BIZ104 Customer Experience Management at Commonwealth Bank Australia

This report provides an overview of Customer Experience Management (CEM) within the Commonwealth Bank of Australia (CBA), a multinational financial institution. It highlights the importance of customer loyalty, measured through metrics like the Net Promoter Score (NPS), and the need to address customer pain points to improve overall satisfaction. The report discusses challenges in resource allocation for problem-solving, distinguishing between corporate and retail customer experiences, and emphasizes the significance of managing complaints effectively. It also explores the value proposition to customers, highlighting both visible and invisible problems that affect loyalty, such as product availability and branch accessibility. Ultimately, the report underscores the importance of CEM in enhancing customer loyalty and emotional attachment to the brand, leading to tangible business benefits. Students can find similar reports and study tools on Desklib.

Running head: CUSTOMER EXPERIENCE MANAGEMENT
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Customer Experience Management
Name:
Institution:
Date:

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Introduction
The commonwealth bank of Australia (CBA or Commbank) is a multinational based in
Australia but has many other branches in countries in Asia, New Zealand, UK and USA. It
contains retail, insurance, investment, funds management, institutional banking and broking
services. For customer royalty, Companies tend to understand the importance of customer
loyalty and include customer satisfaction in their list of key indicators. One of the most
accurate indicators of the company's future success is the Net Promoter Score (NPS). This is
an indicator of true loyalty, which is calculated as the difference between truly loyal
customers (Promoters) and disloyal (Delorators).
In order to increase your NPS (and, as a result, the likelihood of a long and happy future), it is
necessary first of all to eliminate the problems that create dissatisfaction with the detractors
(Lemon, & Verhoef, 2016).
Requirements Are Unlimited, And Resources Are Limited
In most cases, companies have several sources of information about what their customers
may not like: companies register complaints in the call center, the sellers talk about this, users
leave feedback on social networks. If companies had unlimited human and financial
resources, they would, of course, correct ALL their shortcomings. But there are no limitless
resources.
Levels of Customers

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Corporate customers and Retail customers in CommBank Australia.
Customer Experience Journey
Corporate Customer Experience (E-commerce Experience Map)
As a result, two typical situations arise:

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Companies are starting to fix the problems they cry the loudest about: those that someone
wrote to the owner on Facebook, or those that led to the appeal to the Consumer Protection
Committee, or those that the employees themselves didn’t like.
The presence of at least some improvements is already good. But, firstly, it is not a fact that
the problem being solved is really the biggest problem of the customers; secondly, it is
difficult to assess how much the solution to a particular problem has improved the customer
experience as a whole. Even if after some time the company has increased sales, they are
affected by such a huge number of factors that it is almost impossible to measure the merit of
a specific improvement.
How your CEM strategy will offer a better service to your organisation’s customers

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2) Do nothing:

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Having a huge, heterogeneous and poorly systematized heap of problems, the management
does not understand where to start, and therefore does not do anything at all.
Complaints and invisible problems
Some companies try to manage complaints by collecting and structuring them in CRM
systems and the like. This creates the illusion that the company knows all about the most
painful problems of customers.
According to statistics, 1 out of 10 unsatisfied customers complains. In order for a client to
complain, the problem must be important enough for him personally. Or the client may have
a certain worldview or a temper of character (there are people who complain in principle). No

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matter how important the problem is for a particular customer, it is not necessarily a common
one and its system solution may not affect the customer loyalty in general.
Value Proposition to Customers
There are problems that are not so critical to complain about, but they are the ones that can
affect the loyalty of most of the detectors. For example, the disappearance of a favorite
product from the range of the nearest bank may “switch” the consumer to the purchases of
this product (and, at the same time, everything else) in another bank on the way. (Peppers, &
Rogers, 2016).

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There are problems that are difficult to complain about. It is easy for a client to complain
about a dirty floor or rudeness, but it is difficult to complain about something that is not
there. The reason for client's disloyalty may be that the store, ATM or branch go three times
farther than the competitor. He will not write to the complaint book, but will use less often.
Why is it so important to manage customer experience?
Customer impressions about the company are a critical factor affecting the loyalty and degree
of emotional attachment of the customer to the brand. Effective customer experience
management can bring tangible benefits. Below are the main features that gives customer
experience management.
Increase customer loyalty through valuable and memorable experience. (Schmitt, 2016).

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References
Lemon, K. N., & Verhoef, P. C. (2016). Understanding customer experience throughout the
customer journey. Journal of Marketing, 80(6), 69-96.
Peppers, D., & Rogers, M. (2016). Managing customer experience and relationships: A
strategic framework. John Wiley & Sons.
Schmitt, B. (2016). Customer experience management. Handbuch Sozialtechniken der
Kommunikation: Grundlagen–Innovative Ansätze–Praktische Umsetzungen, 1-13.