Customer Experience Strategy

The CX Strategy Design

(Part A Identifying Customers)
 Agenda

Topic Learning Outcomes

Summary
Break
Group activity
Apply activity
Next steps
 Topic Learning Outcomes

• Identify the key steps in the CX strategy definition

• Explain the role of “personas” in the CX framework

• Critically evaluate successful and unsuccessful CX strategies

across industries
Summary
How to create loyal customers: an analytical
framework to build better customer relationships
The CX Strategy design

The marketing strategy

most businesses need to
gain a competitive
advantage today: IDIC,
by Pepper and Rogers
(2017) Source: Peppers and Rogers (2017)
Key stages in CX strategy design - identify
1. The need to satisfy customers starts by understanding their values and needs to
build a profile of them.

2. To build relationships with customers, organisations need to use customer-

specific information because relationships are made between individuals.

3. With that information, they can, through tailored programmes, create better
experiences and increase customer value.

4. To be able to treat different customers differently, organisations need to know

how different customers differ from each other and linked to that, to recognise
the different customers each time they interact.
Quiz – Identifying Customers - Challenges

True or False?

Customer who says they are satisfied with your service will use
you again.

FALSE
80% of defectors – people who left a company,
said they were 'satisfied' with previous provider. (HBR)
Improving customer experiences starts by
understanding their values and needs (1 of 2)

Customer needs can be situational in nature

• Airline customers can be business travellers one day and personal travellers the next day.

Customer needs can change over time

• We only need baby products while a child is a certain age.

Customers have different intensities of needs and different need profiles

• Your level of hungry will be different from someone who has been fasting all day.

Customer needs often correlate with customer value

• More often than not, high-value customers will have similarities to each other. (birds of a feather)

The most fundamental human needs are psychological

• FOMO (missing out, attachment, control, self-esteem, orientation, risk avoidance (pleasure/pain)
The need to satisfy customers starts by
understanding their values and beliefs (2 of 2)
Some needs are shared by other customers while some needs are uniquely
individual
• ‘You might also like this’
• ‘Happy Birthday ______’

There is no single best way to differentiate customers by their needs

• Focus on what is most useful driver or motivation that changes

behaviour of customers

Even in B2B settings, a firm’s customers are not really another “company”
with a clearly defined, homogeneous set of needs
• Purchasing agents want low price
• End user wants benefits and attributes
• Managers of end user wants productivity drivers
Who is the Customer?
B2C vs B2B
Identifying customers: Challenges

“
Identifying customers, is not usually very easy, and
the degree of difficulty is largely a function of
its business model and its channel structure.

Peppers and Rogers (2017) p120.

Identification
Stages in customer identification:

1. How much customer identification does a company already have?

2. Get customers to identify themselves, making sure to accurately identify customers

on any channel.

➢ What does identify mean?

Exercise – Challenges of identifying customers
Step 1 of improving customer relationships through a customer experience strategy is
identifying customers: profile, demographics, motivations, pain points and goals
Consumer
Computer Cable and Media
Issue / Industry Telco Retail Banks Packaged Car Maker
Equipment Entertainment
Goods

Customer Profile

Customer
Demographics

Customer Motivations

Customer Pain Points

Customer Goals
How companies get customer information
Loyalty Programmes / Frequency Marketing are schemes that reward customers
with points, discounts, merchandise, or other incentives, in return for sharing
information about their shopping habits and themselves.

Source: Peppers, D. and Rogers, M., (2017)

Identify profitable customers by building a persona

Build personal attributes into personas

• Age, Gender, Education, Occupation (Demographics)

• Goals, Motivation, Pain Points (Psychographics)
• Internet Use (Webographics)

Personas are stereotypes: models of characteristics

• Used for designing new products and services

• Used for creating marketing, advertising, communications to find similar people: ‘birds of
a feather’

Companies and/or products can have many personas

• Information seekers ‘just looking’

• Purchaser (new customer)
• Purchaser (existing customer)

Source: Chaffey and Ellis-Chadwick (2016)

Consumer Personas

“
A consumer persona is a semi-fictional profile that represents a
profitable or have potential to grow into profitable customer,
based on research (customer information / data).

Peppers and Rogers (2017)

Consumer Personas

Purpose/Role
• Define unique characteristics of profitable or potentially profitable customers
• To identify ways to change customer behaviour
• To identify new products and services personas wants to buy
• To create marketing messages that attracts new customers that are similar to
the persona
Consumer Personas
What to include
• Name of persona
• Characteristic of persona
• Profile of persona
• Demographics of persona
• Goals of persona
• Motivations of persona
• Pain Points of persona
Example BPP
persona
• Sandeep
• Super Saver
• Lives in shared housing in Wembley,
watches series, loves cricket, biryani,
Bollywood movies, single, no children,
Instagram, WhatsApp
• 26, male, student, part-time security guard
• Completing MSc Management at BPP
• Getting a better job, having a better life
• Class schedule to study and work at the
same time
Benefits of Creating Consumer Personas

Development of
Reduce wasted This informs their
closer, more Creating Helps business
time, money or brand reality: the
profitable consistently better understand what
effort doing what foundation of
relationships with experiences for matters to
customers don’t great customer
individual each of them customers
want experience
customers
How to build a Consumer Persona: example

Source: Crackerjack Marketing (2013)

Quiz – Topic

True or False?

The biggest challenge to companies identifying customers is

having too much information about them.

FALSE
Quiz – Topic

True or False?

Identifying customers is the second step in building better

customer relationships through a customer experience strategy.

FALSE
Quiz – Topic

The need to provide a better experience for customers starts by

values and ___________
understanding their ___________ needs to build a
profile of them.

• Age and Gender

• Motivations and Goals
• Values and Needs
• Demographics and Psychographics
Quiz – Topic

Fill in the blank

consumer _____________is
The role or purpose of a _____________ persona
to create new products and services customers want to buy,
and to create marketing messages that attracts new
customers that are similar to the persona.
Quiz – Topic

True or False?

A consumer persona is a fictional profile that

represents a profitable target audience, based on
research (customer information / data).

FALSE
Break
Group activity
Apply activity
1. Define consumer persona.
2. Explain what a consumer
persona is.
3. Explain its role in developing an
effective CX strategy.

Search in e-book Peppers and

Rogers (2017) in the HUB for
answers to these questions
Feedback

Daily Pulse Survey for Dr Raewyn Sleeman – Scan QR code to answer 2

questions before you leave
Recap
Next Steps
Thank you for your
participation

Next steps: Consolidate

• Topic roundup
References
• Chaffey, D. and Ellis-Chadwick, F., (2016). Digital Marketing. Strategy,
Implementation and Practice. 6th ed. Harlow: Pearson.

• CX Network. (2020) cxnetwork.com Available at

https://www.cxnetwork.com/cx-experience/articles/bose-manager-on-
weaving-empathy-into-digital-customer-
experiences?utm_campaign=CXIQ-NL-20.08.04-
%20Visitor%20promo&utm_medium=email&utm_source=internalemail&M
AC=&elqContactId=31849469&disc=&elqCampId=81919&utm_content=C
XIQ-NL-20.08.04%20-Visitor%20Promo [Accessed 21/09/2020]

• Peppers, D. and Rogers, M., 2017. Managing Customer Experience and

Relationships. 3rd ed. [e-book] New Jersey: Wiley. Available via:
https://online.vitalsource.com/#/books/9781119239819/cfi/6/20!/4/2/2/2/6@
0:0
References
• Schwab, S. (2013). Crackerjack Marketing Creating Consumer Personas
for Inbound Marketing. Available at:
https://crackerjackmarketing.com/blog/creating-customer-personas-
inbound-marketing/ [Accessed 21/09/2020]

• Watkinson, M., 2013. The Ten Principles Behind Great Customer

Experiences. Harlow: Pearson.