Topic 9: The customer experience + competitive advantage

Question 1

What are the 7 Ps of the extended marketing mix?

Answer 1

1) Product
2) Place
3) Price
4) Promotion
5) People
6) Process
7) Physical evidence

Question 2

What are the 5 factors which influence service quality?

Answer 2

Reliability
Assurance
Tangibles
Empathy
Responsiveness

Question 3

How do we measure customer experience?

Answer 3

1) KPIs - quantifiable measure against performance

2) SLAs - specific and measurable relating to service

Question 4

What are the three most common customer satisfaction metrics?

Answer 4

1) Net promoter score (NPS)
2) Customer satisfaction (CSAT)
3) Customer effort score (CES)

Question 5

How is NPS calculated?

Answer 5

It measures customer perception based on one question: “How likely is it that you would recommend [brand] to a friend or colleague?”

It uses the concept of promoters, passives and detractors, where:

• Promoters are loyal enthusiasts
• Passives are satisfied but unenthusiastic
• Detractors are unhappy customers

To calculate, convert to % and subtract % of detractors from % of promoters.

Question 6

How is CSAT calculated?

Answer 6

The average satisfaction score that customers give after a specific experience with the bank (range of possible answers)

Question 7

How is CES calculated?

Answer 7

The level of effort required of a customer when interacting with a business to complete their customer experience, via a post-interaction survey (range of possible answers)

Question 8

According to Michael Porter, what are the three generic strategies for gaining competitive advantage?

Answer 8

Cost leadership, differentiation and focus