Customer Experience Strategy
Introduction
Samsung is a renowned international origination having it headquarter in Seoul, South Korea. In 2008 the company had a revenue of US$173.4 billion. It the biggest group in South Korea. Out of the total export done by South Koreas, more than 20% is shared by Samsung. Samsung is founded in the year of 1938. It became the main electronic industry in the late 1960. Samsung Electronics is one of the major subsidiaries in the electronic business. It is divided into four different groups named Samsung Electronics Devices, Samsung Electro-Mechanics, Samsun Corning, and Samsung telecommunication and Semiconductor. The primary group of Samsung is Samsung Electronic which provides numerous products such as mobile phones, computers, fax machines, and fiber optical products.
Important of Customer Experience
As the leading brand, Samsung has several customers. Samsung has various groups and from them, some of them are more relevant than others. The category that is called buff is the customers who are the innovators and show high interest in Samsung new mobile phones whenever they come to the market. They are easily attracted by the new technologies used by the company in mobile phones. They are most important to the company because they are less price-sensitive. After that high earners and professionals buy the high-end product of Samsung. However, customer choice varies as per their interest but the key element that is focused on by the company is customer experience (Vivaldigroup, 2021).
Customer experience includes multiple aspects such as the experience customers have with the product and services of the company and the duration of their relationship with the brand. The customer experience is the combination of discovery, innovation, interaction, purchase, and advocacy. Customer perception is one of the imperative aspects of Samsung. Everything the company does is based on enhancing the customer’s experience. Therefore, the factors included in the customer experience are products, sale, message the company use, the product they sell, interworking of company and engineering of product and company services (Morgan, 2017).
CX can help any company to achieve a higher customer base. Delivering a great customer experience is vital for Samsung. The better feedback and reviews companies will receive more reduction in customers complaint and return can be gained. The benefit of offering a great customer experience is an increased customer base, increased customer loyalty, increased satisfaction, word of mouth marketing and recommendation, and positive reviews. For the past several years Samsung has witnessed an increase in adults buying smartphones. If Samsung will offer high-quality and innovative products then it can easily attract customers. Paying more attention to the customer and establishing a strong relationship company can achieve high sales and productivity (Hotjar, 2021).
Customer Journey
Customer’s journey can be defined as the interaction and relationship customers have with the company over time with the help of various channels such as phone, mobile phone, mail, and face to face. Customer’s journey consists of the people what they do what they experience and how they feel about the company and what they expect from the company (Customerjourney, 2015). It is focused on a specific task such as buying a product and customer lifecycle. Customer journey is a most important aspect because by following it company can understand what customers are expecting and make the changes in future accordingly. Samsung also focused on offering an exclusive experience to the customers. To enhance the customer’s experience, it is vital to know the happiness and touchpoint of the customer over time while interacting with the company. The understanding can come by analyzing the journey experience of the customer with the brand and its product.
Personal Creation
Consumer personal is known as the semi-fictional model that is used to show the important traits of a large customer group based on the company’s information and research. The information is gathered through the web, research, and analysis (Cheffey, 2019). In the case of Samsung, there are three distinct personals based on their age, location, and income. Samsung divides their customers based on their geographical areas and creates consumer personals. Samsung targets both Rural and Urban population and offers mobile phones that comes in different range. Samsung launched Samsung Guru for customers who are situated in rural areas. In addition to this Galaxy series for the urban population. Samsung has a various product range to cater the need to different consumer persona. Another consumer persona followed by the Samsung is audience from the age group of 22 to 45 and people from the high-income group (Heartofcodes, 2018).
Age group from 22 to 45 is the major consumer persona of Samsung. All these people are interested in the latest technologies and inventions. They are engaged in new trendy things and Samsung creates high technology-based mobile phones as per their targeted audience.
- Demography: This demographic segment lies between the range of 22 to 45 and people are from the lower middle class and upper-middle class. Samsung offers different products to them that range from 1500 INR to 80000 INR.
- Profile: Student or married and belong to the biggest segment, wants simple features and user-friendly mobile phone, wants to use the phone for every task, intends to talk to friends, colleagues, and family members, want to have access to high-speed internet.
- Motivations for using a Samsung Mobile: Latest technology, Upgraded software, High tech attachments, price, speed, rewards, paybacks
- Goals for using a Samsung Mobile: Access email, social media groups, Mobile application, Loyalty points and
- Pinpoints a Samsung mobile solves: Issues related to the poor internet connectivity
The customer’s persona plays a vital role in the development of the CX strategies. It let the company understand the requirement and expectation of the customer and offer clear customers vision. By creating a consumer persona Samsung can understand what their customers want. In addition to this for effective customer experience, it is vital to know where the consumer belongs to and how the company can serve them. Customer feedback is also a significant factor as it gives information about where the company is lacking and how they can improve customers’ experience more efficient.
Mapping the Customer Journey
The customer’s journey is vital because through this procedure company can interact with their customers and provide a path for mapping customers and the company. Samsung also defined a clear path to reach out to their customers. Here is the list of stages of the customer journey mapping:
- The first stage of the customer journey is where a customer gets to connect with the company. In this stage, customers feel like they need this place to fulfill their requirements.
- Evaluation of the available products and services is the next stage where customer check and analysis the things those are available in the company.
- The third phase that is followed by Samsung is customer acquisition.
- The next stage is the retention stage where customers are given various benefits and offers so they keep connecting to the company.
- The last step is the advocacy stage of the mobile phones.
Omnichannel customer journey
Omnichannel marketing is also known as integrated marketing. It is the marketing strategy that offers an integrated shopping experience to the customers. It consists of providing a seamless experience between the computer, mobile phone, desktop, and brick and mortar. In addition to all these channels, companies can use social media, email marketing, paid advertisement, and SMS. Omnichannel marketing offers a consistent experience and messaging to the customers so they feel connected to the company and keep interacting with them. Omnichannel marketing behaves like the circle around the customers and everything is centralized according to customers only (Jenkins, 2020).
Samsung uses various strategies and approaches to offer a seamless experience to the customers. The most important marketing strategy used by Samsung is promotional strategies. Over the years they have created a quality brand with premium quality products. They are offering high-quality products to the customers and creating a market for themselves by offering a smooth experience to the customers. Samsung is using multiple channels for the marketing of mobile phones. Few of them ate social media, direct message, and word of mouth. The other useful strategy faced by Samsung is product characteristics. Through vаrious channels, customers get to know about the various products and their characteristics. In the marketplace, customers can easily find lots of the same products customers must have access to different products that can change their minds. Samsung uses various mobile marketing techniques to do digital marketing of their smartphones. In addition to this, the company also promotes products and services by using various modes such as advertisement, TV commercials, the internet, and social media platforms. Here is the list of different paths that are followed by Samsung to offer a seamless experience to the customers:
- They put their relationship with the customers as a priority and make sure each one of their customers is satisfied with their services.
- They understand buyers’ and customer’s journeys.
- They research to understand the customer’s shopping behavior online and offline.
- They also have made a proper channel through which they can identify and manage everything between them and their customers.
- They make sure that all their customers have a healthy relationship with the company and company fulfill their all needs.
CX performance metrics
CX performance metrics are used to identify and measure the value of CX. Here is the loss of five metrics that can be used to measure customer experience:
- Net promoter score
- Customer Satisfaction Score
- Overall star rating
- Review insight
- Churn Rate
Net promoter score can be determined by asking questions about the business. For instance, questions like how likely are you to recommend our business to other people. Customers can select the answer from the given range. Customers can be put down in different segments based on their responses such as 0-6 detractors, 7-8 passive, and 9-10 promoters. The score can be calculated by subtracting the percentage of the detractors from the percentage of promoters. Few advantages of using these metrics to calculate CX are easy for customers to identify potential promoters for business and the higher score of the calculation defines the more revenue (Verhoef, et al., 2009).
Customer satisfaction scores us another analysis aspect. It tracks how customers feel about the product and services of the company. Questions like how would you rate the overall service and product you received? The customer’s satisfaction score can be calculated by diving the number of positive responses and the number of total responses. The advantages of using this method understand the customers throughout the customer journey, easy-to-understand the method and rating is the variable company can use different aspects to measure the satisfaction level such as points, emojis, etc.
Overall star rating can be seen on the google review tab. The rating is given on a scale of 1 to 5 and 1 defines the minimum and five signifies the maximum rating by the customers. This scale easily lets the customer understand what the company wants from them and it also helps the company to determine the quality of services and products they care offеring to their customers. The advantages of using the star rating method are easy to track, star rating gives information about revenue generation and low rating can help companies identify CX problems (Gupta & Zeithaml, 2006).
Review insight can help the company to understand overall customer sentiments and their needs. Sometimes it becomes very difficult for the company to understand where they are lacking. In those cases, review insight can help the company use a different platform and do customer review analysis to understand the problem. The advantages of the review insight are it segregate the unstructured data and provide useful information, get feedback on specific areas, measures data of the different location to measure CX value. Churn rate is the rate at what customer stop doing business with the organization. For instance, one company has 200 customers but after a certain point only 180 customers are doing business with the company, and the rest of them leave it. Churn rate can help companies save time and money, identify the characteristics of the customers that leave, and understand the problem of the business (Nallapaneni, 2021).
In the case of Samsung, the mobile phone market customer satisfaction score and net promoter score are most important and can be used to enhance the customer experience. In the case of mobile phones, customers must promote the device after using it otherwise no one would like to buy it. If Samsung would have more customers as promoters, then it directly affects the revenue and sales of the mobile phones. It directly helps the company understand how many customers want to promote the company products and who is willing to refer them to their friends and family. Customer satisfaction score will let Samsung understand where their product is lacking and what changes they can make to make it more useful and effective.
CX processes in different industries
CX process followed by Samsung is based on the efficiency of the company. Critical success factors are vital for any organization and if a company highlight and identifies the critical success factors then only it can achieve success in the projects. The CX process of Oracle is based on retention, acquisition, and efficiency (Oracle, 2015). However, few factors are used by Samsung and oracle both. The critical success factors are divided into five categories. The first step is a strategic focus. Firstly, the company establishes the objective and operations that Samsung mobile company wants to achieve. They do analyses of their competitors and establish the objectives they want to achieve. The second phase is people (Teleperformance, 2021).
People means they focus on their employees, their learning, and their development. They understand which employee can do better in what situation. Mobile companies have to build a robust environment where their employees can learn and develop themselves and offer high-tech products to the customers. The third phase is Operations. They define the processes and make the efficient teams complete the operations. Usually, the mobile company randomly selects the employees and makes the team but Samsung follows a strategic process to build the team for a specific task. The next phase is marketing. This is the vital phase because customers must know what products they are getting and what are benefits they can get from these products. The last phase is finance. In this phase, specific resources, assets, and equipment would be assigned to the projects.
Conclusion
To conclude It is important to follow the efficient CX strategies to improve the customer experiences Samsung has been using various strategies for the past several years and they have made them very impactful. Samsung mobiles CX strategies positively impact the customers and play a vital role in customers’ experience. With the use of advanced technologies, Samsung mobile lets the company stand out and attract more and more customers. By offering high-end products and high-quality services Samsung built its reputation in the market and attached with the customers. Due to the quality of products services more and more customers are connecting with the company day by day. In the future also the company is focused on innovations and techniques to offer quality products to their loyal customers.
References
Cheffey, D., 2019. Customers Persona. [Online]
Available at: https://www.davechaffey.com/digital-marketing-glossary/customer-persona/
[Accessed 13 May 2021].
Customerjourney, 2015. What is Customer Journey?. [Online]
Available at: https://customerjourney.uk.com/customer-journey/what-is-customer-journey/
[Accessed 13 May 2021].
Gupta, S. & Zeithaml, V., 2006. Customer Metrics and Their Impact on Financial Performance. Marketing Science, 25(6), pp. 551-765.
Heartofcodes, 2018. Brand Positioning of Samsung Mobile | Analyzing the Brand. [Online]
Available at: http://heartofcodes.com/brand-positioning-of-samsung/
[Accessed 13 May 2021].
Hotjar, 2021. Understanding customer experience. [Online]
Available at: https://www.hotjar.com/customer-experience/#:~:text=The%20benefits%20of%20delivering%20a%20great%20CX%20include%3A,service%20industries%20can%20gain%20recommendations%20and%20reduce%20complaints.
[Accessed 13 May 2021].
Jenkins, J., 2020. What Is Omnichannel Marketing? | Differences Between Omnichannel and Multichannel Marketing. [Online]
Available at: https://www.klaviyo.com/blog/what-is-omnichannel-marketing
[Accessed 13 May 2021].
Morgan, B., 2017. What Is Customer Experience?. [Online]
Available at: https://www.forbes.com/sites/blakemorgan/2017/04/20/what-is-customer-experience-2/?sh=7d986a170c2b
[Accessed 12 May 2021].
Nallapaneni, D., 2021. 5 common CX metrics: What they measure and where they fall short. [Online]
Available at: https://birdeye.com/blog/5-common-cx-metrics-what-they-measure-and-where-they-fall-short/
[Accessed 13 May 2021].
Oracle, 2015. Customer Experience (CX) Metrics and Key Performance Indicators, s.l.: An Oracle White Paper.
Teleperformance, 2021. Samsung: An Effective Formula for Continuous CX Success. [Online]
Available at: https://teleperformance.com/en-us/insights/case-studies/case-study-samsung-an-effective-formula-for-continuous-cx-success
[Accessed 13 May 2021].
Verhoef, P. C. et al., 2009. Customer Experience Creation: Determinants, Dynamics and Management Strategies. Journal of Retailing, pp. 31-41.
Vivaldigroup, 2021. Creating A Mobile Customer Experience To Rival Apple. [Online]
Available at: https://vivaldigroup.com/en/works/samsung/
[Accessed 13 May 2021].
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