Managing Customer Experience at Cafe Nero: Comprehensive Report

This report provides a comprehensive analysis of customer experience management at Cafe Nero, a British-Italian coffee house. The report explores the importance of understanding customer needs, wants, and preferences within the service sector, highlighting how Cafe Nero identifies and caters to different customer groups. It delves into the factors driving customer engagement, including corporate clients, millennials, and families, and discusses the strategies employed by Cafe Nero to influence engagement and build customer loyalty. The report also examines the creation of a customer experience map, outlining the stages a customer goes through, from initial request to consumption. Furthermore, it analyzes the various customer touchpoints that create business opportunities for Cafe Nero. Finally, the report investigates the role of digital technology in managing customer experience and discusses customer service strategies employed to meet customer needs and business standards. Overall, the report aims to provide insights into Cafe Nero's approach to customer experience management and its impact on business success.

Managing Customer
Experience

Table of Contents
Introduction................................................................................................................................2
P1 The value and importance of understanding the wants needs and preferences of
potential customer groups for a service sector industry.........................................................2
P2 Explore the different factors that drive and influence customer engagement of different
target customer groups within a service sector organisation.................................................3
Task 2.........................................................................................................................................5
P3 Create a customer experience map for a selected service sector organisation..................5
P4 Discuss how the customer touch-points throughout the customer experience create
business opportunities for a selected service sector organisation..........................................6
Task 3.........................................................................................................................................7
P5 Examine how digital technology is employed in managing the customer experience
within the service sector.........................................................................................................7
Task 4.........................................................................................................................................7
P6 Customer service strategies in a specific service sector context.......................................7
P7 Ways in which customer service strategies create and develop the customer experience
in a way that meets the needs of the customer and required business standards...................8
Conclusion..................................................................................................................................9
References................................................................................................................................10

Introduction
One of the major reasons why businesses are surviving today is because they are
satisfying all the needs of their consumers. It is necessary for businesses successfully meeting
all the requirements of the consumer and managing the expectations of consumer.
Organisations are required to enhance consumer engagement and also increase consumer
loyalty for the organisation. They are now providing personalised experience to the
consumers in order to make sure that they can successfully manage all the requirements
(Peppers and Rogers, 2016). The following report is based upon cafe Nero which is a British
Italian coffee house headquartered in London. It was founded in 1997 by Gary Ford and is
now running more than 1000 coffee House in a number of countries including UK, US, UAE,
Poland, Ireland and so on. The following report is discussing how the cafe is enhancing its
consumer experience and taking various steps in order to make sure that the consumers are
attracted towards the organisation. The report also discusses customer touch points for its
consumer and various opportunities through which business can use digital technologies to
enhance consumer experience.
TASK 1
P1 The value and importance of understanding the wants needs and preferences of potential
customer groups for a service sector industry
In today’s environment the needs and requirements of consumer are ever-changing. It
is required by businesses to make sure that they are successful in meeting all these needs and
requirements and also identifying the target consumer successfully. This will help the
business to understand the ways in which they can fulfil the requirements of business and
improve their quality of services. In order to survive in the market competitive advantage is
also required by business which is usually generated through getting customer satisfaction.
There are a number of different steps which are taken by cafe Nero in order to make sure that
they are successfully fulfilling all the requirements of their consumers. The organisation is
conducting various market researches. This will help them in analysing the changing trends in
market as well as demand of their consumers. Some of the benefits provided to the business
through these market research are mentioned below:
Enhancing consumer satisfaction: Every business requires to make sure that they are
satisfying their customers so that they can generate loyal customers for themselves. It is
necessary to understand the needs in the environment so that consumers can be satisfied and

all the requirements can be fulfilled. Nero Cafe is generating loyal customers for them
through providing them various quality of food and services which they require (Baker,
2016). Along with this organisation is also focusing on ambience which they are providing to
their consumers so that they can turn their consumers into loyal consumers.
Helping in innovation: There are a number of different technological changes taking place in
external environment of a business. It is required by organisation to continuously focus on
these changes to understand the new innovation and apply them in their business. Nero cafe is
working upon various operations in order to make sure that they are successfully bringing in
new products and processes to attract their consumers. Innovation is a great way to increase
the satisfaction level of consumers and provide them value for the amount they’re paying to
the cafe.
P2 Explore the different factors that drive and influence customer engagement of different
target customer groups within a service sector organisation
Customer engagement refers to the attachment of consumers towards the organisation
and the branch. In order to engage customers organisation and working towards their services
and products. Engaging customers means making them loyal towards the brand. Cafe Nero is
continuously working on a number of different strategies with the help of which they can
enhance their consumer’s reputation. They are making sure that they are decorating cafe in
order to attract consumers at different festivities. They are also engaging customers with
different offers and discounts on different occasions. This is helping them to successfully
gain reputation in the market and also enhance their global presence. They are a well-known
brand and it is necessary that they are taking steps in order to continuously influence
engagement of consumers. Various factors through which they are influencing consumer
engagement are as follows:
Corporate sector: The employees in corporate sector are now focusing on attending their
meetings and meeting their business contacts in cafes or restaurants rather than cabins. They
require good ambience and beverage in order to make their meeting successful (Ieva, 2019).
Cafe Nero is providing a good ambience to these corporate personals and making sure that
they can provide them services so that they are visiting here again and again. This is a great
way in which cafe can also enhance their consumer base and increase their brand value
successfully.
Millennial: The Millennial these days are working on their social media profiles posting
about different places they are visiting. Cafes and restaurants are places which are preferred

by them. Cafe Nero is providing various events and a great ambience for such people who
can boast about their ambience and food. With the help of this they are generating consumers
and also successfully promoting themselves through their social media accounts. It is a great
way for the organisation to enhance consumer engagement.
Families: There are a number of people who like spending time with their families. They are
choosing good cafes and restaurants in order to fulfil this purpose. Cafe Nero is providing
food and beverages which are preferred by families and which are helping them spend a
quality time with their closed ones. It is a great way in which cafe can successfully enhance
their consumer engagement and make sure that they are generating loyal customers for a long
period of time.
With the help of all these factors cafe Nero is making sure that they can successfully
influence consumers and enhance engagement in the organisation. They are also generating
loyal consumers in the process. It is required by them to avoid a certain number of influences
which can degrade their brand value. Some of such influences are as follows:
In appropriate beverage and food quality: Along with the ambience good quality of foods
and beverages is one of the major requirements for people who are visiting café (Kale, 2019).
It is required by cafe Nero to make sure that they are successfully focusing upon this
requirement and providing good food and beverages to their consumers. Any fault in the
quality of the food they are providing can lead to degradation of their brand value.
Fault in management: It is often seen that due to mismanagement of various functions in the
organisation customer feedback is negative. It is required by cafe Nero to make sure that they
are managing the different activities and task in the cafe successfully so that they can avoid
any mismanagement and satisfaction of consumers.
The above-mentioned factors are those factors which are to be avoided at the cafe. It
is necessary that these factors are avoided smooth functioning of café. Various steps to avoid
these factors are helping cafe Nero to stay in the competitive environment and fierce
competition in the market.
Task 2
P3 Create a customer experience map for a selected service sector organisation
Customer experience map is an approach which is helping in identifying various
needs of the consumer. These needs are identified through different stages which a consumer
goes through. It is required to enhance consumer experience and their expectations while

mapping out various theories just through which they are going through. Various stages in
cafe Nero that a consumer has to go through are as follows:
Request: This is the first stage where organisation is identifying their consumers and making
a number of efforts in order to attract them. There are a number of different ways through
promotion which are used by cafe Nero in order to make sure that they are making their
global presence and attracting consumers. There are various discounts and offers during
different festivities provided by them which is a great way to enhance their demand.
Analyse: It is required by organisation to successfully analyse the market. After various
market research they are changing their products and services which will help them in
bringing a number of customers towards them (Shukla and Pattnaik, 2019). They are also
comparing their products with those of their competitors in order to make sure that they are
providing them competition in the market. Café Nero is successfully analysing requirement
of their consumer in order to provide them with satisfactory services.
Buy: This is the third stage where various methodologies are used in order to make sure that
consumers are buying the products and services. In this services organisation is providing
them services in the cafe so that they are changing their buying decision into execution stage.
Gather: At this stage the consumers are at stress as they are taking decision and choosing
from various offers that are available to them at the cafe. It is required by the employees in
the cafe to provide guidance to the customers so that they can successfully order whatever
they want.
Eat: This is the last stage where consumers are finally making an order and consuming the
food and beverages they have ordered. Cafe Nero is working on their quality in order to make
sure that consumers are satisfied with their services.
With the help of the above stages cafe Nero is successfully building its consumer
experience map. They are working on each of the stage in order to provide better services to
cut their consumers and satisfy them successfully.
P4 Discuss how the customer touch-points throughout the customer experience create
business opportunities for a selected service sector organisation
Search point referred to various link between consumer and the businesses. These are
the points where a business is interacting with their consumers and enhancing their brand
value. It is often seen that at the time of purchase, while purchase, before purchase and after
purchase there are a number of points where the consumer are interacting with organisation.
It is necessary for business to make sure that they are successfully working on all these points

and grabbing the opportunity to contact with their consumers. There are a number of different
touch points for Cafe Nero as mentioned below:
Communication with clients: It is often seen that employees in the cafe are having a great
opportunity to contact and communicate with clients while they are ordering. It is necessary
that small communication is maintained by the employs when they are taking orders or
providing services to the consumers in cafe.
Customer on boarding: it is often seen that customers are switching to different products and
services from time to time. It is necessary for management to make sure that they are looking
for reasons of this switch. Along with this they can also work on various measures in order to
make sure that they do not lose any consumer. It is often seen that consumers are getting
bored due to the same services and want to variety (Koetz, 2019). Cafe Nero is continuously
working on providing different products and services to their consumers so that they are
never losing consumers and they can generate brand loyal consumers for themselves within
the market.
Online advertising: Online advertising is a great way through which cafe Nero is contacting
their consumers. They can use online media in order to make sure that all their offers are
presented in front of consumers and this is a great way to make contact with consumers
influencing their decision making process.
Social media: Social media is a great platform where a number of consumers can be found
today. It is required by Cafe Nero to make sure that they are using various social media
platforms such as Facebook, Instagram, YouTube, Twitter in order to successfully generate
customer touch points. They can post and repost various pictures of their cafe on social media
accounts where consumers can interact with them and also provide them feedback in order to
enhance their services in future.
With the help of all these touch points cafe Nero is successfully influencing all the consumers
and creating brand image from customers aspect.
Task 3
P5 Examine how digital technology is employed in managing the customer experience within
the service sector
Customer relationship management refers to a process of managing relation with the
customers and building healthy contact with them. Good customer relationship management
is also helping an organisation to serve their customers in a better way. In today’s era

organisations are implementing digital technology which is successfully improving customer
relationship management. Cafe Nero is using customer relationship management and digital
technology in order to enhance their ratings (Dirsehan and Dirsehan, 2020). Customer
relationship management is also including interaction with consumer before and after the
services provided to them. With the help of digital media they are receiving feedbacks from
their consumer and also working upon those feedbacks so that satisfaction can be attained
from consumers. Cafe Nero is successfully managing their customer relationship
management through the improved technology. They have now updated the technologies
where the customers can mention their feedback and also rate the services and food of the
organisation. This digital technique is helping the organisation to find the points where they
need to work upon and change them continuously in order to make sure that they can satisfy
their consumers better.
Task 4
P6 Customer service strategies in a specific service sector context
Customer experience management strategies:
There are a number of different strategies which can be used by a customer centric
organisation in order to enhance the satisfaction level of consumer. This will help businesses
to make sure that they are sustaining in the competitive environment for a longer period of
time. Making loyal customers is a great way through which business can survive. Cafe Nero
is working on a number of different aspects in order to make sure that they are providing their
consumers with better services and fulfilling all the requirements. Below mentioned are some
of the strategies used by them in order to and hence customer experience:
Touch point analysis:
Touch point analysis is the interaction of organisation with its consumer. There are a
number of areas where organisation is creating a contact with the consumers through their
employs or their brand. It is necessary that a positive image of organisation is built in the
mind of customers. It is helping the organisation with positive word of mouth and also
enhancing its brand value (Goodman, 2019). The market image of cafe Nero is necessary to
be maintained by the organisation to providing better services and good quality of food and
beverages to the consumers in order to turn them into loyal consumers and also increase their
chances of visit in the café.

The organisation have also successfully worked upon its feedback strategy in order to
make sure that the feedback provided by consumers are taken care of. They are providing
training to their staff to deal with consumers and enhance the feedback provided by the
consumers. This is a major touch point for the organisation helping in development of the
business.
Stages of customer experience strategy:
Various stages are followed by cafe Nero in order to enhance the experience of their
consumers which are as follows:
Addressing market needs: Cafe Nero is successfully addressing all the needs of the market.
They are making sure that they are continuously changing the services provided by them and
making them better. It is required by them to make sure that they are using market research as
a tools which is helping them in understanding the needs and requirements of their
consumers. They are also bringing a lot of innovation in their products and processes so that
they can survive in competitive environment.
Experience mapping: It is necessary for organisation to map the customer experience which
is helping them to understand different stages that a customer is going through (Venkatesan,
Petersen and Guissoni, 2018). This also in Notes all the problems that are faced by consumer
while going through these stages. Cafe Nero is then working upon to make sure that they can
eliminate all the problems of the consumer and make sure that consumers are satisfied by the
services provided by them.
P7 Ways in which customer service strategies create and develop the customer experience in
a way that meets the needs of the customer and required business standards
Customer experience is the perception of various consumers towards the organisation
or the brand. It is the feeling as well as the thinking that the consumer is generating towards
the cafe. It is necessary for organisation to develop better customer experience so that they
can convey a positive message about the organisation. Enhancing customer experience often
refers to promoting the brand value of the organisation in front of consumers. Cafe Nero is
making a number of strategies which are helping them to enhance the level of satisfaction of
the consumers. The touch points strategy is helping them to enhance their image in the mind
of the consumers and also interact with various consumer a different levels. This is increasing
the visit of consumers in the cafe and also enhancing their satisfaction level. It is often seen
that more crowd is benefiting the organisation as positive word of mouth is also spreading
about the business. The organisation is also providing their consumers with a feedback

system. In this they can successfully mention any feedback they have for the employees or
about the food (Hedonists, 2020). Cafe Nero is then working on these feedbacks in order to
make sure that they can enhance their services continuously continuously enhancing the
services is successfully helping business to grow and also understand various stages of
customer’s life and different ways in which they can successfully serve all these stages.
Conclusion
The help of the above report it can be concluded that organisations are required to
manage the customer experiences in order to make sure that they are turning them into loyal
consumers. By providing satisfactory products and services to the consumers organisation or
also engaging them for a longer period of time. Cafe Nero is using a number of different
strategies in order to make sure that they are studying all the market trends and making best
offers to their consumers. They are focusing on their target groups and also using
digitalization is a technique to enhance their relationship with consumers. Enhancing
relationship with consumer is also resulting in better experience for consumers and great
profits for the cafe.

References
Books and Journals
Peppers, D. and Rogers, M., 2016. Managing customer experience and relationships: A
strategic framework. John Wiley & Sons.
Baker, M.A., 2016. Managing customer experiences in hotel chains. The Routledge
handbook of hotel chain management, pp.240-250.
Ieva, M., 2019. MANAGING CUSTOMER EXPERIENCE TO FOSTER CUSTOMER
LOYALTY. Loyalty Management: From Loyalty Programs to Omnichannel
Customer Experiences.
Kale, S.H., 2019. VICTORS: A New Framework for Managing Customer Experience in
Gaming.
Shukla, M.K. and Pattnaik, P.N., 2019. Managing customer relations in a modern business
environment: Towards an ecosystem-based sustainable CRM model. Journal of
Relationship Marketing, 18(1), pp.17-33.
Koetz, C., 2019. Managing the customer experience: a beauty retailer deploys all
tactics. Journal of Business Strategy.
Dirsehan, T. and Dirsehan, M.Ç., 2020. The Melody of Omnichannel Customer Experience
Management (OCCEM). In Managing Customer Experiences in an Omnichannel
World: Melody of Online and Offline Environments in the Customer Journey.
Emerald Publishing Limited.
Goodman, J., 2019. Strategic customer service: Managing the customer experience to
increase positive word of mouth, build loyalty, and maximize profits. Amacom.
Venkatesan, R., Petersen, J.A. and Guissoni, L., 2018. Measuring and managing customer
engagement value through the customer journey. In Customer engagement
marketing (pp. 53-74). Palgrave Macmillan, Cham.
Hedonists, I., 2020. Managing Customer Experiences in an Omnichannel World: Melody of
Online and Offline Environments in the Customer Journey. optimization, 213,
p.223.