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Customer Experience Strategy - A case study of Samsung

mobile phones
Managing The Customer Experience (University of Northampton)

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Customer Experience Strategy – A Case Study Of Samsung Mobile

Executive summary

The purpose of this report is to focus on the aspect of Samsung’s customer experience (CX) and
to also discuss the CX strategy used by Samsung to sell their mobile phone. The report will also
aim at meeting the general motive of the company using practical insights. In the course of this
report, various areas of customer experience will be focused on, which includes the importance
of CX, omnichannel marketing, etc. and they will be linked to Samsung mobile.

Introduction

Customer experience is said to be a process of interactions between customers and organizations

during the period of their relationship. These interactions may include customer’s awareness,
advocacy, attraction, cultivation, and their purchase of goods and services. It can also be
measured by the experience of individuals during points of contacts.

In this report, the focus will be on Samsung mobile. The customer experience strategy of
Samsung will be addressed. Samsung happens to be one of the top mobile phone companies in
the world. Since the inception of mobile phones in 1983, a lot of phone manufacturers have come
forth with different models and designs of phone (Microsoft research, 2014). With the strong
competition in the mobile phone industry, every producer needs to come up with strategies that
will make them rank top in the market and Samsung is not left out. Customer experience is an
important aspect when it comes to running a successful business (sustainability report, 2013). .

However, in this paper, the CX strategies that defines the growth of Samsung mobile will be
analyzed and its proposed plans by Samsung mobile company UK to deliver meaningful
experience to its customers.

The importance of Customer experience (CX)

Customer experience is the personal experience of customers and it has emerged as one of the
key factors of marketing with the aim of creating, exciting, unique, and memorable experiences
for customers (Siqueira et al, 2020). When it comes to practice and theory, CX has become a new
concept that has attracted the attention of various companies. It can also be defined as a strategy
applied by various brands to create great customer values, as well as also achieving
differentiation and sustainable competitive advantage.

CX is relatively a new concept, in both practice and theory, which has gained larger attention in
the recent past. It is also defined as a strategic process applied by brands to create holistic

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customer value, achieve differentiation and sustainable competitive advantage. CX has been
defined in so many ways which includes;

 CX can be said to be holistic, social and sensory, has to do with interactions between
customers indulging them. It is also focused on various marketing theories and practices
as it is seen as an important element that aims at achieving customer satisfaction.

 However, to understand and create true value within customer experiences, companies
need comprehensive view of their customer experience overtime. This will integrate the
digital, physical, and social aspect. However, if this integration doesn’t happen,
companies are prone to facing some form of challenges in both the business to business
market and the business to customer market.

Importance of CX in the case of Samsung mobile phones, UK

When it comes to the concept of CX, it is very important for Samsung mobile phones because
CX can be a determinant of their success in the UK. It interprets the behavior, satisfaction, and
attitude of their customers as well as the quality relationship their brand has with its customers.
When it comes to Samsung’s competitive advantage in the UK telecom market, Samsung can
proudly say its success comes from leveraging CX. Building not just a good brand name, but also
a strong relationship among its customers have kept them going (Manthiou, 2020). So far, CX
have given Samsung mobile positive results, because by creating a relationship with their
customers, they have been able to meet their customers needs by improving each model that
drops in the market.

Consumer Persona Creation

A consumer persona which is also known as a buyer’s persona is a model hat represents the
important characteristics of consumer’s database, based on the data collected from user research
and web analytics (User testing, 2020).

The role of consumer persona in developing effective CX strategy

The use of consumer persona have become very effective for CX strategy because it is a better
way of understanding the behavior of consumers when it comes to different acquisition stages

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and user stages within the functional behavior of consumers. It also helps in supporting
consumer journey which has become the most important aspect of CX

. The use of persona is a way for better explaining and understanding the complexity of
sustainable consumer behaviour concerning different stages such as acquisition, use and post-
user within the behavioural functions of mobility, housing, food, and clothing (6). Creating an
effective customer persona helps a brand understanding how their customers interact with this
brand throughout the entire lifecycle. Creating a persona would provide awareness of the many
journeys that a brand’s customers may take, thus the brand can improve them.

Identification of a key consumer persona regarding Samsung mobiles and a detailed visual (Job-
brief)_100
Interest is the key consumer person of Samsun Mobile phones, where three different interests are
shown by the consumers of UK towards buying of a Samsung Mobile phone such hunters,
quality-seekers, and nomads roaming the digital landscape for the latest innovation.

Figure 1: Consumer persona

(Source: Created by author)

3. Mapping the customer journey

A clear explanation of a customer journey with appropriate discussion of its importance to CX
strategy
A customer journey refers to a complete sum of experiences that a customer goes through while
interacting with their preferred company and brand. Despite looking at only a part of an
experience or transaction, the customer journey documents the overall experience of being a
potential customer. CJM (Customer Journey Mapping) lists every possible organizational touch-
points that a customer may encounter during the service-exchange process, thus through clearly
understanding those touch-points, the senior marketers could work with cross-functional teams to
employ tactics fostering service innovation as an effective CX Strategy (7). The goal of these
tactics is for enhancing the customer service provider interactions through improving the

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customer experience regarding every touch-point. Hence, CJM is important because CJM is a
strategic approach towards a better understanding of customer’s expectations and is critical to
optimize the customer experience.
A detailed customer journey
Figure: The overall stages of CJM

(Source: Created by author)

Stages Activities Feelings and needs Potential areas

Excitement, needy, interesting,
Identifying the reasons to anxiety and burden-free
1. purchase, looking for use, Needs: A budget-friendly with Patience-level
motivation and pain-points quality mobile phone

Investing time in researching

Using past mobile phone and
Stressed, anxiety and curious
laptop to do a research
Needs: To be decisive on a
2 Listening ability
specific point and phone
Getting opinions and feedback
from others

Excitement and interactive

Visiting the website of Samsung Time
3. Need: To get the best offer
UK management

Confusing and indecisive

Visiting the physical stores of Need: To get a better offer
4. Communication
Samsung Company, London from the website

Anxiety and curious

Need: To get a better low- Quality-centric
Contacting relatives, friends and
5. budget phone with the same instead of price-
close teammates
centric
features in Samsung

Excitement and happiness

Finally visiting the physical store
Need: To get the phone as Thanksgiving
6. of Samsung to purchase the
soon as possible approach
mobile phone

7. Started carrying out personal and Satisfied and happy Expressive

professional activities on the approach

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Need: To make my
phone professional operations
running smooth

Feeling glad and confident

Recommending this phone to Need: To make my decision
8. Convincing
friends and family helpful for others

Pleasant, proud and satisfied

Need: To make her happy and
9. Bought another phone for sister Expression less
support her

Table 1: Customer journey map

(Source: Self-Developed)

4. Omnichannel marketing
A clear explanation of what omnichannel marketing means and the role of customization and
interaction in omnichannel marketing
Omnichannel marketing refers to a practice of simultaneously offering shoppers information,
services, products and support through two or more synchronized distribution channels in a
seamless manner (8). It is an approach of providing customers with a completely integrated and
seamless shopping experience from the first touch-point to last touch-point. A product option is a
customizing way based on the product manufacturing responding to the personal preferences of
the mass consumer (9). Thus, customized products related information can be transmitted as a
unified message or voice of the company on which every channel of that company starts
working. Thus, when a company aims at delivering a wide-market goods and services, which are
modified for satisfying the specific customers’ needs, then omnichannel marketing is involved.
However, omnichannel personalization is all about a data-driven marketing effort that provides a
personalized experience to the customers via a specific channel based on the data gathered from
the users behaviour on different channels. Hence, e-retail brands like Samsung collect user data
from anywhere and then leverage the same for providing a personalized experience to its
customers through various touchpoints. Furthermore, capturing, engaging and then delivering

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constant experiences to the customers across various possible channels seem to be crucial for an
e-commerce brand, thus omnichannel personalization works here effectively.

Identifying various marketing channels used for Samsung mobiles

Multichannel retailing is crucial for the success of current merchants because retail customers do
not purchase solely dependent on online or in-store. However, in the context of Samsung, the
marketing channels used for their mobile phones are Word of Mouth, Social media, email
marketing, their website, and their retail stores. For example, Samsung utilizes its Galaxy
Studios Live for showing the incredible benefits of NFC (Near Field Communication), this
company creates a series of four live music events headlined by some biggest names in rap, rock,
or pop. At this event, the gig fans are able for doing everything on their phones such as scanning
the tickets at the door, assessing cloakrooms, and many others (10). This Live Experience availed
by Samsungs customers makes them satisfied and confident in their purchase decision of
Samsung mobile phones, as result, Samsung achieves a seamless customer journey. However,
Samsung utilizes different marketing channels such as brick-and-mortar, online, in-store,
websites, and different e-commerce platforms such as Amazon. For example, Samsung in-stores
have integrated and mobile POS (Point of Selling), which enables the merchants associated with
selling Samsung mobile phones, taking full advantage of seamless integration. Samsung
Connected House is another channel for marketing, where this Company hosted an interactive
exhibition stand for showcasing their ranges of mobile phones during the O2 Retail Conference.
This experience offers a platform to the customers getting knowledge about the innovative
features that Samsung builds into their mobile phones that drive a seamless customer journey.
Samsung incorporates Virtual Reality into their retail practices for meeting the increasing
demand of customers, increased favourable attitude towards VR implementation, and its
potential for enhancing customers experience. VR tools that Samsung implements in its mobile
phones are Samsung Gear (11). Samsung Pay is the successfully implemented payment system
incorporated into its mobile phones that offer a seamless customer journey to its customers.
5. CX Performance metrics
Identifying and critically evaluating four suitable CX performance metrics
Metrics used for customer experience performance include loyalty, the share of wallet and
retention (12). However, in this context, the four suitable CX performance metrics are NPS (Net
Promoter Score), CSAT (Customer Satisfaction), Retention Rate and Churn rate. For instance,
NPS would help the respective company for indulging the customers to answer only two
questions such as “How likely the customer is to recommend Samsung mobile phones to their

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peers or friends” and “why they give that specific score”. This metric gives Samsung that one
number related to CX, which their leadership seeks for target-setting and bonuses. CSAT is
another important CX metric that has many scales and forms however the common is a scale of
1-5. The application of this metric would help Samsung for measuring if their customers are
satisfied with one-time interaction. Samsung can use it for asking its customers about the
customer support ticket for evaluating the efficiency of their customer service department
regarding the purchase-decision of the mobile phone or after-use of mobile phone. Churn Rate
would help the company for reflecting that how many of their customers stop using Samsung
phones. This reflects the total number of lost customers within a specific time, for instance in the
year-begin, Samsung signed 1000 contracts of a value of 100 pounds by selling mobile phones,
however, only 800 customers keep using that mobile phone at end of the year. This rate directs
Samsung to retain its existing customers rather than investing in acquiring new customers. A
perspective of customer engagement highlights the need for understanding the link among
customer retentions, Customer influence value, and word of mouth (Customer referral value)
(13). Hence, Samsung using the customer retention rate could identify how their business can
retain their customers over a specific period. This rate is inversely proportional to the churn rate,
if Samsung obtains a higher retention rate then their churn rate would be lower, for instance, if
the retention rate of Samsung is 90% for its mobile phones, then their churn rate for the same
mobile phones would be 10%.

Justified recommendation of two key metrics for Samsung mobiles

The two metrics suitable enough for the Samsung mobile phones would be NPS and CSAT. In
order to grab reports on their performance revealing whether the customer experience after
purchasing their mobile phones is in favour of their company or not, Samsung needs to perform a
surveying task by asking only two questions from their customers, who would have bought the
mobile phone to evaluate whether they would promote the same mobiles to their closed ones or.
If the customers answer that they would recommend this phone to their peers or family, then
customers’ experience is in favour of the company. This is to be applied because it could
highlight Samsung that why they stand in terms of CX and it is simple, short, and convenient for
its customers to answer. CSAT is one of the flexible and adaptable tools for Samsung to interpret
customer ratings towards the use, feature, convenience, excellence, quality, price, and
competence of the same phone.

6. CX processes in various industries

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Using five CX CSFs, comparing and explaining the CX processes in Samsung and a company in
another industry
Hedonic and utilitarian factors affect the consumer behaviour during the use of mobile
applications, which direct the marketer to judge their experience, where utilitarian factors are
ease of use, customization, the usefulness of technology, features of technology and hedonic
factors such as convenience, compatibility, personalization, and effort expectancy (14). Apart
from this, ease of use and website design could also be some drivers that drive a positive
customer experience (15). However, in this context, the four CSFs of CX explaining the CX
process in Samsung, a mobile-retail industry-player and Tesco, a grocery-retail industry-
player are ease of use, convenience, compatibility, empathy, and responsiveness:
Basis Samsung Tesco
Tesco keeps its focus on cutting the
Samsung at a constant rate works on its
price and putting more staff in
device manufacturing process only to
stores and improving the customer
provide more and more ease to its
experience attempting to revive the
Ease of use customers. With this approach, customers
fortune of the company. Hence,
of this company become more connected
this company’s focus is on in-store
with their devices; as a result, they are
ease instead of product or service
becoming more connected to this brand.
ease
More devices this company expects to Customers of Tesco find it
launch means a huge chance to build loyal convenient to shop at small
customers for life. This is achieved by convenience stores rather than
Convenience aiming for high-quality customer service Tesco. They also consider it
via a large of channels resulting in an convenient for shopping little
increased convenience level for its instead of doing a once-a-week
customers. big-shop
Samsung has been expanding its chatbot Tesco has been shutting its 60
ability through using bots for efficiently unprofitable stores and shelving
Compatibility directing the customers to a real person, plan to open more 49 supermarkets
who could answer their questions. This will for increasing its compatibility in
lead to a more customized experience. the UK.
Samsung is changing its attitude towards
Tesco keeps its focus stagnant by
CX since the mobile and technology world
continuing in investing in this price
is changing. Samsung starts focusing on
dynamics. Their improvement
building a long-lasting and meaningful
Attitude seems to be slow as their attitude
relationship with its customers. This would
towards customer-relationship is
direct Samsung to go beyond one-off
remained the same throughout their
service fixes as the break-Fix model does
overall journey
by fixing only the broken device
Responsiveness Samsung to build relationships with its Employees are trained to overcome
customers solving their problems and their stressed, unproductive and
improving their lives needs to put inactive approach to provide 24*7

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resources into their programs. Employees

customer services in the UK
apply their power to go above and beyond
market
for delighting their customers.

Table 2: Comparison of Samsung CX process and Tesco

(Source: Self-developed)

Using five CX CSFs, comparing and explaining the CX processes in Samsung and a company in
another industry
This comparison of the CX process based on five CSF is to be carried out between Samsung and
Arcadia Group and the CSFs include timeliness, top-management support, critical-skills
availability, Digital Service, and Rewards

Basis Samsung Arcadia Group

The company shifts its focus
Regards interactions with its
Timeliness from multi-point customer
customers as the highest priority
service to fully online CX
Performs a wide range of proactive This company indulges Third-
Top-Management and technical quality collaborations Party retail partners for giving
Support such as Quality improvement, their customers an exciting
Requirement Management, and others shopping experience
This company has partnered
Digital tools such as assistive selling
with Oracle Retail Solutions for
tools are helping to convert that traffic
optimizing the experience of
into revenues through adding
Digital Services global customers. They aim at
information that customers have learnt
providing an efficient,
for expecting from their online
interactive and exciting
experience to in-store experience.
shopping experience
In terms of rewards, the Arcadia
VOC (Voice of Customer)
CX process includes discounts,
management for its customers
gift card offers, and many
Rewards providing ranking & rating, interviews
others. Thus, in terms of
or surveys, periodic quality-review
rewards, the customer feel more
meetings, and many others
attracted towards it
Flexibility, APIs (Application
Convincing, online ordering
Program Interfaces), cyber-security
handling skills, communication,
Critical Skills skills, development skills, demand-
responsive approach, and many
related skills, support and networking
others
skills

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Conclusion

How effective Samsungs CX strategy is

After analyzing the overall scenario, it can be concluded that the customer experience strategy of
Samsung seems to be one of the most effective aspects of this company’s business. With its
effective CX strategy, this company is fully aware of what customers expect from them and how
they meet their customer’s needs and demands. The CX strategy of Samsung is as effective as it
can hold the existing customers for a longer period; as a result, the retention rate of Samsung is
comparative productive and efficient enough that decreases the churn rate of the same company.
This company aims at improving its channels such as in-store and online to engage its customers
more proactively.

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