This report explores the value proposition of Adidas, how it delivers customer experience, customer demographics, and The Six Pillars of Customer Experience Model. It also discusses the implications of digital disruption and provides strategic recommendations to improve customer experience.
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Contents INTRODUCTION...........................................................................................................................3 Value proposition of company.....................................................................................................3 How this manifests itself in how it delivers the customer experience.........................................3 Whoare its customers by frequency of use by key demographics and how they may relate to value proposition.........................................................................................................................4 What is The Six Pillars of Customer Experience Model.............................................................4 Critically apply this model to the selected organization..............................................................5 What are the implications of digital disruption to the delivery of the customer experience.......6 Set out strategic recommendations on you could improve the customer experience for customers.....................................................................................................................................7 CONCLUSION................................................................................................................................8 REFERENCES................................................................................................................................9
INTRODUCTION Customer experience is a totality of cognitive, affective, sensory, and behavioral consumer responses during all stages of the consumption process including pre-purchase, consumption, and post-purchasestages.AdidasAGisaGermanmultinationalcorporation,foundedand headquartered in Herzogenaurach, Germany, that designs and manufactures shoes, clothing and accessories. It is the largest sportswear manufacturer in Europe. This report contains issues such as value proposition of business. Delivery of customer experience, customers of company by key demographics and their relation with value proposition andThe Six Pillars of Customer Experience Model. Implications of digital disruptions to delivery of customer experience. Recommendations in order to improve the aspect of customer experience (Mbama and Ezepue, 2018). Value proposition of company Adidas have been consistent in delivering as per their promise to their customers by offering them things as per their needs and wants. They have been so consistent in this aspect that use it as their strategy of marketing and help them describe why a customer must buy their product or service. Although Adidas has distributed its value propositions in four aspects and that is to gain accessibility, innovation, customization and status of the brand. In the aspect of accessibility they are offering a wide variety of options to customers and the line of products they deal in helps them form up a vast and diversified portfolio. For instance other than shoes they deal in apparels and sportswear which have helped them form a diversified culture. It was difficult for company to achieve their value proposition as they have formed their structure by conducting an analysis of R&D so that they can serve as per their vision. This was to serve in by offeringinnovationforathletes,intheaspectofmanufacturing,digitalandexperience innovation, innovation in bringing more sustainability to areas and innovative measures for female athletes (Nobar and Rostamzadeh, 2018). How this manifests itself in how it delivers the customer experience If the value proposition of business is set out in the right manner then it surely is going to bring huge form of advantage over their competitors. The major issue in this set of criteria is that not every company is able to set it effectively. Many few companies serving in market such as Adidas have set their value proposition in a useful manner. It is important for businesses to focus
on this area otherwise they will turn their customers into their competitors which will affect their share in market. This will happen because company won’t have insight about their needs and wants. Although if the value proposition is set in the right and useful manner then they will be able to find the customers who have potential and will appreciate their offerings as these customers are those who know what they want and they will assess that their needs are fulfilled here. With the help of this they will be able to attract prospects in market which are right for them and they will be able to serve with both in quantity with quality. If this is set in right manner then customers will engage more with company as they will understand their terms and conditions in a better way because they will be getting best service in market. By setting their proposition more valuable they will be able to make a difference between themselves and their competitors which will help them to increase their value and create an urge in the minds of consumers to buy their products. Overall these are the measures which will help companies such as Adidas to deliver optimum level of customer experience to their potential and existing buyers. Whoare its customers by frequency of use by key demographics and how they may relate to value proposition On the basis of segmenting their market every company chooses and segment their market on the basis of products they offer because it is important to find out the suitable target audience for it. Management of Adidas has divided their audience on the basis of sex and age. Products offered by them are for both male and female clothing, shoes, eye care or body wear. They have 3 brands which they have kept particularly for this segment which is performance, originals and style. They use different variables in this aspect such as they assess personalities of their audience and match them between personality of customer and personality of products. This is because they believe that with this they will be able to meet their needs and wants. Many people are satisfied with their implementation of strategies. This is because they consider that drivers implemented by company are as per the changes in market and even the products offered by them are able to meet the needs of fashion industry. The introduction of Originals by company was to focus only on lifestyle and fashion.Even by categorizing them on the basis of sex and age they go in detail for both the categories because they believe market is very large. Many businesses such as Adidas use solutions that give them optimum results or software which
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is leading in their business. It is important for them to assess and study the demographics of market so that the offerings introduced by them are able to meet their needs and wants and become successful so that they can stay ahead of their competitors (Kuppelwieser and Klaus, 2021). What is The Six Pillars of Customer Experience Model Integrity- This aspect relates with trust which can happen when company delivers consistent performance in their line of business. They can engage in events that builds trust by getting out of a very complex situation. Other than that they will have to work in other areas such as offer them the right thing, focus on something more important other than profit. No interrelation must be there with negative stories as it breaks their trust (McLean, Al-Nabhani and Wilson, 2018). Resolution- It is concerned with changing a bad experience to better. In order to that they focus on service recovery. During the pandemic it was the duty of company to provide solutions instead of launching a new product. In order to do that they would have to work on extra efforts, keep them aware about the progress they have made etc. Expectations- In order to meet the satisfaction of customers it is important that they understand the difference between expectations and date of delivery. If they are able to deliver it on proposed time then they will be able to meet their expectations. It is important that they understand in right manner. Other than this they need to match the satisfaction level of customers so if required they can make the necessary changes in the process. Time and Effort- It will be helpful if efforts of customer are minimized and they are able to generate a process which is frictionless. Many of the customers do not have time and they want instant service to beat that. This is why companies have to remove obstacles which are not necessary so
that they can achieve their objectives clearly and this will help them to retain them for a long period of time (Kandampully, Zhang and Jaakkola, 2018). Personalization- The attention that company gives to customers must link with emotional needs too. So that they believe that management is focusing on their special needs which will make their experience better. The products offered by company must make customers feel valued and take control over their lives by giving them the required control. Empathy- After company has completed the analysis to understand the needs of customer they work on showing and presenting as per their needs.This is done in order to present customers that company keeps their needs as their prime concern. This is done by understanding the importance of situation as it is done by investing a lot of time and generating the right response in an emotional manner. Critically apply this model to the selected organization Integrity- It is important for Adidas to engage in activities that build more trust with their target audience as this way they will be able to get audience with more potential and make their experience better. It is up to management to engage in extracurricular activities which grabs the attention of people and they can serve them (Jain, Aagja and Bagdare, 2017). Resolution- Adidas is working on making the experience of those people better who have faced bad incidents with them in the past. This is a better opportunity for them to make their reputation in market better by taking a nice initiative to improve their word of mouth as this will automatically do half the work for their management. Expectations-
It is important that management of Adidas first invests in the area of research and development so that they have the right insight of where to make changes in their process through which they can satisfy needs of their customers. Many of the customers keep on expecting that when their needs will be fulfilled, more fast the company works on it more chances are that they will not lose them to their competitors. Time and Effort- It is important for Adidas to come up with schemes that help their customers to invest less time in them and make quick decision and for that they need to come up with a process that is smooth and has no errors. This will be considered successful when waiting time for customer is reduced and they are able to get information instantly. Personalization- Company needs to focus on branding and marketing their products in such a way which connects human emotions. This can be done easily after they have understood the needs of their target audience and serve with their offerings which make them feel more valued (Flavián, Ibáñez-Sánchez and Orús, 2019). Empathy- It is important for Adidas to show themselves that they take care of their employees and feel for their safety. They even introduced schemes and strategies at time of pandemic which made people realize the efforts put by company in maintaining their relationship and making their experience better. What are the implications of digital disruption to the delivery of the customer experience This aspect of digital disruption is linked with innovative measures brought up by people who have advanced the way of operating things and offering them the feel of more personalized interaction. For instance companies such as Adidas can nowadays deal online from their own website or third party sites easily which makes it more convenient for customers to get access to them from more places and they choose the most convenient method across them. This method is treated to be more personalized as people can interact with them anytime and get the required information they want. Relationship is maintained even from the management of company as
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they keep their regular customers aware about the deals and offers they have ongoing on their products. This way they have changed their shopping experience for their customers. This is because they have understood that personalization is an effective strategy in engaging with customers and convince them to keep buying their products. Apart from this now Adidas have the option of working with augmented reality through which they can offer their customers to try their products off virtually which can save their time and resources and they can quickly make the decision for buying the product. With the help of this company as well as customer is focusing on reducing the methods that are used for traditional marketing. With the help of this Adidas have been successful in improving their shopping experience for customers and in return they are getting the expected results they wanted in their shopping patterns and behavior. With the help of this, company was even able to operate at the time of pandemic with less flexible durations of shipping. They kept their operations open for their customers through online channels although the rate of distribution affected their availability in limited areas (Fernandes and Pinto, 2019). Set out strategic recommendations on you could improve the customer experience for customers There are many ways through which Adidas can improve their customer experience such as- Superior customer experience- Adidas must keep their customer service with a focus on customers not on themselves. In order to improve the experience of customers they need to evaluate the interaction of customers within the company. As per the analysis of market companies who follow this set of protocol are more profitable than others who don’t. With the help of strategies such as these they can attain the benefit of word of mouth through which they can get more customers to serve (Pekovic and Rolland, 2020). Soft Skills- By making their communication effective they can enhance set of their values. It is important to manage their team and make them understand importance of patience, empathy so
that they are able to promote their brand and help them build more customers in near future. This way they can even understand their problem and help them with a reasonable solution. Self service options- It is important that they offer self service to customers so that customers have a chance to work their query out. For instance if they need to get information about Adidas or their products they can get it from their official website. This way they can save their time and it won’t affect the goodwill of company (Bustamante and Rubio, 2017). Social Proof- This is concerned with getting reviews that are positive or ratings on platform that are good. Most of these things are done online when a customer founds themselves satisfied with their product. It is important that Adidas focus on it because almost every potential customer goes up for reviews or rating before making a decision of purchase. This also helps them to set up trust with them and help them to serve as a premium brand over other competitors in market. CONCLUSION From the above studies it has been assessed that Adidas needs to conduct market study and invest on research and development so that they can deliver optimum level of customer experience as per their needs and wants. Without that it is not possible to understand their expectations and they may lose them to their competitors who will affect their business and its growth. With the help of online and advanced measures they have came up with better solutions which have helped them achieve the benefit of word of mouth. Management also needs to monitor that their customers are satisfied from initiatives taken by them so that they introduce their processes as per that.
REFERENCES Books and Journal Bustamante, J.C. and Rubio, N., 2017. Measuring customer experience in physical retail environments. Journal of Service Management. Fernandes, T. and Pinto, T., 2019. Relationship quality determinants and outcomes in retail banking services: The role of customer experience. Journal of Retailing and Consumer Services, 50, pp.30-41. Flavián, C., Ibáñez-Sánchez, S. and Orús, C., 2019. The impact of virtual, augmented and mixed reality technologies on the customer experience. Journal of Business Research, 100, pp.547-560. Jain, R., Aagja, J. and Bagdare, S., 2017. Customer experience–a review and research agenda. Journal of Service Theory and Practice. Kandampully, J., Zhang, T.C. and Jaakkola, E., 2018. Customer experience management in hospitality. International Journal of Contemporary Hospitality Management. Kuppelwieser, V.G. and Klaus, P., 2021. Measuring customer experience quality: the EXQ scale revisited. Journal of Business Research, 126, pp.624-633. Mbama, C.I. and Ezepue, P.O., 2018. Digital banking, customer experience and bank financial performance. International Journal of Bank Marketing. McLean, G., Al-Nabhani, K. and Wilson, A., 2018. Developing a mobile applications customer experience model (MACE)-implications for retailers. Journal of Business Research, 85, pp.325-336. Nobar, H.B.K. and Rostamzadeh, R., 2018. The impact of customer satisfaction, customer experience and customer loyalty on brand power: empirical evidence from hotel industry. Journal of Business Economics and Management, 19(2), pp.417-430. Pekovic, S. and Rolland, S., 2020. Recipes for achieving customer loyalty: A qualitative comparative analysis of the dimensions of customer experience. Journal of Retailing and Consumer Services, 56, p.102171.