MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample
Customer experience (CX) strategy is found to be a plan that can help organisations to provide successful positive experiences to each of the customer’s touchpoints along with helping to provide them a purposeful customer journey with their shopping experiences.
In this context, the following report will focus on the importance of customer experience along with consumer persona creation while mapping a customer journey extensively focused on Samsung. Apart from this, the relevance of omnichannel marketing and the CX performance metrics will be analysed while evaluating the entire processing in different industries as well.
1. Importance of customer experience
Customer experience is found to be a process of sustained growth in the marketplace with an efficient customer experience.
There will be a positive brand image of an organisation, which will help them to promote their loyalty along with retaining maximum of the customers towards a brand (Adam et al. 2021).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample
Figure 1: Importance of customer experience
(Source: Smart Insights, 2020)
From the analysis of Forbes, it has been identified that companies with a clear mindset of customer experience can get 4% – 8% higher revenue from the other companies in the same industry (Morgan, 2019).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample
A positive experience, according to 73% of shoppers, is important in determining their customer loyalty; moreover, 77 % claim that unsatisfactory customer experiences lower their level of satisfaction (Morgan, 2019).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample Thus, from the understanding, it is clear that customer experience does have significant importance in businesses to have successful operations.
In the case of Samsung, it has been identified that the company has been sustaining and having significant growth from several years in the existing industry and marketplace. The focus of the company towards CX is immense due to which, the brand value of the corporation is reportedly up to $45.5 billion (Mirror Meister, 2021).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample Moreover, 76.5 million phones were sold by Samsung in the initial quarters of 2021; whereas, Apple sold around 52.4 million devices as reflected in the figure below (Mirror Meister, 2021).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample
Figure 2: Samsung vs. Apple sales
(Source: Mirror Meister, 2021)
Moreover, from the organisational website of Samsung, it has been found that the organisation is implementing digital transformation initiatives, which are helping the company to operate successfully with long-standing efficiencies in managing and enhancing customer journey (Samsung, 2020). http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment SampleDigital transformation of Samsung has been providing a truly personal experience to its potential customers, which can offer them an appropriate solution to their challenges and each single interaction.
2. Consumer persona creation
Consumer persona is a detailed representation of a core customer through which the market research and target segmentation can be done by an organisation. (Kennedy et al. 2019).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample With respect to that, the role of consumer persona in developing effective CX strategy is immense, as it helps in acknowledging important information about the market and potential buyers while getting a visual representation, which supports the brands to understand their eventual needs, desire and requirement positively (Gilboa et al. 2019).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample
A key consumer persona for Samsung is displayed below in tabulated form for enhanced visual representation.
|Demographics and story||Name: Vivian Lively
Annual income: $27000
Vivian loves to travel and share her views about the places or the products she uses. She has huge followers on social media accounts. She uses her phone to record everything, thus she wants it to be premium quality.
|Profile||● Drop out student from university
● Loves beauty products and travelling
● Social media influencer
|Motivations for using a Samsung mobile||● She prefers a phone having great quality camera and battery life
● She is attractive towards latest phone models and features
● Wants to get a personalised experiences during her purchase
|Goals for using a Samsung||● Innovative models with features
● Camera quality
● Storage capability
|Painpoints a Samsung mobile solves||● Storage can be expandable
● Improved Octa Core processors
● High quality picture with portrait and night mode availability
Table 1: Consumer persona
3. Mapping the customer journey
Customer journey refers to a part where consumers can interact with the brand or the services. In this respect, the importance of customer journey in CX strategy is found to be significant, as it identifies the painpoints, which can influence a customer along with the marketing decisions (Kokins et al. 2021).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample With an efficient understanding of customer journey, a brand can be able to effectively connect with the customer at the right time with appropriate services and channels.
Mapping of the customer journey has been displayed below referring to the consumer persona created in the above section.
|Stages of journey||In the first stage of the journey, the client will acknowledge the product along with identifying the reason to invest in the product while visiting the website of Samsung for researching.|
|Activities||During this second stage of activities, the consumer will invest time on researching about the product they are referring to buy along with getting opinion from others as well while visiting physical stores and talking with friends and classmates about a specific model.|
|Feelings and needs||In the third stage, the client will understand the needs and requirements as referring to Samsung phones. She can acknowledge the interesting fact about budget friendly quality mobile phones along with best offers, which might satisfy her feelings and needs.|
|Potential opportunity for improvement||The potential area of improvement will be an increased quality centric approach along with price centric while considering the aspect of loyalty.|
Table 2: Customer mapping journey
4. Omnichannel marketing
Omnichannel marketing is an integration process through which various channels of the organisation can be utilised in order to interact with customers along with improving their brand experience effectively (Palazón et al. 2020). http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment SampleThe importance of omnichannel in CX strategies is extensive, as through omnichannel marketing, the organisation can be able to improve their availability in the market along with driving their sales while integrating digital touchpoints that can help in customised interaction with potential customers.
Figure 3: Omnichannel marketing
(Source: Jessica, 2022)
It has been identified that omnichannel marketing strategy has greater contribution in customer interaction and customisation, as 90% of retail businesses are having a seamless business success with customer experiences (Zeng Skovhøj, 2022).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample Apart from this, 80% of consumers prefer omnichannel strategies due to better communication experience and there has been a 50% higher frequency in purchase with this marketing strategy (Zeng Skovhøj, 2022).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample
Figure 4: Customer retention rate with omnichannel marketing strategy
(Source: Zeng Skovhøj, 2022)
While concerning the scenario of Samsung, the brand has found to be having an “out of the box marketing”, which is increasing their sense of interaction and customisation positively, due to which the company has seen a 20% increase in total customer satisfaction (91 Mobiles, 2020).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample
Figure 5: Popularity of Samsung among its other competitors
(Source: 91 Mobiles, 2020)
Samsung has very good sense of corporate social responsibility (CSR), as their “PizzAut” application created by Samsung Italy becomes a very meaningful project for those people who are suffering from autism (Digital agency network, 2022).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample Apart from this, in terms of social media marketing strategy, Samsung expended $10 million on ads on Facebook, which displayed their higher effectiveness in marketing and understanding customer’s viewpoints (Ryancohn, 2022).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample
Figure 6: Samsung’s ads on Facebook
(Source: Devpas, 2022)
The company’s physical retail outlets are fairly modern, and they are rich in omnichannel experiences while utilising “Live Virtual Assistants” to bridge the gap between the online and offline thing after Covid-19 pandemic (Samsung, 2022).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample Apart from this, “Samsung Pay” has also been incorporated in the mobile phones for an effortless customer experience. From the above evaluation, it can be stated that Samsung needs to be more attentive towards their marketing prospects with increased focus on “word-of-mouth” and “website visibility”.
Hence, from the identification and analysis, even though there are few areas of marketing, which need attention, Samsung is found to be seamless with offering great customer experiences to its customers along with focusing on innovations and CSR respectively. To support the statements, it has been identified that in 2020, 58.1% of users indicated being pleased with Samsung, which is relatively up from 48.5% to the prior year (91 Mobiles, 2020).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample
5. CX performance metrics
CX performance metrics play a very important role in a business as it allows the brand to track and measure the effective information regarding customer experience while using their respective products and models (Rallis et al. 2022).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample Moreover, in the identification and analysis, the major four performance metrics have been identified including “Net promoter score” (NPS), “Customer satisfaction” (CSAT), “Retention rate” and “Churn rate” (Markoulidakis et al. 2020). http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample
Net promoter score (NPS)
Figure 7: Visual representation of NPS
(Source: Freepik, 2022)
NPS is a widely used trick that can help in understanding the customer loyalty, their enthusiasm and satisfaction regarding the products by calculating and asking questions to the customers on a scale of 0 to 10 (Vochin et al. 2020). http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment SampleNPS is fast, simple and very easy for most of the companies to conduct; moreover, it is open for feedback that allows companies to understand about their respective products along with helping to measure the word-of-mouth marketing strategy.
Customer satisfaction (CSAT)
Figure 8: Visual representation of CSAT
(Source: Shutterstock, 2022)
CSAT is also another form of CX performance metrics, which helps in understanding the happiness of consumers in terms of product or services. Through these metrics, brands can get the scope of interacting with a customer with a satisfaction survey, which can be scored on a scale of 1-5 (Amer and Abdulwahhab, 2020).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample CSAT can reflect a highly understandable prospect for the brand in order to understand and measure the drawbacks, which are restricting the consumer to be connected with the brand and get engaged effectively.
In terms of churn rate, through this, the brand can be able to acknowledge how many consumers have stopped using their products and services while generalising the total loss of customers along with understanding the percentage as well (Li et al. 2021). http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment SampleSupported by the effective utilisation of this metrics, organisations can be able to get clarity of the business quality along with identifying where they are going wrong along with easily calculating their future step for preventing any further challenges.
Customer retention rate is the way through, which brand can measure the customer over the specific period along with understanding the churn rate as well. Through effective retention rate metrics, the brand can be able to acquire new customers along with spending less time on marketing while improving their brand image as well as standing out from the rivals in the same industry (Peng et al. 2019).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample
Furthermore, concerning the case of Samsung, it can be stated that “churn rate” along with “CSAT” would improve consumer relation management by offering premium experiences, along with understanding the market complications effectively. Supported by churn rate, Samsung will be able understand the lights of their products performance while acknowledging customer loyalty alongside. Apart from this, there will be a scope for Samsung to improve its current customer satisfaction rate, which has been displayed above with the help of a survey by CSAT metrics.
6. CX processes in different industries
In terms of determining the CX processes in different industries, CX Critical Success Factors
(CSFs) has been undertaken successfully to compare Samsung and Tesco respectively. Among the five factors are “commitment to put customers first”, “measurement”, “CX leadership”, “empowerment” and “momentum”.
Commitment to put customers first
Samsung is committed to ensuring building trust with its diverse participants, which also include consumers and other communities. Samsung proceeds to educate its staff and run monitoring platforms practising equitable and fair business operations (Samsung, 2022).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample
All of these approaches towards customers are reflecting fruitful results as the current customer satisfaction is accounted to be 81% (Priday, 2021). On the other hand, each of Tesco’s activities revolves around their customer base, which is helping the company to improve their consumer satisfaction level, as it has seen a growth of 4.5% respectively (Tesco, 2022).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample
In terms of measurement, both of the organisations have found to be offering CX loyalty programmes to its potential customers, which are the reason behind both the corporation’s success. Concerning Samsung, they have “Samsung Smart Club” with membership tiers and with this, customers can access certain perks on their next purchase from the “Samsung Exclusive Channel” (Samsung, 2022).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample In comparison to Tesco, their “Tesco Clubcard” is also winning over customers, as there have been 20 million families who have signed up for Clubcard, with 6.6 million just using the app on a routine basis (Hegarty, 2021).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample
CX leadership refers to the overall leadership that are influencing the organisational management and operation respectively. In this relation, the leadership of Samsung has been found to be hybrid with a combination of Japanese and American approaches (Kim, 2019).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample
Moreover, it is positively allowing the business to enlighten their customers with efficient and innovative services, whereas, Tesco has democratic leadership style (Sunny and Salathiyan, 2022). Through this leadership approach of Tesco, the company is being able to train their employees in terms of improving their CX. Moreover, due to improved leadership and extensive focus on CX the workplace engagement of Samsung is found to be 69% positive while, 75% positive at Tesco (Comparably, 2022).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample
Empowering employees is one of the most key aspects to improving customer experience strategy of an organisation. In the case of Samsung, it has been analysed that 77% of employee reviews are positive while perks and competition are referred to be scored “B” (Comparably, 2022). http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment SampleMoreover, Tesco has 83% positive reviews by employees while achieving 59/100 score in perks and benefits (Comparably, 2022). Due to the extensive outlook on empowering employees Samsung employees keep on increasing, which is currently accumulated as 267,967 worldwide (Laricchia, 2022).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample On the other hand, Tesco has approximately 354,744 employees (Bedford, 2022).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample
Getting a few quick successes allows the team to build trust and confidence. 2022 appears to have begun on a brighter note for both Samsung and Tesco. The company is optimistic about what lies ahead. In March, Samsung introduced five “Galaxy A series” devices (Sharma, 2022).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample Tesco, on the other side, continues to dominate the “Grocer Gold Awards 2022” with 8 awards (Holmes, 2022).http://MSc Management CUSTOMER EXPERIENCE STRATEGY Assignment Sample
From the overall understanding, it can be concluded that CX strategy plays an important role to sustain effectively along with acquiring a successful brand image.
From analysis, the organisation has been found to be inclined towards innovation aspects, which reflects their focus on sustained growth while being productive with their approach in offering best experiences to customers. However, Samsung needs to improve their marketing with the help of word of mouth and website visibility. Undoubtedly, the consumer persona and customer-mapping journey has allowed a brief descriptive analysis about Samsung; moreover, the relevance of omnichannel marketing has been justified effectively.
Furthermore, with the help of CX critical success factors it has been identified that both the brand Samsung and Tesco has a very strong customer experience offering with a sustained growth in the marketplace.
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