Improving Customer Experience: Strategy, Metrics & KPIs for H&M

This report provides an in-depth analysis of H&M's customer experience strategy, focusing on enhancing the customer journey through various stages and leveraging digital influence. It examines the customer journey map, detailing design goals, persona determination, customer phases, touchpoint...Read More

CUSTOMER EXPERIENCE
STRATEGY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Customer journey map ...............................................................................................................3
Key digital influence on consumer journey................................................................................5
Customer strategy objectives......................................................................................................7
Metric and key performance index for the enhancement of customer experience strategy........7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Customer experience strategy is the unique approach by the company to develop the best
customer experience in company's product and services. It is also defined as summation of
customer's link between the company's business (Bansal, Burden and Swartout, 2020). This
strategy includes competitive perception, customer's search etc. to enhance the customer's
experience company must need to set their vision and goals to be achieved. H&M fashion
company, company is popular for their good services and product they have been offering their
services to every age group or to any gender. Their aim is to deliver sustainable product and
services to their customer's for their better experience. This report includes the customer journey
map stages to examine the customer's journey, key digital media influence on customer's
journey, customer experience objectives. It further includes the metrics and key performance
indicator for the decision-making process of the company to enhance the customer experience
strategy.
MAIN BODY
Customer journey map
This map tells about the interaction between customer and company's product. It
describes all the phase and activity through which customer goes through and create an
experience about particular phase. This map generally include the touchpoint, persona of the
customer as well as include their frustration (Jain, Aagja and Bagdare, 2017). Due to pandemic
covid-19 impact the fashion industry very badly they are at the verge to shut down their business.
Therefore, companies are offering better services to increase the customer's journey on their
websites to have the better experience in their products. Stages of customer journey map are as
follows-Design Goals:
Creating goal is the first most task for the company as it gives the motivation to achieve.
As it helps the company to determine that customer journey map is able to create tangible impact
for their customer. For that H&M company need to involve all their stakeholders to set a desire
goals (Diebner and et.al 2020). It helps the company to collect the unique attributes about the
customer's journey or to know what are the parts which need to be improved for better

experience of the customer. Company also need to further add the other additional thing to cope
up the impact of covid-19.Determine persona:
Persona is the main strategic tool which defines the activity of customer to company's
services. Through which company got to know about their customers, what they need in their
product and how they come across to company's product. For the H&M company it is important
for them to define their customer's persona first as whom they are going to define the customer
journey as for their specific customer or for their potential customer. After that development of
different persona company can begin with defining customer journey map for the customer
through which they can interact with the company's services and product.Determine phase for the customers:
Each phase describe as a goal oriented for the customer which they achieve throughout
their journey. H&M company need to design goal oriented customer journey rather than their
internal process of the company. After defining persona for the customer company need to
identify the customer's consideration as how they come to know about their brand, through what
sources they got the information.Determine the touchpoint for the customer:
Touchpoint describes the customer's interaction with the company's product at every
phase. It can be defined as customer's first experience to the company as customer see the ad or
portfolio of the company which enable them to visit company's site and through which they have
purchase company's product (Aggarwal and et.al 2021). These are the touchpoint or interaction
between customer na company. This will help the company to create customer journey map so
that customer again visit their company's site.Design the current state:
Mapping the current state will give the idea to the company through which they can
implement changes to improve the customer's experience throughout their journey.
Implementing in each phase can be difficult process but for the company they have to include
touchpoints, channels to format the customer journey map for better experience. Therefore,
H&M company must need to design or implement the changes for their customer as covid-19
also impacted badly it is important for them to develop a better experience for the customer.Design the future state:

After mapping the current state it gives the information about misconception, poor
information which will become an obstacle for the customers. Therefore, it gives the area to
change or implement to the company through which company can easily design effective journey
map for their customer so that they feel connected towards their brands and services.
Key digital influence on consumer journey
Customer journey map helps the company to give visual representation of the customer
with their brands. It describes all the factors that how many time customer interact with the
company's brand. It signifies all the action of the customer throughout their journey with the
company. Digital influence on customer journey explains about the customer's interaction with
the company's services and product through digital medium. As digital technology is emerging
many companies implemented digital technology for the marketing of their products and
services. Digital medium gives the extra range to the companies through which they can develop
more customers towards their product. It involves all the experience of customer with the
company's product and services (Keiningham and et.al 2020). As due to covid-19 it badly
affects the fashion industry therefore companies are trying to give attractive vouchers and offers
so that customer will attract towards their event and make a investment in their product. H&M
company also implemented digital technologies to enhance the experience of their customers
towards their services and product. Digital media gives the extra and relevant information to the
customer about the company's product therefore it enables them to visit their website again and
again and make them to invest in their product and services.
Organisation first need to clearly decide their vision and aim so that it will help them to
fulfil the demands of their customer in their services and product. There are more chances that
company's potential customer visit their website again and also meet them in a person therefore it
is important for the company to track their journey and offer them a better services and product
so that they became loyal with their company for long time (Følstad and Kvale, 2018). Digital
technology improves the services given by the organization. As for the H&M company they have
been using digital technologies across the nation as this technology gives them a huge customer
base before that they have only limited to the stores but now they are operating on digital media
which gives many audiences to them. They have also involved the technology through which
customers are allowed giving recommendation and feedback, or they can also show their

experience with the company's product and services. All these experience are able to help the
company in their product development process or also play a great role in their decision-making
process.
Easy access to the internet customers develops curiosity in them about certain company's
product and services. It also enables them to purchase the company's items. Through customer
journey map company decides their goal and objectives to be achieved by implementing
technologies in their product can definitely meet the demands of the customer in their product
and services (Batra, 2019). Through research persona company can immediately know the
information about their customers by talking with their employees who are in charge of giving
services to that particular customer. It will help the company to know about customer's
experience as when and how they first come across to the company's product. It can be achieved
by using digital technologies. Digital technology has the ability to study the customer's
behaviour towards the company's product it allows the company to send the further notification
to the customer about their new product.
Through social media company can easily create the brand awareness among the
customers. Brand awareness is most important because of this customer come to know about the
company's existence. Social media allows to organize campaigns and event through which
company can target their customers. H&M company also use the social media apps to promote
their items which increases their sales. Through Facebook, Instagram app company influence
customer by showing their product on affordable prize as well as they have been using influencer
to promote their product. It helps them to create a brand awareness of their product and to
connect with the whole global world.
Most of the customer focus on researching about the product before purchasing them. As
they consider other people's review and feedback on particular product which give them idea to
buy or not. It is found that around 90% people trust on the review written by the customers.
H&M company focus on their product's preposition, or they also included social display site to
enhance the trust of customer in their brand. If company does not follow this criteria then it will
become failure to them (Temple, Burkhart and Tassone, 2019, July).
This is the most important stage for the organization, if customer did all the research and
right before purchase if they have changed their mind to purchase then social media gives the
option to the customer to add that particular item in their “add to cart” value for future purchase.

Therefore, H&M company also offer discount and voucher on their product they also announce
of the sale of their item which through which customer attract towards their ad and make
purchase of their item. Using digital media platform develops the social proof of the company's
item or company can proceed with showing real image of their product to earn the trust of
people.
Customer strategy objectives
To keep customer satisfied with the product and services:
Main aim of every organization is their customer always remain connected to them therefore
they need to satisfy their customer with good services also they need to fulfil all their demands
and wants. It is important for the company to ensure their customers are treated well or not for
the productivity of their business (Basari and Shamsudin, 2020). If customer is having a problem
with their services then it is responsibility of the company to resolve their problem as quick as
possible. As for the H&M company their goal is to increase the revenues for their company for
that customer plays an important role to accomplishing their goals. Company can proceed with
conducting a survey through which they can ask the quick an easy question to the customer for
their feedback and recommendation it will help the company to build health customer
relationship also help them to implement changes in their services so that it will satisfy the need
of the customer.
To reduce the customer complaint in company's product and services:
As customer's review plays an important role for the company. Company can measure their
performance so that if there is a need of any changes they can implement it. Feedbacks from the
customer can give the idea to the company to strategically proceed with their company's action.
As companies goal is to reduce the complaint factor by improving services company can lower
the complaints made by the customer (Thakur, 2019). H&M company conduct a research
through which they know about their customer's desire and need which makes them able to
design a product based on their wants so that it will satisfy their needs with their good services
which allow them to give good reviews instead of complaining about the services.
Metric and key performance index for the enhancement of customer experience strategy
All companies focus on developing their brand value for that purpose their customer's
experience in their product plays an important role. To track the customer's journey companies

are using different metrics to measure their experience throughout their journey with the
customers. Due to pandemic fashion industries suffered the most they lost their revenues which
create a negative impact on company's performance. H&M company also suffered because of
covid-19 pandemic therefore they are trying other options to bring back their position again in
their market field. These metrics are net promoter score, customer satisfaction, customer effort
score, retention rate, sales or revenue, churn rate.
Net promoter score(NPS):
It describe the company 's stage at where they are standing in term of customer's services
to their product. This is the most popular strategy is been use by many companies. Net promoter
score is the easiest strategy through which customer can easily give the answer and this will
become easy for the companies to track the information. In short, it measures the loyalty among
the customer's, it simply asks the customer that what thing you like the most and how you
recommended it to your friends and colleagues (Mahmoud, Hinson and Anim, 2018). Through
which customer can give the ratings to the particular product and then company neutralize all the
response to obtain the NPS score. H&M company also uses NPS strategy so that there customer
will make recommendation so that it will be easy for them to analyse the customer's experience.
The NPS score can be obtained by using formula as to company deduct the neutral review and
then eliminating the percentage score of detractors from the percentage score of promoters for
the NPS score.
Customer satisfaction (CSAT):
Main purpose of the company is to examine how their customers feel satisfied in their
product and services. This customer satisfaction strategy helps them to measure these criteria. It
also asks the easy question to the customers like NPS as it ask the customer that how company's
product satisfy your need, as you received a good service or not. It also gives the scale through
which customer can scale their experience. As for the H&M company they also implement this
strategy to know about customer's point of view for their product they have been implement the
review process in which customer are allowed to rate with stars as they like their services, so
they can mark five star with excellent or if their services are not able to satisfy the customer they
can choose poor tag, it will help the company to make innovation in their product. It is a good
way through which company can find what their customer's perception about their brand.
Customer effort score:

Customer effort score is the most common strategy which involves the input from the
user. It gives the effortlessly interaction between customer and company. It also asks easy
question to the customer as how was the company's services today, by giving option as difficult,
not good, excellent so that customer can give their response. This strategy is the newest strategy
which is adapted my many firms (Johny and Mathai, 2017). It is easy to use and able to collect
the response from customers. Through this H&M company can easily know the opinion about
their product from the customer's view. Through this strategy company can easily know their
strength and weakness so that they will make a change for the betterment of their company.
Churn rate:
Churn rate define a how company loses their customers in a given period or how
customer separate them from the company's product and services. It can be seen as a loss in
business value. Therefore, for every company there should be less churn rate for their betterment
otherwise it will fail to earn the revenues and profit. H&M company should also manage their
business effectively so that no churn rate problem occur for them (Gupta and et.al 2020). They
need to implement good strategies in their product and services so that their potential customer
always remain loyal to them or also form the new customer base.
Sales or revenue:
Sales or revenue metric are used by the companies to measure their profitability. As
customer buy their product then it will reflect as a revenue for the company. It will help the
company to know about their performance against their goals and objectives.
Retention rate:
Maintaining retention rate offer maximum positive outcome for the company. It can be
explained as company retain their customer with their good services over a period. This metric
can be easily understood with the churn rate as increasing in retention rate reflect as decreasing
in churn rate. Therefore, company should have to proceed with good implementation of their
services or to increase the quality of their product so that customer remains connected to them.
H&M company also need to offer good services and product to earn the trust of their customer so
that they remain connected for long time.
Key performance index for the company is a tool for measuring the success rate for the
company. It measures how effectively company is achieving their business objectives. Key
performance index can be determined by tracking the sales and revenues of the company. If

company is selling more product and achieving more success than their KPI value is high
through which they can have the idea about their company's annual revenues. H&M company
using key performance index to measure their company's performance, it gives the complete idea
to company how their sales are going what things need to be included for their betterment (Hoyer
and et.al 2020).
CONCLUSION
From the above report it is concluded that customer experience strategy helps the
company to develop their interaction with the customers. It not only allowed customer to use
company's services also allowed them to emotionally connect with the company so that they can
enjoy the future privilege given by the company. Through customer journey map it is examined
that company could define the personas of the customer to decide their effective journey, each
phase has been particularly designed for the customer so that they could easily access to the
company's product and services. As digital media played an important role to help the company
to achieved their goals. Through new technologies company could build the good interference
with the customer. Report also described about the Different metrics and key performance
indicator to enhance the customer experience, therefore all the strategies implemented to serve
the good experience and services to the customer.

REFERENCES
Books and Journals
Aggarwal, A. and et.al 2021. Crafting Customer Experience Strategy.
Bansal, S., Burden, K. and Swartout, B., 2020. Utilities Can Improve Customer Experience to
Meet Growing Customer Expectations. Climate and Energy. 37(3). pp.9-18.
Basari, M.A.M.D. and Shamsudin, M.F., 2020. Does customer satisfaction matters?. Journal of
Undergraduate Social Science and Technology. 2(1).
Batra, M.M., 2019. Customer experience: trends, challenges, and managerial issues. Journal of
Competitiveness Studies. 27(2). pp.138-151.
Diebner, R. and et.al 2020. Adapting customer experience in the time of coronavirus. McKinsey
& Company, pp.1-7.
Følstad, A. and Kvale, K., 2018. Customer journeys: a systematic literature review. Journal of
Service Theory and Practice.
Gupta, S. and et.al 2020. Digital analytics: Modeling for insights and new methods. Journal of
interactive marketing. 51. pp.26-43.
Hoyer, W.D. and et.al 2020. Transforming the customer experience through new
technologies. Journal of Interactive Marketing. 51. pp.57-71.
Jain, R., Aagja, J. and Bagdare, S., 2017. Customer experience–a review and research
agenda. Journal of Service Theory and Practice.
Johny, C.P. and Mathai, P.P., 2017. Customer churn prediction: A survey. International Journal
of Advanced Research in Computer Science. 8(5).
Keiningham, T. and et.al 2020. Customer experience driven business model innovation. Journal
of Business Research. 116. pp.431-440.
Mahmoud, M.A., Hinson, R.E. and Anim, P.A., 2018. Service innovation and customer
satisfaction: the role of customer value creation. European Journal of Innovation
Management.
Temple, J.G., Burkhart, B.J. and Tassone, A.R., 2019, July. Does the Survey Method Affect the
Net Promoter Score?. In International Conference on Applied Human Factors and
Ergonomics (pp. 437-444). Springer, Cham.
Thakur, R., 2019. The moderating role of customer engagement experiences in customer
satisfaction–loyalty relationship. European Journal of Marketing.
OnlineCustomer experience, 2021. [online]. Accessed through<https://www.hotjar.com/customer-
experience/>.