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Whoever knows
their customers best

WINS
modus associates
DIGITAL STR ATE G Y + D E S IG N
Innovation is hard.
   Let your customers help.
   1.	 Why?
   2.	 How?
   3.	 Workshop


www.modusassociates.com       2
Scott McDonald      Kristen Kulenych           Graham Ericksen
Co-founder,         Co-founder,                Principal, Director of
Managing Director   Chief Experience Officer   Strategy & Innovation




                     modus associates
                     DIGITAL STR ATEGY + DESIGN
Why we’re here
    Where should you place your bets
    in a world where everything is changing
    and anything seems possible?




www.modusassociates.com                       4
“Nice, but as long as there are readers there will be scrolls.”
Today’s takeaway
     A practical framework you can use today
     to improve profitability and better
     serve your customers online

     i.e., To place the
           right bets.


www.modusassociates.com                        6
Innovating with

          y?
customers:

       W h
Customer focus is in vogue...
                          ROLES              ASSOCIATIONS

BOOKS




                                  ARTICLES




www.modusassociates.com                                     8
“Of course it’s about
                  our customers.”


www.modusassociates.com                 9
100s surveyed
           The business consultancy Bain & Company
           surveyed hundreds of companies that
           felt they delivered superior customer
           experiences.



www.modusassociates.com                              10
only           8% agree
           But in reality, only 8% of those
           companies’ customers agreed that the
           experience was superior.




www.modusassociates.com                           11
only $ of $    1              80
           “For every $80 companies spend
           driving traffic to their websites, only $1
           is spent converting that traffic into
           customers.”




www.modusassociates.com                                 12
What’s at stake...

www.modusassociates.com     13
10-to-1 margin
      “A three-year study of more than 40 Fortune
      500 companies by research firm Peer Insight
      found companies focused on customer
      experience design outperformed the
      S&P 500 by a 10-to-1 margin.”




www.modusassociates.com                             14
www.modusassociates.com   15
Customer-Centric Firms Are Leaders




www.modusassociates.com                16
Innovating with


         ow?
customers:

       H
Keys to getting
  a complete picture:
  1.	 Variety of sources
  2. 	What customers SAY and DO




www.modusassociates.com           18
What they DO
   Some tools and techniques:
   +	       Ethnographic research
   +	       User testing of your sites & products
   +	       Web traffic analysis
   +	       Industry / Third-party research
   +	       Competitive & best practices benchmarking



www.modusassociates.com                                 19
What they SAY
   Some tools and techniques:
   +	       Customer interviews & focus groups
   +	       Surveys and questionnaires
   +	       Feedback forms
   +	       Customer service logs
   +	       Social media monitoring



www.modusassociates.com                          20
Participatory Case Study
Imagine if you will…




www.modusassociates.com          22
Imagine if you will…

            Business Mandate:
            Book more
            rooms online




www.modusassociates.com          23
Insights:
                          +	Key competitor launches
                            customer reviews on
                            their website
Com petitor               +	Another offers upload
Review                      and share your trip
                            photos



www.modusassociates.com                               24
Insight:
  +	Travelers don’t trust
    the reviews on hotel
    websites. They prefer    Industry
    third-party sites like
    TripAdvisor.
                             Research


www.modusassociates.com                 25
Insight:
                          +	Users overwhelmingly
User                        rejected the “upload
Testing                     photos and stories” idea




www.modusassociates.com                                26
Insights:
   +	Deals & discounts most
     popular section
   +	40% of searches are      Traffic
     returning no results     Analysis


www.modusassociates.com                  27
Insights:
C ustomer                 Why people are calling:
Service                   1.		Website was confusing
Logs
                          2.		Thought they would
                             get a better deal by
                             phone



www.modusassociates.com                               28
Insights:
   +	Most site visitors believe
     aggregators have the
     best pricing.
   +	67% were unaware of
     best rate guarantee.         Customer
   +	37% never heard of           Surveys
     Loyalty Program.



www.modusassociates.com                      29
Insights:
                          Desired information:

   stomer
                          +		 rice
                            P
Cu                        +	Deals and discounts
Int erviews               +	Destination information




www.modusassociates.com                               30
The difference between
   knowing & guessing
                                                                            7%
                              11       %
                                                                         Entry Page
                                                                          Bounce




                                                         88
                              Yearly Site
                               Revenue                            %
              92
     Rewards Program
                          %
                                                      Email Newsletter
                                                         Sign-up
         Sign-up
                                        68%
                                     Special Offers
                                       Revenue


www.modusassociates.com                                                               31
Competitor                User
              Review                    Testing
                           Industry
                           Research

                                      Customer
                                      Service
      Traffic                         Logs
      Analysis
                           Customer
                           Surveys                Customer
                                                  Interviews

www.modusassociates.com                                        32
Competitor              User
              Review                  Testing
                           Industry
                           Research



      Traffic
      Analysis




www.modusassociates.com                         33
Competitor
              Review
                           Industry
                           Research




www.modusassociates.com               34
Could it really be
this straightforward?
Why not?
     “We don’t have time…


www.modusassociates.com     36
Why not?
     “We don’t have time
      to be successful.”

www.modusassociates.com    37
Make the time
     to be successful.

www.modusassociates.com   38
Whoever knows
their customers best

WINS
+	 For more information visit
   modusassociates.com

                     +	 Continue the conversation at
                        linkedin.com/iStrategy
Rhetoric v. Reality



                          Hertz images




www.modusassociates.com                  41

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Modus - iStrategy Chicago

  • 1. Whoever knows their customers best WINS modus associates DIGITAL STR ATE G Y + D E S IG N
  • 2. Innovation is hard. Let your customers help. 1. Why? 2. How? 3. Workshop www.modusassociates.com 2
  • 3. Scott McDonald Kristen Kulenych Graham Ericksen Co-founder, Co-founder, Principal, Director of Managing Director Chief Experience Officer Strategy & Innovation modus associates DIGITAL STR ATEGY + DESIGN
  • 4. Why we’re here Where should you place your bets in a world where everything is changing and anything seems possible? www.modusassociates.com 4
  • 5. “Nice, but as long as there are readers there will be scrolls.”
  • 6. Today’s takeaway A practical framework you can use today to improve profitability and better serve your customers online i.e., To place the right bets. www.modusassociates.com 6
  • 7. Innovating with y? customers: W h
  • 8. Customer focus is in vogue... ROLES ASSOCIATIONS BOOKS ARTICLES www.modusassociates.com 8
  • 9. “Of course it’s about our customers.” www.modusassociates.com 9
  • 10. 100s surveyed The business consultancy Bain & Company surveyed hundreds of companies that felt they delivered superior customer experiences. www.modusassociates.com 10
  • 11. only 8% agree But in reality, only 8% of those companies’ customers agreed that the experience was superior. www.modusassociates.com 11
  • 12. only $ of $ 1 80 “For every $80 companies spend driving traffic to their websites, only $1 is spent converting that traffic into customers.” www.modusassociates.com 12
  • 14. 10-to-1 margin “A three-year study of more than 40 Fortune 500 companies by research firm Peer Insight found companies focused on customer experience design outperformed the S&P 500 by a 10-to-1 margin.” www.modusassociates.com 14
  • 16. Customer-Centric Firms Are Leaders www.modusassociates.com 16
  • 17. Innovating with ow? customers: H
  • 18. Keys to getting a complete picture: 1. Variety of sources 2. What customers SAY and DO www.modusassociates.com 18
  • 19. What they DO Some tools and techniques: + Ethnographic research + User testing of your sites & products + Web traffic analysis + Industry / Third-party research + Competitive & best practices benchmarking www.modusassociates.com 19
  • 20. What they SAY Some tools and techniques: + Customer interviews & focus groups + Surveys and questionnaires + Feedback forms + Customer service logs + Social media monitoring www.modusassociates.com 20
  • 22. Imagine if you will… www.modusassociates.com 22
  • 23. Imagine if you will… Business Mandate: Book more rooms online www.modusassociates.com 23
  • 24. Insights: + Key competitor launches customer reviews on their website Com petitor + Another offers upload Review and share your trip photos www.modusassociates.com 24
  • 25. Insight: + Travelers don’t trust the reviews on hotel websites. They prefer Industry third-party sites like TripAdvisor. Research www.modusassociates.com 25
  • 26. Insight: + Users overwhelmingly User rejected the “upload Testing photos and stories” idea www.modusassociates.com 26
  • 27. Insights: + Deals & discounts most popular section + 40% of searches are Traffic returning no results Analysis www.modusassociates.com 27
  • 28. Insights: C ustomer Why people are calling: Service 1. Website was confusing Logs 2. Thought they would get a better deal by phone www.modusassociates.com 28
  • 29. Insights: + Most site visitors believe aggregators have the best pricing. + 67% were unaware of best rate guarantee. Customer + 37% never heard of Surveys Loyalty Program. www.modusassociates.com 29
  • 30. Insights: Desired information: stomer + rice P Cu + Deals and discounts Int erviews + Destination information www.modusassociates.com 30
  • 31. The difference between knowing & guessing 7% 11 % Entry Page Bounce 88 Yearly Site Revenue % 92 Rewards Program % Email Newsletter Sign-up Sign-up 68% Special Offers Revenue www.modusassociates.com 31
  • 32. Competitor User Review Testing Industry Research Customer Service Traffic Logs Analysis Customer Surveys Customer Interviews www.modusassociates.com 32
  • 33. Competitor User Review Testing Industry Research Traffic Analysis www.modusassociates.com 33
  • 34. Competitor Review Industry Research www.modusassociates.com 34
  • 35. Could it really be this straightforward?
  • 36. Why not? “We don’t have time… www.modusassociates.com 36
  • 37. Why not? “We don’t have time to be successful.” www.modusassociates.com 37
  • 38. Make the time to be successful. www.modusassociates.com 38
  • 40. + For more information visit modusassociates.com + Continue the conversation at linkedin.com/iStrategy
  • 41. Rhetoric v. Reality Hertz images www.modusassociates.com 41