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BPP Coursework Cover Sheet

Programme MSC Management

Module name Customer Experience Strategy

Schedule Term

Student Reference Number (SRN)

Report/Assignment Title

Date of Submission

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Contents
Introduction.................................................................................................................................................3
1. The Importance of Customer Experience: A Case Study of Taj Hotels.................................................3
2. Consumer Persona Creation: Enhancing CX Strategy for Taj Hotels - Senior Traveler..........................4
Consumer Persona...................................................................................................................................4
Role in Developing Effective CX Strategy:................................................................................................4
Senior Traveler Persona:..........................................................................................................................4
Visual Representation:.............................................................................................................................5
3. Mapping the Customer Journey: Enhancing CX Strategy for Senior Travelers at Taj Hotels.................5
Customer Journey:...................................................................................................................................5
Importance of Customer Journey to CX Strategy:....................................................................................6
Customer Journey Map for Senior Traveler at Taj Hotels:........................................................................6
4. Omnichannel Marketing and Seamless Customer Journey: A Case Study of Taj Hotels.......................8
Omnichannel Marketing:.........................................................................................................................8
Role of Interaction in Omnichannel Marketing:.......................................................................................8
Taj Hotels' Sales and Marketing Channels................................................................................................8
Analysis of Taj Hotels' Omnichannel Experience:.....................................................................................9
5. CX Performance Metrics: NPS and LTV Analysis for Taj Hotels.............................................................9
CX Performance Metrics..........................................................................................................................9
Calculation of NPS...................................................................................................................................9
Calculation of LTV:...................................................................................................................................9
Benefits and Challenges of NPS:............................................................................................................10
Benefits and Challenges of LTV:.............................................................................................................10
Relevance of NPS and LTV for Taj Hotels:...............................................................................................11
Net Promoter Score (NPS):................................................................................................................11
Lifetime Value (LTV):..........................................................................................................................11
6. CX Critical Success Factors (CSFs) and Implementation Process: A Comparative Analysis of Taj Hotels
and Instagram............................................................................................................................................11
CX Critical Success Factors.....................................................................................................................11
Process to Implement CSFs:...................................................................................................................12
Governance Implementation:............................................................................................................12

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2. Culture Implementation.............................................................................................................12
3. Customer Experience Strategy Design Implementation.............................................................12
Comparison of CX Processes:.................................................................................................................13
Conclusion:................................................................................................................................................13
Reference list.............................................................................................................................................14

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Introduction
This study assesses the customer experience (CX) approach implemented by Taj Hotels, a prominent
premium hospitality business situated in India. The report comprises a comprehensive examination of
important success factors, consumer personas, customer journey mapping, omnichannel marketing
strategies, performance metrics, and comparative insights with the social media platform Instagram.

1. The Importance of Customer Experience: A Case Study of Taj


Hotels
Customer experience (CX) pertains to the comprehensive perception and engagement that customers
establish with a company's offerings, services, and brand across the entirety of their encounter. The
concept of customer journey refers to the comprehensive range of interactions that a consumer
experiences throughout their involvement with a particular product or service. These interactions span
several stages, including initial awareness, engagement, purchase, usage, and post-purchase interactions
(Villani, 2019). The customer experience (CX) is influenced by a multitude of aspects, encompassing
customer service, usability, product excellence, brand standing, and emotional affiliations.

Within the realm of Taj Hotels, the concept of customer experience (CX) assumes a crucial role in
influencing the perception of opulent hospitality. The notion of customer experience transcends the
mere provision of a comfortable accommodation, as it involves the entirety of the guest's journey,
commencing from the reservation process and extending beyond the check-out phase. Taj Hotels
prioritizes the implementation of CX, which entails the provision of tailored, remarkable, and smooth
encounters that align with the cultural values of India and the international benchmarks of opulence.

The Importance of CX:

a) Customer Loyalty and Repeat Business: A positive CX establishes an emotional connection with
guests, fostering loyalty. Satisfied customers are more likely to return and recommend Taj Hotels
to others, contributing to sustained revenue growth (Behare, Waghulkar and Shah, 2018).

b) Brand Differentiation: In a competitive hospitality landscape, CX becomes a key differentiator.


Exceptional service, attention to detail, and a unique ambiance set Taj Hotels apart from other
luxury establishments.

c) Word-of-Mouth Marketing: Guests who have enjoyed outstanding experiences become brand
advocates, sharing their positive encounters with friends, family, and online communities. This
word-of-mouth marketing enhances the brand's reputation (Suwelack, Stegemann and Ang,
2022).

d) Online Reviews and Ratings: Today's travelers heavily rely on online reviews and ratings when
making booking decisions. Positive reviews generated through exceptional CX influence potential
guests to choose Taj Hotels over competitors.

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e) Sustainability: CX extends beyond immediate transactions. Guests appreciate efforts towards
sustainability and responsible practices, enhancing the brand's reputation as a responsible
corporate citizen.

In the context of Taj Hotels, an improved customer experience is essential to maintain its legacy of luxury
hospitality. Personalized concierge services, cultural sensitivity, and attention to minute details create
lasting memories for guests. By constantly refining CX, Taj Hotels can continue to attract discerning
travelers seeking exclusive experiences, ensuring the brand remains synonymous with opulence and
impeccable service.

In short, customer experience is not merely a transactional interaction; it's a holistic journey that shapes
perceptions, builds loyalty, and influences brand reputation. Taj Hotels' commitment to delivering an
exceptional customer experience aligns with its legacy of luxury and is fundamental to its continued
success in the competitive hospitality industry.

2. Consumer Persona Creation: Enhancing CX Strategy for Taj


Hotels - Senior Traveler
Consumer Persona: A consumer persona is a semi-fictional representation of a target customer
segment. It is created through research and data analysis to capture the characteristics, behaviors,
needs, motivations, and pain points of a specific group of customers. Personas provide a humanized
understanding of customers, guiding businesses in tailoring their products, services, and experiences to
meet their unique requirements.

Role in Developing Effective CX Strategy: Consumer personas play a crucial role in crafting an
effective customer experience (CX) strategy. By understanding the preferences, motivations, and
challenges of different customer segments, businesses can design experiences that resonate with their
target audience, resulting in increased satisfaction, loyalty, and brand advocacy.

Senior Traveler Persona:

Element Details

Demographic Name: Margaret Wilson , Age: 70 Location: London


s

Story A retired schoolteacher who loves cultural experiences


and exploring new places.

Profile Widowed, active, values relaxation and luxury.

Motivations Seeks comfort, authentic cultural interactions, and

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scenic beauty in travel experiences.

Goals To explore historical landmarks, enjoy fine dining, and


relax in luxurious accommodations.

Pain Points Worries about mobility limitations, unfamiliar


surroundings, and lack of personalized assistance.

Visual Representation:

Consumer personas offer businesses a deep understanding of their customers, enabling them to tailor
CX strategies that cater to specific needs and preferences. The senior traveler persona for Taj Hotels
serves as a valuable tool for designing personalized experiences that address the unique motivations and
pain points of senior guests, ultimately leading to enhanced customer satisfaction and loyalty.

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3. Mapping the Customer Journey: Enhancing CX Strategy for
Senior Travelers at Taj Hotels
Customer Journey: A customer journey refers to the sequential progression of contacts, touchpoints,
and experiences that a customer undergoes during their engagement with a company's product or
service. The customer journey comprises all stages, starting from the initial stage of awareness and
continuing through to post-purchase assistance. It serves as a reflection of the consumer's emotions,
requirements, and expectations throughout their interaction with the company. (Lemon and Verhoef,
2016).

Importance of Customer Journey to CX Strategy: The process of mapping the customer


journey holds significant importance in the development of an efficient customer experience (CX)
strategy, as highlighted by Keiningham et al. (2019). The system offers a comprehensive perspective on
the interactions between customers and enterprises, facilitating the identification of areas of
dissatisfaction, chances for enhancement, and potential for improved personalisation. An accurately
delineated customer journey facilitates the implementation of focused interventions that are in line with
customer expectations, resulting in increased levels of satisfaction and loyalty.

Customer Journey Map for Senior Traveler at Taj Hotels:

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The process of mapping the customer experience of a senior traveler at Taj Hotels offers valuable insights
into their interactions, emotions, and requirements during different stages. This allows Taj Hotels to
improve its customer experience strategy by identifying and resolving unique challenges, optimizing
points of interaction, and tailoring experiences for this group. A customer journey map that is designed
effectively guarantees that senior guests have a smooth, enjoyable, and memorable experience during
their stay, so strengthening their loyalty and fostering a positive view of the company.

4. Omnichannel Marketing and Seamless Customer Journey: A


Case Study of Taj Hotels
Omnichannel Marketing: Omnichannel marketing refers to a strategy methodology that prioritizes
the provision of customers with a cohesive and unified experience across many channels and
touchpoints. The objective is to establish a unified and uninterrupted experience for consumers,
regardless of their engagement with a business via digital platforms, brick-and-mortar establishments,
mobile applications, social media, or alternative mediums (Gotwald-Feja, 2017).

Omnichannel marketing acknowledges that customers interact with brands across multiple channels and
devices. The process entails the synchronization of messaging, branding, and consumer interactions
across many platforms to establish a consistent and captivating experience. The objective is to eradicate
organizational barriers and offer clients a cohesive encounter that fosters effortless transitions across
various points of interaction (Schniedermeier , 2016).

Role of Interaction in Omnichannel Marketing: Interaction is a crucial element in the context


of omnichannel marketing as it facilitates the establishment of consistent communication and
engagement across several platforms. The establishment of effective interaction guarantees the
provision of pertinent and prompt information to clients, irrespective of the platform they opt for.
Interaction also plays a crucial role in the collection of customer data, enabling brands to gain insights
into preferences and habits, ultimately resulting in the provision of more tailored and individualized
experiences.

Taj Hotels' Sales and Marketing Channels: For Taj Hotels, the following sales and marketing
channels are utilized to engage with customers and enhance their experience:

1. Website: The official website functions as a central platform for reserving accommodations,
researching available facilities, and uncovering exclusive promotions..

2. Mobile App: The mobile application developed by Taj Hotels facilitates convenient access to
making reservations, availing exclusive deals, and accessing personalized services..

3. Social Media: Social media platforms such as Instagram and Facebook serve as platforms for the
display of opulent hotel environments, gastronomic delights, and cultural points of interest.

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4. Physical Properties: During the duration of their stay, guests engage in interactions with the
staff, concierge, and various amenities, thereby making a significant contribution to their overall
experience.

5. Email Marketing: Personalized email campaigns offer promotions, updates, and post-stay
feedback opportunities.

Analysis of Taj Hotels' Omnichannel Experience: Taj Hotels has made notable progress in
establishing an omnichannel experience that is congruent with its esteemed luxury brand identity. The
website, mobile application, and social media channels of the organization maintain a cohesive and
uniform branding and messaging strategy. The mobile application enables users to effortlessly access
essential services, hence augmenting convenience.

Nevertheless, there is scope for enhancement. There is potential for further enhancement in the
integration of online interactions with in-person experience. For example, utilizing the functionalities of
mobile applications to enable guests to express their preferences or make service requests during their
accommodation period has the potential to enhance the overall experience.

The omnichannel marketing initiatives undertaken by Taj Hotels serve to enhance the coherence and
integration of the client journey. Although the business has successfully built a coherent online presence,
there exists an opportunity to enhance the integration between digital interactions and physical
encounters. Through ongoing refinement of its omnichannel strategy, Taj Hotels has the potential to
establish a customer journey that is both seamless and memorable, in line with its longstanding
reputation for elegance and excellence.

5. CX Performance Metrics: NPS and LTV Analysis for Taj Hotels


CX Performance Metrics: Customer experience (CX) performance metrics refer to quantitative
measures employed for assessing the effectiveness of a company's customer experience endeavors. Two
metrics commonly used in business analysis are the Net Promoter Score (NPS) and the Lifetime Value
(LTV) (Szyndlar, 2023). The Net Promoter Score (NPS) measures customer loyalty and advocacy, whereas
the Customer Lifetime Value (LTV) evaluates the enduring economic worth that a client contributes to a
company (Mandal, 2014).

Calculation of NPS: NPS is calculated based on responses to a simple question: "On a scale of 0 to
10, how likely are you to recommend our product/service to others?" Respondents are categorized into
three groups: Promoters (9-10), Passives (7-8), and Detractors (0-6) (Rocks, 2016). NPS is calculated by:

NPS=Percentage of Promoters−Percentage of Detractors

Calculation of LTV: LTV represents the projected revenue a customer will generate throughout their
relationship with a company (Lanahan, 2020). It is calculated using the formula:

LTV = Average Purchase Value × Purchase Frequency × Customer Lifespan.

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This metric considers the value of repeat business, loyalty, and additional purchases made by the
customer over time.

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Benefits and Challenges of NPS: The Net Promoter Score (NPS) offers a straightforward
assessment of customer loyalty and inclination to advocate for a firm. This tool aids in the identification
of areas that require improvement and facilitates the monitoring of fluctuations in consumer opinion.
Nevertheless, the Net Promoter Score (NPS) in isolation may exhibit a deficiency in comprehending client
preferences and the underlying factors influencing their ratings. In order to have a comprehensive
understanding, it is imperative to augment the Net Promoter Score (NPS) metric with qualitative input.

Benefits and Challenges of LTV: The Lifetime Value (LTV) statistic is a comprehensive measure that
takes into consideration the entirety of the client relationship, hence emphasizing the potential revenue
that may be created over an extended period. It facilitates the process of making strategic decisions by
directing attention towards client segments that possess a higher lifetime value (LTV). Nevertheless, the
computation of customer lifetime value (LTV) can be intricate due to the necessity of precise information
regarding purchasing patterns, customer attrition rates, and the duration of customer relationships. An
over dependence on the labor theory of value (LTV) may result in the oversight of immediate revenue
sources.

Relevance of NPS and LTV for Taj Hotels:


Net Promoter Score (NPS): NPS is highly relevant for Taj Hotels, as it reflects customer satisfaction
and willingness to recommend the hotel's services. For a luxury brand like Taj Hotels, positive word-of-
mouth is crucial for attracting new guests. NPS helps identify promoters who can contribute to the
hotel's reputation and growth. However, NPS might not capture the nuanced experience of senior
travelers who may not frequently recommend due to personal preferences.

Lifetime Value (LTV): LTV is pertinent for Taj Hotels to assess the long-term economic contribution of
senior guests. Senior travelers often seek comfort and familiarity, leading to repeated stays. LTV helps Taj
Hotels identify high-value customer segments and tailor services accordingly. However, calculating LTV
might be challenging due to variations in booking patterns, special offers, and guest preferences.

Both NPS and LTV are valuable CX performance metrics that provide insights into customer loyalty and
long-term value. For Taj Hotels, NPS assists in measuring advocacy, while LTV highlights the financial
impact of senior guests' loyalty. Utilizing these metrics together offers a comprehensive understanding of
customer relationships and allows Taj Hotels to refine its strategies to deliver exceptional experiences to
all guests.

6. CX Critical Success Factors (CSFs) and Implementation Process:


A Comparative Analysis of Taj Hotels and Instagram
In the contemporary and highly competitive business environment, the provision of outstanding
customer experiences has emerged as a crucial strategic necessity for enterprises spanning many
sectors. Through an examination of the implementation procedures of critical success factors (CSFs) in
Taj Hotels and Instagram, this study aims to elucidate how both firms effectively utilize these elements to
attain exceptional customer experience (CX) outcomes..

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CX Critical Success Factors (CSFs):
1. Governance: Effective governance forms the bedrock of a robust CX strategy. By establishing
clear roles, responsibilities, and accountability, organizations ensure that CX initiatives are
aligned with overall business objectives. In Taj Hotels, the appointment of a Chief Customer
Experience Officer and a dedicated CX committee showcases strong governance practices (Franz,
2020). This leadership ensures that CX efforts are guided by senior executives, fostering a
customer-centric ethos.

2. Culture: A customer-centric culture empowers employees at all levels to prioritize delivering


exceptional experiences. Organizations foster this culture through training, communication, and
empowerment. Instagram, for instance, cultivates a culture of user-focused design and
innovation. Regular feedback loops, rapid iterations, and cross-functional collaboration ensure
that the platform remains aligned with user needs, epitomizing a culture that values the
customer's voice (Lee Yohn, 2018).

3. Customer Experience Strategy Design: A well-crafted CX strategy combines customer insights,


touchpoint analysis, and personalized experiences. In Taj Hotels, guest feedback, preferences,
and cultural nuances are meticulously analyzed to design tailored experiences. The strategy
spans both digital interfaces and in-person interactions, offering guests a seamless journey that
encapsulates the essence of luxury hospitality. Instagram, on the other hand, designs its CX
strategy around intuitive interface design, content sharing, and algorithm-driven content
discovery, facilitating a visually captivating and engaging experience for users (Popli and Rishi,
2021).

Process to Implement CSFs:


Governance Implementation:
 Define CX roles: Clearly delineate roles and responsibilities for CX initiatives, designating
key individuals to oversee them.

 Leadership involvement: Appoint a Chief Customer Experience Officer and establish a CX


committee with top-level executives for strategic oversight.

 Governance structures: Develop decision-making processes and governance structures


that ensure CX initiatives are aligned with broader business goals.

2. Culture Implementation:

 Training and education: Conduct training programs to educate employees about the
significance of CX and how their roles contribute to it.

 Encourage employee engagement: Establish channels for employees to share customer


feedback and innovative ideas for enhancing CX.

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 Recognition and rewards: Implement recognition programs that acknowledge and
celebrate employees who exhibit exceptional customer-centric behavior.

3. Customer Experience Strategy Design Implementation:

 Data analysis: Gather and analyze customer data to identify pain points, preferences,
and opportunities for improvement.

 Strategy development: Create a comprehensive CX strategy that integrates insights from


data analysis and aligns with the organization's vision.

 Omni-channel approach: Design experiences that seamlessly span various touchpoints,


ensuring consistency and personalization across channels.

Comparison of CX Processes:
Taj Hotels:

 Governance: The appointment of a Chief Customer Experience Officer and a CX committee


underscores the hotel's commitment to robust governance, ensuring CX initiatives are guided by
senior leadership.

 Culture: Extensive training programs and a relentless focus on anticipating guest needs foster a
customer-centric culture, where employees consistently deliver exceptional experiences.

 Customer Experience Strategy Design: The integration of cultural nuances and guest feedback in
the CX strategy ensures personalized and culturally relevant experiences that resonate with
guests.

Instagram:

 Governance: Instagram's governance model involves assigning product managers and designers
to CX enhancements, backed by oversight from top executives.

 Culture: A user-centric design culture emphasizes rapid iterations and user feedback, driving
continuous improvements and innovation in the platform's user experience.

 Customer Experience Strategy Design: Instagram's strategy revolves around intuitive design,
content sharing, and algorithm-driven content discovery, aiming to create a visually captivating
and engaging platform.

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Conclusion:
Taj Hotels' CX strategy showcases exceptional effectiveness in delivering memorable guest experiences.
Governance structures, a customer-centric culture, and a tailored CX strategy align with the brand's
legacy. The meticulous implementation of CSFs, detailed consumer personas, well-mapped customer
journeys, and thoughtful omnichannel engagement contribute to this efficacy. High Net Promoter Scores
(NPS) and significant Lifetime Value (LTV) indicate guest satisfaction and loyalty. By benchmarking against
Instagram's digital prowess, Taj Hotels' human-centric approach stands as a hallmark of superior CX
strategy. As evidenced throughout this report, Taj Hotels' commitment to excellence exemplifies a
masterclass in creating enduring guest relationships and elevating the hospitality industry's CX
standards.

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Reference list
Behare, N., Waghulkar, S. and Shah, S.A. (2018). A Theoretical Perspective on Customer Experience (CX)
in Digital Business Strategy. 2018 International Conference on Research in Intelligent and Computing in
Engineering (RICE). doi:https://doi.org/10.1109/rice.2018.8509079.

Franz, A. (2020). Building a successful CX governance operating model | TechTarget. [online] Customer
Experience. Available at: https://www.techtarget.com/searchcustomerexperience/feature/Building-a-
successful-CX-governance-operating-model [Accessed 4 Sep. 2023].

Gotwald-Feja, B. (2017). Marketing Communication in Omnichannel Reality – Trends and Tendencies.


Marketing i Zarządzanie, 47, pp.261–271. doi:https://doi.org/10.18276/miz.2017.47-24.

Keiningham, T., Aksoy, L., Bruce, H.L., Cadet, F., Clennell, N., Hodgkinson, I.R. and Kearney, T. (2019).
Customer experience driven business model innovation. Journal of Business Research, 116, pp.431–440.

Lanahan, J. (2020). LTV: Calculating Customer Lifetime Value in Five Steps! [online] Compass East.
Available at: https://compasseast.com/lifetime-value-ratio/ [Accessed 4 Sep. 2023].

Lee Yohn, D. (2018). 6 Ways to Build a Customer-Centric Culture. [online] Harvard Business Review.
Available at: https://hbr.org/2018/10/6-ways-to-build-a-customer-centric-culture.

Lemon, K.N. and Verhoef, P.C. (2016). Understanding Customer Experience Throughout the Customer
Journey. Journal of Marketing, [online] 80(6), pp.69–96. doi:https://doi.org/10.1509/jm.15.0420.

Mandal, P.C. (2014). Net promoter score: a conceptual analysis. International Journal of Management
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Popli, S. and Rishi, B. (2021). Crafting Customer Experience Strategy. Emerald Publishing Limited.
doi:https://doi.org/10.1108/9781839097102.

Rocks, B. (2016). Interval Estimation for the ‘Net Promoter Score’. The American Statistician, 70(4),
pp.365–372. doi:https://doi.org/10.1080/00031305.2016.1158124.

Schniedermeier, I. (2016). Returns on omnichannel marketing : towards a holistic framework to manage


and measure omnichannel strategy’s success in the premium fashion industry. Germany: Grin Publishing.

Suwelack, T., Stegemann, M. and Ang, F.X. (2022). Creating a customer experience-centric startup : a
step-by-step framework. Cham: Springer.

Szyndlar, M. (2023). 10 Best Customer Experience Metrics to Measure for Customer Success. [online]
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2022].

Villani, I. (2019). Transform customer experience : How to achieve customer success and create
exceptional CX. Milton John Wiley Et Sons.

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