This report discusses the value proposition of ZARA, how they deliver positive customer experience, target customers, six pillars of customer experience model, implications of digital disruption, and strategic recommendations to improve customer experience.
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Contents INTRODUCTION...........................................................................................................................3 TASK...............................................................................................................................................3 Value Proposition of ZARA: -....................................................................................................3 How ZARA delivers positive customers' experience..................................................................4 Target customers of ZARA........................................................................................................5 The Six Pillars of Customers' Experience Model........................................................................5 What are the implications of digital disruption to the delivery of the customer experience for this organisation?.........................................................................................................................7 Based upon 5&6 set out strategic recommendations on you could improve the customer experience for customers of this organisation, to benefit them and the organisation itself.........8 CONCLUSION................................................................................................................................8
INTRODUCTION Customersexperienceisbasicallythetotalofcognitive,affective,sensoryand behavioural consumer responses during the process of consumption. Each and every aspects of the company products is encompasses the customers experience which comprise of customer service, advertising, packaging of the products along with the features and the way to use. This is basically the perception of customer experience with the organisation(Khanand et. al., 2020). The positive customer experience not only result in the growth of the company but also help in increasing the loyal base of customers. With the help of this retention rate of the customers has been increases and the firm are able to target the large market area. The following report is based on the ZARA which is well known brand in the global retail market. The respective company was founded in 1975 by Amancio Ortega and Rosalia Mera and the headquarters of the firm is situated in the Arteixo(A Coruña),Spain. The respective firm provide their services all across the globe and specialized in the clothing,accessories, shoes, swimwear, beauty, and perfumes. The organization have more than 2000 stores all across the globe and it is the largest firm in the Inditex group. The following report is going to cover the value proposition of the selected organisation and how they deliver the customer experience. This report also focusses on the customers of the ZARA and the brief discussion on the six pillars of the customers experience model in relation to the chosen company. Along with this, this report also paid focus on the implicationsof digital disruption to the delivery of the customer experience and recommendation in order to improve the customer’s experience. TASK Value Proposition of ZARA: - Value proposition is basically a statement that summarizes that why purchaser select their goods and services. It tells the company about the most obvious benefit that they can get from customers by giving their business (Luz,Wreavesand Paschoalotto,2021). It is very important for the management of the company to fulfil their promises which are made by them to their customers. This result in improving the experience of customers. Focus has to be made by the management of the company in making their goods and services unique as well as attractive in comparison to their customers, which not only help them in enjoying the competitive advantage over their rivals but also helps them in improving their loyal base of customers in the target
market. So, it is very important from the customers experience point of view that the company value proposition must be very unique. If it is unique then effective points to the target market can be effectively communicate. In relation to the ZARA, different types of channels like in store advertising, emails communication are used by the management of the company in order to communicate with their customers directly so that customers value can be create and their experience is enhanced. The value proposition of the ZARA that improves the customers experience has been discussed below: - Fashionable as well as reasonable clothing product are offer by the ZARA company as per the trends.Basically, they are the trend-setters of this sector with superior feedback on trends, be it style, cut or colour. The design team of Zara's produces around 1,000 designs in a month which are then sent to their production plants and checked back at the Zara Center in Spain(Hammerschlag,Bickand Luiz,2020). The supply chain of ZARA is vertically integrated by their control facility in the Spain. This not only make sure to faster the sales but also ensure the faster delivery. The orders are submitted by the manager on the bases of quantity and have it shipped directly to the physical store from Zara's facility in Spain.Along with this their online products are shipped through expedited shipping from different warehouses and in different nations, stores pick up is present. Pull system is utilized by the management of ZARA in their supply chain as well as stock management. Due to the dynamic nature of this sector, they produce the styles in the less quantity. This is very good for the success of the company. Along with this, the respective company management update their e-commerce website on regular basis according to the change in trend and style in which they are dealing(Yegerand Shenhar, 2019). How ZARA delivers positive customers' experience Positive customer experience can only be developed through strong communication and the effective interaction with their customers. In order to develop the effective customer, experience the firm first have to listen to their customers and collect all the feedbacks. After this, they have to analyse these feedbacks to understand them as well as their behaviour in better manner(Yasinand et. al.,2020).Firm need to identify the target customers so that positive responses can be received which result in minimizing the chances of complaints as well as the return. If excellent customer experience is given by the company management, then this result in
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increasing the customer satisfaction along with loyal base. In context to the ZARA, clear signs are used by the company all across the outlets which effectively read by the customers. Along with this, the customerssupport desk within the store result in increasing the customer experience. These support desk assist the consumer in resolving their query and satisfies the customers in a very effective manner(Batat,2019). Additionally, organization also have to also have to make sure that customer don't have to wait in their stores for their product. Target customersof ZARA: - Target market may be defined as a group of individuals which are target by the marketing department of the company in order to serve them. Target market is a place where the needs of consumer are matched with the offered products. It is very important for the management to identify the needs of target market individuals before developing the value proposition in order to improve the customer experience. In relation to the ZARA, the management of the company target the cost-conscious people and those who value the good. Basically, they target all category of individuals by providing them high quality of product to them in order to improve the customer’s experience. Along with this price positioning strategy is used by the management of the company in order to target the customers and serve them better. This result in attracting large base of customers towards their brand who are price sensitive. So, without identifying the target market the firm not be able to develop the value proposition and ensure the better customers experience. The Six Pillars of Customers' Experience Model Customers experience model plays a very important role for the business as it helps them in delivering not only the positive but also the effective customer experience. Six pillars are comprising in this model which are totally interconnected with the each other and link with the organisation(Farooq and Raju, 2019). With the help of this model, the company management can effectively delivery the customer experience through different types of channels. Higher success in the competitive market can be attain the management if they effectively understand all the pillars of customer experience model. The six pillars of this model in relation to the ZARA has been discussed below: - Integrity: -trustworthiness can be shown by the management of the company on regular basis by following all the integrity principles. It is very important for the organisation as well as their employees to develop the trust in order to facilitate the integrity. A
perception has been created in the market that, the firm who don't broke their promises and fulfil as per the value proposition are following the integrity principle within the company(de Souzaand et. al.,2020).Along with this, the consumers considered the firm ethically strong who operate their business functions socially and morally. In relation to the ZARA, the company developed the sustainability programme in order to reduce the carbon footprints and effectively manage their waste to develop a sense of trust among the customers. Resolution: -this pillar refers to turn the negative customer experience into the positive one. Instead of paying focus in the procedures, focus has been paid by them on those products which provide inconvenience to their consumer. This result in that, customer feel good and their experience will be enhanced. In relation to the ZARA, for enhancing the customer services, a polite and skilful employee is appointed by the management in order to serve the customer best. If any unethical behaviour is experience by the consumer, then they have to report to the manager. Expectations: -in this aspect has paid on fulfilling the needs of customers. high standards are always set by thetop brandsand theircustomersexpected thehigh-qualityproducts form them. As the ZARA is the leading brand in the clothing sector, so their customers have huge number of expectations form them in relation to the quality of the product. Therefore, company sometimesstrive toexceed their limits and meetsuch expectations so that they fulfil thetargetcustomers promise(Signoriand et. al.,2019). Forexample, ZARAtargetaudience expectstoreceive high-quality products through improvedbrand equityandtechnology. Therefore, company management need topaid focus onthis expectation in order toachieve apositive customer experience. Empathy: -Thisessentiallyrefers to theconditionsand theassociatedtroubleswhich are facebytheclientsthroughwhichtheycouldhavetheeffectivelinkamongthe relationshipwith them. Empathy may be defined, toexaminethepurchaser`semotional experience.Thisgiveassistancetothecompanymanagementinimprovingthe experience of customers, through which issues within the workplace can be resolve by them effectively with the help of effective solution. Ina number ofthe countries ZARA did notexaminethetraditionand theculture difference of their purchaserbecause ofthe badpurchaser'sexperience.So, it is very important for the company management to
develop a link through which better customer experience can be deliver to the target audience. Personalization: -this may be defined as give attention to the customers and develop emotional connection. This can only be done by effective interaction and give them more value so that they feel more interested(Gallagher,Fureyand Curran, 2019). It is very important for the ZARA management to paid focus on making their customer happy and recognize their personal circumstances through their past experiences. This result in enhancing the customer experience. Time and Efforts:-Buyers do not have the timeto look fora satisfying need. In this way,thecompany eliminates the problemofcustomer decision delays inthe process and helps customers achievetheirgoals. Italsoimprovescustomerretentionbyproviding a beautiful experience. ZARA, shoulduse this togain acompetitiveadvantageover their rivals. What are the implications of digital disruption to the delivery of the customer experience for this organisation? Different types of digital disruptions are faced by the ZARA in order to deliver the positive customer experience. The disruption in relation the chosen company has been mentioned below: - Ithasbeenidentifiedthatif a customer cannot log in to a website from a because of the low server,therewill be some disruption tothe customerexperience. Thisis the biggest disruption in order to provide acustomer experience. Another digitalmessZARA faces are when paymentscan be madetwice. Thisshows thatone-time payments bring abad experienceto buyersin theenterprise. Ifthe different experience is experienced by the customers, then this develops the various disruption which result in affecting the customer experience in various ways. It also be examined that the digital disruption also comprises of loyalty app which is required to be certified by the firm in order to gain the competitive advantage. Receipts are a way to keep a recordofwhen a customer makes a digital disconnect and makes a payment intheevent of a problem. Payment may nothavebeenmade. This is done because on the huge traffic on the website or lots of individual using the website.
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Based upon 5&6 set out strategic recommendations on you could improve the customer experience for customers of this organisation, to benefit them and the organisation itself. In order to improve the customer experience different types of strategies can be used by the managementof the company. Following are the certainrecommendationsthrough which experience of the customers within the firm has been improved: - It is very crucial for the firm management to give value to their customers and behave ethically with them. If any unusual is experience by the customer, then this not only affect the experience of customer but also impact on the firm in bad manner. So, ZARA management must have to examine the situation and develop a reasonable solution in order to gain the trust. Buyers havehighexpectations for productdelivery on e-commerceplatforms.Different types of trouble are faced by thecustomers relatedto the payment methods thatZARA needs toresolve as quickly as possible. An important role is played by the integrity in improving the customer experience within the business. It is very crucial for the firm manager to behave with their customers in a very effective manner so that their customer feel valued It also being recommended to the management of ZARA that they have to paid focus on the different types of digital strategies in order to target the market in a very effective manner and they also have to improve their delivery method so that customer don’t hae to wait for their product. CONCLUSION Fromthe abovereport, it has been concludedthat value proposition assistscompanies to grow theircustomer base by deliveringabetter customer experience. Forexample, ZARA employs specificdigital technologies andweb acquisitions that enable customers to ensure effective valuepropositionsintheirtargetmarkets. Italso contains customerretention,better marketing,and responding to specific buyer feedback. This report also concluded thetarget markets in order to analysingcustomer as well as their buyingbehaviour.They basicallyanalyse consumer behaviour and use pillars to ensurethecompany'sbrandloyalty.Theystriveto enhance the customer experiencethroughtechnology.
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