yo POS system training
CRM supply chain
IT systems and operations

67. The experience is the product.
Focus on experience.
» Use experience as strategy.
Focus on the lives of customers.
» Understand people as people.
Think systems, not artifacts.
» Embrace complexity, and expose appropriately.
Deliver The Long Wow.
» Unfold delightful experiences over time.

68. Over 75% of consumers have at least one loyalty card
— Jupiter Research
How do you
create customer
loyalty?

69. “Want loyalty? Get a dog.”
— Randy Susan Wagner, CMO of Orbitz

70. "Christmas isn't
something you buy from
a store… Christmas,
perhaps, means a little
bit more.”

71. Meaning more means repeatedly
creating notably great experiences
True loyalty — and the word-of-
mouth that comes with it — evolves
natural from the great experience you
have with a company over time.

72. Meaning more means repeatedly
creating notably great experiences
Notably great experiences are
punctuated by a moment of “wow,”
when the product or service delights,
anticipates the needs of, or pleasantly
surprises a person.

73. Peak-end rule
average
average
from Daniel Kahneman

74. The Long Wow
Plan and stage
the wow
experience
wow
Manage your Evolve your
platform for repeatable
delivery process
Draw from a
wide area of
unmet needs

75. 4. Plan and stage the wow experience
organize a pipeline of wow moments that can be
introduced through your palette of touchpoints over time
Before Now Next Later

76. pack in unfold new
features up experiences
front over time

77. wow
Synched tracking

78. { }

79. { …it’s the eye of the tiger it the thrill of the fight… }
wow
Powersong!

80. wow
Collaborative
running

81. wow
Networked
running events

82. Nike+
Running
sportsband
shoes
Synched tracking
iPod nano
Networked running events
Tracking
tools Pedometer
Voiceover feedback
Nike+
website Music
Sport iMixes
Desktop
Collaborative running widgets
Powersongs

83. The Long Wow
Plan and stage
the wow
experience
wow wow wow wow wow wow wow wo
wo wo wo
Manage your Evolve your
platform for repeatable
delivery process
Draw from a
wide area of
unmet needs

84. an create
at c
rm thwow wow wow wo
wow wow wowfo g haul?
lat wow
g a p the lon
ildin over
u bu nts
Are yo ome
wo wm

85. The experience is the product.
Focus on experience.
» Use experience as strategy.
Focus on the lives of customers.
» Understand people as people.
Embrace the complexity.
» Use systems to support experiences.
Engage in design as an activity.
» Design as an organization competency.

86. Goals of the book
Articulate a new
approach to creating
products and services
in an uncertain world
And address a gaping
hole in how companies
serve people

87. 362 firms
95% say they are
“customer focused”
80% say they deliver a
“superior experience”
How many of these
firms’ customers agree
that they deliver a
superior experience?
8%
from “Closing the Delivery Gap” by Bain & Company

89. SUBJECT TO CHANGE
creating great products and services for an uncertain world
Short, but powerful. Easy to read,
yet profound. I’ve been searching
for just this book: the one perfect
book that summarizes the
essence of modern product
design. This is it... I will use it in
my courses for MBA students.
You should use it for, well, for
everyone.”
— Don Norman,
author Design of Everyday Things
Peter Merholz
peterme@adaptivepath.com

90. Additional Photo Credits
Slides 78, 79, 82. "Basinghill path" David (satguru).
http://flickr.com/photos/satguru/2301780965/
Slide 80. "Vincent Massey Park - Path?" Alison C (Allie in Wonderland).
http://flickr.com/photos/allie-in-wonderland/1810364260/
Slide 80. "The road/pavement markings." Matt Seppings
http://flickr.com/photos/chumpolo/165026463/
Slide 69. "Loyal Pal" (dennis and aimee jonez)
http://flickr.com/photos/jonezes/233928794/
Slide 75. "blue line" Crispin Semmens (conskeptical).
http://flickr.com/photos/conskeptical/292241229/
—all photos some right reserved: Creative Commons http://creativecommons.org/licenses/by/3.0/

91. August 12-15, 2008
San Francisco
Featuring Don Norman, Jensen
Harris, Indi Young, Bruce
Sterling, and people from
Google, TheDailyShow.com,
IDEO, Zipcar, and more!
Day 1: Fundamentals of User Experience
Day 2: Service and Media Design
Day 3: Play and Immersion
Day 4: The Future of User Experience
http://uxweek.com/
Use promotional code FOPM and get 15% off the registration price.