Customer Experience Management: A Case Study

Introduction

This assignment examines 4 aspects of Customer Experience Management namely:

• Market Segmentation

• Customer Personas

• Customer Journey Maps

• The benefits of a good customer relationship

It then examines a particular customer segment of the bank 's business and applies these aspects to that segment. Finally it outlines some suggestions of what the bank might do to enhance its customer relationships. Part A

Describe the following topics:

1. Market segmentation (5 marks)

2. A customer persona (5 marks)

3. A customer journey map (5 marks)

4. The benefits of a good customer relationship (5 marks)

1. Market Segmentation

Market segmentation is the process of dividing customers or buyers into separate categories or clusters. These

So in fact they widened the definition to allow for the potential for non-deliberate actions, which may be outside the control of the company that might have an impact on the customer 's perception of the company. These would be factors, for example like an air traffic controller 's strike action which would likely negatively impact on an airlines customer experience but is something outside of their control. The journey map could show these kinds of events and could be used to define how the airline might counteract such negativities e.g. offering customers alternative transport options through other airports or complimentary

The Benefits of a Good Customer Relationship

From the company 's point of view some of the benefits of a good customer relationship are:

• Economic o Your administration and marketing costs are reduced as it 's cheaper to retain an existing customer than trying to attract a new one. (Reichheld & Sasser, 1990) cite the example of the $51/customer that it costs credit card companies to recruit and set up a new customer. o It 's generally takes a lower overhead on the company to maintain a relationship with the customer as the length of the relationship increases. (Rosenberg & Czepiel, 1984) claim that the cost of maintaining an existing customer is up to five times less than the cost of attracting a new one. (Reichheld & Sasser, 1990) claim that a retention rate increase of just 5% can boost profits by almost 100%. o Increased purchases over time (Wilson et al., 2012), (Reichheld & Sasser, 1990).

• Advertising/Marketing o Customers with whom you have a good relationship will be advocates of your company and will spread word of you through word of mouth or through social media so called "free advertising" (Wilson et al.,