Crafting Customer Experience Strategy
Lessons from Asia
Table of contents(12 chapters)
The What, Why and How of Customer Experience
The opening chapter takes the reader through three aspects of customer experience management (CEM) – the what of customer experience (CX), the why of CX and the how of CEM. The authors have collected, synthesised and presented information from research as well as practice in this chapter. It helps the readers build a perspective on CX, sieving through various notions, philosophies and terms that have come to mean CX. The chapter also establishes the need for understanding CEM and executing it using the framework presented in the ‘how’ section of the chapter. The chapter concludes with a short overview of each of the following chapters.
A customer's journey of searching for a product or service, evaluating it, purchasing it, using it, recommending it, rebuying it or rejecting it is unique in itself. Organisations always have dreamt of getting inside the customers' minds and trying to understand what's happening inside at each of these steps. This chapter explains the customer journey concept and the analysis of the various components of the customer journey. We highlight that the firms need to understand the customer journeys and the multiple touchpoints they interact with to create a worthwhile customer experience. The chapter lists out the various touchpoints, including social/external touchpoints, customer-owned touchpoints, partner-owned touchpoints and brand-owned touchpoints. We discuss three frameworks that can be used by a firm to understand design a customer journey. These frameworks include AIDA (awareness, interest, desire and action), MAI (measure, analyse and improve) and journey maps. The chapter recommends the various steps which a firm can use to create a journey map. In the end, we create a linkage between the customer journey and business transformation. The chapter builds a case for the application of customer journey management by pointing out that it is a complex phenomenon, and the firms should use a structured approach to design and manage the customer journey.
This chapter focusses on ‘emotions’ as one of the most crucial elements of customer experience. Emotions form the basis of experience as well as the basis for assessing, interpreting, understanding and responding to situations, brands, events and organisations as a customer interacts with the organisation or any of the touchpoints throughout their purchase journey. We discuss the psychological context of emotions, the role emotions play in judgement and decision-making in general and more specifically consumer decision-making. In this chapter, we review the extensive literature and theory in psychology and customer experience to explain how customers perceive bundles of cues, selectively perceive and retain information, and how memories keep reinforcing experiences. We discuss the practical implications for business leaders focussing on understanding customers' emotions and utilising the knowledge to create and capture value through customer experience.
Customer experience management is the managing of customer interactions, feelings and emotions at every touchpoint. These interactions and feelings define the customer's future behaviour and perceptions about the offering. Companies can use these touchpoint interactions as a source of competitive advantage. Companies can embark on a journey of experience management by understanding needs and insights about customer's behaviour. These are gathered through interactions, observations and structured surveys. Such feedback from customers is called Voice of Customer (VoC). Another source of understanding customers is employees who are involved in these interactions and also product and service delivery. Understanding employees is equally important. Companies need to even collate their feedback regarding problems in delivery and servicing, customers' expectations versus perceptions. Organisations committed to creating superior customer experience invest in tools like surveys, employee interactions both in formal and informal context to gather voice of the employee (VoE). Finally, both VoC and VoE have to be evaluated in a business context to define processes and measure the effectiveness of these processes. The voice of the process or VoP helps to understand the difference between customer perceptions and process performance. It gives an estimate of error and suggests methods for improving process efficiency.
This chapter explains the three essential ingredients that go into experience management, the tools used to collect information and how can these be used to design a superior and fulfilling experience for customers.
Over the last decade, customer experience management has gradually emerged as the most important activity for organisations. Organisations have turned towards leveraging the ubiquitous and easy-to-use technology in enhancing and enabling experience for the time-crunched customers of today who are looking for greater convenience and choices. It is therefore not surprising that disruptive technologies such as smartphones, virtual and augmented reality, cloud computing, big data analytics, Internet of things, artificial intelligence and robotics have also found their way into the design of customer experience. This chapter aims to present an overview of the technologies that have transformed the customer experience landscape. This chapter contributes by showcasing two illustrative cases from very diverse domains, a private sector bank and a public sector transportation organisation, to elucidate how India, a rapidly developing economy, is embracing technology to enhance the customer experience.
Customers engage with the organisations that deliver them superior experiences. Every successful organisation is striving to engage with by providing them superior product and service offerings bundled with memorable experiences. Many companies have realised that the road to better customer retention and gradual increase in profits is through offering efficient customer experience. Well-crafted customer experience also acts as a competitive edge for the company to stay ahead of competitors. Therefore, the objective of this chapter is to understand whether CX happens by accident or it happens through a proper process. This chapter will introduce various existing CX models and also proposes design thinking approach for successful implementation of CX. While most of the existing CX models are relevant for developed economies, the design thinking approach to CX is proposed for managing CX in emerging markets.
An essential part of any customer experience management strategy is providing a seamless experience. One of the roadblocks, often a recurring barrier, is the presence of silos. Many people see corporate silos as a function of the organisational structure. But that is only one part of the problem. Influencing siloed mindsets across the length and breadth of the organisation is probably a more significant challenge. The siloed structure and mindset together impact the culture of the organisation that, in turn, affects their quality of customer experience management. This chapter covers the essential aspects of understanding the meaning of silos, including a historical, cultural and organisational perspective on what creates silos. While silos are inevitable, their adverse consequences are not. This chapter provides directions on how to overcome the adverse aspects of silos, thereby enabling better management of customer experiences. Multiple examples, from a customer as well as an organisation point of view, are used to highlight this dimension. The chapter also covers the role of a leader in breaking a silo culture and enabling successful application of various strategies for customer experience management.
Marketers' sustainability is highly dependent on providing their customers with a memorable experience. This experience manifests the care taken by marketers while interacting at every stage of customer's journey from need recognition to post-purchase behaviour. Customer experience's (CX) significance demands that it be measured succinctly to monitor it at various levels, beginning at the customer level and extending to the financial outcome of this interaction(s). This study has attempted to conduct the same, by measuring Net Promoter Score of the customers and the financial ramifications of good/bad CX. Evidence of financial implications of good/bad CX has been presented through secondary research. Customer level study was empirically conducted at two well-known retailers of India, one in the footwear category and the other in general merchandise. Finally, some successful examples from the Indian retail sector have been added to highlight the significance and impact of Indian retailers' measures to enhance their customers' experience.
Customer experience (CE) has been of research interest especially with researchers in a Business-to-Consumer (B2C) context. Extensive research has identified the potential of similar studies in Business-to Business (B2B) contexts, yet we have little understanding of what influences a customer's experience in a B2B environment.
This chapter aims to capture the adequacy of efforts to capture the intricacies of CE in a B2B context using input–output measures both in the traditional and modern-day environment. The chapter would provide marketing managers with a clear understanding of how CE is affected in the B2B context. Essentially, it describes the importance of creating a positive CE through the direct interaction of various stakeholders with the company and its brand. This chapter advances the current state of knowledge by analysing the impact of CE on all dimensions of customer journey, creating a differential advantage over time.
This chapter brings all the key points from each of the earlier chapters together towards a framework for crafting and executing an effective customer experience (CX) strategy. We go back to the ‘how of customer experience management (CEM)’ discussed in the first chapter and connect the dots for the readers through the process and include the common roadblocks and challenges that come in the way to achieve CX results. In this chapter we also link up customer experience to the big ideas of customer centricity and customer engagement. Finally, we discuss the future of customer experience and how CXM/CEM continued to evolve during the COVID-19 pandemic.
- Publication date