BIZ104 Customer Experience Management: Strategy Presentation & VOC

This presentation provides a detailed overview of Customer Experience Management (CEM), emphasizing its importance in today's competitive business environment. It defines CEM, outlines its objectives, and details the steps for creating a customer-centric CEM strategy within an organization. The presentation includes a case study of Toyota Company Ltd., highlighting the significance of customer segmentation and identifying service gaps. It recommends a Voice of the Customer (VOC) strategy and the IDIC model for achieving loyal customer relationships. The presentation also suggests practical steps for building an effective VOC program, leveraging social media, and centralizing real-time customer feedback, while cautioning against investing in customers who do not add value. The presentation concludes that adopting VOC and a CEM strategy will ensure Toyota remains competitive in the global automobile industry. Desklib provides access to similar solved assignments and study resources for students.

Customer Experience Management
Name:
Affiliate Institution:
Date:

Purpose of the Presentation
The primary aim of the presentation include;
 Understanding the concept of customer
experience management (CEM)
 Focusing on a specific organization while
applying the CEM concept to improve its
performance
 Developing an effective CEM strategy for the
organization
 Applying perception influence to CEM
delivery

Introduction
 Customer experience is an essential aspect of every
successful business
 89% of global companies and businesses in various
industries are primarily competing on customer
experience
 Outcompeting other companies hence require
companies to deliver better customer experience in
their product and service delivery

Cont..
 According to Hill (2011), companies that focus on
their customers often record an increased annual
revenue as compared to other that only focus on the
quality of products and services they offer. Benefits
include;
 29% greater workforce agreement rates
 Average of 23% decrease in yearly customer
service
 55% greater retention and referral of customers

Definition
 What is Customer Experience Management
(CEM)?
- It is a collection of strategies and processes used by
a company in tracking, overseeing, and organizing
every interaction between the company and the
customer (Hill 2010, p. 4)

Objectives of CEM
 The primary goals of CEM include;
 Optimization of interactions from the perspective
of customers
 Fostering customer loyalty
 Enables easy management of the customers by the
company

Steps to forming a customer centric CEM in the
organization
 To effectively adopt CEM, the company should;
- design a plan or strategy encompassing all the
customer interactions
 have a 360- degree customer view with updated
data on the company accounts
 having an updated system that can connect both the
clients and business
 Personalizing its business through new
technologies (Hardy 2012, p. 5)

How CEM strategy will give the organization
competitive advantages
 Adopting CEM strategy in the organization will;
 Understanding customer perceptions
 Organizing its interaction with its customers
 Emotional analytics will help the company to
gauge the benefits the customers gain from the
company
 It is a method that is relevant to the millennial
generation that form a bigger percentage of the
current business environment.

Case study: Toyota Company Ltd.
 Toyota started its operations in the 1980s (Hardy 2012,
p. 5)
 It is a Japanese automobile company that operates in
the global automobile industry.
 It machines are said to required fewer repairs and can
last for a longer duration.
 Currently, the company still have unique designs and
is consistent in its innovation of modeling ideas
resulting to their long-term customer preference and
excellence in operation.

Importance of customer segmentation for the
company
 Helps in reaching a target market such as the sports
community
 Enabling marketing team to reach the most ideal
customers and not waste time and resources on
impressers
 Enabling the company to craft relevant messages for
the targeted customers
 Initiates easy connection with the target audience,
communicate resonating messages, and develop
positive customer relationships

Identification and differentiation of customer
segments
 Adopting the CEM strategy will enable the
company to easily segment its customers such as;
 Geographic segment
 Psychographic segment
 Demographic segment
 Behavioral segment

Geographic segment
 Involves initiating campaigns targets audience on
the basis of their location such as;
- customers within a town
 Country
 customers abroad
 As a large business with international market, the
company can focus on offering services to specific
audience within specific locations

Demographic segmentation
 It will involve dividing the market on the basis of
the characteristics of the audience such as age,
gender, income, occupation, etc
 Useful when it comes to targeting multiple
segments at the same time

Behavioral Segmentation
 It involves the classification of customers on the
basis of different attributes ;
 Liking
 Occasions such as weddings, sports, etc
 Loyalty and purchase patterns
 Awareness and usage
 Enables the company to reach out the target
audiences through specific campaigns

Value proposition for each segment
 There is a need for value proportion in the company
since;
 Users cannot access information if customer
information is not connected, effectively organized, or
distributed.
 The company has difficulty in developing a ‘single
view customer’ platform with organized customer
data.
 poor handling of technical support has led to reduced
customer experience

Service gaps
 Despite the good performance of Toyota company in the
automobile industry, it still faces several challenges in
dealing with the customers (Bhulal 2017, p. 59). i.e.
 Poor customer segmentation in connecting multiple
feedbacks on various data channels
 Poor collaboration between the functional departments
 Incorporate the voice of employees too
 Ineffective leverage of reports to integrate information
from different customer voices
 Ineffective customer response

Opportunities for improvement
 Despite the few gaps identified in the manner in
which the company is treating its customers,
McLean (2014) denotes that there are still more
opportunities for making a better customer
relationships i.e.;
 more opportunities in international market
 Toyota is a global company with a brand name
hence has higher opportunities for progress
 Established customers and products

Recommended CEM Strategy
 Suitable strategy- Voice of the Customer (VOC)
and customer feedback
 Reason for recommendation;
- high level of competition within the automobile
industry
- will help the company reach out to customers on
their specific desires in the market.

What is Voice of Customers (VOC)?
 It is the description of the feedback from the
customers concerning their service expectations
and experience with the services and products
offered by a company (Hill 2011).
 It focuses on expectations, needs, and
product/service improvement

Characteristics of the best VOC strategy
 Connects multiple feedbacks on various data
channels
 Provides automatic collaboration between the
functional departments
 Delivers a clear business result
 Incorporate the voice of employees too
 Leverage reports that display and integrate
information from different customer voices

Competitive benefits to the company
 According to Fogleman (2013), effective VOC
strategies will enable the company to;
 Engage and connect with customers at key
customer points in the journey of relationship
 Maximizing the company profit
 Prioritizing on the identified wants and customer
voice needs
 Solicit and evaluate new ideas, solutions, and
concepts

Cont… on Competitive Advantage
 Enlisting customer data and intelligence to learn on
effective marketing in a one-to-one fashioned and
personalized way
 Identifying the location of customers and
marketing to them in real time.
 Enables the organization to give a customer-
pointed in relation to a discrete customer purchase

How will the company build an effective VOC
program?
 The voice of the customer can effectively be
understood as an ongoing conversation //////
 The key aspect is hence gathering and using a
timely information that will initiate improvement
 The above can be effective using multiple touch
points such as support, sales, accounting, and
warranty interactions

Steps to be considered in building VOC program
i. Capture- identify the internal and external listening
sports of customers. This can be done through
surveys across all the touch pints for the customer
ii. Analysis- evaluating a real-time customer feedback
through the relevant stakeholders
iii. Act- knowing the problem, take corrective action
towards the customer requests
iv. Monitor- helps in tracking results and uncover
patters of improvements

Achieving Loyal Customer Relationships
 According to Fogleman (2014), achieving loyal customer
relationship through VOC requires the adoption of IDIC
model. With an aim off;
 Maintaining a prolonged genuine customer relationship with
the existing customers of the company
 Realizing the value maturity and uniqueness of customers
through an individualized service to every customer
 Remaining competitive in the market segmentation through
the retention of the existing customers as well as invitation of
new customers

How will IDIC model help in achieving effective
VOC
 IDIC Model is a four step mechanism involving;
 Identification of customers
 Differentiation of customers
 Interaction with customers
 Customizing them
- The model will hence help in customer
segmentation process to identify and take action
towards what they desire

Customer Identification
 Focuses on assessing the customers on their first
and subsequent visits
 Commonly achieved by using cookies or directing
the customers to log into the company website
 Drip irrigation process is also used to access
information from customers which will then be
verified, updated, and deleted when outdated.

Customer differentiation
 Involves building the profile of the customer to
serve them as per the services they desire to
achieve
 The company will be able to identify the non-
profitable customers, the top customers, large
customers that have ordered less services, and
customers that buy more from the competitors.

Customer Interaction
 This involves the on-site interactions with the
customers on issues such as service questions, or
tailoring products
 At this point, the company will be able to identify
and listen to the expectations and needs of the
major customers
 The interactions occur in a customer-preferred
channel

Customer Customization
 Is the mass customization of the content of
customer information as per the segmentation
achieved at the acquisition process
 Also involves a further market research to evaluate
the possibility of tailoring the products to meet the
needs of the customers in a more competitive
manner

IDIC Model

Recommendation for better CEM
- To increase the effectiveness of customer experience
through VOC, the company needs to adopt the
following strategies;
 Adopting relevant VOC infrastructure/ right
technology for the following benefits;
- effective CEM needs to be backed with updated
infrastructure
- technology has become a primary focus for all
business hence makes it relevant to the current market.

Cont …….
 Customer experience involves the use of the
following in communication between the customer
and the company;
 Website purchases
 Social media
 Phone calls
 Live chats
 Other emerging VOC mediums of communication

Cont…
 Centralizing real-time feedback from customers
which has the following benefits;
 Improves accessibility of data
 Enables the relevant stakeholders to evaluate the
data and make recommendations
 Reduces friction that can arise from silos
 Encourages a holistic study of the customer
behavior by all departments

Cont…
 Closing the loop in all the customer feedbacks to;
 Helps in analyzing and tracking negative feedback
in real-time thus addressing customer complains
 Gives priorities to the feedback from the customers
 Ensure long-term customer sustainability

Cont..
 Engaging social media as it has the following
benefits;
 brands like twitter and fb can be used in driving
customer engagement through concrete dialogue
 best way of appealing to the millennial
generation
 initiates innovative experiences
 effective way of showcasing all the hype around
the company product

Examples of global companies who
have successfully gained from VOC
VOC customer strategy has been successfully
adopted by;
 Amazon
 Google
 Zappos
 Apple
 QVC

Precautions to be taken in adopting VOC in the
company
 With a focus of increasing its customer
relationship, the company need to ensure that;
 collect, continually monitor, and organize the voice
of its customers
 Listen, verify, and measure customer voices to
direct goals and priorities
 Avoid wasting effort and resources by investing on
customers who do not add value to the future of the
company

Conclusion
 No private or public organization or company can
become an effective competitor and a market leader
without listening to customers
 The perceived quality from customers is the
leading drive in every business success
 Adopting VOC and a CEM strategy will ensure
Toyota Company remains competitive in the global
automobile industry

List of References
 Bhulal, V 2017, 'The Impact of Customer Relationship Management and its
Significant Relationship to Customers' Satisfaction in Cooperative Banking: (A
Case Study of Kangra Central Co-operative Bank)', Global Journal Of Enterprise
Information System, 9, 2, pp. 59-66, Business Source Premier, EBSCOhost, viewed
14 August 2017.
 Fogleman, D 2013, 'Customer Service', Training, 50, 2, pp. 44-45, Business Source
Premier, EBSCOhost, viewed 14 August 2017.
 Hardy S, 2012, ‘Introduction to Marketing: environmental analysis on Toyota cars,
Birmingham, World Scientific Publishing. New York Times Business Journal,
Vol.33, No.3, pgs.4-12
 Hill, B. (2010). Seven Steps to Mastering Business Analysis, Bradford, J: Ross
Publishing
 McLean, G 2014, 'Customer Service Behaviours in Korea and Implications for
Training: Lessons from an Exploratory Critical Incidents Study of Customer and
Employee Service Encounters', Asia Pacific Business Review, 13, 1, pp. 1-20,
Business Source Premier, EBSCOhost, viewed 14 August 2017.