Discuss about the Customer Experience of Marketing Activities.
Customer experience is an important focus of marketing activities in any industry. This is because customer experience determines the success of any product or service and the profitability of business. Marketing researchers present in competitive organization pay a lot of attention to identifying the needs and changing demands of consumers regionally and globally. This enables them to determine the factors needed for positive customer experience and a positive customer experience in turn drives customer loyalty (Gounaris 2015). Customer loyalty is maintained by providing an exceptional experience to consumers and positive customer experience is directly related to customer retention. A satisfied customers are more likely to recommend the service or product to potential consumers and affect the brand loyalty too (Nysveen and Pedersen 2014). However, the current challenges for marketing leaders is that customers are now much informed about different products and services available in market due to the advent of technologies and social media sites. Hence, all information related to product is at their finger tips now. In such case, it is challenges to constantly provide innovative customer experience to target consumers. To plan strategic factors that are necessary to improve customer experience in a dynamic and challenging business environment, there is a need to review literature on integrated customers experience and the relevant theories that drives customer experience marketing. This literature review analyzed peer reviewed journal articles by thematic analysis process and discusses the integrated customer experience under specific themes.
The definition of customer experience is evolving in dynamic nature of business environment. Thematic analysis approach has been used in this literature review to search and analyze peer reviewed research article related to the topic and categorize them under key themes. The following are the themes coming out after reviewing literatures on integrated customer experience in marketing:
Many research studies have evaluated the customer-brand relationship by the application of the interpersonal relationship theory. For instance, Peter, (2014) used the interpersonal relationship theoretical framework to study about the impact of interpersonal relationship on marketing performance. It focused on social exchange theory and the uncertainty reduction theory to interpret the research data. The social exchange theory explains that give and take is necessary to strengthen any relationship, so feelings and emotions of recipient should be reciprocated to develop a good and long lasting relationship (Cropanzano et al. 2016). This concept may be applied to develop strategies for improving the customer experience too. Secondly, the uncertainty reductions theory gave idea about the stages two individual go through when they are strangers and have no knowledge about each other (Hogg, 2016). Therefore, the uncertainty reduction theory gave rise to a framework or strategies to replace uncertainty and ambiguity with familiarity and security in an interpersonal relationship. Hence, with the use of these theories, Peter, (2014) came to the conclusion that interpersonal communication is necessary for positive influence on marketing performance. The quality of friendly interaction is one dimension of interpersonal relationship. Therefore, the study gave the implication that increased attention to relationship marketing strategies is important for sustaining customer loyalty and improving marketing performance.
Customer experience has become a major focus in management and marketing practices. The definition of customer experience may change in different business-to-business setting. The study by McColl-Kennedy et al., (2015) provides the perspective that in today’s business environment, customer experience is controlled not just by service provider, but also by the influence of devices likes smart phones and internet. Majority of studies has focused on organization’s perspective to understand customer experience, however McColl-Kennedy et al., (2015) emphasized on the broad role of customers in customer experience and identifying the dynamic nature of customer experience with time. While identifying the current gap in research on customer experience, the study revealed that customers are no longer a passive recipients of products or services. They are well-informed about their choices and they provides new ideas for service innovation and enhancing customer experience. The study proposed practice-based approach to understand consumer experience and this can be done by focusing customer’s personal value base and the factors that drive their engagement with product or services. Therefore, the study was successful in proposing future approach needed to evaluate customer’s perception and change in their experience overtime.
Internet and other technology have transformed the retail environment too. Currently, retailers are investing in different technology to provide unique customer experience. Blázquez (2014) evaluated the role of technology in enhancing online shopping experience in the fashion industry. The research particularly explored how internet and digital technology has changed the multichannel shopping experiences of consumers. The concept of shopping values was defined in this study by the hedonic and utilitarian value. Hedonic value referred to the emotive element of shopping experience whereas the utilitarian value referred to the task oriented purpose f shopping. Hedonic value may made clear by a shopping experience done for fun and pleasure. Hedonic values has been found to improve consumer loyalty and utilitarian value was considered important for developing positive attitude towards a brand in consumers (Allard, Babin and Chebat 2009). A qualitative survey was done to evaluate the experience of consumers in brick and mortar stores and online shopping. The study findings showed that technology was a major motivator for consumers to shop in particular stores. The consumer’s perception of motivation behind in-store experience, such as the hedonic or utilitarian value was also considered important for multichannel retailer (Blázquez 2014). The strength of this study is that hedonic elements in shopping experience was established and it was found that technology is a good source for retailers to integrate different channels and connect with consumers and provided them good shopping experiences. Although internet was considered to be a threat for future stores, the study gave the implication that customer experience can be improved if service providers think in all channels just like consumers.
Several research studies established the link between customer experience management and brand loyalty. So et al. (2016) evaluated the role of customer engagement in improving customer experience and building consumer loyalty. In the tourism industry, a customer engagement strategy is considered important to enhance customer experience and manage customer brand relationship. The review of literatures showed that consumer engagement approaches like online user-generated reviews influenced the rate of online booking and intention to book hotels. This approach is beneficial for organizations to attract and retain more consumers (Sparks and Browning 2011). So et al. (2016) used survey questionnaire methods to evaluate perception of customers related to experience in tourist industry. The study done with consumers gave insight into the role of customer engagement in build customer relationship with brand. The finding supported the fact that customer engagement is a critical factor to understand service brand loyalty factors and including them in their service.
Rageh Ismail et al. (2011) also highlighted the evolving nature of customer experience in the marketing discipline. The literature review evaluated the impact of customer experience on brand loyalty. The review pointed out that creating unique experience for consumers has become important to gain competitive advantage in business. Although customer experience is not a new concept, however changes in the definition of customer experience is seen with time. Studies defined customer experience in different ways. In addition, various dimensions of customer experience was also defined such as the number of interactions with brand or the hedonic factor in service experience. Several antecedents to customer experience was also defined such as the brand name, pricing, advertising and core service. All this together shaped the perception regarding service quality and consequently brand loyalty. Once a company is successful in building a loyal customer, their profitability will automatically increase. This is because loyal customers will be less sensitive to price factors and focus more on relationship with the brand. Overall, this study was successful in highlighting different definitions and dimensions of customer experience. It also presented an empirical model to build consumer experience. However, the only gap in this research was that the conceptual research model was not tested for validity. Still, the research gave many important future implications to manage customer experience in organization.
Another research contributed to the understanding of the integrated customer experience by connecting the dots between brand experience and brand loyalty. The relationship between customer’s experience with brand and the brand loyalty component of purchase and attitude was examined by means of survey with 372 consumers. The use of questionnaire supported the collection of data related to experience with a brand, feelings of trust and loyalty towards the brand. The outcome of the study showed that brand experience has a direct relation with brand attachment and brand commitment. However, the research showed no link between brand experience and brand trust. This disparity occurred because brand trust is dependent on level of involvement (Ramaseshan and Stein 2014). This research is significant because past studies focused only on the link between brand experience and customer loyalty, however this study established the link between brand experience and purchase brand loyalty. It also contributed to the interpersonal relationship theory. The study gave many managerial implications too by stating that managers should plan strategies to enhance brand-related stimuli such as communication, packaging and environment to influence brand experience.
Business organizations have now shifted their strategies focus towards customer satisfaction and customer retention. They consider branding as an important element to establish long-term relationship with customers and enhance their experience with brand. Krystallis and Chrysochou, (2014) include service brand loyalty as a factor to measure customer experience. The on-line survey regarding the research question was done with two industries- the airline industry and the banking industry. The evaluation of both the service showed that value for money was the important brand component for consumers and brand name was not considered important for customer’s evaluation. The price or good value for money had a major impact on customer’s decision making. Secondly, the quality of interaction between the service provider and customer determines the consumer’s satisfaction level. The main strength of this study is that it showed that customer’s degree of brand loyalty is influenced not only by overall customer’s disposition, but also by brand evidence. The gap in the study is that full detail regarding brand service dimension and communication was not evaluated and future work needs to be done in this area.
Customer experience management (CEM) has become a challenging task in today’s business environment. The research by Homburg, Jozi?, and Kuehnl (2017) evaluated the changing marketing landscape by evaluating the experience of managers in CEM. The grounded theory approach was used to conduct the study and the perception of manager towards CEM was evaluated. The study findings gave indications about three CEM pattern. Firstly, the participant’s response revealed a vision towards CE and experiential response orientation. Secondly, firm’s capability towards CEM was found and most beneficial among them was the adaptability to CEM in different situations. The third pattern focused in cultural mindset and touch point prioritization. Secondly, the final pattern was alliance orientation and touch point journey design. This study has limitation as it is based on grounded theory approach and grounded theory may rely on researcher’s ability to code qualitative data. However, the strength of the study is that it led to the conceptualization of CEM and this will help to systemize the strategies taken to enhance customer experience in the marketing field.
One of the leading business objectives of business leaders today is to build an strong customer experience. Hence, having good understanding about customer experience and their journey with time will have great implications for the success of business firms. This understanding is developed by Lemon and Verhoef (2016) who focused in investigating about the customer experience through customer journey. Developing this concept is considered important because customers now interact with multiple channels to decisions on buying or receiving any service. This research gave information related historical perspective of the roots of customer experience. The review of research literature indicated that customer buying behavior process models, customer satisfaction and loyalty, service quality, relationship marketing, customer engagement and customer relationship management determines customer experience. All these factors were extensively explained in the study. Secondly, the whole customer journey was explained through the stages of the total customer experience. The customer journey starts from the prepurchase phase, which involves searching and considering about the goals or impulse associated with a purchase. The second stage is the purchase stage which, involves the process occurring during purchase event such as customers interaction with the brand and its environment. The third phases the interaction with the brand after the purchase event. This was defined by level of usage, number of service or product request and word of mouth praise for products. The touch points involve in customer’s journey was also defined. The main strength of this research was that it gave holistic view about the integrated customer experience across the customer journey and this knowledge would help to enhance and manage customer experience.
The literature review effectively developed the concepts regarding integrated customer experience by systematically presenting key themes. Firstly, the review gave idea about the relevant theories that influence customer experience and act a guideline for improving customer’s relationship with the brand. Secondly, other themes of changes in customer experience and role of technology in customer experience developed the understanding regarding how customer experience has evolved and innovative methods are needed to attract consumers. Other important theme related link between customer experience and brand loyalty was a positive categorization to fully understanding the method of branding process and tactics to deliver a unique experience to consumers. The explanation regarding the customer’s journey during a purchase event further embedded the main concepts about the topic and this will have great implications for future managers to move ahead with strategic focus on customer experience management.
References
Allard, T., Babin, B.J. and Chebat, J.C., 2009. When income matters: Customers evaluation of shopping malls’ hedonic and utilitarian orientations. Journal of Retailing and Consumer Services, 16(1), pp.40-49.
Blázquez, M., 2014. Fashion shopping in multichannel retail: The role of technology in enhancing the customer experience. International Journal of Electronic Commerce, 18(4), pp.97-116.
Cropanzano, R., Anthony, E., Daniels, S. and Hall, A., 2016. Social exchange theory: A critical review with theoretical remedies. Academy of Management Annals, pp.annals-2015.
Gounaris, S., 2015. Customer Experience. Wiley Encyclopedia of Management.
Hogg, M.A., 2016. Social identity theory. In Understanding Peace and Conflict Through Social Identity Theory (pp. 3-17). Springer International Publishing.
Homburg, C., Jozi?, D. and Kuehnl, C., 2017. Customer experience management: toward implementing an evolving marketing concept. Journal of the Academy of Marketing Science, 45(3), pp.377-401.
Krystallis, A. and Chrysochou, P., 2014. The effects of service brand dimensions on brand loyalty. Journal of Retailing and Consumer Services, 21(2), pp.139-147.
Lemon, K.N. and Verhoef, P.C., 2016, November. Understanding customer experience throughout the customer journey. American Marketing Association.
McColl-Kennedy, J.R., Gustafsson, A., Jaakkola, E., Klaus, P., Radnor, Z.J., Perks, H. and Friman, M., 2015. Fresh perspectives on customer experience. Journal of Services Marketing, 29(6/7), pp.430-435.
Nysveen, H. and Pedersen, P.E., 2014. Influences of co-creation on brand experience The role of brand engagement. International Journal of Market Research, 56(6), pp.807-832.
Peter, A., 2014. The Effect of Interpersonal Relationship on Marketing Performance in the Nigerian Hotel Industry. International Journal of Business and Social Science, 5(2).
Rageh Ismail, A., Melewar, T.C., Lim, L. and Woodside, A., 2011. Customer experiences with brands: Literature review and research directions. The Marketing Review, 11(3), pp.205-225.
Ramaseshan, B. and Stein, A., 2014. Connecting the dots between brand experience and brand loyalty: The mediating role of brand personality and brand relationships. Journal of Brand Management, 21(7-8), pp.664-683.
So, K.K.F., King, C., Sparks, B.A. and Wang, Y., 2016. The role of customer engagement in building consumer loyalty to tourism brands. Journal of Travel Research, 55(1), pp.64-78.
Sparks, B.A. and Browning, V., 2011. The impact of online reviews on hotel booking intentions and perception of trust. Tourism management, 32(6), pp.1310-1323.
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