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L8 - Customer Experience Management

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20 views20 pages

L8 - Customer Experience Management

Uploaded by

okithamarasinghe
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Customer relationship management

(MKT 2227)

Customer experience management (CEM/CX)


(Lesson 08)

Maduka Udunuwara
Senior Lecturer
Department of Marketing
FMF
Customer Experience Management
• The customer experience originates from a set of interactions between a
customer and a product, a company, or part of its organization, which provoke a
reaction. This experience is strictly personal and implies the customer’s
involvement at different levels (rational, emotional, sensorial, physical, and
spiritual)” (Gentile, Spiller, and Noci 2007, p. 397).

• Customer Experience is the internal and subjective response customers have to


any direct or indirect contact with a company. Direct contact generally occurs in
the course of purchase, use, and service and is usually initiated by the customer.
Indirect contact most often involves unplanned encounters with representatives
of a company’s products, service or brands and takes the form of word-of-mouth
recommendations or criticisms, advertising, news reports, reviews and so forth.

• Customer experience encompasses the total experience, including the search,


purchase, consumption, and after-sale phases of the experience and may
involve multiple channels.
Components of customer experience

1. Sensorial Component:
A component of the customer experience
whose stimulation affects the senses; an
offering, whose aim is to provide good
sensorial experiences, can address sight,
hearing, touch, taste and smell so as to
arouse aesthetical pleasure, excitement,
satisfaction, sense of beauty
2. Emotional Component:

A component of the customer experience


which involves one’s affective system
through the generation of moods, feelings,
emotions
an offering can generate emotional
experience in order to create an affective
relation with the company, its brand or
products.
3. Cognitive Component:

A component of the customer experience


connected with thinking or conscious mental
processes;
an offering may engage customers in using
their creativity or in situations of problem
solving; furthermore a company can lead
consumer to revise the usual idea of a
product or some common mental
assumptions
4. Pragmatic Component

A component of the customer experience coming


from the practical act of doing something;
in this sense the pragmatic component includes,
but is not exhausted by the concept of usability (the
Apple iMac offers an optimal example of what it
means to design an extraordinary practical
experience for users based on usability standards).
In fact it does not only refer to the use of the
product in the post-purchase stage, but it extends
to all the product lifecycle stages
5.Lifestyle Component

• A component of the customer experience that


comes from the affirmation of the system of
values and the beliefs of the person often through
the adoption of a life-style and behaviors.
• Frequently an offering may provide such
experience because the product itself and its
consumption/use become means of adhesion to
certain values the company and the brand
embody and the customers share (as in the
consumption of no logo products)
6. Relational Component:

a component of the customer experience


that involves the person and beyond, his/her
social context, relationship with other people
or also with ideal self.
Case Study
Disney's value proposition is built on three pillars:
customer experience, business practices and
environment. Disney realizes that creating a positive
experience for employees enables it to create a positive
experience for its customers. The Disney culture
empowers employees and views every opportunity to
touch a customer as a "moment of truth." Thus, attention
to detail includes making certain that employees are
comfortable (e.g., refreshment vendors standing on a
rubber mat rather than concrete), so they are pleasant to
customers, which will make for a more positive customer
experience.
Embedding customer experience
• Social environment and customer
experience
• Self-service technologies and customer
experience
• Branding and customer experience
• Customer experience dynamics
• Customer experience management
strategies
Social environment and customer
experience
• How do customers act in groups and how do these groups
influence fellow customers’ experience?
• Should companies foster customers assisting other customers?
• Should this role remain only on information dissemination
grounds or should it expand into producing the service
experience?
• Should companies invest in building and maintaining virtual
communities and how should they be managed?
• Is customer compatibility management the solution to customers
destroying other customers’ experience?
• Can the social environment be successfully designed and
managed and can we design metrics to assess its performance?
Self-service technologies and customer
experience
• What is the optimum blend of employee- and
technology-based service systems and what
contingencies might influence that blend?
• Do technology-based service systems that require
active customer participation affect customer
experience differently than do “passive” systems?
• If so, how do the impacts differ?
• What impact do SST failures have on customer
experience?
• How do SSTs affect employee behaviors and hence
customer experience?
Branding and customer
experience
• How do customers’ initial perceptions of a
retail brand influence subsequent customer
experience?
• Are there asymmetric effects for positive
and negative perceptions?
• To what extent do brand perceptions act as
a moderator?
• How do brand perceptions and customer
experience reinforce one another over time?
Customer experience dynamics
• Are the dimensions of customer
experiences (and their effects on the
customer’s experience) stable overtime?
• Do customers expect an increasing
intensity and/or valence of customer
experience over time?
• May customers (to some extent) get
“bored with” or accustomed to the
delivered experience?
Customer experience management
strategies
• Do customer experience based retail strategies
enhance firm performance?
• Could changes in the designed experience
alienate core customer groups?
• If so, under which circumstances and in what
ways?
• How do firm and employee capabilities
influence the customer experience or moderate
the effects of other factors on the customer
experience
CRM and CEM
What does Ritz Carlton gold standards
imply?
Why manage customer experience?
• Pine and Gilmore (1999)argued that creating a
distinctive customer experience can provide enormous
economic value for firms
• Managerial implications: careful management of
customer ‘touch points’
• Benefits such as:
Short-term improvement in retained business and
customers
Longer-term gains in improvements in customer loyalty
with its resultant benefits
The creation of competitive differentiation
• What are the barriers for superior customer
experience?

Identifying what customer value


Identifying what drives customer satisfaction
and translating it
Customers are managed by different people

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