Designing Managing Experiences Chapter 6 Why

Designing & Managing Experiences Chapter 6

Why care about experiences? • Battle for the “eyeballs” • Increased customer loyalty • Increased focus on experience for product and services – Product Purchase Process = Experience Service: • Experience over convenience: Coke in Japan • Try and buy: Xscape Mall in UK and Europe – Hospitality, retail, entertainment, education, websites, and many other industries Chapter 6 - Designing & Managing Experiences 1

Economic Progression (Pine & Gilmore, 1998) Chapter 6 - Designing & Managing Experiences 2

What does it take to create an experience for customers? • What do you consider an experience? • What creates memorable experience (i. e. , pleasure, pain, or extreme challenge)? • What creates an experience at a mass venue (mall, theme park, concert, or theatre)? • What creates customised experiences? • What resources are needed to create these experiences? Chapter 6 - Designing & Managing Experiences 3

Demand for Experiences & Implications • Increased Capital Expenditures • theatres • theme parks • film & TV • Migration of content • Digital revolution & website overload • 2 D > 3 D issues • Interactive with TV • Bandwidth • Increase emphasis on experience design • Increased demand for • Increased emphasis on experience design • • New experiences Eatertainment Edutainment Themed Hotels, Malls, & Restaurants (Shoppertainment) • Try & Buy Retail • More challenging to create a rich and memorable experience

World Experience Business Economic Drivers • Customer Loyalty over satisfaction • International Opportunities • Supply & Barriers to Entry • Universal Appeal • Technology • Long term customers Chapter 6 - Designing & Managing Experiences 4

Relational Model of Managed Customer Service Process Service Provider Customer Outcome Memory Context Engagement Time Chapter 6 - Designing & Managing Experiences Loyalty 5

Engagement • Personal level – Active: customers affect the performance or event (skiing or golf) – Passive: customers do not influence the performance • Environment – Immersion: customer “goes into” the experience (Mist computer game or Club Med skit) – Absorption: Experience “goes into” the customer (watching TV) Chapter 6 - Designing & Managing Experiences 6

Examples Environment Relationship Absorption Participation Immersion Passive Entertainment Television Circus Theatre Video/DVD Esthetic Grand Canyon Cathedral Bellegio Water Show Active Educational Training Discussion Laboratory Escapist Mist Computer game Terminator 2 Ride Chat rooms

Realms of Experience Absorption Passive Participation Sweet Spot Immersion Active Participation

Retailment or Shoppertainment Chapter 6 - Designing & Managing Experiences 8

Autostadt • $400 million, 62 -acre factory/car dealership/theme park in Wolfsburg, Germany Chapter 6 - Designing & Managing Experiences 9

Edutainment: Bonfante Gardens, Gilroy, CA. Chapter 6 - Designing & Managing Experiences 10

Context • Where customers consume the service and everything they interact with in that setting. Starbucks “contemporary bohemian” context • Relational elements • Physical elements

Relational Context • Theme: unifying story or metaphor • Learnable and Usable • Mutable: flexibility for customers to create their own use environment or personal experience

Theme Generation • Joie de Vivre: 18 themed Boutique Hotels in Bay Area • Method: Take a magazine and generate 5 adjectives to describe it and the people that would read it. Design hotel experience around those words. • Example: Hotel Rex = New Yorker – Worldly, sophisticated, literate, artistic, & clever – Designed like an arts and literary salon of 1930 s. Clubby lobby with period furnishings, paintings, and old books. Rooms have local artists paintings and contemporary amenities.

Theme: Rolling Stone • Funky, hip, young-at-heart, irreverent, and adventurous • The Phoenix Hotel has been popular with the entertainment industry for over a decade. This funky, urban retreat is an unexpected oasis, featuring a landmark pool, original 50 s architecture, and island-inspired guestrooms. Backflip, the hotel's poolside cocktail lounge, is drenched in glamorous bachelor pad style and the music of the City's most progressive DJ's.

Theme: Movie Line • Dramatic, nostalgic, fun-loving, classic, and informal • Each light and comfortable guestroom is named for a motion picture shot in San Francisco, with original movie stills as decorative room accents Chapter 6 - Designing & Managing Experiences 12

Learnable and Usable

Mutability • Furby • Groundswell Surf Camp – Surfing instruction for all ages in a surf camp environment Chapter 6 - Designing & Managing Experiences 13

Physical • Layout: Physical layout and arrangement of objects (should encourage active participation) and reinforce theme • Sensory: Sensory elements increase immersion and support theme (T-2) • Social Interaction: Interaction between guest and service provider and/or fellow guests. Increases identification with service (Club Med and Cirque Du Soleil) Chapter 6 - Designing & Managing Experiences 14

Sensory • • • Smell Taste Touch Sound Sight – Cirque Du Soleil (“O”), T-2 Ride, W Hotels, and IMAX Theaters. – See www. ideo. com Chapter 6 - Designing & Managing Experiences 15

Social Interaction Yahoo Groups Chapter 6 - Designing & Managing Experiences 16

Social Interaction - Burning Man Event Chapter 6 - Designing & Managing Experiences 17

Time • Memorabilia – Is a physical reminder of experience, extends memory of it long after – Generates dialogue about experience – Provides additional revenue • Continuity – Time aspects of experience as it relates to the individual (bonding and moving through stages) • Dynamic – A desirable pattern for experiences revealed over a specific time frame • Long or short term vs. intensity • A script or music score • NOLS or Outward Bound Chapter 6 - Designing & Managing Experiences 18

Creating the Process of Customer Experience PHYSICAL RELATIONAL Theme – Layout – Sensory Learnable – Usable – Mutable Social – Interaction Increase Physical Interaction & Cognition CONTEXT Increase Emotion & Cognition Increase Educational Escapist Entertainment Esthetic ABSORBTION IMMERSION PASSIVE ENGAGEMENT ACTIVE COMMITMENT & LOYALTY TIME Continuity Dynamic Memorabilia

Example: Themed Restaurant Successful & Failed Experiences Dimension Hard Rock Café Planet Hollywood Engagement: Entertainment & Food Move from passive to active Move from absorption to immersion Get guests to stay/return Make experience fun Connect emotionally with customers Increase thrill, surprise, delight Offers high quality American diner/pub food Has 100 Cafes in 40 countries Appeals to international music enthusiasts Connects with irreverent, rebellious customer group Keeps the legends and adds new talent constantly Refreshes concept constantly and adds new features hardrock. com, performances, CDs, and Hotels Offered low quality eclectic food, i. e. , Cap’n Crunch chicken strips Had 80 restaurants predominately in US Appealed to celebrity seekers Connected with tourists (not locals) seeking stars when stars are available Depended on star availability at cafe Kept a stable of celebritystock holders who may or may not be in favor Difficult to refresh concept without constant major investments in hot stars Added concept with sports stars

Themed Restaurant Successful & Failed Experiences (continued) Dimension Hard Rock Café Planet Hollywood Context: Physical and Relational “Authentic keeper of the rock music experience” Updates atmosphere, locations, food, and music constantly Allows different customers to create use environment and chose music Designs layout for dining, drinking and/or concert Offers high quality multi-sensory experience Encourages social interaction and fan building “Tribute to Hollywood” Offered easy to understand concept but not well executed Did not offer mutable stars since once star has passed prime or does not want to visit sites, they lose appeal Designed layout for dining and viewing memorabilia Offered poor quality food experience and unpredictable star viewing experience Offered limited interaction depending on location and time Offers constantly refreshed rock music memorabilia, live concerts of new & Legendary artists Provides customers with many opportunities to enhance initial experience through ongoing activities and international locations Controlled expansion of concept over 30 years with careful location and relocation analysis Offered Hollywood memorabilia but no updating of merchandise Found it difficult to attract contemporary stars so lost key demographic customer; suffered from “graying of celebrity stable” Provided limited reason to enhance initial experience Hyper-speed expansion over 8 years and self-cannibalization Theme Learnable and usable Mutable Layout Sensory Social Interaction Time: Move from Sequential & Narrative over Synchronic Move from Static to Dynamic Memorabilia Continuity Dynamic

Context Engagement Time Service Design What is theme and how does it address market segments? Is theme reflected in all context with which the customer interacts? Is the service easy to learn and use? How effective are navigational materials and guides for different users? In what ways has flexibility been incorporated into the design? How can different users customize the services to maximize their experience? How does the layout and tools encourage active participation ? How have the five sensory elements been incorporated? Fit theme? How do sensory elements help shift customer’s reality? How can sensory elements create transitional areas? Are there different opportunities for social interaction between employees and guests? Is there a way to get customers actively engaged (physically, emotionally, or intellectually)? How can the customers immerse in the design? How is there a sense that customers have moved to another reality? In what ways can customers emotionally connect with the services? Are there opportunities for play, fun, or enjoyment? Are there opportunities for customers to learn, to create, to increase their depth and breadth of knowledge over time? Is the context esthetically pleasing? What will make guests come in and spend time in your setting (virtual or physical)? How has memorabilia been incorporated? How does the memorabilia match theme? How can the experience be extended or built upon? How can the experience unfold over time? How many encounters does it take for the customer to bond with the service? If the bond is broken, are there opportunities to repair the link? Are there opportunities for membership clubs, chat rooms, or long term social groups? What is the duration of the encounter? How is the experience orchestrated or designed for building emotional commitment during the given time span? How does the guest see a beginning, middle, and end of the experience in live and virtual environments? Is there an intended narrative and how is that conveyed to customers? Employees Do employee behaviors and costume reflect theme? How can employees help customers learn the service? Are employees trained to act as guides? Are employees trained to read body language and customer intentions for the service and react accordingly? How are employees trained for interactions with guests? How do employees help to actively engage the customers? How do employees help customer immerse in the experience? How do employees play a role in creating another reality? How do employees help the guests into the experience and participate in getting them to stay? Have employees been trained to help orchestrate the experience? How do employees help deliver the beginning, middle, and end of the experience? How do employees contribute to the intended narrative? Are employees empowered to create a customized experience for each customer?