BIZ104 Customer Experience Management Assignment Sample
Topic: CUSTOMER EXPERIENCE MANAGEMENT – CUSTOMER EXPERIENCE STRATEGY: RESEARCH ANALYSIS (INDIVIDUAL REPORT)
Introduction
In an organization, customer experience has been considered as a perception of experience in the customers’ eyes. Therefore, by building an enhanced customer experience, it has been able to strengthen and build long-term customer relationships aligning with organizational needs. Throughout this report, as a prominent CEM manager, relevant tactics of interacting with the company’s products and services can be discussed (Briesemeister & Trebbe 2022). Here, the chosen organization is Aldi, which has also acquired services and products along with several touch-points like in-store, website, mobile apps, social media, email, and others. In this way, based on its customer experience analysis, a research analysis report has been procured.
As a prominent and recognized retail grocery store, Aldi has acquired around 10,000 store locations with enhanced 60 years of business experience towards its success. Since 1913 of its first business operation, it has become the most reputable and awarded retailer in the global market segment. With high quality and exceptional values of customers, Aldi has always been trying to sell quality-standard products with in-house trading and independent laboratory analysis together. In Australia, this company has delivered quality products with differentiation with enhanced values towards customers (Aldi.com.au, 2021). Around 570 stores with 13,500 workers along with 1,000 business partners have been prioritized in Aldi Australia with a range of economic benefits.
Secondary Research
Journal Article
Briesemeister, B. B., & Trebbe, J. (2022). Welcome to the Real World: Neuromarketing for the Stationary Point of Sale to Quantify the Customer Experience. In Neuromarketing in Business (pp. 91-108). Springer, Wiesbaden.
From this article, it has been understood that in recent times, the measurement environment has been considered as a kind of limiting factor in the field of neuro-marketing studies. A range of EEGs along with fMRIs have needed special environments, which has also helped a lot to make realistic business approaches. As stated by Briesemeister & Trebbe (2022), with the help of advanced innovation and technologies, EEG hardware and software requirements have helped to shape a positive customer experience-enabled environment with a diverse range of positive outcomes and benefits altogether. In Aldi, these EEGs have been considered as an ideal way, which has been utilized for measuring customers’ shopping experience and attitude with customers’ experience among target customer groups.
Organization Website
https://corporate.aldi.com.au/en/about-aldi/
From its website, it has been found that Aldi has been trying a lot in terms of improving its customer experience with a diverse range of positive outcomes and benefits altogether. High-quality grocery products, differentiated product range, maximized efficiency of business, and other valued aspects have played a major role to boost customer satisfaction levels as per maintaining their demands accordingly (Aldi.com.au, 2021). As per expected outcome, Aldi has contributed around estimation of $30 billion to the country’s gross GDP level. Its effective and productive business sourcing approach and partnerships have become a more significant component to the Australian economy with enhanced customer benefits.
Social Media Reviews
In this case, it has mainly been found that both Aldi, as well as Lidl, have ensured positive customer experience across a range of social media channels and platforms. In addition to this, with the help of many positive reviews of the same company, it has also been able to maintain positive business growth, with productivity and profitability towards future success, and development at the same time (Daffy, 2019). For example, with high business recognition with a range of discounts, offers, and promo codes, its valued customers can enjoy a range of business benefits with a lot of shopping opportunities. These brands have also flourished at a high level of customer loyalty in core business operations with better customer experience management training programs.
Research Analysis
The core objectives of the research in this report have been demonstrated as follows:
- To explore customer experience management scenario in Aldi
- To evaluate the positive impact of better customer experience management in Aldi towards its productivity and profitability
- To determine specific customer segments of Aldi with relevant CEM theories and concepts with feedback
In Aldi, its current customer experience has been demonstrated as positive results. That specifically means, its enhanced in-store experience must shift a positive role in the field of customer experience management. Its hard-working employees must deliver a personalized customer experience with tailor-made results with a lot of effectiveness and efficiency at the same place (Evelina & Safitri 2019). It has also been identified that Aldi’s always polite, helpful, and friendly attitude must help to interact with customers in an integrated manner. Moreover, in its current context, the importance of recognizing needs must ensure customer experience management training and development mechanisms with the right stance (Klapalová, 2019).
CEM Concepts / Theories
IDIC & Drift Model of CEM
This model has been developed by Peppers and Rogers Group, which has also been considered as a kind of generic blueprint for incorporating the right CRM sense or approach in a variety of situations (Schoeman, Bick & Barnardo 2021). This model has stood for four (4) stages of successful CRM implementation altogether. Those have consisted of identifying, differentiating, interacting, and customizing.
Figure 1: IDIC Model of CRM
- Identify: In this first step, Aldi should have to identify its customers in its core business operations, which has also accomplished collecting information with customers’ basic information (Lee al. 2020). The goal of this stage is to disseminate information on each customer for understanding customers’ needs, wants, purchases, and behaviors.
- Differentiate: In this step, Aldi should have differentiated its segmented customers’ based project and business lifetime value. By differentiating customers, this company should add more value to the company (Taimu, Awuzie & Ngowi 2020). It must help to prioritize customers with better relationship efforts with more valuable clients with tailored interactions with optimized profitability.
- Interact: In this stage, with proper CRM plans, it has been able to interact with valued customers. With proper business analysis and categorization, positive customized interaction can be established (Miremadi & Ghanadiof 2021). High customer loyalty in this step must embrace high customer interaction towards continuous improved future interactions thereafter.
- Customize: In this last stage, documented customer interactions must help to develop more customized one-to-one experience (Nguyen, 2021). It has also been needed to ensure customers’ needs and expectations, which should be made and encompass higher business benefits.
QCI Model
As a customer management model with enhanced customer relationship scenario, this Quality Competitive Index (QCI) model has focused a lot upon three (3) key activities altogether. Those have consisted of Acquisition, Retention, and Penetration altogether.
Now, in the context of Aldi, this model has started with the customers’ external business environment at the top. As challenges, three (3) pain points including business goals, and other factors should have to interact with the whole market and sales team. It must impact positively on better means of customer experience (Karpen & Conduit 2020). It also affects the level of customers’ value proposition with better means of customer management activities. Moreover, key business activities have also involved successful customer retention with a range of benefits.
In final words, it has also been emphasized that Aldi must consider this model with involved business people and technology (Oranusi et. al. 2018). It has also consisted of the whole system with an integrated approach. As the key target, it has started and ended with better people management aspects at the same place.
Now, in this context, there are a lot of opportunities for improving better customer experience management (CEM) in Aldi. Those have been depicted as follows:
- Employee empowerment
- Employee Ideas values
- Technology implementation in better customer experiences
- Omni-channel mindset with embracement
- Personalized top-down approach in business
- Better customer service journey and mapping.
However, in contrast to this, there are numerous challenges in the business context of Aldi. Those have been demonstrated as follows:
- Poor development of CX culture with customer better mindset
- Ensuring better customer understanding
- Prioritization of CX initiatives
- Ensuring CX ROI, and others.
Customer Segments
In this specific segment of current study, two (2) different customer segments of Aldi have been presented. In addition to this, based on unique customer segments, different customer/user persona have also been developed at the same time (Wang, 2021). Those customer segments on behalf of this company have been demonstrated as follows:
Customer Segment 1 / User Persona 1
Based on these factors, a customer segment has been developed in Aldi as below:
Factors | Facts |
Demographics | ● 21-60 years of Age
● Middle-income based customers |
Psychographic | ● Need of grocery personality
● Impulsive buying attitudes |
Behavior | ● Loyal behavior in company and shopping |
Lifestyle | ● Medium luxurious lifestyle in business |
Geographic | ● Urban areas |
Now, based on this customer segment, following user persona of Aldi customer has been developed below:
Corey Maxwell
35, Married, Private Sector Employee, Sydney, Australia Bio: He is a medium-income-based citizen of Australia with marriage responsibility. He wants to fulfill all of his grocery needs in his family with promotion and good communication aspects. He just wants to buy things at any price as per needs. |
Goals:
● To support his family ● To fulfill grocery needs in his family ● To earn more money with open communication and engagement |
Motivation:
● Creating successful business promotions for his job role ● Feasible choices or options for ensuring high creativity and designs at work |
Skills:
● High motivation ● Enhanced growth and development ● Social media engagement |
Customer Segment 2 / User Persona 2
Based on these factors, Aldi has developed another customer segment below:
Factors | Facts |
Demographics | ● 26-75 years of Age
● Low-income ● Men and Women |
Psychographic | ● Needy buying behavior |
Behavior | ● High customer loyalty |
Lifestyle | ● Poor but needy lifestyle options |
Geographic | ● Urban and Rural areas across remote places |
Now, based on this customer segment, following user persona map has been prepared –
Emma Boland
29, Single, Self-Employed, NSW, Australia Bio: She is a mediocre worker in Australia with self-employed business options. She wants to expand her business with a lot of liabilities. She has also focused on open communication and engagement in key business operations. |
Goals:
● To support her business ● To ensure high business success with future growth, and development ● To increase productivity and profitability of business with possible strategic options |
Motivation:
● Creating successful business promotions for her business entity ● Good customer satisfaction and demands with enhanced business creativity and design |
Skills:
● Open Communication and engagement ● Collaborative and Participative work functions ● Social Media participation with numerous channels and platforms |
Customer Feedback
In this case, it has been identified that most of Aldi’s valued customers have used both Facebook and Twitter pages encouraging two-way communication with them extensively (Mourtzis et. al. 2018). These have also delivered a successful business platform with high business interaction with valued customers. It can also assess their options regarding brand.
Most of Aldi’s customers have reported that this organization has adopted a promising customer experience management strategy with a range of CX programs during this pandemic. It also helps to prioritize customer feelings with the right actions (Silva et. al. 2018). Most of its customers have also rated five stars to ensure high customer satisfaction, values for money, and quality and freshness of products.
Conclusion
From that upper in-detailed discussion, it can also be concluded that for a business organization, customer experience management (CEM) platform has played a major role with effectiveness and benefits altogether. In one word, it can also be said that a good CEM aspect in a company has helped a lot to boost the level of organizational productivity and profitability of Aldi with a diverse range of positive outcomes and benefits altogether. Apart from that, it has also been identified that both the IDIC and QCI models of CRM have helped a lot to boost the effectiveness of business operations with better customer satisfaction and benefits.
References
5 social media takeaways from Aldi’s #Aldi30thBirthdayParty campaign, (2020). [Online]. Retrieved from: https://yourssincerely.online/2020/10/19/5-key-social-media-takeaways-from-aldis-aldi30thbirthdayparty-campaign/. [Retrieved on 10th December 2022]
Aldi.com.au, (2021), About Aldi, [Online]. Retrieved from: https://corporate.aldi.com.au/en/about-aldi/ [Retrieved on 10th December 2022]
Briesemeister, B. B., & Trebbe, J. (2022). Welcome to the Real World: Neuromarketing for the Stationary Point of Sale to Quantify the Customer Experience. In Neuromarketing in Business (pp. 91-108). Springer, Wiesbaden. Retrieved from: https://link.springer.com/chapter/10.1007/978-3-658-35185-4_8
Daffy, C. (2019). Creating customer loyalty: build lasting loyalty using customer experience management. Kogan Page Publishers. https://books.google.co.in/books?hl=en&lr=&id=yu2ODwAAQBAJ&oi=fnd&pg=PP1&dq=Daffy,+C.+(2019).+Creating+customer+loyalty:+build+lasting+loyalty+using+customer+experience+management.+Kogan+Page+Publishers.+&ots=DlyQzdaNPJ&sig=iyTJ-nj23D4WT3w27fHBhHHL9pA&redir_esc=y#v=onepage&q=Daffy%2C%20C.%20(2019).%20Creating%20customer%20loyalty%3A%20build%20lasting%20loyalty%20using%20customer%20experience%20management.%20Kogan%20Page%20Publishers.&f=false
Evelina, L. W., & Safitri, Y. (2019, August). Customer Experience Bali Natural Beauty Care Through Social Media. In 2019 International Conference on Information Management and Technology (ICIMTech) (Vol. 1, pp. 82-86). IEEE. Retrieved from: https://ieeexplore.ieee.org/abstract/document/8843757/
Karpen, I. O., & Conduit, J. (2020). Engaging in times of COVID-19 and beyond: theorizing customer engagement through different paradigmatic lenses. Journal of Service Management. Retrieved from: https://www.emerald.com/insight/content/doi/10.1108/JOSM-05-2020-0156/full/html
Klapalová, A. (2019). Customer product returns–feedback and knowledge management. Measuring Business Excellence. Retrieved from: https://www.emerald.com/insight/content/doi/10.1108/MBE-11-2018-0099/full/html
Lee, C. S., Yew, L. Y., Chew, P. L., Chee, Y. K., Hiew, Y. T., & Wong, J. P. (2020, July). Information Science-Knowledge Management-HCI-Project Management-CRM Models-Software Processes. In International Conference on Computational Science and Its Applications (pp. 797-811). Springer, Cham. Retrieved from: https://link.springer.com/chapter/10.1007/978-3-030-58817-5_57
Miremadi, A., & Ghanadiof, O. (2021). CRM Competitive Strategy in Financial Institutions. European Journal of Business and Management Research, 6(3), 111-117. Retrieved from: https://www.ejbmr.org/index.php/ejbmr/article/view/867
Mourtzis, D., Vlachou, E., Zogopoulos, V., Gupta, R. K., Belkadi, F., Debbache, A., & Bernard, A. (2018). Customer feedback gathering and management tools for product-service system design. Procedia Cirp, 67, 577-582. Retrieved from: https://www.sciencedirect.com/science/article/pii/S2212827117312106
Nguyen, H. (2021). The implementation process of customer relationship management: case company X. Retrieved from: https://www.theseus.fi/handle/10024/500529
Nicolescu, C. (2022). Approach of Customer Relationship Management as a Managerial Synapse. In Stakeholder Management and Social Responsibility (pp. 203-235). Routledge. Retrieved from: https://www.taylorfrancis.com/chapters/oa-edit/10.4324/9781003217701-8/approach-customer-relationship-management-managerial-synapse-ciprian-nicolescu
Oranusi, I., Victor, O., Wali, K., Mmamel, Z., & Obikeze, C. (2018). Investigating the Effects of Customer Complaints and Feedback Management on Customer Satisfaction in Select Banks in Anambra State, Nigeria. Journal of Marketing and Consumer Research. Retrieved from: https://core.ac.uk/download/pdf/234694464.pdf
Schoeman, A., Bick, G., & Barnardo, C. (2021). Cape union mart: digital transformation and customer experience during a crisis. Emerald Emerging Markets Case Studies. Retrieved from: https://www.emerald.com/insight/content/doi/10.1108/EEMCS-04-2021-0116/full/html?skipTracking=true&utm_source=TrendMD&utm_medium=cpc&utm_campaign=Emerald_Emerging_Markets_Case_Studies_TrendMD_0&WT.mc_id=Emerald_TrendMD_0
Silva, M., Vieira, E., Signoretti, G., Silva, I., Silva, D., & Ferrari, P. (2018). A customer feedback platform for vehicle manufacturing compliant with industry 4.0 vision. Sensors, 18(10), 3298. Retrieved from: https://www.mdpi.com/346236
Taimu, M., Awuzie, B., & Ngowi, A. (2020). Success Factors for Effective Contractor-led Stakeholder Relationship Management: Perspectives from the Botswana Construction Industry. In MATEC Web of Conferences (Vol. 312, p. 02014). EDP Sciences. Retrieved from: https://www.matec-conferences.org/articles/matecconf/abs/2020/08/matecconf_eppm2018_02014/matecconf_eppm2018_02014.html
Wang, X. (2021). Analysis on the Strategy of Improving Customer Service of Hypermarkets. In 5th Asia-Pacific Conference on Economic Research and Management Innovation (ERMI 2021) (pp. 142-146). Atlantis Press. Retrieved from: https://www.atlantis-press.com/article/125952876.pdf
Appendix
Figure 2: Aldi’s Social Media Reviews
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