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NORTH-EASTERN HILL UNIVERSITY
Umshing Mawkynroh, Shillong 793022, Meghalaya
METAS OF SEVENTH DAY ADVENTIST
P.O. Box No. 24, Athwa Gate, Surat-1
SPECIALIZATION:
MARKETING
TOPIC OF THE PROJECT
CONSUMER EXPERIENCE:
CENTRAL MALL, SURAT
STUDENT NAME
SHIVANGI RANKA
I.D. NO.
R079
FACULTY NAME
Mr. ZACK SIR
DATE OF SUBMISSION
16TH
April , 2012
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ACKNOWLEDGEMENT
It gives me immense pleasure in acknowledging the valuable assistance and co-operation
I received from the people around me for the successful completion of my internship.
I would like to express my sincere thanks to Project Guide, MANAGER, CENTRAL
MALL, SURAT for providing me opportunity to work with him. I feel indebted to him for his
constant support, encouragement, guidance and inspiration all through my association with him.
I would also be greatful to him for his co-operation and providing me various facilities to work
with him.
I earnestly express my gratitude to our able and competent faculty guide Mr. ZACK SIR
Faculty, Seventh Day Adventist College, Surat. His support and full-fledged guidance,
encouragement and valuable suggestion were instrumental in making this project.
Completing this project would not have been possible without active assistance of mutual fund
team with whom I was working despite their busy schedule. All of them were quite generous to
devote time and energy in answering my queries, solving my problems and passing me valuable
amount of Knowledge towards my study of CUSTOMER EXPERIENCE AT CENTRAL
MALL, SURAT. My association with them and the short stint at CENTRAL MALL. will
always be of a fond memory.Thanks are also to my family, friends, and colleagues who were with me through all
times ad egged me on towards accomplishing this project objective.
SHIVANGI RANKA Date: - APRIL 16TH 2012
(R079)
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TABLE OF CONTENTS
INTRODUCTION ............................................................................................................................................ 4
ABOUT THE COMPANY ......................................................................................................................... 8
OBJECTIVES ........................................................................................................................................... 18
REASERCH METHODOLOGY ............................................................................................................ 20
SCOPE OF THE STUDY......................................................................................................................... 23
CUSTOMER EXPERIENCE .................................................................................................................. 25
Customer Experience Strategies for 2011 ................................................................................ 65
ANALYSIS ................................................................................................................................................ 70
LIMITATIONS OF THE PROJECT ..................................................................................................... 82
LIMITATIONS OF THE PROJECT ..................................................................................................... 83SUGGESION............................................................................................................................................. 84
& ................................................................................................................................................................. 84
CONCLUSION ......................................................................................................................................... 84
BIBLOGRAPHY....................................................................................................................................... 87
ANNEXTURE ........................................................................................................................................... 89
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INTRODUCTION
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INTRODUCTION
A customer (also known as a client, buyer, orpurchaser) is the recipient of
a good, service, product, or idea, obtained from a seller, vendor, or supplierfor a monetary or
other valuable consideration. Customers are generally categorized into two types:
An intermediate customer ortrade customer (more informally: "the trade") who is a dealer
that purchases goods for re-sale.
An ultimate customer who does not in turn re-sell the things bought but either passes
them to the consumer or actually is the consumer.
A customer may or may not also be a consumer, but the two notions are distinct, even though the
terms are commonly confused. A customerpurchases goods; a consumeruses them. An ultimate
customermay be a consumer as well, but just as equally may have purchased items for someone
else to consume. An intermediate customer is not a consumer at all. The situation is somewhat
complicated in that ultimate customers of so-called industrialgoods and services (who are
entities such as government bodies, manufacturers, and educational and medical institutions)
either themselves use up the goods and services that they buy, or incorporate them into other
finished products, and so are technically consumers, too. However, they are rarely called that,
but are rather called industrial customers orbusiness-to-business customers. Similarly,
customers who buy services rather than goods are rarely called consumers.
Six Sigma doctrine places (active) customers in opposition to two other classes of
people: not-customers and non-customers. Whilst customers have actively dealt with a business
within a particular recent period that depends from the product sold, not-customers are either
past customers who are no longer customers or potential customers who choose to do business
with the competition, and non-customers are people who are active in a different market segment
entirely. Geoff Tennant, a Six Sigma consultant from the United Kingdom, uses the following
analogy to explain the difference: A supermarket's customer is the person buying milk at that
supermarket; a not-customer is buying milk from a competing supermarket, whereas a non-
customer doesn't buy milk from supermarkets at all but rather "has milk delivered to the door in
the traditional British way".
Tennant also categorizes customers another way, that is employed outwith the fields
ofmarketing. Whilst the intermediate/ultimate categorization is used by marketers, market
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regulation, and economists, in the world ofcustomer service customers are categorized more
often into two classes:
An external customer of an organization is a customer who is not directly connected to that
organization.
An internal customer is a customer who is directly connected to an organization, and is usually
(but not necessarily) internal to the organization. Internal customers are usually
stakeholders, employees, orshareholders, but the definition also
encompasses creditors and external regulators.
The notion of an internal customerbefore the introduction of which external customers were,
simply, customers was popularized by quality management writerJoseph M. Juran, who
introduced it in the fourth edition of hisHandbook(Juran 1988). It has since gained wide
acceptance in the literature on total quality management and service marketing;[10]and
the customer satisfaction of internal customers is nowadays recognized by many organizations as
a precursor to, and prerequisite for, external customer satisfaction, with authors such
as Tansuhaj, Randall & McCullough 1991 arguing that service organizations that design
products for internal customer satisfaction are better able to satisfy the needs of external
customers.
Customer satisfaction, a business term, is a measure of how products and services
supplied by a company meet or surpass customer expectation. It is seen as a key performance
indicator within business and is part of the four of a Balanced Scorecard.
In a competitive marketplace where businesses compete for customers, customer
satisfaction is seen as a key differentiator and increasingly has become a key element of business
strategy.
However, the importance of customer satisfaction diminishes when a firm has
increased bargaining power. For example, cell phoneplan providers, such
as AT&T and Verizon, participate in an industry that is an oligopoly, where only a few suppliers
of a certain product or service exist. As such, many cell phone plan contracts have a lot offine
print with provisions that they would never get away if there were, say, a hundred cell phone
plan providers, because customer satisfaction would be way too low, and customers would easily
have the option of leaving for a better contract offer.
http://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Stakeholder_(corporate)http://en.wikipedia.org/wiki/Employeehttp://en.wikipedia.org/wiki/Shareholderhttp://en.wikipedia.org/wiki/Creditorhttp://en.wikipedia.org/wiki/Regulator_(economics)http://en.wikipedia.org/wiki/Joseph_M._Juranhttp://en.wikipedia.org/wiki/Customer#CITEREFJuran1988http://en.wikipedia.org/wiki/Total_quality_managementhttp://en.wikipedia.org/wiki/Customer#cite_note-FOOTNOTEKelemen200328-9http://en.wikipedia.org/wiki/Customer#cite_note-FOOTNOTEKelemen200328-9http://en.wikipedia.org/wiki/Customer_satisfactionhttp://en.wikipedia.org/wiki/Customer#CITEREFTansuhajRandallMcCullough1991http://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Technical_termhttp://en.wikipedia.org/wiki/Balanced_Scorecardhttp://en.wikipedia.org/wiki/Bargaining_powerhttp://en.wikipedia.org/wiki/Cell_phonehttp://en.wikipedia.org/wiki/AT%26Thttp://en.wikipedia.org/wiki/Verizonhttp://en.wikipedia.org/wiki/Oligopolyhttp://en.wikipedia.org/wiki/Fine_printhttp://en.wikipedia.org/wiki/Fine_printhttp://en.wikipedia.org/wiki/Fine_printhttp://en.wikipedia.org/wiki/Fine_printhttp://en.wikipedia.org/wiki/Oligopolyhttp://en.wikipedia.org/wiki/Verizonhttp://en.wikipedia.org/wiki/AT%26Thttp://en.wikipedia.org/wiki/Cell_phonehttp://en.wikipedia.org/wiki/Bargaining_powerhttp://en.wikipedia.org/wiki/Balanced_Scorecardhttp://en.wikipedia.org/wiki/Technical_termhttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Customer#CITEREFTansuhajRandallMcCullough1991http://en.wikipedia.org/wiki/Customer_satisfactionhttp://en.wikipedia.org/wiki/Customer#cite_note-FOOTNOTEKelemen200328-9http://en.wikipedia.org/wiki/Total_quality_managementhttp://en.wikipedia.org/wiki/Customer#CITEREFJuran1988http://en.wikipedia.org/wiki/Joseph_M._Juranhttp://en.wikipedia.org/wiki/Regulator_(economics)http://en.wikipedia.org/wiki/Creditorhttp://en.wikipedia.org/wiki/Shareholderhttp://en.wikipedia.org/wiki/Employeehttp://en.wikipedia.org/wiki/Stakeholder_(corporate)http://en.wikipedia.org/wiki/Customer_service7/30/2019 Customer Experiance
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There is a substantial body of empirical literature that establishes the benefits of customer
satisfaction for firms.
Measuring customer satisfaction
Organizations need to retain existing customers while targeting non-customers.
Measuring customer satisfaction provides an indication of how successful the organization is at
providing products and/or services to the marketplace.
Customer satisfaction is an abstract concept and the actual manifestation of the state of
satisfaction will vary from person to person and product/service to product/service. The state of
satisfaction depends on a number of both psychological and physical variables which correlate
with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also
vary depending on other factors the customer, such as other products against which the customer
can compare the organization's products.
Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988
delivered SERVQUAL which provides the basis for the measurement of customer satisfaction
with a service by using the gap between the customer's expectation of performance and their
perceived experience of performance. This provides the researcher with a satisfaction "gap"
which is semi-quantitative in nature. Cronin and Taylor extended the disconfirmation theory by
combining the "gap" described by Parasuraman, Zeithaml and Berry as two different measures
(perception and expectation) into a single measurement of performance relative to expectation.
The usual measures of customer satisfaction involve a survey with a set of statements
using a Likert Technique or scale. The customer is asked to evaluate each statement in terms of
their perception and expectation of performance of the service being measured. Arguably,
consumers are less complex than some of these surveys tend to portend. They are basically in
two simple states; satisfied or not satisfied. On or off, just like a switch. A business can measure
its customer satisfaction index by relating the aggregates of satisfied customers versus
dissatisfied customers.
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ABOUT THE COMPANY
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ABOUT THE COMPANY
CENTRAL MALL:SHOP, EAT, CELEBRATE
Launched in May 2004 at Bangalore, Central is a showcase, seamless mall and the first of
its kind in India. The thought behind this pioneering concept was to give customers an
unobstructed, pure shopping experience by ensuring the best brands in the Indian market are
available to the discerning Indian customer.
Central offers everything to the urban aspirational shopper. Located in the heart of the
city, Central believes its customers should not travel long distances to reach us. Instead, we must
be present in popular customer destinations.
Central houses over 300 brands across categories such as apparel, footwear and
accessories for women, men, children and infants apart from a whole range of Music, Books,
Coffee Shops, Food Courts, Super Markets (Food Bazaar), Fine Dining Restaurants, Pubs and
Discotheques. The mall also has a separate section for services such as Travel, Finance,
Investment, Insurance, Concert/Cinema Ticket Booking, Bill Payments and other services. In
addition, Central houses Central Square, a dedicated space for product launches, impromptu
events, daring displays, exciting shows, and art exhibitions.
Central is a format of Pantaloon Retail (India) Limited (PRIL), Indias leading retailer
that operates multiple retail formats in both the value and lifestyle segment of the Indian
consumer market. Headquartered in Mumbai, the company operates over 16 million square feet
of retail space, having over 1,000 outlets (including shop-in-shops) across 73 cities in India and
employs over 30,000 people. The companys leading formats include Pantaloons, a chain; of
fashion outlets, Big Bazaar, a unique Indian hypermarket chain; Food Bazaar, a supermarket
chain, and Central. Some of its other formats include Depot, Brand Factory, Blue Sky, Star and
Sitara.
Pantaloon Retail is part of the Future Group which has presence in multiple businesses in
the consumption space including consumer finance, capital, insurance, retail media, mall
development, logistics and brand development.
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CENTRAL: SHOP, EAT, CELEBRATE: SURAT
Origin
The need to create destination malls in India and the vision to become the leading
lifestyle retail store in the country led to the birth of the very first Central in 2004. Located in the
heart of Bangalore: M.G. Road, the first Central stood as the focal point of the city. The name
Central was chosen to suggest that it is a hub for every celebration, a place where people from
all walks of life first think of heading to, when it comes to shopping, eating and having a great
time. The name is styled to suggest exuberance, optimism and an exciting celebration.
Conclusion Central has broken the conventional norm of what shopping meant to the average
Indian shopper and introduced India to the concept of seamless shopping. This provided
shoppers with the ease of not having to step in and out of different outlets, with a wide range of
brands available all in one place. Central caters to a kaleidoscope of people from all walks of life
and all ages, giving them newer and more exciting reasons to celebrate the small and big
moments of life.
Central stands for the exuberant, the vibrant, the exciting. With a lively combination of a
whole lot to shop from, an array of treats to eat and never-ending reasons to celebrate, a trip to
Central turns shopping into ONE BIG CELEBRATION!
Corporate Office:
Jayanagar, 9th Block: 26593099
Registered Office:
Pantaloon Retail (India) Limited Knowledge House, Shyam Nagar,, Jogeshwari (East)
Mumbai, Maharashtra, 400060
MISSION STATEMENT:
"OUR MISSION IS TO PROVIDE ASEAMLESS SHOPPING EXPERIENCE TOCUSTOMERS ACROSS INDIA WITH SHOP,
EAT, CELEBRATE ALL UNDER ONE ROOF.ALL THIS, WHILE REAL WEALTH FOR ALL
STAKEHOLDER."
MISSION
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TIME LINE
Bangalore CentralMay 2004
Hyderabad CentralNovember 2004
Pune CentralApril 2005
Vadodara CentralJanuary 2007
Pune Central2October 2007
Gurgaon CentralApril 2008
Goregaon CentralMay 2008
Vashi CentralSeptember 2008
Indore CentralMay 2009
SoBo CentralJuly 2009
Ahmedabad CentralNovember 2009
Bangalore Central 2December 2009
Vishakhapatnam CentralAugust 2010
surat centralJanuary 2011
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SHOP, EAT, CELEBRATE!
Our Baseline is the very essence on which Central is designed. Enriching the experiences of its
customers and being a part of their celebrations, by giving them everything thats fun to do,
under one roof. SHOP: from over 500 national and international brands spread across different
categories like Menswear, Womenswear, Youthwear, Kidswear, Footwear, Eyewear,
Sportswear, Watches, Cosmetics, Fragrances, Jewellery, Accessories, Toys and much
more.
o MENS WEAR:Formal wear to make a statement in the board room, party wearto shine in style, casual wear that helps you relax and accessories that complete
your look; Central has everything for the men of style.
Formals Casuals Ethnic Party
o WOMENS WEAR: From the hippest apparel, to the trendiest accessories, themost fashionable footwear to stylish partywear; Central offers all for the most
stylish divas in town.
Formals Casuals Ethnic Party Western
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Lingerieo KIDS WEAR: Grow up in style and have all the fun with the widest range of
apparel, footwear, accessories and toys
EAT: the very best in fine dining and the very best in snacking. The food court at Centraloffers customers scrumptious delights across numerous cuisines under a single roof.
CATEGORIES
o Cafo Foodcourto Fine diningo Loungeo QSR
CELEBRATE: every moment of shopping with value added services such as BeautyCentral, Flower Central, Wi-Fi Central, DJ Central, Radio Central and Gift Central.
Customers can take part in innovative and fun activities during the Weekend Celebrations
at Central.
OUR BRAND VALUES:
Great experience
For the many, not the few Relentless innovation Making shopping a celebration Honest, open, caring and fun
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FUTURE GROUP:
Future Group is one of Indias leading business houses with multiple businesses spanning
across the consumption space. While retail forms the core business activity of Future Group,
group subsidiaries are present in consumer finance, insurance, brand development, retail real
estate development, retail media, logistics and information technology. The groups retail
businesses operate around 16 million square feet of retail space in 75 cities and towns and 65
rural locations across India. As on June, 2010, the group operated, 133 Big Bazaar stores, 184
Food Bazaar stores, 48 Pantaloons Fresh Fashion stores and 12 Central stores. The groups
specialty retail formats include, sportswear retailer Planet Sports; electronics retailer eZone;
home improvement chain Home Town and rural retail chain Aadhaar, among others. It also
operates popular shopping portal www.futurebazaar.com.
Future Group believes in developing strong insights on Indian consumers and building
businesses based on Indian ideas, as espoused in the Groups core value of Indianness. The
Groups corporate credo is, Rewrite rules, Retain values.
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CUSTOMER EXPERIENCE IN CENTRAL MALL
WI-FI CENTRAL:
Help the customer stay connected even while they are shopping at the store.
GIFT CENTRAL:
Create enhanced shopping experience for consumer by providing them with innovative gift
wrapping options leading to greater job of shopping and gifting.
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DJ CENTRAL:
Make the shopping experience entertainig by playing the latest hits and consumers request
FLOWER CENTRAL
Create value for consumers by providing them an option to buy a wide range of seasonal flowers
and other floral treats.
RADIO CENTRAL
Update consumers on the latest promotions, events, activity, services and offers in- store.
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BEAUTY CENTRAL
Create an opportunity for consumers to experice beauty product first hand and thereby promote
cosmetic brands.
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OBJECTIVES
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OBJECTIVES:-
To identify the target market. To classify the shoppers on the basis of buying behavior. To know how the shoppers perceive the merchandise and stores brand image. To create a 'customer-pull' environment that increases the amount of impulse
shopping.
To understand customers experience while buying a product at central mall. To study how retailers position the product as a lifestyle product rather than a
traditional product.
To create synergy between product, store and advertisement To know whether the customers perception about the display and layout of various
products at central mall.
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REASERCH
METHODOLOGY
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REASERCH METHODOLOGY
In everyday life human being has to face many problems viz. social, economical,
financial problems. These problems in life call for acceptable and effective solutions and for this
purpose, research is required and a methodology applied for the solutions can be found out.
DATA COLLECTION
Primary Data:
Primary data was collected through survey method by distributing questionnaires to
branch manager and other sales manager. The questionnaires were carefully designed by taking
into account the parameters of my study.
Secondary Data:
Data was collected from books, magazines, web sites, going through the records of the
organisation, etc. It is the data which has been collected by individual or someone else for the
purpose of other than those of our particular research study. Or in other words we can say that
secondary data is the data used previously for the analysis and the results are undertaken for the
next process.
METHODOLOGY
Exploratory Research:
On the basis of the objective shown above , a methodology has been designed to center
the study in and around method.
This project is an exploratory research as it is dependent on both primary data which
would be collected through a questionnaire which had been prepared as per the field survey and
discussion with the concerned individual. The secondary data which has been collected from
various sources.
The project here is based on primary data which would be collected with the help of a
questionnaire. This primary data collection would be done.
The secondary data has also been collected from various literature survey done through
material available in books, internet and journal Different statistical tools and techniques like
SPSS and Microsoft excel have been used for the study.
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Sampling Detail
The sample size taken for the study consist of 100 individual respondent
The sampling technique used would be stratified random sampling, where the sampling
frame has been divided into non- overlapping group or strata. The data obtained has been
analysed with the help of statistical tool.
RESEARCH DESIGN
Data is collected through:
Personal interview with retailers and shoppers. Doing survey with the help of questionnaire among customers at central mall.We have tried to investigate the target consumer through qualitative questions and
quantitative questions.
SAMPLE SPREAD AND SIZE
The study was done only in Surat. Sample of around 100 customers was taken.
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SCOPE OF THE STUDY
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SCOPE OF THE STUDY
The benefit of the study for the research is that it helped to gain knowledge and
experience and also provide the opportunity to study and understand the prevelent CONSUMER
EXPERIENCE PROCESS.
The key point of the research is:
1. To study the fact about the company2. To understand and analyze various consumer experiencee factors followed
in the com-pany
3. To suggest any measure and recommendation for improvement
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CUSTOMER
EXPERIENCE
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CUSTOMER EXPERIENCE
A customer experience definition to guide organizations.
As pioneers in the field of customer experience we have conducted a great deal of
research into what constitutes a customer experience. Much of this research was focused
development of ourfour bestselling books on the subject. As we continue to better understand it,
we also continue to refine our definition.
A customer experience is an interaction between an organization and a customer as
perceived through a customers conscious and subconscious mind. It is a blend of an
organizations rational performance, the senses stimulated and the emotions evoked and
intuitively measured against customer expectations across all moments of contact.
Importantly:
A customer experience is not just about a rational experience (e.g. how quickly a phone is
answered, what hours youre open, delivery time scales, etc.).
More than 50 percent of a customer experience is subconscious, or how a customer feels.
A customer experience is not just about the what, but also about the how.
A customer experience is about how a customer consciously and subconsciously sees his or her
experience.
A brand begins and ends with the customer, and most important to the customer's
perception is the customer experience. Customers will believe their own experience
before they believe advertising...and strong brands are built one customer
experience at a time.
Customer experience (CX) is the sum of all experiences a customer has with a supplier
of goods or services, over the duration of their relationship with that supplier. From awareness,
discovery, attraction, interaction, purchase, use, cultivation and advocacy. It can also be used to
mean an individual experience over one transaction; the distinction is usually clear in context.
Growing recognition
Analysts and commentators who write about customer experience (CX) and customer
relationship management have increasingly recognized the importance of managing the
customer's experience.[1]Customers receive some kind of experience, ranging from positive to
negative, during the course of buying goods and services. Brad Daniels (Business Development
http://www.beyondphilosophy.com/thought-leadership/bookshttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customer_experience#cite_note-0http://en.wikipedia.org/wiki/Customer_experience#cite_note-0http://en.wikipedia.org/wiki/Customer_experience#cite_note-0http://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Customer_experience#cite_note-0http://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://www.beyondphilosophy.com/thought-leadership/books7/30/2019 Customer Experiance
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Manager) says that an experience is defined as the sum total of conscious and unconscious
events. As such, a suppliercannot avoid creating an experience every time it interacts with a
customer (2011). Furthermore, it has been shown that a customers perception of an
organisation is built as a result of their interaction across multiple-channels, not through one
channel, and that a positive customer experience can result in increased share of wallet and
repeat business.
A company's ability to deliver an experience that sets it apart in the eyes of its customers
serves to increase their spend with the company and, optimally, inspire loyalty to its brand.
"Loyalty," says Jessica Debor, "is now driven primarily by a company's interaction with its
customers and how well it delivers on their wants and needs." (2008)
To create a superior customer experience requires understanding the customer's point of
view, say Don Peppers and Martha Rogers, Ph.D inRules to Break and Laws to Follow. "What's
it really like to be your customer? What is the day-in, day-out 'customer experience' your
company is delivering? How does it feel to wait on hold on the phone? To open a package and
not be certain how to follow the poorly translated instructions? To stand in line, be charged a fee,
wait for a service call that was promised two hours ago, come back to an online shopping cart
that's no longer there an hour later? Or what's it like to be remembered? To receive helpful
suggestions? To get everything exactly as it was promised? To be confident that the answers you
get are the best ones for you?" (Peppers and Rogers 2008)
In short, customer experience meaning a customer journey which makes the customer
feel happy, satisfy, justify, with a sense of being respected, served and cared, according to his/her
expectation or standard, start from first contact and through the whole relationship.
Emerging Business Requirement
With products becoming commoditized, price differentiation no longer sustainable and
customers demanding more, companies and communication service providers
(wireline, wireless,broadband cable, satellite) in particularare focusing on delivering superior
customer experiences. A 2009 study of over 860 corporate executives revealed that companies
that have increased their investment in customer experience management over the past three
years report higher customer referral rates and customer satisfaction (Strativity Group, 2009).
This finding is also supported by research completed by software company Chordiant in 2008
into the customer experience management performance of large organisations across Europe.
http://en.wikipedia.org/wiki/Distributor_(business)http://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Interactionhttp://en.wikipedia.org/wiki/Differentiation_(economics)http://en.wikipedia.org/wiki/Wireline_(cabling)http://en.wikipedia.org/wiki/Wirelesshttp://en.wikipedia.org/wiki/Broadbandhttp://en.wikipedia.org/wiki/Cablehttp://en.wikipedia.org/wiki/Satellitehttp://en.wikipedia.org/wiki/Chordianthttp://en.wikipedia.org/wiki/Chordianthttp://en.wikipedia.org/wiki/Satellitehttp://en.wikipedia.org/wiki/Cablehttp://en.wikipedia.org/wiki/Broadbandhttp://en.wikipedia.org/wiki/Wirelesshttp://en.wikipedia.org/wiki/Wireline_(cabling)http://en.wikipedia.org/wiki/Differentiation_(economics)http://en.wikipedia.org/wiki/Interactionhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Distributor_(business)7/30/2019 Customer Experiance
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The research surveyed 450 large organisations to create a maturity model and the results showed
that over of the organisations surveyed achieved level 3 (of 5) or less for CEM performance (5
being best possible result). The results also showed that performance in four key business areas
(market share, retention, profitability, and customer satisfaction) was directly related to CEM
performance.
The customer experience has emerged as the single most important aspect in achieving
success for companies across all industries (Peppers and Rogers 2005).[7]For example, Starbucks
spent less than $10MM on advertising from 1987 to 1998 yet added over 2,000 new stores to
accommodate growing sales. Starbuckspopularity is based on the experience that drove its
customers to highly recommend their store to friends and family.
Customer Experience Management
The goal of customer experience management (CEM) is to move customers from
satisfied to loyal and then from loyal to advocate. Traditionally, managing the customer
relationship has been the domain of Customer Relationship Management (CRM). However,
CRM strategies and solutions are designed to focus on product, price and enterprise process, with
minimal or no focus on customer need and desire. The result is a sharp mismatch between the
organisations approach to customer expectations and what customers actually want, resulting in
the failure of many CRM implementations.
Where CRM is enterprise-focused and designed to manage customers for maximum
efficiency, CEM is a strategy that focuses the operations and processes of a business around the
needs of the individual customer. Companies are focusing on the importance of the experience
and, as Jeananne Rae notes, realizing that building great consumer experiences is a complex
enterprise, involving strategy, integration oftechnology, orchestrating business models, brand
management and CEO commitment. (2006)[9]
According to Bernd Schmitt, "the term 'Customer Experience Management' represents
the discipline, methodology and/or process used to comprehensively manage a customer's cross-
channel exposure, interaction and transaction with a company, product, brand or
service."[10]Customer experience solutions provide strategies, process models, and information
technology to design, manage and optimize the end-to-end customer experience process.
CEM systems
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One of the key features of successful CEM implementations is their ability to manage
multi-channel interactions. Customer experience solutions address the cross-channel (contact
center, Internet, self service, mobile devices, brick and mortar stores), cross-touchpoint (phone,
chat, email, Web, in-person), and cross-lifecycle (ordering, fulfillment, billing, support, etc.)
nature of the customer experience process. By contrast, CRM solutions tend to offer point
solutions for specific customer-facing functions such as, but not limited to, sales force
automation, customer analytics, and campaign management.
Experience-based providers also integrate both internal and external innovations to create
end-to-end customer experiences. They evaluate their business models as well as business
support systems and operational support systems (BSS/OSS) from the customers point of view
to achieve the level of customer-centricity necessary to improve customer loyalty, churn
and revenue (Lopez, 2007).
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The Importance Of Great Customer Experiences...
And The Best Ways To Deliver Them
Customer experience is one of the great frontiers for innovation. Although the concept
was first invented by Joe Pine and Jim Gilmore in their 1998 HARVARD BUSINESS
REVIEWarticle, most companies have been slow to grasp it. Yet I predict that customer
experience will decide the winners and losers in the years ahead. Here's why:
RAVING FANS
Excellent customer experiences are still so novel that, when we have one, we talk about it. Ask
anyone who has bought a Mini Cooper. This kind of viral phenomenon creates buzz in the
marketplace and generates more revenue than traditional marketing.
LOYALTY
A stable base of existing customers makes it easier to boost both top and bottom line growth.
Some 80% of Starbucks' (SBUX) revenues come from customers who visit their stores an
average of 18 times a month.
PREMIUM PRICING
Customers will gladly pay more for an experience that is not only functionally but emotionally
rewarding. Companies skilled at unlocking emotional issues and building products and services
around them can widen their profit margins.
DIFFERENTIATION
The degree of choice in goods and services is bewildering. A history of sustained positive
customer experiences increases the chance that a new product gets chosen over its competitors.
COMPANIES THAT DELIVER EXEMPLARY CUSTOMER EXPERIENCES SHARE A
SET OF INTEGRATED BUSINESS DISCIPLINES THAT DRIVE THEIR SUCCESS.
CONSIDER THESE:
MOMENTS OF TRUTH
Great customer experiences are full of surprising "wow" moments. For customers of Starwood
Hotels & Resorts (HOT), owner of the "W" and Westin chains, the moment of truth comes
when they walk through the door of their hotel room and see the bed. Starwood execs believe
that clean, sumptuous linens strike an emotional chord with their clientele, put off by seeing
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dark-colored, dirty-looking bedspreads. It didn't make financial sense initially to go with fancy
bed linens, but the loyalty and buzz they've generated more than justify the expense.
BRAND VALUES
Well-articulated brands are the lodestar of customer experience. In a world of competing
alternatives, they provide guidance for customers and managers. Witness Whole Foods Market
(WFMI). Everywhere you look in its stores, the company's brand values are evident: Sell the
highest-quality foods, satisfy and delight customers, support communities, promote
environmental stewardship, etc. Everything in Whole Foods reflects the brand, leading to a
satisfying interaction for each of the chain's customers.
TECHNOLOGY AND PEOPLE
Link information-technology strategy with human resources management. Bottom-line magic
can happen when technology is deployed to keep customers happy and coming back. IT can
profile the most profitable customers and help managers focus their human resources on keeping
them happy. Ritz-Carlton, Progressive Insurance (PGR), and Harrah's Entertainment do this.
CO-CREATION
Allow your customers to help create their own experience. You know this phenomenon is at
work when people say, "TiVo (TIVO) has changed my life!" Enter a machine that allows you to
see what you want when you want it, and bingo! TV is a whole new game wherein the viewer
makes the rules. This creates value for discerning people who want television to work for them
instead of against them. To cope with the modern world, people want more control.
AN ECOSYSTEM APPROACH
Focus on a constellation of products and services that deliver a seamless, wonderful
experience to people. The iPod, of course, is the best example of this approach. The iPod
ecosystem includes hardware, software, the iTunes site -- first with songs, now with video and
accessories -- to manage your music or videos.
Building great consumer experiences is a complex enterprise, involving strategy,
integration of technology, orchestrating business models, brand management, and CEO
commitment. It's harder than you think.
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THE THREE "DS" OF CUSTOMER EXPERIENCE
Call it the dominance trap: The larger a company's market share, the greater the risk it
will take its customers for granted. As the money flows in, management begins confusing
customer profitability with customer loyalty, never realizing that the most lucrative buyers may
also be the angriest and most alienated. Worse, traditional market research may lead the firm to
view customers as statistics. Managers can become so focused on the data that they stop hearing
the real voices of their customers.
Financial software powerhouse Intuit briefly fell into this trap, despite a history of
excellent customer service. In 2001, its Turbo Tax program commanded 70 percent of the retail
market for tax-preparation software and 83 percent of the online market. But then it began doing
things that annoyed customers, such as upping the price of tech-support calls and limiting
software licenses to one computer. Store-based retail growth flattened, and as Web-based tax
preparation sites sprang up, online buyers started jumping ship. In 2003, Turbo Tax's share of the
online market plummeted.
A recent Bain & Company survey reveals just how commonly companies misread the
market. We surveyed 362 firms and found that 80 percent believed they delivered a "superior
experience" to their customers. But when we asked customers about their own perceptions, we
found that they rated only 8 percent of companies as truly delivering a superior experience.
Clearly, it's easy for leading companies to assume they're keeping customers happy; it's quite
another thing to achieve that kind of customer devotion.
So what sets the elite 8 percent apart? We found that they take a distinctively broad view
of the customer experience. Unlike most companies, which reflexively turn to product or service
design to improve customer satisfaction, the leaders pursue three imperatives simultaneously:
They design the right offers and experiences for the right customers. They deliver these propositions by focusing the entire company on them with an
emphasis on cross-functional collaboration.
They develop their capabilities to please customers again and againby such means asrevamping the planning process, training people in how to create new customer
propositions, and establishing direct accountability for the customer experience.
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Each of these "Three Ds" draws on and reinforces the others. Together, they transform
the company into one that is continually led and informed by its customers' voices.
Designing the right propositionsMost large companies are adept at dividing customers into segments and designing value
propositions for each one. But those that deliver a truly outstanding customer experience
go about the design business in a unique way. In defining segments, they look not only at
customers' relative probability but also at their tendency to act as advocates for the
companyto sing its praises to friends.
Customer advocacy can be summarized as a net
promoter score, calculated as the percentage of
customers who would recommend a company (the
promoters) minus the percentage that would urge
friends to stay away (the detractors). Because such a
simple measure is understandable to all parts of a company, it can serve to rally and coordinate
the entire organization. As described in the sidebar "Thinking Clearly About Customers," the
ultimate goal is to shift ever more customers into the high-profit, high-advocacy area.
Of course, the experiences that turn passive buyers into active promoters will vary by customer
segment. What captivates one group may turn off another. In formulating segments, therefore,
it's important to look beyond basic demographic and purchasing data to discern customers'attitudes and even personalities.
Vodafone offers a good example. The U.K.-based mobile phone company grew rapidly through
acquisitions in the 1990s, becoming one of the leading mobile providers in the world. To ensure
that its offerings could be effectively delivered to target customers in any country, it stopped
categorizing its customers simply according to where they live, as most cellular providers do.
Instead, it divided its immense marketplace into just a few, high-priority global segments:
"young, active, fun" users, occasional users, and a handful of others.
It then developed targeted, experience-focused value propositions. The "young, active, fun"
group was offered Vodafone live!, a state-of-the-art service that provides everything from games
and pop-song ring tones to news, sports, and information. Occasional users were offered
Vodafone Simply, which, as noted in the Vodafone Group's 2005 annual report, provided an
"uncomplicated and straightforward mobile experience." Such clearly delineated service
Theultimate goalis to shift ever
more customers into the high-
profit, high-advocacy area.
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platforms allowed everyone in the organization to understand strategic priorities and focus on
innovations that would better serve the segments.
In designing propositions for specific segments, leaders focus on the entire customer experience.
They recognize that customers interact with different parts of the organization across a number
of touchpoints, including purchase, service and support, upgrades, billing, and so on. A company
can't turn its customers into satisfied, loyal advocates unless it takes their experiences at all these
touchpoints into account. Design is thus closely tied to the delivery from the very beginning.
Planning focuses not only on the value propositions themselves but on all the steps that will be
required to deliver the propositions to the appropriate segments.
Delivering value to the customerThe most brilliantly designed and insightful customer offerings can be rendered impotent
by poor execution. To ensure effective delivery, the leaders must first create and motivate
cross-functional teamsfrom marketing to supply chain managementto deliver their
value proposition across the entire customer experience. Second, they must treat
customer interaction as a precious resource. Data mining and customer relationship
management (CRM) systems can be valuable for creating hypotheses, but the ultimate
test of any company's delivery lies in what customers tell others. The best companies find
ways to tune in to customers' voices every day.
One company that's particularly adept at listening to its customers and delivering whatthey want is Superquinn, the Irish grocery chain. Founder and President Feargal Quinn walks
each of his stores' aisles every month, talking to consumers. Twice monthly, he invites twelve
customers to join him for a two-hour roundtable discussion. He asks them about service levels,
pricing, cleanliness, product quality, new product lines, recent displays and advertising
promotions, and so on; he also asks what items they still buy from his competitors and why.
Quinn uses what he learns to evaluate store managers and continually improve the company's
strategy and its execution of that strategy.
For example, Quinn once learned that 25 percent of Superquinn shoppers were not
buying from the stores' bakeries. When he made bakery managers and employees aware of this
statistic and began tracking it, they came up with scores of creative ideas to build traffic.
Customers soon were enticed to visit the bakery by the aroma of freshly made doughnuts; once
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there, they found baskets of warm wedges to sample. Today, more than 90 percent of customers
buy at least one item from the bakery every week.
As Superquinn's experience suggests, people staffing the front lines need to be well hired,
well trained, and well treated if a company is going to deliver on its propositions.
Customer metrics serve an equally critical function: They allow companies to be sure
their delivery continues to meet the needs of the target segments. But traditional metrics, focused
on the performance of individual functions, aren't enough; measures have to be crafted to inspire
cross-functional collaboration.
One example is net promoter scores: Improving them requires a concerted effort from the
front line to the back office. Precise customer service objectives for specific customer
interactions can also help to rally the troops. A bank might create a goal of phoning each new
customer within one week of opening a checking account; a cable company, within a week of
installing a line. Hitting such targets requires specific, coordinated contributions from customer
support, marketing, channel management, and finance.
Leaders also find other, informal ways to let customers tell them whether they're
succeeding. Superquinn awards its customers "goof points" for pointing out anomalies such as an
out-of-stock item, a dirty floor, or a checkout line longer than three people. The goof points
provide discounts off future purchases.
Developing the capabilities to do it again and again
Customer value propositions can never be static; they must be subject to regular
innovation. It's the same with deliveryevery company must improve its performance
quarter after quarter, year after year. Leaders in crafting the customer experience have
established a number of capabilities to achieve this kind of systematic innovation and
improvement. They include:
Tools that aid customer-focused planning and execution. The integrated
marketing plan developed by Vodafone, for instance, unambiguously puts customers at
the top of the company's strategic priorities.
Customer-based metrics and closed feedback loops that establish accountability.
Enterprise Rent-A-Car tracks customer satisfaction with its rental experience on a five-point
scale for every branch, and employees of branches that fall below the corporate averagegetting
top-box scores 80 percent of the timeare ineligible for promotion.
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Customer-focused management incentives. Net promoter scores, for example, are increasingly
used in performance reviews.
Top-performing companies also create processes that seek direct, immediate customer
feedbacknot simply to ensure that things are going well but also to build in methods of
systematic innovation and improvement. SAS Institute, the Cary, North Carolina-based software
company, creates a "SASware Ballot" every year, giving customers a chance to vote on a list of
potential software improvements. EBay employees known as "pinks" monitor the company's
message boards, quickly learning which issues, complaints, and concerns may need attention.
American Express calls customers who don't quickly activate their new cards to find out if
they're having problems.
Intuit turned around TurboTax's online market-share slide by, in part, institutionalizing its
ability to constantly improve its offerings. The company's Consumer Tax Group, which had seen
the biggest share decline, created a 6,000-member "Inner Circle" of customers who agreed to
serve as a kind of ongoing, Web-based focus group.
They supplied basic demographic information, along
with their response to the all-important question "How
likely are you to recommend TurboTax to friends or
colleagues?" They were then asked to explain their No.
1 priority for enhancing service in any aspect of the
customer experience, including shopping, buying, installing, and using tech support.
A follow-up question let them prioritize a list of ten suggestions made by other customers.
The Internet software that collects these ideas allows Intuit to segment customers into groups,
such as promoters and detractors, according to their priorities and issues. Detractors wanted a
new approach to tech support and customer service. Promoters ranked rebate programs as their
top priority for improvement. Intuit probed for details: Where rebates were concerned, was it
awkward proof-of-purchase requirements, slow turnaround times, or the amount of the rebate
that most needed attention?
Thanks to these moves, the Consumer Tax Group was able to redesign its core TurboTax
product, deliver it to the customer more effectively than ever, and maintain a mechanism for
continually developing its related capabilities. Net promoter scores among both first-time users
People staffing thefront linesneed
to be well hired, well trained, and
ell treated.
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and veterans rose dramatically, and the company regained market share in Web-based channels
and renewed share growth in stores.
7As APPROACH TO CUSTOMER EXPERIENCE MANAGEMENT AT STORE LEVEL
Some of the most memorable quotes on Customers are:
"It is not the employer who pays the wages. Employers only handle the money. It is the
customer who pays the wages" - Henry Ford
There is only one boss. The customer. And he can fire everybody in the company from
the chairman on down, simply by spending his money somewhere else"- Sam Walton
In a recent HBR article ("LET EMERGING MARKET CUSTOMERS BE YOUR
TEACHERS",HBR, December 2010), the authors gave out an interesting insight quoting
McKinsey studies. "In developing economies, the retail aisle is where the marketing action is -
it's where the customers make purchasing decisions. McKinsey studies show that in China, for
example, as many as 45% of customers make those decisions inside stores, compared with 24%
in the United States."
Although their study did not include India (the authors conducted a study in 2009 in China,
Poland, Turkey, Brazil, South Africa and Peru), I am sure the results would apply equally well to
Indian retail landscape as well. How to engage the customers at the store level? What kind of
experience should stores offer to the customers that would increase their customer life time
value? How to improve the customer experience at the store level?
To answer these questions, I have developed a model titled - 7 As Approach to Customer
Experience Management at Store Level - that would help retailers orchestrate a better and
delightful customer experience management at the store level. Remember however: It is only
when all these 7As are used simultaneously that the stores can expect better delivered customer
experience and not in isolation.
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CUSTOMER EXPERIENCE MANAGEMENT BEST PRACTICES
Customer experience management is a dedication to serving customer needs
from theirperspective. Customers make paychecks possible, and shareholders leave when
customers leave ... not the other way around. So businesses exist to serve a customer needthat
results in a profitable revenue stream. Customer experience is defined entirely by customers, but
the solution provider defines customer experience management (CEM). The customer is the
judge of whether the experience was acceptable or stellar, or not; CEM seeks to understand the
gap between desired and current experience as seen from the customer's viewpoint, segmented
by the customer's circumstances. Then CEM solves the gap holistically and anticipates the
evolving needs of the customer topreventfuture gaps. 81% OF COMPANIES WITH STRONG
CAPABILITIES AND COMPETENCIES FOR DELIVERING CUSTOMER EXPERIENCE
EXCELLENCE ARE OUTPERFORMING THEIR COMPETITION.(1)
10 Characteristics of Customer Experience
Ten characteristics differentiate CEM from the common knowledge of former initiatives such as
customer satisfaction, loyalty or customer relationship management. The level of understanding
of these characteristics among executives company-wide was assessed in the 2010 ClearAction
B2B CEM Benchmarking Study. The best understood tenets of CEM (top half of graph below)
reflect aspects of customer perception measurement. The lesser known tenets describe the
customer's high degree of control in characterizing customer experience, and the need for
organizations to maintain insatiable curiosity and uncanny adaptability for delivering superior
customer experiences.
Here are the ten ways that customer experience is unique from customer satisfaction:
Perspective: customer experience is defined entirely by the customer, not the solutionprovider.
Preventive: customer experience gravitates toward the easiest and nicest methods to getand use solutions that address customers' needs.
Duration: customer experience encompasses the point from which customers becomeaware they have a need until they say that need is extinct.
Dynamic: customer experience evolves with the customer's context the purpose andcircumstances of their need, and overall experience reference points.
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Choice: customer experience is built on trust and mutual respect for variety; share ofbudget is more important than loyalty.
Multi-faceted: customer experience is measured by functional and emotional (social andpersonal) judgments related to the customers' expectations.
Operational: customer experience is shaped by all the contributors to an organization'sprocesses, policies and culture, in addition to the physical product or service associated
with the customer's need.
Integrative: customer experience is impacted by the degree of alignment amongdepartments, technologies, channels, etc.
Anticipatory: customer experience is ongoing, where the present and future are equally ormore important than the past.
Transparent: customer experience sees through the solution providers motives andintentions, and favors genuine sincerity for the customer's well-being.
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CUSTOMER EXPERIENCE MANAGEMENT SUCCESS FACTORS
CEM has evolved to a more mature, customer centric field with roots in total quality
management and customer satisfaction, and metamorphisis through customer loyalty, customer
relationship management (CRM), experiential marketing, and word-of-mouth marketing. CEM
encompasses all of the above, with an operational emphasis on enterprise-wide engagement
foralignmnent of what you do to your customer's priorities.
Formal business process for CEMo Employee empowerment & engagemento Organizational learning (knowledge management)o Quality tools (Pareto, fishbone, etc.)o Systems thinking\o Change managemento Internal brandingo Recognition and awardso Incentive payo Balanced scorecardso Relationship skills trainingo Benchmarking
Customer Voice:Best practices in customer sentiment monitoring differentiate between enablers of customer
experience (the firm's solution) and customer's desired outcomes, focusing feedback mechanisms
on the customer's world rather than the company's world. Best practics also include:
Identify all the influencers on the buying decision (initiators, approvers, users, buyers,
influencers, gatekeepers, decision-makers)
Collect voice of the customer from all of the influencers on the buying decision Monitor customer perceptions of business transactions Monitor customer perceptions of overall business relationship Involve executives in objective listening sessions with customers Analyze lost sales Track positive and negative word-of-mouth Resolve customer complaints systematically
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Integrate customer feedback sources Analyze integrated customer data Communicate resolution of customer complaints Communicate improvements spurred by poor survey ratings
Customer View:
Best practices create company-wide understanding of customers' priorities and value, including:
Establish a single view of each customer across divisions and regions Stream relevant customer feedback to all parties in the company Calculate customer lifetime value Segment customers based on lifetime value or customer experience parameters Use customer metrics to evaluate organizational performance Include customer metrics in balanced scorecard
Customer Centricity:
Best practices in customer centricity help keep customers' well-being at the center of everyone's
thinking, decisions and behaviors:
Use customer feedback to guide annual operating plan Review business processes from customer perspective Use customer metrics in performance reviews Reward customer experience improvement in team recognition Align incentive pay to customer experience metrics Create department-level action plans to improve customer experience Listen to customer needs prior to product development efforts Base strategic decision-making on customer experience or lifetime value segmentation Base front-line employees decision-making on customer experience or lifetime value
segmentation
View customer experience management as an ongoing journey
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As the dynamics in the customer's world are constantly evolving, an insatiable curiosity
about customers is a key to success. Company-wide alignment with customers prevents waste
(improves profit) and prevents customer hassles (improves organic revenue growth).
ClearAction has personal experience implementing these best practices in large, fast-
paced organizations that emphasized acheiving strong business results. Let us share practical
methodologies and solutions to aid you in your customer experience management journey.
Customer Experience Management:
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CUSTOMEREXPERIENCE MANAGEMENT
What is CEM?
Customer experience is the sum of all experiences a customer has with a supplier of goods or
services, over the duration of their relationship with that supplier. It is believed that successful
businesses influence people through engaging, authentic experiences that render personal value
(HBRPine and Gilmore 1998). A 2009 study of over 860 corporate executives revealed that
companies that have increased their investment in customer experience management over the
past three years reported higher market share, retention, profitability, and customer satisfaction
(Chordiant, 2008, Strativity Group, 2009).
Why is CEM valuable?
Acquiring new customers can cost five times more than satisfying and retaining current
customers.
A 2% increase in customer retention has the same effect on profits as cutting costs by10%.
The average company loses 10% of its customers each year. A 5% reduction in customer defection rate can increase profits by 25-125%, depending
on the industry.
The customer profitability rate tends to increase over the life of a retained customer.
Core Tenants of CEM
CEM is a strategy that focuses the operations and processes of a business around the needs of the
individual customer.
Focus on the importance of the experience.
Disciplined methodology and/or process used to comprehensively manage a customers cross-
channel exposure, interaction and transaction with a company, product, brand or service.
Weaves together strategies, departments, process models, and information technology to design,
manage and optimize the end-to-end customer experience process
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Decooda Goal
The goal of Decooda is to monitor and analyze all multi-channel interactions. We work cross-
channel (contact center, Internet, self service, mobile devices, brick and mortar stores), cross-
touchpoint (phone, chat, email, Web, in-person), and cross-lifecycle (learn, shop, order,
fulfillment, billing, support, loyalty, advocacy, etc.) of the customer experience. We integrate
and analyze all unstructured and structured content from the social sphere, enterprise or from any
other 3rd party to extract meaningful insights from end-to-end customer experiences. Decooda
enables:
Accurate measurement sentiment over any time horizon and at virtually any level,including the individual
Identification of hot topics, emerging trends, and key influencers, and scores them basedon their ability to move the market.
Viewing the communication string between people to identify what drives the greatestmeasurable impact in shaping sentiment and reputation across the competitive social
landscape.
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Quantification of the value of social conversations, brand investments, and market-driven
events that have the greatest impact on the brand, providing valuable insights into the
engagement design and investment reallocation decision process.
Constraint based scenario simulations in a market sand-box to test and validate social
media strategies and engagements prior to making any investments, insuring risk is mitigated and
a clear Return On Marketing Investment is achieved.
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CUSTOMER EXPERIENCE MANAGEMENT PROCESS
"CEM is both Analytical and Creative
CEM is both Strategy and Implementation
CEM's Focus is External and Internal"
As we enter the second half of the first decade of this new millennium, 24/7 Internet
access reaches well over 1 billion people around the globe. Millions perform B2B, B2C or X2X
transactions with millions of suppliers eager to attract their business. In the digital world as well
as in the physical one, buying decisions depend on an immense variety of factors, some of them
rational such as price, features, availability, etc. and many others -perhaps the most important
ones- related to feelings and emotions a particular brand conveys to the buyer. Most companies
in the manufacturing and services industries fight their way through the troubled waters of "red
oceans" as their products and services become more and more commoditized and watch with a
sense of impotency how profits and ROI decrease.
Many CxOs continue doing business as usual, trying to outsmart their competitors and
win their customers' loyalty by means of the oldest and often quite effective - but always short
lived- tactic of price reductions. Others have decided to set distance apart and sail the winds of"blue oceans" creating new markets, innovating their products and services, and crafting
unparalleled and enduring experiences for their customers. We immediately recognize successes
like iPod, YouTube, SecondLife, Palm Island, Burj Tower in Dubai, Google Earth, Mandarin
Oriental Hotel, Nike, Cirque du Soleil, Starbucks and hundreds of other products and services,
as being unique and different We become aware that captivating customers is not a matter of
price anymore, but a matter of well-thought, well-designed and well-executed customer
experiences.
Today we all are talking about a new paradigm - CEM - that emphasizes emotions,
feelings, sentiments, passions and experiences that we hardly heard of when we used to work
around CRM principles. The community is coming to terms and beginning to differentiate
between CRM as being mainly transaction oriented, and CEM as being process oriented. CRM
focuses on knowing the consumer to suit the seller needs, CEM on understanding the consumer
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to suit her needs, acquire foresight and maintain an emotional relationship. The bottom line is
that no matter which business you are in, the only way to climb to the top of the mountain - and
stay there - is by having a customer-centric strategy the results of which are customers fascinated
by the experience you provide them with -to the extend that that they will keep coming and
coming for more and more of it. Did I say loyalty?
This strategy should use some levers to facilitate the climbing. One of these levers is
without any doubt, the adoption of a process approach that will enable us to manage the
customer experience: to monitor, control and measure what really matters to her and at the end,
to respond quickly to her varying demands and expectations. Designing, implementing and
managing a CEM program requires some basic concepts which in essence are no different from
those in other programs targeted at obtaining the results our customers and stakeholders expect,
namely value and a unique and memorable experience on the one hand; and revenue, profits and
cash flow on the other.
It requires a disciplined approach that begins with a strong "raison d'??tre", high level
sponsorship, a mature customer centric culture, fully committed personnel with the right skills, a
qualified team able to work smarter - not harder - to get it right and a strong champion. Piece of
cake huh?
First the pants, then the shoes
Process methodology is there to help us bridge the gaps created by organizational silos
(marketing, manufacturing, billing, etc.) that prevent a seamless execution of our customer
experience strategy and restrain our customers from desiringour products and services and
becoming truly advocates. Implementing the right experiential processes certainly will deliver
value to your customers.
However, prior to getting into a thorough process implementation, one must think about
the cultural issues that lie at the foundation of our company. Yes, you can modify some or many
of your processes and optimize them to be truly customer-centric, but unless everyone in our
company is vibrating at the same wavelength - it is difficult to convey great experiences to our
customers. We must begin by building respect for our customers, gaining their trust by making
them rely on the quality of our products/services and on the honesty of our relationship.
Processes that are implemented lacking a true compromise from most of our employees normally
end up making things easier for management but not for the customer. One must have a vision,
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focus on the customer, the right people (Virgin Atlantic's "brilliant basics"), and then we are set
to foster a more creative and innovative approach aimed at influencing and modifying the
rational and emotional elements of your customers' experience. We are now prepared for
delivering those "magical touches" that will make a dramatic difference and win you "raving
fans".
Step by Step into CEM
In his acclaimed opus "Customer Experience Management", Bernd Schmitt introduces a
straightforward-five-step CEM process (See Figure 1) that we will hitherto refer in this article.
"All ways lead to Rome": As long as you keep in mind the basics, one can modify his approach
to CEM. I happen to like Bernd Schmitt's approach and I advocate for it.
Adapted from: "Customer Experience Management" by Bernd H. Schmitt
I have tried it with a number of customers and have obtained good results. I should pointout that the outcome has nothing to do with the process itself but with the bottlenecks one faces
when trying to change a 20 or 50 years-old culture which has proven to be successful. Every
industry, company, market and customer segment has its own peculiarities and we should be
careful when taking them into consideration and making the appropriate modifications,
especially after several rounds of trial and error iterations. You may also find CEOs or CMOs
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reluctant to follow advice and preferring to either skip a step (thinking her company has already
mastered it) or cutting the required resources short.
Schmitt's five steps are quite comprehensive
Analyze the experiential world of the customer.Get to know the environment your B2B or B2C customers operate in. Understand
their world and yours. What the future looks like as far as your industry is concerned and
as far as the sociocultural environment your customers are in is concerned. What are your
competitors doing? What type of experiences are they providing to the customers? Obtain
an insight of your customers as deep as possible. Know "not assume" what your
customer's needs and expectations are; how, when and why your customers use/consume
or not use/consume your products. Understand your customers' buying decision making
process. Are your customers collaborating in the design of your products? Revise, in as
much detail as possible, Jan Carlzon's moments of truth (MOTs). To begin, select the few
critical ones (save the others for later) and bring them into what now has developed into
the "experience curve" and define what the desired experience would be at these points.
Oh, yes. How do we obtain the data to plot our initial experience curve? You could use
several sources. I like to begin with the input from marketers, salespeople and employees
within the company I am working with. They should be encouraged to get opinions from
their families and friends before submitting their final scores. This way we obtain theemotion/experience curve the company thinks it is providing to its customers. One
advantage of this is that from the very early stages, everyone in the company is involved
in the program. The results are always displayed through the intranet and people are
asked to comment and enrich the process.
Subsequently I normally structure a set of simple surveys using one of the many
tools EFM (Enterprise Feedback Management) companies have made available. Initially
we try 2 or 3 different surveys aimed at different market segments, beginning with lead
customers whose opinions we value. At this stage we validate if the critical points we
identified in our internal exercise are the same customers regard as important. Normally
there are differences. It is important to highlight that those points which are most
important for your customers should be the bases for your customer's scorecard. Based on
these results we motivate customers to join a respondent panel that will provide us with
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feedback during the whole process and hopefully for a long time thereafter. The size of
the panel varies depending on the type of product. When possible, feedback from these
initial surveys is complemented with direct observations and focus groups. Focus groups
concentrate more on learning about the experience with major competing brands and also
on the most critical scenarios customers go through during their experience with the
product. We make sure customers are aware that the company is highly interested in
listening to their voice and that by speaking out they are helping customize their own
experience. Most customers do it gladly and except for a few cases, I have always found
a great deal of collaboration. One or two months later we are able to have a second graph,
one from the customers and believe me, when we compare the company's graphs with the
customer's, we get plenty of surprises and a great deal of learning. Remember that the
devil is in the details and step 1 needs details and lots of data. The output of this first step
is not only learning the actual state of your consumers' and competitor's experience, and
mapping it, but along the sub-process. The exercise should have identified quite a few
ideas that could and would differentiate you, opportunities to heal customer relationships
and to resolve issues that impact customers, and of course step one constitutes the core
input to step two.
The Experiential platformArmed with the analysis and ideas from stage one; we examine very thoroughly
the gaps the customers have helped identify and begin the process of drafting the
strategy. In terms of the traditional marketing, the experiential platform goes way beyond
"unique selling proposition - UPS" or the "Value Proposition" we are used to. Here we
borrow some key concepts from other managerial disciplines that have proved their value
in strategy definition: balanced scorecard and blue ocean strategy, and combine them into
the development of Schmitt's three strategic components of his experiential platform: the
experiential positioning, the experiential value promise (EVP) and the overall
implementation theme, which details the hows.
Step 2 is perhaps the most critical one of the CEM process since it lays out the
foundation of the entire customer experience strategy. It should be noted that experiential
value promise is meant to look for the most powerful experience that will differentiate
your product in the minds of your clients. In this step we imagine the types of
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experiences we should convey to our customers in order to impact them. In his first book
Experiential Marketing, B Schmitt defined five types: sensory, affective, cognitive,
physical, and social identity experiences. These are the factors that should be analyzed
and then linked to the traditional value proposition (attributes, breath of line, being first,
price), etc. when you are in determined to differentiate your product or service in the
minds of your prospects. The step defines what the experience is going to be like for the
customer/customer segments, why the customer should trust that the company will
deliver the offered EVP, and how different, innovative and revolutionary (a blue ocean
perhaps?) that experience will be.
I recommend to my clients to seek additional advice which normally comes form
advertising and PR agencies, sociologists, psychologists and anthropologist
(neuromarketing has come to age) which are much better fit to propose impacting
positioning and creative implementation themes that would leverage alternative EVPs.
Let us refer to Nokia. Its experiential position is "Connecting People". Its experience
value proposition: "Meeting Mobility and service needs". Design, technology and
customer engagement are Nokia's core elements in its implementation theme. Again, I
suggest having at least 2 or 3 EVPs that have been previously agreed upon after
evaluating their feasibility in terms of demanded resources and expected results. At this
point the company must have completed an assessment of its external and internal
environment (culture); a conviction that the organization has the right skills, motivation
and tools required for the strategy to be flawlessly executed; a complete understanding of
their customers and markets, some of it will come from CRM data; and an approximation
of the competitor's reaction once the plan begins to be executed (steps 3, 4 and 5). Aren't
we missing something? Yes, of course! A set of milestones and indicators that will ensure
that as the program advances, and your customers' experiences are the right ones, the
financial targets will be met in the short, medium and long term. Whenever possible, it is
also recommended to pre-test -in controlled environments- the ideas and proposals that
were developed at this stage. Depending on your own situation, you may have to follow
steps 3 (brand experience), 4 (customer interface) and 5 (continuous innovation)
simultaneously or in a different order
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Designing the Brand ExperienceSteps 1 and 2 are a pre-requisite to any CEM plan and should be done in sequence
and as thoroughly as possible. They constitute the blueprint of your customer experience
strategy. At step 3 we begin translating strategy into actions. It is here where moments of
truth are more critical, where reality meets expectations, where the bottom line occurs.
According to Schmitt, brand experience is determined by three factors: the product
experience including the price, the look and feel and the experiential communications.
The brand experience comprises all differentiating factors of your products or service.
Differentiation isn't necessarily product related, it can be on anything. Going back to
Nokia, when buying a specific Nokia unit, and for that purpose any mobile phone brand,
customers expect a working phone with few or many features d
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