BIZ104: Customer Experience Strategy and Research Outcomes Report

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This report provides a comprehensive analysis of customer experience management (CEM) within the context of Woolworths, a retail company. It begins with an introduction outlining the research objectives, which include identifying customer concerns, addressing challenges and opportunities in CEM, and suggesting effective customer experience strategies. The report details both primary and secondary research methods used, including surveys, business reports, social media reviews, and company annual reports. Key CEM concepts are applied to identify challenges and opportunities. Two distinct customer segments (Millennials and Family customers) are defined using personas, highlighting their demographics, behaviors, needs, and pain points. The report incorporates the Voice of the Customer (VOC) and customer feedback to formulate a customer experience strategy. It connects customer experience maps and alignment diagrams with a business value proposition for each customer segment. Finally, the report concludes with a summary of findings and recommendations, emphasizing the importance of quality products, customer-centric approaches, and loyalty programs to enhance customer satisfaction and retention.
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Running head: CUSTOMER EXPERIENCE MANAGEMENT
CUSTOMER EXPERIENCE MANAGEMENT
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CUSTOMER EXPERIENCE MANAGEMENT 2
Table of Contents
Introduction................................................................................................................................3
Company background................................................................................................................3
Research objectives to enhance the customer experience..........................................................3
Primary research method........................................................................................................4
Research planning................................................................................................................4
Research design......................................................................................................................4
Research implications..........................................................................................................4
Secondary research method....................................................................................................4
Secondary research.....................................................................................................................4
Apply CEM concepts to identify the challenges and opportunities for achieving a customer
experience..................................................................................................................................6
Identify and differentiate 2 customer segments from research undertaken using personas.......7
Take the Voice of the Customer (VOC) and customer feedback obtained from primary and
secondary research into account in forming the customer experience strategy.........................8
Results Summary.......................................................................................................................9
Connect customer experience maps and alignment diagrams with a business value
proposition for the 2 customer segments identified above.......................................................10
Conclusion................................................................................................................................12
References................................................................................................................................13
Appendix..................................................................................................................................15
Survey through questionnaire...............................................................................................15
Results obtained through online survey...............................................................................16
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CUSTOMER EXPERIENCE MANAGEMENT 3
Introduction
This report presents the company's backgrounds and research objectives to enhance customer
experiences. It also illustrates the primary and secondary research method for conducting the
research. It applies CEM concepts to identify the challenges and opportunities for achieving
customer experience. It explains the customer journey map and value proposition for each
segment. This report also focuses on the voice of the Customer (VOC) and customer
feedback obtained from primary and secondary research.
Company background
Woolworths is a recognized company that deals in the retail industry. It operates in
approximately 995 regions across Australia. It has recruited regarding 115,000 employees in
their supermarket as well as, distribution platforms. It aids the employees for offering the
ease facilities, added value, and premium services to their consumers. It also makes feel
hygienic to consumers who are available in the Australian sector by providing organic foods
(Woolworths, 2019).
It can also identify Australian consumers who want for practicing comprehensive as well as,
innovative technology for purchasing. Consequently, it has created its unique picture since it
is becoming innovative retailers within Australia. It also facilitates different services to their
consumers for buying products and services through ease procedures (Woolworths, 2019).
Research objectives to enhance the customer experience
To identify the concern of consumers and to create an appropriate customer
experience
To address the challenges and opportunities related to customer experience
management
To suggest the customer experience strategy by executing the techniques that are
essential for evaluating and assessing the customer experience.
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CUSTOMER EXPERIENCE MANAGEMENT 4
Primary research method
Research planning
The planning of research considers the ways for conducting the online monkey survey that
entails questionnaires related to the firm. It supports for evaluating consumer services offered
by firms (Terblanche, 2018).
Research design
Under this investigation, a quantitative research design is selected for accomplishing the
investigation objectives. This design considers the statistics related to customer experiences
of Woolworths (Mili, et. al., 2016).
Research implications
The primary implication related to research is performed by creating a manual survey. It
entails 10 customers who were involved in the research.
Secondary research method
The secondary research tool is performed for evaluating the experience of customers of
Woolworths. This tool is supportive of achieving the research goal that entails the concerns
faced by the firm. The secondary research tool is implemented for collecting data through
business reports, company annual reports, and social media reviews. The key aim of
implementing this tool is to obtain reliable and valid information. The secondary information
is illustrated by a literature review related to customer experience (Homburg, Jozić, &
Kuehnl, 2017).
Secondary research
Business reports
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CUSTOMER EXPERIENCE MANAGEMENT 5
(Source: Roy Morgan, 2018).
The above chart shows that there are 34% of increment in the market share of Woolworths
limited in the year of 2018. In contrast to this, there is only 10.8% of increment in other non-
supermarkets.
Social media reviews
(Source: Social media reviews)
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CUSTOMER EXPERIENCE MANAGEMENT 6
From the above social media reviews, it can be illustrated that there is a number of customers
who love to shop at Woolworths. There is also a number of customers who are loyal to the
company due to getting fresh food.
Company annual report
From the annual report of Woolworths, it is illustrated that customer 1st team 1st culture us
critical in terms of sustaining higher scores in across the voice of customers and voice of tea,
despite the unique challenges at the time of F19. In the year of F19, customer feedback
measures were widened for entailing VOC net promoter scores along with store controllable
VOC (Woolworths, 2019).
Apart from VOC, NPS is used for making sure that favourable and unfavourable customer
feedback. It could be considered for increasing the minimum standard by consistently
sounding for consumers. In the context of Australian food, VOC NPS has enhanced 3 pts
from the earlier period to 51 which is led by enhancement across both in-stores and online
(Calvo-Porral & Levy-Mangin, 2016).
Store controllable VOC is in context with earlier year at 82% that is favoured by historical
highs from vegetables and fruits in spite of availability and quality concerns earlier in the
period. New Zealand food also enhanced its customer scores with higher VOC NPS i.e.
higher of 44 at the end of June 2019. It was peak in December 2018 as well as, up 2 pts
simultaneously (Woolworths, 2019).
Apply CEM concepts to identify the challenges and opportunities for achieving a
customer experience
In existing condition, it is assessed that a high number of consumers wishes to shop through
supermarket since the availability of food as well as, non-food products. It is assessed that
consumers are highly competent about fair trade activities as compared to the seller
(Terblanche, 2018). Hence, Woolworths can consider the added value and marketing
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CUSTOMER EXPERIENCE MANAGEMENT 7
approaches for influencing current and potential customers with regards to their products and
services (Stein & Ramaseshan, 2016).
Identify and differentiate 2 customer segments from research undertaken using
personas
Persona Demographic Behaviors and
actions
Needs Pain Points
Millennial 16-35 years of
consumers who live
in the nation of
Australia.
Experiences: 2-5
years of experience
for purchasing the
products regarding
Woolworths
(Hwang & Seo,
2016).
Regular buying
the products
Products could
be bought
through online
and offline
platforms.
It requires
organic
products
that offer a
healthy life.
Premium
rates
Delay in
customer
services
(Grewal,
et. al.,
2017).
Family
customers
33-55 years of
customers who live
in the nation of
Australia
Experience: more
than 5 years of
experience for
purchasing products
of Woolworths
(Kandampully,
Zhang, & Jaakkola,
2018).
Offers a
discount for
loyal customers
on products
and services
(Davis, et. al.,
2018).
Requires
attractive
packaging
like detail
about
ingredients
of products
and prices.
When the
range of
products is
small.
When the
quality of
the
products is
bad
(Wang,
2017).
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Take the Voice of the Customer (VOC) and customer feedback obtained from primary
and secondary research into account in forming the customer experience strategy
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CUSTOMER EXPERIENCE MANAGEMENT 9
Results Summary
From the survey questionnaire, it is found that most of customers believed that the main
reason for buying the products from Woolworths is price and quality, and convenience. As
per the data assessment, it is illustrated that each customer persona buys the products on a
monthly basis and twice a month. It is evaluated that there is a number of customers who give
value to loyalty plan and member rewards. It is found that a large number of customers who
gives order through online platforms (Deshwal, 2016).
There is a high number of customers who believe that they purchase Woolworths products
and services due to giving value for money. It is also addressed that most of the customers
gave rate of 3.3 stars in the context of customer experiences. Some customers suggested that
Woolworths should focus on organic products and member rewards. Along with this, the
customer-centric approach could be used for improving the customers at the workplace
(Botschen & Wegerer, 2017).
While evaluating the touchpoints of Woolworths in a customer journey map, the overall
customer is satisfied in the context of online ordering as well as, evaluating the tools offered
by Woolworths and associated websites (Wang, 2017). When a customer researches and
evaluates Woolworths in against key market players then they could face some pain points.
As per the outcomes, customers can get frustrated that Woolworth take extra charge on online
delivering that demonstrates cheaper rather than its competitors (Davis, et. al., 2018).
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CUSTOMER EXPERIENCE MANAGEMENT 10
Connect customer experience maps and alignment diagrams with a business value
proposition for the 2 customer segments identified above
Advertisement/
public relation
Television
commercials as
well as
advertisement
boards
Social media
Facebook,
Instagram, and
Twitter
Word of mouth
Good reviews
received through
friends and any
known individuals,
word of mouth
through celebrity
Selecting the
brand
Assessing the
products of brand
with another brand.
Selecting the
right designs Contrasting the rates
with other products
Checking the
quality of the
product
Focusing on
cheapest rate for
the product
through browsing
different shopping
portals
Purchasing the product
Customer relation
Recently the customer’s
satisfaction level regarding
the brand is declining a bit
due to pricing and quality
issues
Social media
Sharing as well as,
commenting below photos
of products and by this
reputation of firms can
either get improve or get
completely ruined.
Expectation
Quality product
Convenient services
Lesser pricing
Experience
The quality and ranges of the product is good.
The products are available on convenient places.
Heavy pricing.
Satisfaction level
Quality: Good
Design: Good
Convenience: Content
Pricing: Discontent
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CUSTOMER EXPERIENCE MANAGEMENT 11
It is rarely demonstrated that in different cases after receiving products of Woolworths, it
could be significant concern about a product that is raised by consumers. Hence, there is a
need to deliver quality products to purchasers. It is evident that the management of
Woolworths never compromises about product quality they deliver and thus, there cannot be
any issues about delivering quality to customers (Hwang & Seo, 2016).
After purchasing products in some cases, the customers may think that they can move
towards other brands for considering the pricing too high. However, there is not something
that can occur frequently. In contrast to this, in some cases, it is identified that purchasers
have received defective products who ordered those through mobile applications and
websites (Stein & Ramaseshan, 2016).
Figure 1 journey map
It is identified that in different cases, after getting a product of Woolworth's, customers can
get a concern in products. This concern can be related to the quality of products that are
provided by Woolworths. Managers of Woolworths never focuses on negotiating about the
quality of products since it facilitates better products (Calvo-Porral & Levy-Mangin, 2016).
Therefore, customers can get a positive experience because of unique product quality. After
buying Woolworths products. Customers can think to switch towards another brand because
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CUSTOMER EXPERIENCE MANAGEMENT 12
of a higher rate however they cannot frequently switch because of better product quality
(Homburg, Jozić, & Kuehnl, 2017).
The value proposition for each segment
Woolworths can retain distinct kinds of consumers through providing club and loyalty cards
since it is beneficial for improving company productivity. It also executes distinct approaches
such as affordable price, customer-oriented approach, and quality products (Mili, et. al.,
2016). It also provides ease and safe products and services that is endorsed by Woolworths in
their promotions. Since, it competent the firm for retaining current and persuading potential
customers (Terblanche, 2018).
Conclusion
From the above interpretation, it can be concluded that Woolworths is recognized brand due
to offering quality products. It can be summarized that Woolworths can segment its
consumers according to different categories such as millennials and family customers. It
provides unique and better products in order to create a link to consumers and facilitate them
favorable experience. It can be summarized that customer facilitates both positive and
negative feedback such as better quality but higher rates of products.
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CUSTOMER EXPERIENCE MANAGEMENT 13
References
Botschen, G., & Wegerer, P. K. (2017). Brand-driven retail format innovation: a conceptual
framework. International Journal of Retail & Distribution Management, 45(7/8), 874-
891.
Calvo-Porral, C., & Levy-Mangin, J. P. (2016). Specialty food retailing: The role of purchase
frequency and determinants of customer satisfaction and loyalty. British Food
Journal, 118(11), 2798-2814.
Davis, B., Lockwood, A., Alcott, P., & Pantelidis, I. S. (2018). Food and beverage
management. Routledge.
Deshwal, P. (2016). Customer experience quality and demographic variables (age, gender,
education level, and family income) in retail stores. International Journal of Retail &
Distribution Management, 44(9), 940-955.
Grewal, D., Roggeveen, A. L., Sisodia, R., & Nordfält, J. (2017). Enhancing customer
engagement through consciousness. Journal of Retailing, 93(1), 55-64.
Homburg, C., Jozić, D., & Kuehnl, C. (2017). Customer experience management: toward
implementing an evolving marketing concept. Journal of the Academy of Marketing
Science, 45(3), 377-401.
Hwang, J., & Seo, S. (2016). A critical review of research on customer experience
management: Theoretical, methodological and cultural perspectives. International
Journal of Contemporary Hospitality Management, 28(10), 2218-2246.
Kandampully, J., Zhang, T., & Jaakkola, E. (2018). Customer experience management in
hospitality: A literature synthesis, new understanding, and research
agenda. International Journal of Contemporary Hospitality Management, 30(1), 21-
56.
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Mili, H., Benzarti, I., Meurs, M. J., Obaid, A., Gonzalez-Huerta, J., Haj-Salem, N., &
Boubaker, A. (2016). Context-aware customer experience management: A
development framework based on ontologies and computational intelligence.
In Sentiment Analysis and Ontology Engineering (pp. 273-311). Springer, Cham.
Roy Morgan. (2018). Woolworths and Aldi grow grocery market share in 2018. Retrieved
from: http://www.roymorgan.com/findings/7936-australian-grocery-market-
december-2018-201904050426
Stein, A., & Ramaseshan, B. (2016). Towards the identification of customer experience
touchpoint elements. Journal of Retailing and Consumer Services, 30, 8-19.
Terblanche, N. S. (2018). Revisiting the supermarket in-store customer shopping
experience. Journal of Retailing and Consumer Services, 40, 48-59.
Wang, E. S. T. (2017). Different effects of utilitarian and hedonic benefits of retail food
packaging on perceived product quality and purchase intention. Journal of food
products marketing, 23(3), 239-250.
Woolworths. (2019). About us. Retrieved from:
https://www.woolworthsgroup.com.au/page/about-us
Woolworths. (2019). Annual report. Retrieved from:
https://www.woolworthsgroup.com.au/icms_docs/195582_annual-report-2019.pdf
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CUSTOMER EXPERIENCE MANAGEMENT 15
Appendix
Survey through questionnaire
Gender
Female
Male
Age
16-35 years
35-55 years
Experience
2-5 years of experience
More than 5 years of experience
Why did you buy a product from Woolworths?
The range of products
Convenience
Price and quality
Customer services
Brand loyalty
How frequently do you buy?
Twice a month
Monthly
What do you value the most?
Price and discount
Member Rewards
loyalty plan
Where do you order your product?
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CUSTOMER EXPERIENCE MANAGEMENT 16
Online
offline
Which describes Woolworth’s products and services?
Value for Money
Delay services due to lack of availability of salesperson
How would you rate overall exp (5 being highest)?
1-5 star
What needs improvement?
Organic products
Fresh and quality food products and efficient services
Member rewards
Some extra remuneration for being loyal
Results obtained through online survey
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Survey link:
https://www.surveymonkey.com/analyze/
z0XuTFqX3JZskQKWqQ7Y3iMtor_2BgnbxTgK_2FnnNVj1yA_3D?tab_clicked=1
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