Comprehensive Report on Customer Experience in the Service Industry

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Added on  2023/01/04

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This report examines the critical role of customer experience in the service industry, focusing on the Clove Club restaurant as a case study. It emphasizes the importance of understanding customer needs, wants, and preferences, and explores factors that influence customer engagement across different demographics like couples, business professionals, and families. The report delves into customer experience mapping, analyzing touchpoints throughout the customer journey, from pre-purchase to post-purchase interactions. It also discusses how digital technologies, including Customer Relationship Management (CRM) systems, are utilized to manage and enhance customer experiences. The report highlights the advantages and disadvantages of CRM, providing a comprehensive overview of customer experience management strategies within the service sector, with practical examples and insights.
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Managing Customer
Experience
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Table of Contents
INTRODUCTION:..........................................................................................................................4
PART-1............................................................................................................................................5
TASK1.............................................................................................................................................5
P1) Discuss the importance to understand the needs, wants, preferences of customers within
service industry...........................................................................................................................5
P2) Explain factors that influence the engagement of target customer groups in service
industry .......................................................................................................................................6
TASK 2............................................................................................................................................7
P3) Develop Customer experience map in respect of service sector organisation......................7
P4) Elaborate the way in which business opportunities are create by customers touch points
during customer experience process in selected service sector company...................................7
TASK3.............................................................................................................................................8
P5) Discuss how digital technologies are used to manage customers experience in service
industry along with examples of customer relationship management system ...........................8
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11
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INTRODUCTION:
In success of business entity, customer experience plays a vital role as it helps business
entity to sustain in market in long run. Customer experience refers to the interaction between
company and consumers while busying good and services (Appelo, 2016). Clove Club has been
considered for current report. It is a restaurant base on London that was opened in 2013 and
provides modern British cuisines with creative ambiance. The report comprises value of
understanding the needs and wants of target group. Further, some essential techniques such as
CRM are also discussed in report.
PART-1
TASK1
P1) Discuss the importance to understand the needs, wants, preferences of customers within
service industry
Customers are crucial part of an organization as they are the main source of revenue. To
satisfy consumers, it is essential to meet with their needs as well as preferences by providing
them quality products and services. As per the current trend, it is significant to provide the
products to end users as per their desire in order to get competitive edge. It is analysed that there
is high competition is prevailing within service industry. So, the only way to create a difference
is to satisfy guest by rendering them services as per their requirement (Chattell, 2016). In context
of Clove Club, target segment of company is family, couples as well as business class people
within country. They provide efficient services to meet with the needs of target audience. In
addition, it use psycho graphic segmentation as it provides effective services in affordable price
range. The significance of understanding customers behaviour in reference of selected
organisation is given as under:
Enhance brand image- It is crucial to provide better services to customers so that they
give preference to a particular brand. For this, managers take feedback from consumers and
provide them products and services accordingly in order to satisfy them. Managers of Clove
Club focus to provide better facilities to target segment so that they get attracted towards. Satisfy
consumers not only give preference to the product of company but also recommend it to others
that helps in enhance the presence of entity in market.
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Increase market share- Understanding customers behaviour, their needs and wants is
vital for entity in order to inflate sales and profit margin. It helps to attract more number of
consumers within country and give an opportunity to entity to increase in target market. Clove
club takes reviews from client to improve their services and meet with the needs of customers in
an efficient manner. With this, managers are able to enhance their operations at wide level.
Customers Satisfaction- There are ample of new technologies have been evolved within
service industry. Companies provide effective check in and check out facilities to customers with
the help of mobile device. It is essential to satisfy customers and retain them for a longer period
of time. Managers of clove club adopts effective technologies to provide ease to customers. In
addition, they also undertake necessary modification as per the clients specification in order to
satisfy them (Bock, 2016).
P2) Explain factors that influence the engagement of target customer groups in service industry
Customers engagement refers to the way in which they perceive a particular brand.
Connection between the company and its end users is essential to be positive in order to enhance
their engagement. For this, organisations use various promotional tool and stay in touch with
target audience even after sales. It is essential to maintain good and healthy relationship with
customers that will befitted company in long term. In service industry, customer engagement is
more crucial as here people seek for personalized services. There are ample of online as well as
offline ways by which companies can get connected with consumers by taking their feedbacks,
reviews on timely basis. Managers of Clove Club focus to provide an overwhelming experience
to clients so that they satisfied and visit restaurant overtime. Their are targeting different segment
having different requirements. There are certain factor which influence the engagement of
different target groups within company. Some of them are given as under:
Couples- Clove club is targeting couples who wish to get certain services that enhance
their engagement such as privacy, romantic ambiance, soft music, good quality foods, beverages
and many more (Fotiadis and Kozak, 2017). Thus managers need to take care about their needs
and provide services accordingly. An analysis of current market trend is necessary to fulfil the
demand of target group in an efficient manner.
Business Class- They visit the place for formal meetings thus seek for peaceful
environment. As Clove Club is also targeting business class people thus they need to arrange
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separate cabins where meeting can be done without any disruption. It is essential to enhance
satisfy the needs of customers and maintain a strong connection with them.
Families- There are certain factor such as price, menu, space that are considered by
families while they go out for lunch and dinner (Gardner, Linderman and McFadden, 2018).
They wish to get quality foods and beverages, safe environment thus managers of Clove Club
make sure to provide all these facilities to maintain good relationship with them.
Above stated elements significantly affect the engagement of target group within
organisation. So, it is crucial to analyse these elements in order to meet with their requirements
in an appropriate manner.
TASK 2
P3) Develop Customer experience map in respect of service sector organisation
Customers experience map is consider as a tool that is used to monitor the whole journey
of customers with company. It is a techniques which is undertake in order to analyse the
experience of customers during each and every step of buying a product and service. With this,
entities can take effective decisions in order to maintain long term relationship with consumers.
In reference of Clove Club, they carried out this tool in the following manner in order to
formulate effective plans to attract more number of customers:
Website- Nowadays, customers often visit the website of restaurant in order to check their
services, reviews and many more (Hakanen, Helander and Valkokari, 2017). It is analysed that
website of Clove club is user friendly and consist all the necessary informations regarding menu,
price, and many more. Here customers can also check the pictures, previous reviews that is
essential to enhance their experience.
Feedback and suggestions-It is essential to get feedbacks and suggestions from guest to
meet with their needs and desires effectively. Managers of restaurant not only take reviews from
customers but also implement those reviews to make further improvements.
Environment of restaurant- Environment of restaurant need to be attractive, safe,
spacious in order to provide value to customers. Clove club focus to provide hygienic, clean and
safe ambiance to visitors to sustain within industry for a longer period of time. Further, they also
arranges necessary training programs for staff members so that they can interact with guest in a
better way.
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P4) Elaborate the way in which business opportunities are create by customers touch points
during customer experience process in selected service sector company
Customer touch points refers to the points received from a brand through its customers
during buying process. It can be monitor with reviews, feedbacks, suggestions, rating received
by company thorough target audience. Touch points can be different and generated at different
level of such as before, during and after purchase (Helo, Gunasekaran and Rymaszewska, 2017).
Nowadays, it is essential to provide effective post sales services in order to satisfy customers. It
also affects the overall customer's experience with organisation. Different situation are
mentioned below which need to analyse by Clove Club while monitoring touch points of target
segment:
Before Purchase-There are ample of factors that affects customers mindset before
purchasing a product and services. Here some essential touch points are reviews, feedbacks,
testimonials, rating and many more. Customers of Clove Club take a look at its reviews, stars
before visiting the place.
During Purchase- Under this stage, customers go to the place to avail services. Here
several variables such as ambiance of restaurant, available space, behaviour of staff, quality of
beverages and foods, interior and many more are act as touch points of customers. In context of
Clove club, it is essential for managers to provide better experience to guest by including all
these factors in their services.
After purchase- In this competitive era, it is essential to stay connected with consumers
after sales in order to satisfy them . Companies can stay connected with customers through
email, messages, social media and other ways. Managers of Clove Club, maintain effective
connection with customers by taking their feedbacks, suggestions and greet them occasionally. It
is crucial to retain target audience for a longer period of time.
Above stated situations are crucial and influence the touch points of consumers in order
to provide them better experience. It will helps the managers of Clove club to increase in brand
value in market that is essential to achieve desired goals.
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TASK3
P5) Discuss how digital technologies are used to manage customers experience in service
industry along with examples of customer relationship management system
There are ample of digital techniques , systems, devices that are used in order to enhance
the brand value of organisation in market place. It is essential to generate and maintain necessary
data and information effectively. Digital techniques comprises various online application, social
media platforms, search engine optimization and many more. In current era, companies widely
used digital methods so that they can promote products and service at wide level. Higher
Customers experience can also maintain with these approaches by maintaining effective
connection with them that will benefited company in long run. Customers relationship
management is a functions in which digital techniques are used to cater the needs of consumers
on timely basis. With CRM techniques, companies are able to serve end users in effective
manner by providing them products as well as services as per their requirement. It also helps
organisation to attain their desired goals in predefined period. Through CRM managers can
enhance their market share, goodwill and profitability by providing quality products and services
to consumers.
Further, it also comprises feedbacks, reviews received from end users in order to make
further improvements. Under this, company also undertake appropriate decisions and provide
various discounting offers to buyers to get positive outcomes. With CRM entities interact with
past, existing as well as potential customers effectively so that they stay connected with company
for a longer period of time. In context of service industry, it is crucial to maintain better
relationship with guest to get sustainable competitive edge. Clove Club can attract more number
of customers by using digital techniques such as social media marketing, content and email
marketing and many more. With website, company provides necessary information to users
regarding menu, price, foods and beverages and many more. So, it will be easy for guest to take
appropriate decisions as they can check the reviews, feedbacks, testimonials of existing
customers. In addition, CRM also provides competitive edge to restaurant by enhancing its reach
and provide better experience to consumers. Although, it is an efficient tool but also comprises
some drawbacks. In context of Clove Club, Advantages and disadvantages of CRM are
mentioned below:
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Benefits-
CRM provides them an opportunity to interact with guest in best possible way as it
provides appropriate information to company their regarding needs, want and preference.
So, it is easy for managers of Clove club to provide desired services to visitors.
Through CRM techniques managers of respective restaurant takes feedbacks, suggestions
from customers that allows them to undertake necessary improvements in existing
services. It is essential to deliver value to target audience.
Further, it also provides higher competitive advantage to Clove Club by enhancing its
market share among customers. With this, entity is able to generate higher profit margin
in minimum period of time (Petersen, Venkatesan and Khodakarami, 2019). CRM also helpful to protect the data and information received by guest and make
effective strategies with that. It will further help to attract more number of visitors.
Drawbacks-
It is analysed that huge investment is required to use CRM approach thus it is not suitable
for small enterprises who do not own more funds. Overall budget of Clove Club may
enhance with this technique as they need to take help of efficient staff to operate it
effectively.
Implementation of CRM techniques are time taking and touch. Managers of respective
restaurant need to provide proper training to staff members so that they can coordinate
with this new system.
Further, there are also a security threat as personalize information of guest of Clove Club
may be hacked by unauthorised users.
Although, CRM technique is effective and business entity to sustain at market place for a
longer period of time but it also has some cons that need to be evaluate effectively. So, managers
need to be proactive while adopting this approach in order to operate business in an efficient
manner.
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CONCLUSION
With above discussion, it can be summarised that customers experience play a major role
in hospitality industry. Thus, it is essential for restaurants, cafes to make innovative and unique
strategies so that customers get attracted towards their services. In addition, better customers
engagement is significant to maintain long term relationship with them. There are ample of
digital techniques that are used by organisation to enhance their presence at market place.
Customer relationship management is an effective tool to interact with existing as well as
potential customers for the betterment of restaurant. Further, customers experience need to be
manage in best possible manner to achieve business goals.
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REFRENCES
Books and Journals
Appelo, J., 2016. Managing for Happiness: Games, Tools, and Practices to Motivate Any Team.
John Wiley & Sons.
Chattell, A., 2016. Managing for the Future. Springer.
De Bock, K.W., 2016. Advanced database marketing: innovative méthodologies and
applications for managing Customer relationships. Routledge.
Fotiadis, A. and Kozak, M., 2017. Managing the perception of service quality; the importance of
understanding differences between demographic and behavioural customer segments
amongst theme park visitors. Facilities.
Gardner, J.W., Linderman, K.W. and McFadden, K.L., 2018. Managing quality crossroads in
healthcare: An integrative supply chain perspective. Quality Management
Journal, 25(1), pp.2-17.
Hakanen, T., Helander, N. and Valkokari, K., 2017. Servitization in global business-to-business
distribution: The central activities of manufacturers. Industrial Marketing
Management, 63, pp.167-178.
Helo, P., Gunasekaran, A. and Rymaszewska, A., 2017. Improving marketing and operations
strategy through industrial services. In Designing and Managing Industrial Product-
Service Systems (pp. 37-42). Springer, Cham.
Petersen, J.A., Venkatesan, R. and Khodakarami, F., 2019. Designing and effectively managing
customer-centric loyalty programs. In Handbook on Customer Centricity. Edward Elgar
Publishing.
Polo, Y. and Sese, F.J., 2016. Does the nature of the interaction matter? Understanding customer
channel choice for purchases and communications. Journal of service research, 19(3),
pp.276-290.
Romero, J., 2017. Customer engagement behaviors in hospitality: Customer-based
antecedents. Journal of Hospitality Marketing & Management, 26(6), pp.565-584.
Weidner, K. and Bal, A., 2018, May. Managing Stakeholder Interests in a Nonprofit Setting:
Who Matters Most? An Abstract. In Academy of Marketing Science Annual
Conference (pp. 511-511). Springer, Cham.
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Zhang and et.al., 2016. How brand orientation impacts B2B service brand equity? An empirical
study among Chinese firms. Journal of Business & Industrial Marketing.
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