The Brand Value of CX

Priya Sharma

Agenda

The Brand Value of CX

• What is Premiumization and why is it important?

• How to drive premiumization by improving CX – Case Studies

What is Premiumization?

“Paying more for familiar experiences”

What is driving Premiumisation?

Marriage deferral and

reduction

Child rate reduction and

deferral

Increased purchasing

power of women

Rising balance sheets / equity

Rising middle classes in developing economies

A significant rise in real per capita household

net wealth

What is driving Premiumisation?

Increasing pressures and stress levels

Cultural permission / removal of

guilt

Increase global travel and adventure

Increased appetite for

new knowledge and information

Increased importance of

“Demonstrating Success”

Social Media and being

“Always on Show”

Increased propensity to reflect status

through category / brand selection

Why is Premiumization Important?

• “Death in the Middle” - Customers Making polarised purchases when they do enter the category

• Customer “Satisfaction” is not enough: Satisfaction has become the price of entry and not the way to win.

• Very soon - No more markets left to “emerge”

Interplay between Premiumization and CX

• Customer Experience is defined as: “The impression a customer receives at each brand touchpoint, and the extent to which this delivers on the brand promise”

• Premiumization is defined as “Paying more for familiar Experiences”

• Brand Value is defined as: “The ability of a brand to command premium prices”

CX

P’MIUM

BRAND

VALUE

Driving premiumization by improving CX

PRODUCT PACKAGING

RITUALS CHANNELS

Case Study: Product Innovation driving CX PRODUCT

Somersby Rose’: The “Champagne” of ciders

Superior customer experience delivered Spotted an opportunity in the market based on consumer insight Broke the industry product innovation norms Initial pricing was 150 Index to premium beers

Why this is interesting?

Strong intrinsic differentiation Feet-on-street brand building Tapped into a new occasions Strong pricing to support the imagery

Customer Experience Levers Used

Case Study: Packaging driving CX PACKAGING

Tuborg Colored Caps

A simple innovation that builds on the POD for Tuborg brand (the “Pull Off Cap”) Provides consumers an interesting and engaging experience Brings the brand personality to life Allows brand to be a part of the consumer’s world

Why this is interesting?

Premium / iconic packaging

Space for Self Expression

Aspirational Comms

PR

Customer Experience Levers Used

Case Study: Rituals driving CX RITUAL

Somersby “Somerita”

No changes in the intrinsic - Serving ritual enhances the perception of the drink Allows the brand to be the “hero” Is unique to the category and differentiates from competition Premium priced versus ‘regular’ cider

Why this is interesting

Sensorial differentiation

Tapped into a new occasions

Strong pricing to support the imagery

Customer Experience Levers Used

Case Study: Channels driving CX CHANNELS

Kronenbourg 1664: Pop Up Bars

Allows for a truly immersive, multi-sensory Lifestyle brand experience

Branded theme outlets typically enjoy a higher ROS and heightened brand visibility

Adds value to our trade partners– driving footfall & sales revenue

Greater control over the experience

Creates content for digital

Why this is interesting

Sensorial differentiation

Application of concept store principles to on / off trade environments to provide an intimate brand experience

Customer Experience Levers Used

Case Study: Channels driving CX CHANNELS

Carlsberg UK: The draught tap bill board

Allows for a truly immersive, multi-sensory experience

Greater control over the experience

Creates content for digital

PR Story

Leverages technology to make campaign more approachable and interesting to customers.

Why this is interesting

Technology usage to create experience

Sensorial

Social

Customer Experience Levers Used

It is not a rich guy/girl thing….. Its an everybody thing!

It is not a “Service Industry Thing”…… Its an ALL industries thing!

The only way to grow “Brand Value” in the long term

In Summary, CX & Premiumization

CX

P’MIUM

BRAND

VALUE

… Listen to our Customers and understand the importance of emotions

… Align our value chains to deliver on the Customer Experience

• Avoid Silo thinking

• Focus on the most important touch points first

…Continually attack the category like an outsider

To successfully drive CX and Premiumization …..

So what are 3 things we can start doing today?