Customer experience is an essential aspect of every successful business of global companies and businesses in various industries are primarily competing on customer experience
Outcompeting other companies hence require companies to deliver better customer experience in their product and service delivery
According to Hill (2011), companies that focus on their customers often record an increased annual revenue as compared to other that only focus on the quality of products and services they offer. Benefits include greater workforce agreement rates.
What is Customer Experience Management (CEM)?
– It is a collection of strategies and processes used by a company in tracking, overseeing, and organizing every interaction between the company and the customer (Hill 2010, p. 4)
Objectives of CEM
Optimization of interactions from the perspective of customers
Fostering customer loyalty
Enables easy management of the customers by the company
Steps to forming a customer centric CEM in the organization
To effectively adopt CEM, the company should;
Design a plan or strategy encompassing all the customer interactions have a 360- degree customer view with updated data on the company accounts having an updated system that can connect both the clients and business Personalizing its business through new technologies (Hardy 2012, p. 5)
How CEM strategy will give the organization competitive advantages
Adopting CEM strategy in the organization will;
Understanding customer perceptions
Organizing its interaction with its customers
Emotional analytics will help the company to gauge the benefits the customers gain from the company
It is a method that is relevant to the millennial generation that form a bigger percentage of the current business environment.
Toyota started its operations in the 1980s (Hardy 2012, p. 5)
It is a Japanese automobile company that operates in the global automobile industry.
It machines are said to required fewer repairs and can last for a longer duration.
Currently, the company still have unique designs and is consistent in its innovation of modeling ideas resulting to their long-term customer preference and excellence in operation.
Importance of customer segmentation for the company
Helps in reaching a target market such as the sports community
Enabling marketing team to reach the most ideal customers and not waste time and resources on impressers
Enabling the company to craft relevant messages for the targeted customers
Initiates easy connection with the target audience, communicate resonating messages, and develop positive customer relationships
Identification and differentiation of customer segments
Adopting the CEM strategy will enable the company to easily segment its customers such as;
Geographic segment
Psychographic segment
Demographic segment
Behavioral segment
Geographic segment
Involves initiating campaigns targets audience on the basis of their location such as;
– customers within a town
As a large business with international market, the company can focus on offering services to specific audience within specific locations
Demographic segmentation
It will involve dividing the market on the basis of the characteristics of the audience such as age, gender, income, occupation, etc
Useful when it comes to targeting multiple segments at the same time
Behavioral Segmentation
It involves the classification of customers on the basis of different attributes ;
Occasions such as weddings, sports, etc
Loyalty and purchase patterns
Awareness and usage
Enables the company to reach out the target audiences through specific campaigns
Value proposition for each segment
There is a need for value proportion in the company since;
Users cannot access information if customer information is not connected, effectively organized, or distributed.
The company has difficulty in developing a ‘single view customer’ platform with organized customer data. poor handling of technical support has led to reduced customer experience
Despite the good performance of Toyota company in the automobile industry, it still faces several challenges in dealing with the customers (Bhulal 2017, p. 59). i.e.
Poor customer segmentation in connecting multiple feedbacks on various data channels
Poor collaboration between the functional departments
Incorporate the voice of employees too
Ineffective leverage of reports to integrate information from different customer voices
Ineffective customer response
Opportunities for improvement
Despite the few gaps identified in the manner in which the company is treating its customers, McLean (2014) denotes that there are still more opportunities for making a better customer relationships i.e.; more opportunities in international market Toyota is a global company with a brand name hence has higher opportunities for progress
Established customers and products
Recommended CEM Strategy
Suitable strategy- Voice of the Customer (VOC) and customer feedback
– high level of competition within the automobile industry
– will help the company reach out to customers on their specific desires in the market.
What is Voice of Customers (VOC)?
It is the description of the feedback from the customers concerning their service expectations and experience with the services and products offered by a company (Hill 2011).
It focuses on expectations, needs, and product/service improvement
Characteristics of the best VOC strategy
Connects multiple feedbacks on various data channels
Provides automatic collaboration between the functional departments
Delivers a clear business result
Incorporate the voice of employees too
Leverage reports that display and integrate information from different customer voices
Competitive benefits to the company
According to Fogleman (2013), effective VOC strategies will enable the company to;
Engage and connect with customers at key customer points in the journey of relationship
Maximizing the company profit
Prioritizing on the identified wants and customer voice needs
Solicit and evaluate new ideas, solutions, and concepts
Enlisting customer data and intelligence to learn on effective marketing in a one-to-one fashioned and personalized way
Identifying the location of customers and marketing to them in real time.
Enables the organization to give a customer-pointed in relation to a discrete customer purchase
How will the company build an effective VOC program?
The voice of the customer can effectively be understood as an ongoing conversation
The key aspect is hence gathering and using a timely information that will initiate improvement
The above can be effective using multiple touch points such as support, sales, accounting, and warranty interactions
Steps to be considered in building VOC program
Capture- identify the internal and external listening sports of customers. This can be done through surveys across all the touch pints for the customer
Analysis- evaluating a real-time customer feedback through the relevant stakeholders
Act- knowing the problem, take corrective action towards the customer requests
Monitor- helps in tracking results and uncover patters of improvements
According to Fogleman (2014), achieving loyal customer relationship through VOC requires the adoption of IDIC model. With an aim off;
Maintaining a prolonged genuine customer relationship with the existing customers of the company
Realizing the value maturity and uniqueness of customers through an individualized service to every customer
Remaining competitive in the market segmentation through the retention of the existing customers as well as invitation of new customers
How will IDIC model help in achieving effective VOC
IDIC Model is a four step mechanism involving;
Identification of customers
Differentiation of customers
Interaction with customers
Customizing them
– The model will hence help in customer segmentation process to identify and take action towards what they desire
Customer differentiation
Involves building the profile of the customer to serve them as per the services they desire to achieve
The company will be able to identify the non-profitable customers, the top customers, large customers that have ordered less services, and customers that buy more from the competitors.
Customer Interaction
This involves the on-site interactions with the customers on issues such as service questions, or tailoring products
At this point, the company will be able to identify and listen to the expectations and needs of the major customers
The interactions occur in a customer-preferred channel
Customer Customization
Is the mass customization of the content of customer information as per the segmentation achieved at the acquisition process
Also involves a further market research to evaluate the possibility of tailoring the products to meet the needs of the customers in a more competitive manner
Recommendation for better CEM
To increase the effectiveness of customer experience through VOC, the company needs to adopt the following strategies;
Adopting relevant VOC infrastructure/ right technology for the following benefits;
– effective CEM needs to be backed with updated infrastructure
– technology has become a primary focus for all business hence makes it relevant to the current market.
Precautions to be taken in adopting VOC in the company
With a focus of increasing its customer relationship, the company need to ensure that;
collect, continually monitor, and organize the voice of its customers
Listen, verify, and measure customer voices to direct goals and priorities
Avoid wasting effort and resources by investing on customers who do not add value to the future of the company
Conclusion
No private or public organization or company can become an effective competitor and a market leader without listening to customers
The perceived quality from customers is the leading drive in every business success
Adopting VOC and a CEM strategy will ensure Toyota Company remains competitive in the global automobile industry
References
Bhulal, V 2017, ‘The Impact of Customer Relationship Management and its Significant Relationship to Customers’ Satisfaction in Cooperative Banking: (A Case Study of Kangra Central Co-operative Bank)’, Global Journal Of Enterprise Information System, 9, 2, pp. 59-66, Business Source Premier, EBSCOhost, viewed 14 August 2017.
Fogleman, D 2013, ‘Customer Service’, Training, 50, 2, pp. 44-45, Business Source Premier, EBSCOhost, viewed 14 August 2017.
Hardy S, 2012, ‘Introduction to Marketing: environmental analysis on Toyota cars, Birmingham, World Scientific Publishing. New York Times Business Journal, Vol.33, No.3, pgs.4-12
Hill, B. (2010). Seven Steps to Mastering Business Analysis, Bradford, J: Ross Publishing
McLean, G 2014, ‘Customer Service Behaviours in Korea and Implications for Training: Lessons from an Exploratory Critical Incidents Study of Customer and Employee Service Encounters’, Asia Pacific Business Review, 13, 1, pp. 1-20, Business Source Premier, EBSCOhost, viewed 14 August 2017.
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