[MUSIC] Hi, welcome back. In the last module, we discuss about how to build your brand portfolio. The focus of this module is to learn how you can translate your brand into a compelling customer experience. Why do you need a well thought out customer experience? One that is not generic. Let's talk about to some customers to see their point of view. And what is your favorite brand? >> My favorite brand, my car, a Mini Cooper. >> Really, why? >> I'm very happy with my car. I like the design a lot. It reminds me to the all the 70s when I was a kid. Everybody likes my car because I meet like my car. >> If I would buy a phone, mobile phone, I would buy Apple. And that's what I've been using for a long time. >> [CROSSTALK] >> In this case, are you a loyal Apple fan? >> Yeah, I'm very loyal. >> When did you become a loyal Apple fan? >> I don't even know, but I think my first computer was an Apple. The 2C was back in the 80s. I've been working and then the other one, I'm even forgetting the names of the ones I had. But, I've been using Mac since I was a child. >> Victoria's Secret. >> And why is it your favorite brand? >> [LAUGH] I don't know. I know the brand since I was little. I don't know, and I have bought there since forever. >> And what do you like about Victoria's Secret? >> The store experience, and it's all girly things, and when you go to the fitting rooms. And all the time, there's someone that is helping you to get different things. >> And as we can see, at least these customers value their unique customer experience. But notice how they don't talk about a good customer experience but their specifics of their branded customer experience. It is not just any experience, it is specific to a particular brand. Think about it. A branded customer experience is a valuable asset, like Howard Schultz, chairman of Starbucks, used to say, a brand is something unique bought by a customer but a branded experience is a deep long term relationship that triggers emotions beyond the purchase. It is timeless and therefore priceless. So, what is our goal in developing in a customer experience is to capture and retain loyal customers who are passionate about your brand. Why? Well, research by for example, Banynan company suggest their returning customer spend on average, 67% more than first time customers. Let's see what our customers have to say about it. Do you think you buy more from Victoria's Secret now than when you started buying from them? >> Definitely. >> You do? >> Definitely, yes I do. I do now. I buy a lot of things right now because, I don't know, they have different things. When they started, they just have some bras. And like little things. And then they started to have new products like body sprays, cosmetics. They have body lotions and then they have pajamas. And they have a lot of products that every time you go and you see them, and you just want to get them. [LAUGH] >> Yes, yes because all the experience that I have with Adidas in terms of the service of the website, in terms of the quality of the products, and they all the products that I've bought from them have last a lot of time. They haven't broken or have any defects. So yes, now, if I have two things that I can buy, I'm always going to buy Adidas because I know that the money's going to pay off. Is going to be worth it to pay the money for Adidas. >> Another research by the center for retail management on North West University founded up to 15% of a business small loyal customers, account for 70% of the companies total sales. On the flip side, research conducted by the US small and business administration found that 68% of customers leave a brand because they are unhappy with a service they received. But, only 14% left because they were unhappy with the product, so what is the cost of lost customers? Well first, negative word of mouth. Research by the White House official office of consumer first found out that a satisfied customer will tell between 9 and 15 people about their experience. The 30% will actually tell more than 20 people. Also, lost customers means that you have to capture new ones. But the cost of bringing a new customer to the same level of profitability as a lost one is up to 16 times more expensive, according to a research by Lynn Grady. So, how do you capture and retain loyal customers? We have to create a branded customer experience. Follow me to see how fnac does it. [MUSIC] I hope to have opened your eyes at the importance of creating a branded customer experience. By the end of this module, we should have created one for your brand. The module is structured, so you can first learn the different concepts related to customer experience, and know how they relate. For example the purchase funnel and the touch point deal. After you have mastered them, we will develop together a branded customer experience map for your brand. We wrap the module by learning how to actually implement the brand values into your customer experience. I hope you enjoy the content, I'll see you in the next lecture. [MUSIC]