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Class Slides - CX Strategy, Design and Implementation Differentiating Customers

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22 views

Class Slides - CX Strategy, Design and Implementation Differentiating Customers

Uploaded by

iqra ilyas
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Customer Experience

Strategy

The CX Strategy Design (Part B


Differentiating Customers)
Agenda

Topic Learning Outcomes


Prepare Exercise
Summary
Break
Group activity
Formative assessment briefing
Next steps
Topic Learning Outcomes

• Articulate how to create a customer journey map, identifying


different stages, and key activities, motivations and potential
improvements at each stage

• Identify the key steps in the CX strategy definition

• Critical evaluate successful and unsuccessful CX strategies


across industries
Prepare
Prepare Exercise
What is the benefit the customer will get from each of these product features?

Product feature Customer need / Broader need Additional products / services


benefit
Stream feeding Faster Speed, Other speed-saving
on photocopiers
copying efficiency office equipment:
longer-life ink cartridges,
serving options on
photocopies etc.
Summary
How to create loyal customers: an analytical
framework to build better customer relationships
The CX Strategy design

The marketing strategy


most businesses need to
gain a competitive
advantage today: IDIC,
by Pepper and Rogers
(2017) Source: Peppers and Rogers (2017)
Key stages in CX strategy design - differentiation

Customers differ in two ways:

1. Customers have different needs from the company.

2. Customers have different values to the company.


Needs Differentiation

People don’t want to buy a


quarter-inch drill, they want a
quarter-inch hole!
Levitt (1969, attributed to Leo McGivena)
Needs Differentiation
Needs are why a customer buys

• How customers want to buy may be as important as why they want to buy.

Needs and value are between the company and customer

• What the customer can do for the company.


• What the company can do for the customer.

Different customer needs

• Most businesses serve multiple types of customers, with different needs.


• More than one consumer persona; often many personas for each product
or services

Source: Peppers, D. and Rogers, M., (2017)


Key stages in CX strategy design - differentiation

Needs Behaviours Value

Source: Author’s own based on Peppers and Rogers (2017)


Quiz

Should all customers be treated the same if they have


different value to a company?

NO
Why Yes, or Why No?
Customer Value

Customer
current value long-term value
value

➢ What they buy


➢ What they
buy ➢ Who else they get to
buy
Customer Value

Customer lifetime value (LTV): the present value of the expected future financial contributions
from the customer (customer value) less (minus) the costs required to drive those contributions
(cost of sales/acquisition/retention)

Customer Cost of sales/ Customer


value acquisition/ Lifetime
retention Value
(LTV)
Customer Value Differentiation
Create a predictive plan of action
➢ Invest in acquisition, development and retention accordingly, i.e. do NOT treat
all customers the same.

Source: Chaffey and Ellis-Chadwick (2016)


The customer journey is

“The process the customer goes through,


across all stages and touchpoints with an
organisation, comprising the customer
experience.”

Lemon and Verhoef (2016)


Customer journey mapping

A customer journey map is a visual


representation of the journey a customer goes
through:

a) The stages of their journey


b) The activities / touchpoints undertaken at each
stage
c) Their feelings and needs at each stage
d) Pain points: identification of potential
opportunities for improvement
(userinterviews, n.d.)
Benefits of CJM - Tangible
Documentation of each interaction / activity / touchpoint

✓How and where a customer interacts with or learns about a company.

Clear presentation of status

✓What’s working, what’s not and why it’s not working.

Strategic insights

✓If Instagram is the most common social media platform customers use –
focus on it more.

Actionable tactics

✓Fix broken online links.

Source: Peppers, D. and Rogers, M., (2017)


Benefits of CJM - Intangible
Engagement of key stakeholders across divisions and business units

✓Departments agree on improvements together

Improved absorption of information

✓Easier to see what the status of the customer journey is in a visual map

Forum for breaking down silos

✓Easier for departments to see how their work impacts other departments in the customer
journey

Rationalisation of company, employee and customer needs

✓Everyone prioritises what is best for the company so that they improve the company results

Emotional buy-in through visual storytelling

✓Everyone is more committed to improving the customer experience


Source: Peppers, D. and Rogers, M., (2017)
Quiz – Topic
Is this the correct order of stages in CX strategy design –
differentiation?

Behaviours

NO
Key stages in CX strategy design - Differentiation

Correct Order

Needs Behaviours Value

Source: Author’s own based on Peppers and Rogers (2017)


Quiz – Topic

True or False?

Customers have the same value to a company.

FALSE
Quiz – Topic

True or False?

The goal of differentiating customers is to create a predictive


plan of action based on their value to the company.

TRUE
Quiz – Topic

Tangible benefits of customer journey maps include documentation


of each ______________________________________,
clear presentation of ____________________________,
strategic ______________________________________, and
actionable _____________________________________.

status tactics
insights Interaction / activity / touchpoint
Quiz – Topic

Tangible benefits of customer journey maps include documentation


Interaction / activity / touchpoint
of each ______________________________________,
status
clear presentation of ____________________________,
insights
strategic ______________________________________, and
tactics
actionable _____________________________________.
Quiz – Topic

True or False?

An intangible benefit of a customer journey map is that everyone prioritises


what is best for their department so that they improve their department
results.

FALSE
Break
Group Apply Activity
Activity – Group discuss and present
1. Definition of customer journey map.
2. Explain the benefits of a customer journey map – why
should a company create one?
3. What is the role or purpose of a customer journey map?

Rules:
• Write your answers in plain English – so your grandmother would understand.
• Do not use Google!
• Use class material on the HUB > CXS Forum > Announcements > Week 5 Topic
4 –class material.
• Use e-book Peppers & Rogers (2017).
Formative Assessment

Review Assessment found on the HUB.


Feedback

Daily Pulse Survey for Dr Raewyn Sleeman – Scan QR code to answer 2


questions before you leave
Recap
• Created a customer journey
map with stages,
activities/touchpoints,
motivations, and potential
improvements

• Identified the second step in


the CX strategy (IDIC)
definition - Differentiation

• Evaluated successful and


unsuccessful CX strategies
across industries
Next Steps
Thank you for your
participation

Next steps: Consolidate


• Topic roundup
References
Chaffey, D. and Ellis-Chadwick, F., (2016). Digital Marketing. Strategy,
Implementation and Practice. 6th ed. Harlow: Pearson.

Chaffey, D. and Smith, P.R. (2008). Emarketing Excellence. Planning and


Optimising your Digital Marketing 3rd ed. Oxford: Butterworth-Heinemann

Digital Gov. (2015) digital.gov Available at


https://digital.gov/2015/08/12/journey-mapping-the-customer-experience-a-
usa-gov-case-study/ [Accessed 23/09/2020]

Kotler, P., Armstrong, G., Saunders, J. and Wong, V. (2001). Principles of


Marketing, 7th European Ed. Maidenhead: McGraw Hill.

Jobber, D. & Lancaster, G. (2015) Selling and Sales Management. 10th Ed.
Pearson
References
Levit, T., 1969 The Marketing Mode: Pathways To Corporate Growth.
Michigan: McGraw-Hill

Peppers, D. and Rogers, M., 2017. Managing Customer Experience and


Relationships. 3rd ed. [e-book] New Jersey: Wiley. Available via:
https://online.vitalsource.com/#/books/9781119239819/cfi/6/20!/4/2/2/2/6@0:0

Userinterviews (n.d.). Customer Journey Maps for UX, Product & Design
Teams. [online] Available at: https://www.userinterviews.com/ux-research-
field-guide-chapter/customer-journey-maps [Accessed 2 Nov. 2022].

Watkinson, M., 2013. The Ten Principles Behind Great Customer


Experiences. Harlow: Pearson

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