5b. Customer Journey Flashcards
The service dominant logic
The service dominant logic of marketing, based on value-in-use, in which value is determined by the customer. This logic puts forward the angle of the customer being at the centre with the customer perceiving and determining value and co-creating through resource integration. Using this logic, value is created in the joint sphere in which it is the responsibility of both the provider firm and the customer. Value is facilitated by the prover firm and made by the user
Focus on relationship selling, a customer-centric approach
Value-in-use vs. value-in-exchange
Following the integration view of marketing, the provider firm and the customer (with both its own resources and acquired resources) will integrate their resources in the joint sphere in which value-in-use will happen, making both the provider firm and the customer be creators of value. Contrarily, the exchange view of marketing suggests that value-in-use is created in the customer sphere only and thereby makes the customer the only creator of value
With value-in-exchange, the view is an inside-out perspective, in which the value proposition would be embedded in the product and driven by the provider firm itself. Value-in-exchange would cause the customers to be passive recipient of the value instead of letting the customers be a part of the value creation
Hence, value-creation takes place in service ecosystems like Platforms (the platform being the joint sphere and the orchestrator)
Customer experience defined
This expansive perspective considers customer experience holistic in nature, incorporating the customer’s cognitive, emotional, sensory, social, and spiritual responses to all interactions with a firm
Schmitt takes a multidimensional view and identifies five types of experiences: sensory (sense), affective (feel), cognitive (think), physical (act), and social-identity (relate) experiences.
Importance of customer loyalty and word of mouth, when value in platforms is created via network effects, customer activity and retention
Focus on relationship selling, building and the customer as the centre
Stages of the customer experience (the customer journey)
The cycle is iterative and dynamic. Incorporates both past experiences and external factors. Touch points happen all the way through
- Pre-purchase: The customer experience from the beginning of the need/goal/impulse recognition to consideration of satisfying that need with a purchase
- Purchase: Choice, ordering, payment and all in between. The general shopping experience
- Post-purchase: Usage, consumption, service request, feedback, customer service, follow up etc. The loyalty loop – after the purchase, the customer either becomes loyal (through repurchase) or begins the process anew
4 categories of touch points in the customer journey experience
- Brand owned
- Partner owned
- Customer owned
- Social/external
Touch point (1) brand owned
These touch points are customer interactions during the experience that are designed and managed by the firm and under the firm’s control. They include all brand-owned media (e.g., advertising, websites, loyalty programs) and any brand-controlled elements of the marketing mix (e.g., attributes of product, packaging, service, price, convenience, sales force).
Touch point (2) Partner owned
These touch points are customer interactions during the experience that are jointly designed, managed, or controlled by the firm and one or more of its partners.
Partners can include marketing agencies, multichannel distribution partners, multivendor loyalty program partners, and communication channel partners.
Touch pont (3) Customer-owned
These touch points are customer actions that are part of the overall customer experience but that the firm, its partners, or others do not influence or control.
An example would be customers thinking about their own needs or desires in the prepurchase phase. During purchase, the customer’s choice of payment method is primarily a customer-owned touch point, although partners may also play a role.
Touch point (4) Social/external
These touch points recognize the important roles of others in the customer experience. Throughout the experience, customers are surrounded by external touch points (e.g., other customers, peer influ- ences, independent information sources, environments) that may influence the process.
Dynamics and external influences
Prior experience influences current satisfaction, which in turn influences future usage. Customers themselves change over time after repeated experiences with a product or after a specific experience. Specifically, customers develop relationships with brands, which in fluence their identity. Customer decisions become routinized, and extraordinary experiences have long-lasting effects. Insights:
- The customer’s dynamic external environment influences the customer experience.
- Extreme crises can have a strong, negative, and enduring effect on the customer experience.
- The economic situation (i.e., recession, expansion) influences the customer experience
A service blueprint includes:
- physical evidence
- customer actions
- onstage/visible contact employee actions
- backstage/invisible contact employee actions
- support processes
Blueprinting maps out the entire service delivery process from back-office internal processes to front-facing customer interactions. Should have a customer perspective, hence, you should ask the customers. It helps mapping out the customer journey
Business Service Catalogue
A business service catalog maintains information on all services that you currently offer to customers. A service catalog should be a subset of your entire service portfolio, likely because not all services are currently available. A document, an online portal, a website shopping experience, or other forms can all comprise your service catalog.
When a customer knows what to expect from your service, the customer can get in touch quickly and easily when that expectation isn’t met.
It is the part of the service that is published to customers
