Five Forces of Customer Experience Management
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Transcript of Five Forces of Customer Experience Management
The Five Forces of CEM
Why Companies Must Operate With Clear Knowledge of the Customer’s Emotions and Values
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1. The Customer
‣ How do I define value?
‣ Cheaper? Better? More options?
‣ How do I define values?
‣ Privacy? Social and family values? Respect for authority? Independence?
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2. Networks of Data
‣ What information about a company or its services can I find:
‣ On my cell phone?
‣ On the Internet?
‣ In guides and reviews?
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3. Networks of Opinion
‣ Word of mouth has a significant impact on company performance
‣ You must create memorable experiences that delight the customer
‣ But these experiences must also reinforce your most authentic brand values
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‣ Defined by a (self-reported) propensity to recommend
‣ NPS subtracts the percent of customer extremely likely to recommend (90 percent or greater agreement) from the percent of customers scoring 60 percent or lower agreement
‣ “Promoters” - “Detractors”
Net Promoter Score
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Net Promoter Score
Source: Marsden, Samson, Upton, The London School of Economics, Advocacy Drives Growth, September 2005
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4. Company’s Character
‣ Does it make promises it can keep?
‣ Are they relevant promises? Important to the brand?
‣ How should marketers and operations directors work together to improve promise-keeping?
‣ Does the company live its values?
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5. Experience
‣ Of all the forces, one’s direct experience with a company is the most powerful
‣ Must reinforce the best of the other forces (products, services, character, value/values, word-of-mouth, etc.)
‣ Must focus on being branded, memorable and “tellable”
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Wal-Mart in Germany
‣ Read the Case Study
‣ Discuss the five forces as they affected Wal-Mart’s position in Germany
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The 5 Forces of CEM
‣ Values: What to measure
‣ Many frameworks
‣ Each is multidimensional
‣ Not all dimensions apply in all cultures
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The 5 Forces of CEM
‣ For example, the CONSUMER STYLES INDEX (Sproles & Kendall) has eight dimensions (factors)
PERFECTIONISM CONSCIOUSNESS BRAND CONSCIOUSNESS
NOVELTY AND FASHION CONSCIOUSNESS
RECREATIONAL AND HEDONISTIC SHOPPING CONSCIOUSNESS
PRICE AND VALUE CONSCIOUSNESS
IMPULSIVE AND CARELESS
CONFUSED BY OVERCHOICE HABITUAL AND BRAND LOYAL
Sproles & Kendall, CONSUMER STYLES INDEX
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The 5 Forces of CEM
“The original U.S. eight-factor model could not be confirmed completely, but support [in German culture] was found for six factors: Brand Consciousness, Perfectionism, Recreational/Hedonism, Confused by Overchoice, Impulsiveness, and Novelty-Fashion Consciousness.
Variety Seeking was novel to Germany and replaced brand loyalty and price-value consciousness factors found in previous countries.”
German Consumer Decision-Making StylesAuthors: Gianfranco Walsh, Vincent-Wayne Mitchell, and Thorsten Hennig-Thurau
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Hierarchies of Values
IndividIndividualismualism
PowerPowerDistanDistan
cece
UncertaiUncertaintynty
AvoidancAvoidancee
Long-term Long-term OrientatioOrientatio
nn
ProfessiProfessionalismonalism
UnifoUniformityrmity
ConserConservatismvatism
SecreSecrecycy
JapanJapan Low(46)
High
High High Low Hig
h High High
Hong Hong KongKong
Low(68)
High
Low High High High High Low
SingaporSingaporee
Low(20)
High
Low High High High High Low
MalaysiaMalaysia Low High
Low High High High High Low
AustraliaAustralia High(90)
Low
Low Low High Low Low Low
Effect of cultural environment on earnings manipulation: A Five Asia-Pacific Country Analysis, Guan, Liming et al, The multinational business review, Volume 13, Number 2
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What Would You Do?
‣ Knowing about consumer buying styles, how would you have advised Wal-Mart’s team as they planned their entry into Germany?
‣ Knowing about hierarchy of values, how does Germany differ from Australia?
‣ Apply to your company.
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What Would You Do?
‣ What are your brand values?
‣ What are your promises?
‣ How can you better keep those promises?
‣ In a branded way?
‣ In a memorable way?
‣ To create measurable emotional impact?