You are on page 1of 8

Presented by

GCCRM
Copyright ©2006 GCCRM. All Rights Reserved.

.... 5 About Us ........................................... 3 Branded Customer Experience.................................................. 2 Peak-End Rule............................ 6 Contact Us ................. 6 Copyright © 2006 GCCRM 1 ...................................................................................................................................................................................  CEM Case Study at IKEA                                                            Contents  My Pain Points.............................................................................................. 4 About the Author...................................................................................................................................................

  CEM Case Study at IKEA                                                            Do you like shopping at Ikea? Not for me at least. Most of the cases. you wait at the long queue to check out. It’s certainly not an easy and fun task. The unique “one way” shop floor design of Ikea forces you to walk through every single display area. from living room. dining room.        Copyright © 2006 GCCRM 2 . In China. manage to put them on the cart. furniture like sofa. and then you go to another counter to arrange delivery and installation (if you need). there’s no shortcut to your destination.. But I would say I am a loyal customer of Ikea. kids room etc. study room. especially when you are moving big But you manage to survive. you have to spend hours even you just want to buy a single piece of furniture. Customer services are very limited and they are usually busy and surrounded by customers. But the most painful process is to locate your selected items from the huge storage area. Why? My Pain Points  Let’s start from my pain points. bedroom. that actually means wait for another week to get your furniture fixed and ready for use. kitchen. washroom. I keep going back and most of my office and home furniture are from Ikea. there’s even another stop if you need an official invoice of your purchase.

  CEM Case Study at IKEA                                                            The above diagram describes the shopping experience at Ikea. people could only remember two things during an experience process – how we feel at the peak (no matter best or worst) and at the end. How can they do that? Experience may be the answer. Daniel Kahneman pointed out from his study. the free-to-trial shopping experience and the effective display that demonstrates practical and efficient use of the products. What’s more the Ikea’s canteen is good as well as the 10-cent ice-cream I bought at the exit counter! On my case. my peak-end memories just override my unpleasant feelings and become a positive experience to drive me back (as reflected in the above map). whereas the proportion and duration of pleasure / pain throughout the whole experience process do almost nothing on our memories because we could only remember the peak-end. Ikea is a global Branded Customer Copyright © 2006 GCCRM 3 . eventually direct our next buying decisions. though my disappointments make absolute sense. So what’s my peak-end? To me. These peak-end feelings summarize our whole These feelings will experience process and store in our brain at a subconscious level. Think about my experience at Ikea. However. brand but you seldom find them on advertising. it’s the value-for-money products. it’s actually my peak-end experience functions and drives me to go back again. I believe. these people) go back to Ikea again and again? number 1-20 means the sequence of different experiences. Not an enjoyable experience for me. even for many other people. customers. peak-end rule is certainly not the only reason for Ikea’s success. The vertical axis represents The customer’s feelings and the horizontal axis describes the time horizon being spent. which likely vary subject to different But why I (and Peak‐End Rule  Noble prize award-winning psychologist.

Branded Customer Experience does not mean Good Customer Service or Experience. You create your own blue ocean with unique branded customer experience. “Un-Branded” customer experience. direct and educate the expectations of your target customers. value-for-money products. There are three essential elements for branded customer experience: the peak & end (most memorable) experiences.e. you give your brand promise like high quality product and service via your advertising. Idea’s has integrated them all in the customer experience process and amplified them to maximize its branded customer experience to their customers. These are “Non-Branded” customer experience and it will not enhance your brand equity. You define your own standards. If you agree Ikea’s brand values are on its competitive pricing. Doing what everybody is doing cannot help you to differentiate from your competitors. this “Un-branded” customer experience would definitely damage your brand equity. you could differentiate.  CEM Case Study at IKEA                                                            Branded Customer Experience  Branded customer experience is to amplify your brand via intentional and consistent delivering of on-brand experiences across all touch-points. effective and practical product applications and unique shopping environment. A lot of companies are providing standardized good customer services. You escape from the red ocean of trying to please your customers with the standards being set and manipulated by others. The beauty of branded customer experience: it enables you to control the definition of good experience or service.   Copyright © 2006 GCCRM 4 . Only when you’re differentiated. you could have loyalty customers. To optimize the branded experience. and they do not earn any loyalty from their customers. Then you can improve brand equity (values of your brand) and customer equity (values out of each customer). Or even worse. The experience-based differentiation creates your characters and uniqueness – delivering your most unique brand values and meet (exceed) the most critical needs and expectations of your target customers by peak & end experiences. but in reality you deliver way below your promises. i. you have to deliver your most unique brand values and meet (exceed) the most critical needs and expectations of your target customers by peak & end experiences. Only when you’re branded. brand values and consumer needs. The problem is they do not have differentiation at all.

GCCRM.. methodology.  CEM Case Study at IKEA                                                            About the Author  Sampson Lee Sampson founded GCCRM in 2001 and also co-founded The 3C Method (China Customer Care) in 2002. Copyright © 2006 GCCRM 5 . China DMA. Suzhou TV Station.com. He was recently interviewed by CNBC on the topic of "How Far Away Is China from Global CRM Standards". A sought-after speaker. insightexec. Sampson contributes articles and writes regularly to leading CRM portals and business publications including CRMGuru.com . Customer Contact World. enhancement and benchmark with best practices.com. CRM Association of Japan etc.com. MRI Research and leading local newspaper and magazines in China. Through evaluation. China CRM Forum.the world's largest CRM Community with 200. GCCRM is an independent CRM evaluation organization. ideasAsia! in Singapore. GCCRM preaches the belief of "CRM Success Beyond SoftwareTM" via awards. on CRM Evaluation and Benchmarking and also Best CRM Practice in China. Sampson graduated with a Business Administration degree. research & portal.000 members. Sampson has delivered public speeches in many recognized forum and events including The Economist Forum. He also sits on the guru panel of CRMGuru. majoring in Economics. where to go and how to get there. GCCRM helps to roadmap organizations' CRM .where they are.

Asia Pacific and Greater China. Hong Kong Copyright © 2006 GCCRM  All rights reserved. where to go and how to get there.com Tel: 86 21 63512506 URL: www. Any agreed copy must be marked with all proprietary notices which appear on the original and will be subject to the requirement that you will acknowledge on the face of the reproduced material that it belongs to GCCRM Copyright © 2006 GCCRM 6 . They contribute to the development of CRM evaluation method .gccrm. methodology. Shanghai 200001. Contact Us  Ms Alice Tse Operations Director GCCRM Email: alice@gccrm. GCCRM is an independent CRM consulting and evaluation organization founded in 2001. Please contact research@gccrm.  The copyright in and title to the report ‘Branded Customer Experience at IKEA’ belongs to GCCRM. research & portal. GCCRM preaches the belief of “CRM Success Beyond SoftwareTM” via awards. 463-483 Lockhart Road. Unit 1604.com Address: Suite 707.com should you want to reprint or quote any part of this report. Causeway Bay. Through evaluation.  CEM Case Study at IKEA                                                            About Us  GCCRM ROADMAP CRM BEST PRACTICE through the collaboration of global intelligence on evaluation and benchmarking. enhancement and benchmark with best practices.where they are. 400 Zhejiang (C) Road. Latin America. Causeway Bay Plaza II.CRMBodyCheck. Europe. GCCRM helps to roadmap organizations’ CRM . and conduct CRM training programs on evaluation and enhancement for the enterprises in Asia Pacific region. GCCRM Associates  GCCRM Associates is formed by 13 world famous CRM gurus from North America.

  CEM Case Study at IKEA                                                            Click here to download the program document Copyright © 2006 GCCRM 7 .