Managing Customer & User Experience of Customers

This Presentation is about managing customer & User Experience. For managing the requirements of Customer.

1. Managing Customer & User Experiences in Digital Environment Salman Tahir, PMP

2. Learning Outcomes Demonstrate an advanced level of knowledge of the importance of CX and UX within digital business environment. Critically evaluate CRM data sets to make informed business choices and decisions within a specific industry. Appraise the importance of ethical , legal and regulatory frameworks when handling customer data demonstrating evidence of high-level research. Design fully justified and advanced level customer journeys and experiences.

3. Lecture # 4 During this lesson we will specifically look at: What is relationship marketing and how does it tie in with CX management? What is marketing personalization and how does it tie in with CX management? Why is data so important in marketing personalization, relationship marketing and subsequently CX management? What ethical implications and regulatory factors apply to consumer data collection, use and management? What is hyper-personalization and how does it tie in with CX management?

4. Relationship Marketing During our venture into the practice of CX management, there may be something that has stood out in terms of the view taken on the customer.  Of course we know that CX management is concerned with ensuring a seamless and enjoyable experience for the customer with a brand or organization, no matter their journey and touchpoints they interact with along the way. Thinking about this a little further, we could also surmise that CX management has an objective of maintaining customer loyalty. Brands and organizations with developed CX management practices want customers to take part in customer journeys again and again. 

5. Relationship Marketing This customer loyalty is the primary area of concern for another marketing practice known as relationship marketing, and in this respect there is some clear overlap with CX management. There is good reason for brands and organizations to put such an emphasis upon customer loyalty. Existing customers tend to spend more than new customers (Adobe, 2021), as they already know the benefits associated with purchasing a particular brand’s products and/or services, they are more likely to already be invested in what the brand or organization is about.

6. Relationship Marketing Relationship marketing based activities tend to begin once the purchase has been made W hen it comes to relationship marketing is that whilst other marketing efforts may be focused upon creating brand awareness or getting people to click the Buy Now button, relationship marketing based activities tend to begin once the purchase has been made. Typical Relationship Marketing Strategies can include; Ensuring the customer is still kept entertained, informed or educated through fresh new consistent content regardless of the fact that they have already purchased. Another strategy is the tried and trusted incentives route, whereby brands and organizations offer existing customers rewards for their loyalty, again ensuring customers maintain a positive image of the brand in their non-purchasing stages. Finally, the practice of receiving regular feedback from existing customers is also seen as a relationship marketing strategy.

7. Relationship Marketing Relationship marketing practices work with CX management to maintain a positive image of the brand or organization in the mind of the customer, which in turn makes it more likely that the customer will repeat customer journeys and ultimately purchases or other desired actions.  Now that we are familiar with some of the basic relationship marketing strategies and practices, think of a specific example where a brand or organization has conducted a relationship marketing strategy.  When you have thought of your example, create a new discussion topic on the Lesson 4 discussion forum and use it to write down example.

8. Personalization Marketing As the modern consumer has grown more and more sophisticated with a greater awareness of the choices in offerings, and perhaps not being immediately moved to action based upon marketing messages, brands and organizations have needed to change their approach to develop and maintain custom.  Our previous discussions have looked at how CX management works to provide customers with efficient and enjoyable experiences with brands and organizations, and how relationship marketing strategies can help customers remain loyal and take repeated customer journeys. A particular marketing approach that can play a pivotal part in relationship marketing strategies and customer loyalty generally is personalization marketing. 

9. Examples of Personalization Marketing One example of personalization marketing is from an organization simply sending a message to a past customer using their name, to brands providing tailored app or website experiences to those who have purchased from them before. Another example of personalization marketing is Google’s use of retargeted ads, where an individual may have searched for a specific product or service whilst in the Evaluating Alternatives stage of the Buyer Decision Making Process, but not actually purchased anything. The same individual will then see ads for that product or service served to them in relevant spaces across the websites they continue to browse.

10. Examples of Personalization Marketing Netflix: The movie and series streaming service uses algorithms to store customer’s viewing preferences. With this data it then suggests new movies and shows which match the customer’s preferences. Means that one person’s viewing experience is not the same as another’s.  Spoti fy: As customers use the music streaming platform more it learns their tastes and promotes other songs, albums and podcasts to them which they should enjoy based upon their previous listening habits. Again offering each customer a personalized experience. Costa: The company used geo-location targeting to send special offers to customers who had downloaded the app and were living or working in specific areas. As the customer was walking by a Costa store they would receive a notification on the app informing them of a special offer just for them as they are a loyal customer who is in the area. This gave the impression that the company was specifically thinking about the customer.

11. Customer Data Management Personalization Marketing expected by consumers in the present day relies heavily upon user and customer data, a topic that we will begin to explore next. One of the most important practices within CX management is that of customer journey mapping. So far we have discussed customer journeys throughout various topics during this module, but we haven’t seen how they are visualized by CX and marketing professionals. A customer journey map shows how the customer makes their way through each stage of interaction with a brand or organization ( Dirsehan , 2020).  A customer journey map includes the touchpoints a customer encounters and can also include the feelings they may experience along the way. 

12. Customer Data Management In the previous topic we briefly touched upon the importance of data in personalization marketing. Data is one of the single most important factors for brands and organizations in offering their customers personalized human experiences and also in executing relationship marketing strategies (Einhorn et al, 2021).  But which data are we talking about here? After all, the term can encompass a wide range of information. The answer is it really depends upon a number of variable factors, such as who the brand or organization is, the country in which they are operating, what they are trying to do and the technical capabilities they have.

13. Customer Data Management We’ll take a look back at the example responses provided to the previous task on personalization marketing. As well as storing general user account information such as name, address, date of birth etc., Netflix also stores data on which titles users watch, whether they watch them all one after another or spread them out perhaps 1 or 2 per week, which trailers they engage with and any titles they quickly move over in the user interface (Wired, 2021). It is only through storing and analyzing this data that Netflix is able to make movie and show recommendations to their users and market new titles to them, and it is through these recommendations that the organization can offer a personalized experience and deepen the customer-brand relationship.

14. Customer Data Management Data can be collected by brands and organizations at various points along the customer journey. This also depends upon the touchpoints that customers engage with along the way. Take a look at the example customer journey below for purchasing a pair of running trainers. Think about which customer data could be stored by the brand at the various stages and complete the Data row at the bottom with your responses on a word document. Once you have completed the Data row click below to see feedback.

15. Buyer Decision Making Process Stage Problem Recognition Information Search Evaluation of Alternatives Purchase Post-Purchase Feedback Feelings Wow those trainers look good! That reminds me that my pair need replacing. The review sites seem to be pointing me towards this specific site and particular brand of trainers. I like the site, I think I’ll sign up to the newsletter. I’ll see what else I can get for a similar price. Yes I think I’m making a good decision with this pair. Pleased with my purchase, these trainers provide exactly what I needed. Touchpoint(s) YouTube video ad Website Review sites Customer websites/apps Wider review sites Website Email Data YouTube video ad views. Showing demographics of viewers. Location of visitor. Duration of visit. Most visited page(s). Name and email address with potential email newsletter sign-up. No real data to be stored at this stage for customer activity on competitor sites/apps. Although sentiment analysis may be carried out across social channels. Name. Email address. Address. Social media activity (if signed up via social sign-on).Purchased item(s). No real data to be stored at this stage, however regular customer communication could increase chances of further custom and therefore more data on customer’s preferences

16. Data Ethics and Regulations In this topic we will continue to look at data, however from an ethical perspective. The practices outlined in the previous topic, whereby brands and organizations store and use customer data to enhance the customer experience and build more personalized relationships, are fairly commonplace in today’s world. Individuals can and do expect data capture and usage as a standard occurrence during the shopping process, especially if that process takes place predominantly online (Glass and Callahan, 2014). There has been however a big difference in how this data collection is viewed from an ethical perspective over the years.

17. Data Ethics and Regulations Web 1.0 In the early years of online retail (web 1.0), data capture was not as sophisticated as we see now, partly due to technical limitations of the era but also because there was not yet enough widespread usage of online retail to be able to develop strategies around CX and personalization marketing. As social media developed and the online world generally began to mature (web 2.0), data capture started to become a key element of online retail and entertainment. For social media platforms it was and still remains their primary method of generating revenue, using it for targeting advertising to users. 

18. Data Ethics and Regulations Web 2.0 During the early web 2.0 phase brands and organizations could generally collect and use customer data as they wished, there was no real focus upon data from a political and/or regulatory level. Brands and organisations varied in their approach, from collecting the minimal amount of data possible to ensure the customer received and was happy with their purchase, to collecting the most amount possible in the case of the previously mentioned social media platforms. 

19. Data Ethics and Regulations Recently In recent times however, the data that brands and organizations collect and use from customers and users has become a mainstream cultural topic, not helped by high profile cases of social media platforms using the data unethically (Guardian, 2018). A lot of leading western nations have over the past years implemented laws specifically to limit the type and amount of customer and user data that organizations can collect and use.   In the case of some nations, individuals have been given rights to access the data that organizations hold on them and choose to have that data removed from systems. Therefore, it becomes imperative for organizations and brands to be aware of the restrictions they face regarding data.

20. Data Ethics and Regulations General Data Protection Regulation (GDPR) GDPR is a privacy and security law that was created by the European Union (EU), it gives organizations anywhere in the world a set of rules to comply with if they target or collect data related to people in the EU. The law was put into place on 25 May 2018. Any organization that breaks the GDPR laws will need to pay large fines.  

21. Hyper-Personalization With the use of customer data now standard practice when it comes to organizations practicing personalization marketing and relationship marketing strategies, some brands have sought to look ahead further into the future and try to extend the personalization approach.  Hyper-Personalization takes aspects of personalization marketing and applies elements such as Artificial Intelligence (AI) and automation to it. By doing this they are able to offer things such as dynamic pricing on websites which changes based upon whether a customer has previously purchased from the brand or not ( Epilson , 2018) and even things such as individual post-purchase evaluation based upon the important areas highlighted in the customer’s previous product or service reviews.

22. Hyper-Personalization The use of cutting-edge technology which draws upon data, processing it instantly and thus coming to a conclusion that drives the customer’s next action, is now where the practice of marketing is headed. Brands and organizations are also able to use such practices to even automatically change website and app copy, depending upon what the individual is most likely to respond to in terms of driving a purchase. 

23. Hyper-Personalization An example of hyper-personalization in action can be seen in Deloitte’s 2018 report Connecting with Meaning, where the consulting organization highlights a specific case study that saw them helping an airline.  Deloitte created a hyper-personalized experience for the airline’s passengers in airport lounges through utilizing AI to link customer’s online social profiles with the data the airline already held on them.  By using facial recognition, customer service representatives were able to see a customer’s past preferences and offer them drinks they know will be enjoyed and even calling them by name.