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Programme MSc Management

Customer Experience Strategy


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Table of Contents
INTRODUCTION.....................................................................................................................................3

THE IMPORTANCE OF CUSTOMER EXPERIENCE.......................................................................3

CX DEFINITION..........................................................................................................................................3
ASSESSING MACBOOK AIR CUSTOMER EXPERIENCE.................................................................................3

CONSUMER PERSONA CREATION....................................................................................................4

DEFINING CUSTOMER PERSONA AND ITS IMPACT ON CUSTOMER EXPERIENCE..........................................4


ANALYSING A CONSUMER PERSONA.........................................................................................................4

MAPPING THE CUSTOMER JOURNEY.............................................................................................6

CUSTOMER JOURNEY MAP FOR JOHN........................................................................................................6

OMNICHANNEL MARKETING............................................................................................................8

DEFINING OMNICHANNEL MARKETING PROCESS......................................................................................8


IDENTIFYING APPLE’S VARIOUS MARKETING SALES CHANNELS................................................................9

CX PERFORMANCE METRICS..........................................................................................................10

EXPLAINING AND CALCULATING NPS AND LTV FOR APPLE’S MACBOOK AIR.....................................10
Net Promoter Score (NPS) Calculation:...........................................................................................10
Customer Lifetime Value (LTV)........................................................................................................10
Importance of Apple MacBook Air NPS/LTV:..................................................................................10

CX PROCESSES IN DIFFERENT INDUSTRIES...............................................................................11

GOVERNANCE...........................................................................................................................................11
CULTURE..................................................................................................................................................12
CUSTOMER EXPERIENCE STRATEGY DESIGN...........................................................................................12
COMPARE APPLE WITH INSTAGRAM'S CX PROCESSES............................................................................13
Apple’s CX Process:.........................................................................................................................13
Instagram's CX process, however, is different:.................................................................................13

CONCLUSION........................................................................................................................................14

REFERENCES........................................................................................................................................15
Introduction

Apple's MacBook Air's US CX strategy will be examined in the research. The paper covers CX,
consumer persona, customer journey mapping, omnichannel marketing, performance indicators,
and important success elements.

The importance of customer experience

CX definition

The customer experience (CX) is a customer's view of a company based on their encounters with
its products, services, and brand (Baehre et al., 2022). From awareness and consideration to
purchase, usage, and post-sales support, it covers all client touchpoints. consumer experience
considers emotional, cognitive, and behavioural components of consumer encounters to produce
good, memorable experiences that boost customer satisfaction, loyalty, and advocacy.

Friendly layout

High-performance hardware

Assistance and ecosystem

Brand loyalty

Constant innovation

Figure 1: Smart Art representation of impactful factors of Customer Experience


Assessing MacBook Air customer experience

Customer experience helps Apple's MacBook Air stand out. Apple's MacBook Air range is
known for excellent customer service. Why MacBook Air needs CX:
Friendly layout: Apple's MacBook Air is designed for ease of use. Customers appreciate a
smooth and delightful experience with macOS's simplicity (Bejaei et al., 2020). The MacBook
Air's straightforward interface, snappy trackpad, and backlit keyboard make it easy to operate.
High-performance hardware: MacBook Air has a stylish style, lightweight build, and great
performance. Apple ensures a seamless and dependable experience with high-quality hardware,
strong CPUs, and long battery life. Hardware-software integration improves performance,
reduces malfunctions, and boosts customer happiness.
Assistance and ecosystem: Apple supports customers through online tools, community forums,
and Apple Stores (Ameen et al., 2021). Apple devices, software, and services integrate
seamlessly, improving CX. Customers can sync their MacBook Air with iPhones and iPads for a
seamless experience.
Brand loyalty: Apple is known for quality, innovation, and customer service. Apple has earned
consumer loyalty by providing excellent service. Satisfied MacBook Air users recommend the
product to others, increasing sales and market share.
Constant innovation: Apple constantly releases software updates and new features to improve
the consumer experience. MacBook Air consumers are satisfied and loyal due to this dedication
to innovation and customer service (Siebert et al., 2020).
MacBook Air prioritises customer experience. Apple offers a great and memorable customer
experience with user-friendly design, quality hardware, comprehensive customer service, and a
strong brand reputation. CX distinguishes the MacBook Air, builds customer loyalty, and boosts
revenue.
Consumer persona creation

Defining customer persona and its Impact on customer experience

A consumer persona is a fictional representation of a target customer segment based on research


and data. It combines demographic information, behavioral patterns, motivations, goals, and pain
points to create a detailed profile of an ideal customer (Baehre et al., 2022). Consumer personas
help businesses understand their customers' needs, preferences, and behaviors, enabling them to
develop a more effective customer experience (CX) strategy. By understanding their target
audience at a deeper level, businesses can tailor their products, services, and marketing efforts to
meet the specific needs and expectations of their customers, leading to improved customer
satisfaction and loyalty (Klink et al., 2020).

Figure 2: Components of Customer Persona


(Source: Cho et al., 2019)
Analysing a Consumer Persona

Element Details

Demographics - Age: Over 65

- Gender: Male

- Location: Urban/suburban area

Story John is a retired professor who enjoys staying

updated with technology. He is an active member

of his community and spends his time pursuing

hobbies and learning new things. Despite his

age, John values independence and believes in

staying connected with his family and friends.

Profile - Tech-savvy and open to learning

- Values independence and connection

- Active and engaged in hobbies and interests

Motivations - Staying connected with family and friends

- Learning and exploring new technologies

- Maintaining independence and autonomy

Goals - Convenient communication with loved ones


- Exploring new interests and hobbies

- Enhancing personal productivity and efficiency

Pain Points - Difficulty in adapting to new technologies

- Feeling isolated or disconnected

- Physical limitations affecting device usage

This consumer persona targets senior citizens like John, the target group. University professor
emeritus John is tech-savvy and independent. He must use the services and goods that allow him
to stay in touch, learn, and be independent. He prioritises communication simplification, new
hobbies, and job efficiency (Ameen et al., 2021). The solution could help John adopt new
technologies, feel less isolated, and use his devices. Apple can better meet John's needs if it
develops the MacBook Air with him in mind and ensures that it has easy user interfaces,
accessible functionality, and substantial support.

Mapping the customer journey

A customer journey is the series of interactions and touchpoints a consumer has with a brand. It
includes awareness, consideration, purchase, use, and after-sales assistance. Customer journeys
show customers' emotions, demands, and expectations at each level (Siebert et al., 2020). It helps
organisations learn how customers use their products or services, discover pain points and
improvement opportunities, and provide a seamless and gratifying experience. Businesses can
map the customer journey to understand customers, coordinate operations, and create a
customer-centric CX strategy (Klink et al., 2020).
Figure 3: Factors influencing in Customer journey map
(Source: McLean et al., 2019)

Customer Journey Map for John

Stages of the Activities Feelings and Potential


Journey Needs Opportunities for
Improvement

Awareness - Sees an advertisement for Curiosity, - Increase visibility in


MacBook Air interest channels frequented by
seniors

Information- - Clear and concise


- Visits the Apple website
seeking, product details for seniors
for product information
Consideration comparison
- Highlight positive
- Reads reviews and ratings
Trust, assurance reviews from seniors

- Provide senior-friendly
purchasing options
- Makes a purchase online Excitement,
Purchase
or at an Apple Store satisfaction - Offer personalized
assistance during the
purchase

- Unboxes and sets up the Confidence, - Provide easy-to-follow


MacBook Air exploration setup instructions
Usage
- Explores features and Learning, - Offer tutorials or video
learns the operating system empowerment guides for seniors

Support - Contacts Apple support Assurance, - Dedicated support for


for assistance problem-solving senior customers
- Simplify support
channels for easy access

- Engages with Apple


community forums or Connection, - Foster a senior-friendly
resources knowledge- online community
Post-Sales sharing
- Shares positive - Encourage senior
experiences with friends Pride, advocacy testimonials and referrals
and family

Apple understands the senior person's MacBook Air experience by mapping their customer
journey (Baehre et al., 2022). Seniors must be alerted during awareness. Clear product
information and excellent reviews increase trust during consideration. Simplifying and
personalising the purchase process improves the experience. Senior-friendly setup instructions
and learning tools empower users (Bejaei et al., 2020). Dedicated assistance and simplified
channels help support demands. Finally, a senior-friendly community, testimonials, and referrals
can boost post-sales satisfaction and advocacy. Apple can develop a seamless and personalised
senior client journey by addressing their individual sentiments, requirements, and possibilities at
each stage, improving CX and customer loyalty.

Omnichannel Marketing

Defining Omnichannel Marketing Process

Omnichannel marketing provides a uniform and unified experience across multiple channels and
touchpoints. IBM devised it. It's meant to give customers a consistent and unified brand
experience across channels and devices (Siebert et al., 2020). Omnichannel marketing recognises
that customers expect a unified experience in which they can easily switch between online and
offline channels while still receiving a consistent brand message, personalised interactions, and
an understanding of their preferences and behaviours (Bart et al., 2021). Omnichannel marketing
lets customers switch between online and offline channels. It emphasises integration and
uniformity across channels, going beyond multichannel marketing. Multichannel marketing
simply uses several channels.

Identifying Apple’s various marketing sales channels

Omnichannel marketing emphasises interaction. It involves company-client contact at multiple


touchpoints. Through contact, the corporation can gather consumer data, learn client preferences,
and tailor marketing and customer experiences (Gupta et al., 2020). It allows personalised,
relevant client contact, which builds relationships and boosts customer satisfaction. Customers
can also contact the company for criticism and help (Liébana-Cabanillas et al., 2020). Customers
feel empowered when they can contribute. Apple's MacBook Air sales and marketing channels
include the following:
Internet-based distribution
1. Apple's website offers product information, online buying, and customer support.
2. Apple Online Store: Apple's website now sells MacBook Air. Apple Online Store offers
this service.
3. Apple uses search engine, social media, and email marketing to promote the MacBook
Air. These methods promote the gadget.
4. Apple uses Facebook, Twitter, and Instagram. The company updates and answers
customers on social media.
Offline channels include
 Apple Retail Stores: Customers can test and buy a MacBook Air in Apple Stores, where
trained personnel can help (Bart et al., 2021). Over 70 nations have Apple Retail Stores.
 Apple works with licenced dealers to distribute MacBook Air goods to many retail
locations.
Apple has achieved its goal of offering a seamless customer experience by using omnichannel
marketing. They've connected their offline and online channels to provide a consistent brand
experience throughout the customer's trip. Customers can easily switch between researching
online and buying offline, creating a seamless and unified experience. Apple's website and online
shop offer detailed product information, easy navigation, and a simple checkout process. Users
have these features. Digital marketing initiatives and social media presence raise awareness and
engage customers, opening up communication channels (Meacham et al., 2020). Apple Retail
Stores offer personalised, hands-on experiences with experienced staff that can help. These
stores are offline distribution channels. The authorised resellers also make the MacBook Air easy
to buy and widely available. Apple's omnichannel marketing engages well. Apple offers
customers many touchpoints to communicate with the company.

CX performance metrics

Explaining and Calculating NPS and LTV for Apple’s MacBook Air

Performance indicators are essential to evaluating a company's customer experience (CX)


strategy. NPS and LTV are popular measures (Gupta et al., 2020). Let's calculate and assess
Apple's MacBook Air metrics.

Net Promoter Score (NPS) Calculation:

To calculate NPS for Apple MacBook Air, you need to collect customer feedback and categorize
respondents into Promoters, Passives, and Detractors based on their likelihood to recommend the
product.
NPS Formula:
NPS = % of Promoters - % of Detractors

Calculation
For example, let's say you surveyed 100 MacBook Air customers and received the following
responses:
Promoters (rating 9-10): 70 customers
Passives (rating 7-8): 20 customers
Detractors (rating 0-6): 10 customers

NPS = (70/100) - (10/100) = 0.7 - 0.1 = 0.6


The NPS for Apple MacBook Air in this example would be 60.

Customer Lifetime Value (LTV)

LTV assesses a customer's lifetime value to a company. It considers a customer's average


lifespan, repeat purchases, upsells, and cross-sells, and income. The average purchase value, buy
frequency, customer retention rate, and MacBook Air customer longevity are needed to calculate
LTV.
LTV formula:
LTV = (Average Purchase Value* Purchase Frequency* Customer Retention Rate) * Average
Customer Lifespan
Calculation
Let's assume the following values for Apple MacBook Air:
Average Purchase Value: $1,500
Purchase Frequency: 1 purchase every 2 years
Customer Retention Rate: 80%
Average Customer Lifespan: 5 years

LTV = ($1,500 * 0.5 * 0.8) * 5 = $3,000


The Customer Lifetime Value for Apple MacBook Air in this example would be $3,000.

Importance of Apple MacBook Air NPS/LTV:

Net Promoter Score (NPS): Apple MacBook Air needs NPS to understand customer loyalty
and advocacy. A high NPS implies satisfied customers who will promote the product to others,
boosting brand growth. Apple may use a strong NPS to gain market share, new consumers, and
customer loyalty. NPS also serves as an early warning system for customer problems and CX
enhancements.
Customer Lifetime Value (LTV): LTV helps Apple estimate the long-term revenue of
MacBook Air customers. Apple calculates LTV to evaluate customer profitability, identify high-
value customers, and allocate resources (Teixeira et al., 2022). LTV helps Apple prioritise client
retention, personalise marketing and sales, and optimise customer acquisition expenses. Apple
may prioritise features and enhancements that appeal to high-value customers and maximise
lifetime value when developing and innovating products (Khan et al., 2020).
Apple MacBook Air NPS and LTV are crucial performance indicators. NPS measures customer
loyalty and advocacy, revealing customer sentiment and improvement potential (Pietrysiak et al.,
2019). LTV quantifies consumer long-term revenue potential, influencing strategic decisions and
resource allocation. Apple can evaluate its CX approach, improve it, and cultivate loyal
customers by tracking these KPIs.

CX processes in different industries

CX Critical Success Factors (CSFs) are essential to a company's CX strategy. Governance,


Culture, and Customer Experience Strategy Design are the CSFs (Keiningham et al., 2020). Let's
review these elements and Apple's implementation approach.

Governance

Governance governs CX decision-making, accountability, and alignment across the organisation.


To manage CX initiatives, requires clear roles, responsibilities, and processes (Becker et al.,
2020). Governance prioritises, supports, and integrates CX into the company's strategy. Apple's
CX CSF governance process:
a) Create a CX team: Apple can create a cross-functional team to lead CX initiatives
and ensure a customer-centric culture (McLean et al., 2018).
b) Set CX goals and metrics: Establish CX goals and KPIs to evaluate CX projects.
c) Align CX goals and activities with Apple's overall business strategy and
objectives.
d) Create CX policies and processes to ensure consistency and alignment across
departments and touchpoints.
e) Continuous monitoring and evaluation: Track CX performance, identify areas for
improvement, and use data to improve the customer experience.
Culture

Culture shapes employee mindsets, behaviours, and actions towards excellent CX. A customer-
centric culture empowers staff to put customers first and exceed expectations. Apple can adopt
the following customer-centric practises:
 Leadership commitment: Leaders should exhibit customer-centricity by emphasising CX
(McLean et al., 2018).
 Employee training and empowerment: Teach employees how to provide great customer
service. Give them authority to resolve consumer complaints (Teixeira et al., 2022).
 Recognition and rewards: Reward customer-centric staff to reinforce a CX-focused
culture.
 Communication and collaboration: Open communication channels enable cross-
departmental collaboration, sharing consumer insights and best practices (Becker et al.,
2020).
 Integrate consumer feedback channels across the organisation to exchange and act on
insights (Liébana-Cabanillas et al., 2020).

Customer Experience Strategy Design

A customer experience strategy is a detailed plan that connects with the company's vision and
objectives and describes the essential projects and actions needed to achieve a great customer
experience. Apple's customer experience strategy implementation includes:
a) Customer insights: Surveys, interviews, and analytics reveal customer wants, preferences,
and problem concerns.
b) CX vision and objectives: Define the customer experience vision and set targets that
support the company's strategy.
c) Key touchpoints: Map the customer journey and discover key touchpoints to improve the
customer experience.
d) Plan actions: Create practical plans to address pain areas, streamline processes, and create
new customer experiences based on insights and goals (Becker et al., 2020).
e) Continuous monitoring and iteration: Evaluate CX activities, iterate depending on
customer input and market dynamics, and adjust tactics as appropriate (Siebert et al.,
2020).

Compare Apple with Instagram's CX processes

Apple’s CX Process:

 Apple's CX processes are structured and managed by a CX team.


 Strong leadership and staff empowerment foster a customer-centric culture (Teixeira et
al., 2022).
 Apple's CX approach emphasises user-friendly design, premium hardware,
comprehensive customer service, and brand reputation to offer smooth and innovative
experiences.
The governance framework ensures organisational goals and excellent CX. Apple trains,
empowers, and rewards customer-centric staff (Keiningham et al., 2020). Apple uses consumer
research and data to identify important touchpoints and create practical plans to improve the
customer experience.

Instagram's CX process, however, is different:

● Governance: Instagram's CX governance is part of Facebook's governance architecture.


Facebook prioritises privacy, data security, and content moderation, which shape the
Instagram user experience (Rashedi et al., 2023).
● Instagram values creativity, self-expression, and community. The platform supports
sharing visual content, commenting and liking, and discovering new trends and
inspirations.
● Customer Experience Strategy Design: Instagram's CX strategy aims to give people a
simple, beautiful platform to connect, share, and discover content. Improvement, new
features, and user interaction are priorities (Podolny et al., 2020).
● Instagram and Apple prioritise CX differently. Instagram encourages creativity, self-
expression, and social connections through its visual platform, while Apple prioritises
comprehensive and high-quality experiences. Governance, culture, and customer
experience strategy design shape CX initiatives at both firms.

Apple and Instagram need effective CX processes, including governance, culture, and customer
experience strategy design. These processes prioritise customer experience and encourage
continual improvement to meet changing customer expectations. Apple and Instagram can create
positive and memorable customer experiences by implementing robust governance, fostering a
customer-centric culture, and designing customer experience strategies aligned with their visions.
This increases customer satisfaction, loyalty, and business success.

Conclusion

Apple's MacBook Air CX approach works. User-friendly design, superior hardware, extensive
service, and continual innovation show the company's commitment to client pleasure. Apple has
differentiated itself and built brand loyalty by prioritising consumer experience. Governance,
culture, and customer experience strategy design have made customer journeys frictionless.
Apple monitors and optimises customer experience using performance indicators including Net
Promoter Score (NPS) and Customer Lifetime Value (LTV). Omnichannel marketing creates a
unified brand experience across channels. Apple's MacBook Air CX approach shows its
commitment to excellent customer service and contributed to the product's success.
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