Customer Journey and CX Flashcards
CX Customer Experience
facilitate acquisition, enhance satisfaction, increase retention, and reduce attrition
what is this example?
new trend is Apple, Amazon, Disney, Marriott, MillerCoors, Ford and many others have Chief Customer Officer (CCO)
10% of Fortune 500 and 22% of Fortune 100
Customer experience enhancing
How to improve Customer experience CX?
identify and fix friction and pain points
Systematically understand customer experience to facilitate acquisition, enhance satisfaction, increase retention, and reduce attrition
3 goals of increasing CX
1 retention/reduce attrition - enhance satisfaction
2 increase cross sell
3 increase advocacy, positive word of mouth, NPS net promoters score
attrition
Customer attrition, also known as customer churn, customer turnover, or customer defection, is the loss of clients or customers.
Forrester
does CX calculations for companies
eg. for automakers one point more in CX causes $48.82 per customer, for 18M customers = $879 M in more sales
this is not like more cars - it’s like other supplementary products to the car like cleaning, maintenance etc.
Forrester Scoring Customer Experience
see diagram
CX quality
- effectiveness
- ease (of getting value from the experience)
- emotion (customers feel good about experience)
Customer Loyalty
- Retention
- enrichment (likelihood of buying additional products and services)
- advocacy (likelihood of recommending to
What is this example?
Positive and Negative Emotions Drive a Customer experience - US customer experience Index 2018
CX quality (emotion)
Positive emotions
- appreciated
- confident etc.
negative emotions
- annoyed disappointed frustrated
The types of CX quality and growth relationships
linear growth
diminishing relationship
exponential relationship
linear relationship
autohome insurers health insurers internet service providers rental cars retailers tv service providers
better CX creates growth
diminishing relationship
airlines
credit card insurers
OTT providers
wireless service providers
They max it out after a while
exponential relationship
auto manufacturers
banks
brokerages
hotels
more CX can grow this really fast
especially for banks because people put more funds into one bank etc.
Trends who has the best CX scores by companny
Navy Federal Credit union USAA - credit for military families Trader Joes ... Zappos
Trends who has the best CX scores by company
Navy Federal Credit union USAA - credit for military families Trader Joes ... Zappos
Customer Journey Map
Visual depiction of customer’s interaction with an organization
Customer Journey Map horizontal axis
- Pre-service period, service period, post service period
- Plot touch points based on customer research
- Reduce to relevant interactions
What is this example?
Satellite TV Customer Journey - top line is company journey with customer
bottom is customer Journey
Customer Journey Map
memorize this to draw one yourself!
they look at customer map
company map
and opportunities to better the points
Important
find the touchpoint that really matter
you can have like 60 and only have 10 matter
Important
find the touchpoint that really matter
you can have like 60 and only have 10 matter
Vertical Axis
measures customer experience with the offering
Sensory, Rational, Emotional, Behavioral, Social
•Activities, Motivation, Questions, Barriers
Managerial actions linked to customer experience
- Customer requirements
- Employee action
- Employee support
- Interface design
- Opportunity/Innovation
Steps in Creating the Map
1 Brainstorm
- •Layout hypothetical journey from beginning to end for identified customer group
•Use personnel from multiple department!!!!
2 Create horizontal axis with consumer research
-•Interviews, focus groups, surveys: key themes, needs, goals, and touch points
•Reduce to critical touch points
•Depict what customers actually do, not what you think they do
•Additional research/insights
3 create vertical axis for insights and innovation
5 evaluate and iterate
6 be creative visually!!
What is this example?
Hotel used infrared cameras to track their customers
•Depict what customers actually do, not what you think they do
What is this example?
Westin hotel found that bed spread sheets were gross and shower curtains were gross by watching people in the room and then fixed that
using Customer journey map to fix pain points
Alternative Journeys
- What is,what if,what wows
- Onboarding; problem resolution; renewal/repurchase
- B2B
- Decision makers
- Different customers/segments
- Different archetypes (classic, gifting, impulse, habit…)
What is this example?
Marcus by Goldman Sachs is a digital online bank to
aise deposits and bring in younger and lower income consumers
- Started in 2016 and now has over 1.5 million customers, $23 billion in deposits and $4 billion in loans
- Aimedtobuildbest-in-class online/mobile platform using customer journey mapping
customer journey mapping s gives a comprehensive view of all customer facing activities
CX -> CLV
needed to build customer journey map
1 customer point of view
2 internal assessment
3 leadership alignment
implementation need
2 Information must reach managers and decision makers -CCO
3 IMC integrated marketing communications - Align marketing, operations, information technology, and product development with the journey the customers actuallytake to maximize acquisition and retention
