This report discusses the importance of understanding customer needs and preferences in the hospitality sector, factors affecting consumer engagement, customer journey mapping, and the impact of digital technology in the service sector. It also includes a case study on WizzAir, an airline service company.
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MANAGING CUSTOMER EXPERIENCE 1
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TABLE OF CONTENTS INTRODUCTION...........................................................................................................................3 LO 1.................................................................................................................................................3 P1: Need of understanding the needs, preferences and wants of targeted segmentation of customers in hospitality sector.....................................................................................................3 P2: Factors which affect consumers engagements in the service sector.....................................4 LO 2.................................................................................................................................................5 P3: Customer journey map..........................................................................................................5 P4: Touch-points from the customers experience create opportunities for the hospitality organisation..................................................................................................................................8 LO 3.................................................................................................................................................9 P5: Implementing digital technology in service sector influence the customer for retaining and acquisition....................................................................................................................................9 LO 4...............................................................................................................................................10 P6: Strategies for customer services..........................................................................................10 P7: Customer service strategies create and develop experiences of consumers in a particular manner which meets the requirements of the buyer and business standards.............................12 CONCLUSION..............................................................................................................................12 REFERENCES..............................................................................................................................14 2
INTRODUCTION Managing customer experience is defined as the processes which are used by the businesses to track, organise and oversee all the interactions, which meets the requirements of the customers. Strategies for the customer experiences help the organisation for providing better services and this helps to achieve the goal off business. This report discusses the consumer satisfaction and there experience in the service sector. WizzAir Holing Plc is Airline Service Company established in 2003 and WizzAir UK (launched in 2018) is the subsidiary of it. Company’s headquarter is located at Budapest and Hungary, Jozsef Varadi is the CEO of the company. Its fleet size is 120 including its subsidiaries which transports to 150 destinations. WizzAir provides the low cost ticket prices to its customers with quality services and facilities in their flights. This report included, understanding of the customer needs, the factors which affects the customers engagement. Also, discusses the customer experience map along with the touch- points during the consumer life cycle. Further, it has strategies for customer experiences and recommendations for improving the services and creating opportunities for the business. LO 1 P1: Need of understanding the needs, preferences and wants of targeted segmentation of customers in hospitality sector. Every business gives priority to understand the needs of the consumers so that they can plan their product according to the requirement of the people. So this is the most important thing in the service industry to gain the knowledge about the needs of the buyer. As they get to know about the needs of the consumers it helps them to manage and control over the products and services which are currently provided by them. Expectations of the customer can be vary but this is major aspect having the idea about targeted segmentation of the consumers that what they require and expect from the company (Bharwani and Jauhari, 2017). This helps the business to drive the purchasing decision of the buyer. Preferences of the consumers included their likes, dislikes, expectations and motivations so gaining the idea about their preference help the company to attract the consumers and potential buyer as well. Collecting the requirement and preferences of the consumers increases the chance of the selection by the target customer. Also, company can make changes according to the demands of the consumers. This enhances the efficiency of the companyintermsofitsoperations,marketing,sales,productionandmanagement 3
(Kandampully, Zhang and Jaakkola, 2018). A business emphasises on customer’s requirements and preferences give them benefits to take the competitive advantage in market. Company focus on gathering the data about the consumer’s needs, wants and preferences provides the additional values to the business, as they will be able to meets their requirements. So this impact on meeting the customers satisfaction which helps the company earn profits, also it generates higher revenue than the previous years. As if the company gives the priority to the consumer needs, wants, preferences and expectations this will lead them to possess the value in market and it gains the prestige in market. WizzAir continue inspect or track the customer’s needs and demands so that they can achieve their target. As they get to know the insight knowledge about the preferences of the consumers, this leads them to global expansions of their brand and provides their services and facilities to the customers cross worldwide (Dewnarain, Ramkissoon and Mavondo, 2019). They improve the quality of their services and in future it helps to manage the change and assume the needs of preferable changes which are required from the business perspectives. Also, acquiring the details about the consumers expectation and needs help the company to manage better customer experience, so the retention of the customer is maintained. P2: Factors which affect consumers engagements in the service sector. Consumer is the end user of the products and services offered by the company. So their engagement with the business is most important and it is influenced by many factors. These factors affect customers buying decision, so it should be in favour of the company (Chauhan and Manhas, 2017). Such factors are explained as Personal factors: Consumers buying decision depends on the some personal factors which are related to the customers like life cycle stage and age, occupation, economic condition, life style, etc. These factors are motivates the buyer getting engage with the brand, before and after purchase as well. Social factors: Customer involvement with the service organisation is also influenced by the social factors like they have referrals from the family, friends and subordinates. As they experience thee services for the company and they feel good they motivate other to plan for purchasing of products and services (Lashley, 2018). Also, role and status is major aspect to be considered because consumers status and role in society impacts the customer engagements with particular company. 4
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Cultural factors: The fashion trend, culture, sub culture, social class, etc. affects the buyers’ engagements with the products and services. As the society plays an important role in the consumers mind and influence the engagement with the brand (Palmer and Bejou, 2016). It supports to the values, tradition and customs, religion etc. Social class also important, it describes the customer’s class with its income, so companies must consider these factors. Psychological factors: Consumers engagement with the company’s product and services, psychological factors influenced the customers mind strongly for making their buying decisions. Motivation, it defines the motive of the buyer for their purchasing the products and services so it is the internal force which makes them to choose the particular brand. Perception, consumer gives the look around him and senses the situation of the world and takes the decision for the purchase according to it (Martínez and Nishiyama, 2019). Attitude and belief affect majorly because thee customer have their own trust and attitude towards the company from its previous experience and also they listen from the people and make decision to buy the product. All these elements drive the consumer’s engagement. Customers engagement with the company’s product and service affected by the pricing, quality of products, service quality, packaging, branding, and reputation of the company in market. WizzAir has the qualities to manage the involvement of the consumers with them, as they analyse the factors which can affect purchasing decision of the buyer. Also, they maintain their pre and post booking relationships with their customers. LO 2 P3: Customer journey map. Customer experience map helps to visualise the interaction between the company and buyer. It gives necessary knowledge about the factors which influences buyers purchasing decision, customer’s retention, it helps to know how to target potential customers. Also, it helps to evaluate the market condition and gain the competitive advantage. Creating the customer journey map makes easier to identify the customers demand and adopting the required changes in the current services and facilities (Batra, 2017). Developing the customer experience map by defining some points Setting objectives clearly for map First of all it is necessary to identify the requirement and need of creating the map. Also, it helps to identify the target segment of the customer. 5
Defining personas and goals Secondly, company have to conduct research which help them to gain the actual customers, they can also gather the feedbacks from the customer (Bascur, Rusu and Quiñones, 2018). It gives the idea about preparing a proper questionnaire for the consumer in which they can ask for rating the services, food, quality, price and customers touch-points. Identifying customer’s personas There are different personas of consumers, during the interaction with the company and identification of these personas will narrow the scope into one or two things to evaluate the customer experience. Listing touch-points Customer experience map help to evaluate the touch points of the consumers from the pre order to post order of the purchase. These points affects these consumers mindset, also it decides that the customer will choose the same brand again or not. Resources required managing change Company can identify which resources are needed for managing the change in their products and services (Aichner and Gruber, 2017). So it helps to satisfy the buyers. Make important change According to the feedbacks from the consumers, reviews and their suggestions, company can adopt the necessary change in their products and services. Customer journey map for WizzAir airline company. Customer Experience Map Stage 1Stage 2Stage 3Stage 4Stage 5 Consumers feelings and thoughts Plan to book tickets Next, consumer find othersources tobookthe tickets. Ascustomer likethe productsand services along with the range offacilities providedby the company. Onboarding, customer viewsthe welcoming criteria of the staffandthe natureofthe crew After boarding, their feeling abouttheir journeyis evaluated on the basis oftheir 6
members duringtheir journey. remarksor their suggestions. Consumers actions View different websites. Findthe alternatives. Theymake thebooking (Kranzbühler, Kleijnenand Verlegh, 2019). Customer takeaction accordingto itslikeor dislikesthe services. As they can reviewthe servicesor givethe scaling form1to 10. Customers submit their feedbacks onlineand offline,so theycan make changesin their services and facilities. Consumers touch- points Likethe company pageor websitesby seeingthe pictureand thegiven information. Make comparison likeservices, facilities, prices, timing etc. Astheyfin theeasyand secured payment gateway,and many options giventothe consumers which can be chosebythe Well behaved staff,offer food,serving criteria, treating behaviour etc. Are acknowledged bythe customerand Customer can tick on thetouch- points given inthe review bookor alsothey cansubmit their touch- 7
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customer accordingto its conveniences. thatisthe touch-points for them. pointslike services, behaviour of staff, etc. Proposed changes ---Iftheyhave anyproblem theycan complaint and give suggestionto doin particular manner which is expected by the customer. Customer cangive feedbacks and proposed the necessary changes which shouldbe considered bythe company in their present products and services (Rossmann, Wilkeand Stei, 2017). P4:Touch-pointsfromthecustomersexperiencecreateopportunitiesforthehospitality organisation. Customerstouch-pointsarethosepointswherethecustomersmindsetaffectedfrom the company’s product and services. Touch-points are counted from the pre-purchase and post- purchase by the consumers (Simarmata and et.al., 2017). So this helps the company to improve in their products and services. As the customer view the websites and make booking for the 8
travel, so it is possible that customer is affected by the pictures available on the websites. Information about the company’s product, services, prices and previously submitted reviews and feedbacks by other consumers. So this affects the customer’s mentality. Next, on boarding customers influenced by the welcoming criteria, and treating behaviour of the staff members to its customers. Services and facilities they offer during the journey. Also, the post-purchase included the feedback calls from the company and customer can review its journey and its experience. All these things help to know the company about their lacking and current positions. This creates several opportunities for the company. WizzAir can evaluate the proposed changes and adopt the particular changes which are necessary to attract the public (Weinstein, 2016). As they can find the customers touch-points they can provide better services and facilities along with best quality. Also, they can make the changes in the costing like they can low the fare prices, and give them discounts to the customer. So they can prepare the strategies according to the requirements and adopting them in regular way. Low cost productivity and generating high revenue. It motivates the company for their global expansion. It helps them to take competitive advantage in market. LO 3 P5: Implementing digital technology in service sector influence the customer for retaining and acquisition. In today’s era of technology advancements, businesses have shifted on the digital platform. As the technology innovation help the businesses to grab the opportunities in the market and it helps to increase in their reach towards potential buyers. Companies are more concerned for adopting technology at their workplaces. In service industry it proves to be very beneficial in terms of taking competitive advantage. Along with these points, businesses get to know about their image inmindofconsumers(Taneja,2017).Asconsumersgivesthereviewsonline,likeon Company’s FaceBook page, Company Website along with payment options, Blog, Instagram page etc. This helps to gather the opinions of the previous customers and current travellers though particular brand. WizzAir has adopted the digital technology for the sake of their business so this help them to retain their customers, covers the potential market and acquire new customer groups. Customer who booked in their flights and travel through it, after their journey customers asked to submit the feedbacks. Also they can post their opinion on the social media. So this helps them to 9
know the company about the views of the particular customer. This help in getting knowledge about their expectations and demands. Next, company can modify their services and facilities and manage available resources to them. If the flights have the WIFI services, TV, audio and video players, etc these things make their journey soothing and exciting. Suppose customer posted positive review about the flight, so their family, friends and known will prefer this fleet rather than other. So, it is important from the business perspective to use the digital platform for spreading the business. It helps to earn more profit and company can think about expansion at global level. Customer relationship management (CRM) is easier through the digital technology because it encourages the customers to choose the particular brand if they provide their convenient facilities to the customers (Goodman, 2019). Customers retaining is dependents on the necessary action taken by the company which are suggested by the customer through the feedbacks, reviews, surveys etc. Acquisition of potential buyers is dependents on the registered feedbacks by the previous customers, they can make their purchase decision by viewing these reviews and opinions and analysing the company’s seriousness towards the customers’ expectations. LO 4 P6: Strategies for customer services. Companies try to improve the quality of the products and services which are provided to the customers to gain the competitive advantage. In service industry, it is most important to give better and qualitative services and facilities a low cost to the customers. So it builds customers loyaltyandretentionalongwithnewacquisitionoftargetcustomergroups.Companies understand the difference between the customer satisfaction and exceptional performance, are abletomaintaintherelationshipsbetweencustomerandbrand.Theyimplementsome approaches to gain excellence in customer services, thee strategies are explained as Know the consumer Knowing the customer is major thing, because this identification gives the idea who is the target segment. This helps to set the things according to customer group (Taneja,2017).It helps the staff members that how they can treat their customer. Understanding the preferences of consumers 10
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Analysing the demands and requirements of the customer sis most important. As the company should have knowledge about the expectations of their customers. If they fail to fulfil their demands then they might loss the customer loyalty. So they prepare strategy to get insight information what are the requirements of the buyers, like they want low cost products, better quality, time saving, etc. Employee expectations Along with understanding the customer’s expectations, it is necessary to know the employees preferences or expectations from the company (Somsen and et.al., 2019). If the staff members are satisfied with their salaries, incentives, appreciation, additional benefits like health security, job security etc. Then they will perform better. Training and development of staff Company have to arrange training and development programs for the employees. It helps to improve their skills in communication, technical, interpersonal, working efficiency. So they do their best and it leads to customer satisfaction. Performance management Employees performance track and recorded by the team leaders so that they can correct them when they get out track. Also, this helps to improve in their quality of the services they gives to their customers. Performance management of the staff is important at workplace; it can be increases through giving rewards in terms of monetary or non monetary ways. As the employee perform better then company should appraise him time to time so it maintains the motivation of the staff. Consider the process improvement Companies consider the processes they are currently following, if it fails to achieve the business objectives then they try to make changes in these processes (Lashley, 2018). This improvement helps the business in all over performances. Follow the latest trend Company have to cope up with the latest market trend so that they can take the competitive advantage. Otherwise the customers do not choose the brand and it will lead to failure of the company. WizzAir follow the trend and review the performance management of their employees time to time. So, they can provide better services and facilities which ultimately satisfy the buyer. 11
P7: Customer service strategies create and develop experiences of consumers in a particular manner which meets the requirements of the buyer and business standards. Customer service strategies help the company to develop better buyer experience. The strategies like identifying the customer segment, get insight view of the expectations of buyers, concern for the employees expectations, organising time to time training and development programs for the staff, performance management, improving the processes, and following the latest trend. These approaches help to create better experiences for the customers because it helps to meet the desire of the consumers and also beneficial form the business pint of view. For example employees are happy at workplace they will treat nicely to the customers and well behaved, so the customer like their attitude and appreciate the services of the company. It leads to customer loyalty and enhancingthereachtowardspotentialbuyers(PopescuandPopescu,2016).Also,these strategies indicate the changes which are adopted by the company in terms to follow the latest trend. So this cove a large part of market as it is liked by the people. WizzAir consider customer service strategies which help them to gain the profitability. As they get knowledge about the customer requirement they plan to launch in the other countries and spread their branches in approximately 44 countries in the world. Also, they emphasise on the employees expectations because human resources are core of the service industry. If he staff members are satisfy and happy at workplace then they can achieve the good market value. Employees directly interact with the customers, so basically they are representatives of the company (Parker, 2017). It is important for them to take care about the expectations of the employees as well as the customers. Company manages performance and reward management system for employees in terms of their performance. So customer service strategies are beneficial for both customers and businesses. CONCLUSION According to the report on managing customer service experience, it establishes the knowledge about the customer’sexperiencesand the service which are provided by the companies in terms to meet the needs of the consumers. WizzAir company is chosen for the study about how the customers service are managed and how it is improved, as the company use different strategies to improve the customer experience. Also, this benefits the business to earn the profitability. Customer needs are important to be analysed because this gives the idea what 12
are required to them and how the companies can fulfil their demands. Customer experience map and the touch-points of the consumers are evaluated in the report. So the company can take the benefits from this assessment and grab the opportunities which help them to take the competitive advantage. 13
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