MBA4075:

Customer Experience and Insights

Module 2:
Touchpoints and Design for Customer Experiences
MBA SEM IV
(2 CREDIT COURSE)

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

 Module Coverage
This module covers the following topics:

1. Servicescape: Tangible and intangible factors in the Servicescapes that impact the customer's
experience
2. Customer Personas
3. Role of design thinking in Customer Experience
4. Critical Touch Points in Customer Experience; Identifying hierarchy touchpoints at different
levels
5. Impact of Demonstration on Customer Experience
6. Digital landscape in experiences
7. Role of feedback mechanism in experiences
8. Touchpoints and tools of insights

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.
 Servicescape

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

Servicescape is defined as the physical environment where a service is rendered.

Servicescape deals with the settings where a service is consumed or delivered and a place
where both the service provider and customer interact with each other.

This concept was coined by Booms and Bitner (90s): that physical ambience has a direct impact
on the customers’ buying behavior.

Booms and Bitner definition: “the environment in which the service is assembled and in which
the seller and customer interact, combined with tangible commodities that facilitate
performance or communication of the service”.

In other words, Servicescapes are uniquely designed by each business to create an atmosphere
that aims to enhance their customer’s experience, and ultimately have an impact on their
behavior.

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

 Aspects of Servicescape

Spatial Layout and Signs, Symbols, and Ambient Conditions

Functionality Artefacts • Colours
• Layout • Signage • Sounds/Soft Music
• Furniture • Style • Smells
• Equipment • Carpets/Floor Covers • Temperature
• Furnishings • Photographs/Paintings on • Lighting
the wall

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

 Elements of Servicescape

Facility Exterior Facility Interior Others

• Landscape • Music • Virtual

• Exterior Design • Layout Servicescape
• Surrounding • Equipment • Brochures
Environment • Air Quality • Employee Dress
• Parking • Temperature • Billing Statement
• Signage • Interior Design • Web Page/App
• Uniforms
• Stationery
• Business Cards

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

Functions of Servicescape

Image, Differentiation
& Positioning

Facilitating Service
Encounters, and
increasing
productivity

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

 Roles of Servicescape

Differentiator

Package

Socializer

Facilitator

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

Components of Servicescape

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

Types of Servicescape Environment

Lean
Servicescape

Elaborate
Servicescape

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

 Lean and Elaborate Servicescape
 A lean services cape is characterized by minimal physical elements and a simple design. The
focus is on functionality and efficiency, rather than aesthetics.

 For example, a fast-food restaurant would have a lean services cape as the emphasis is on
quick service and low cost.

 An elaborate services cape is characterized by a high degree of physical involvement,

including elaborate design, décor, and furnishings.

 The focus is on creating a memorable experience for the customer, and the physical elements
play a key role in this.

 For example, a luxury hotel would have an elaborate services cape, as the focus is on creating
a high-end and memorable experience for guests.

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

 Tools for better Servicescape Design
 Keen observation of customer’s behavior and response

 Feedback and ideas from the frontline staff and customers

 Field experiments with different elements of Servicescape

 Blueprinting or Service Mapping

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

 Tangible and Intangible factors in Servicescape that affect Customer Experience
 Tangible factors are the physical elements of the servicescape that customers can see, hear,
touch, taste or smell.

 These include things like the design of the space, the lighting, the layout, the cleanliness, the
quality of the furniture, the temperature and the accessibility of the service.

 They have a strong impact on the customer's experience and can be used to create a specific
atmosphere and communicate a certain image to the customer.

 For example, a luxury hotel would have a different design and atmosphere than a budget
hotel.

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

 Tangible and Intangible factors in Servicescape that affect Customer Experience
 Intangible factors are the non-physical elements of the Servicescapes that customers can
perceive through their senses but cannot physically touch.

 These include things like the atmosphere, the quality of the customer service, the music, the
scent, and the visual elements of the service like uniforms, dress codes, and branding.

 They also play an important role in shaping the customer's experience and can be used to
create a sense of trust, reliability and emotional connection with the customer.

 For example, friendly and attentive customer service can create a positive emotional
experience for the customer.

Both tangible and intangible factors can be used to create a memorable customer experience
and to differentiate a company from its competitors. Identifying and optimizing both tangible
and intangible factors can help to create a cohesive and consistent customer experience.

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.
 How do the companies
identify / recognize you to offer
you that superior:

“Customer Experience (CX)?”

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.
 What is a “Customer Persona?”
 A “Customer Persona” is a fictional representation of a company’s ideal customer.

 It is based on data and research, and it is used to identify the following, of a specific
customer segment –

 Needs
 Behaviours, and
 Goals

 Customer personas help companies to better understand their target market and to tailor
their products, services, and marketing efforts to meet the needs of specific customer
groups.

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

Steps for creating a
“Customer Persona”

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

 • Gather Data
Collect data on your customers through surveys, interviews, or analysis of customer data.
Step 1 This can include information on demographics, behavior, pain points, and goals.

• Analyze the Data

Identify patterns and trends in the data to identify common characteristics of specific customer
Step 2 segments.

• Create The Personas

Use the data to create fictional representations of your ideal customers.
This can include giving them a name, age, occupation, and other demographic information, as well as
Step 3 information on their behavior, pain points, and goals.

• Validate the Personas

Test the personas with real customers to ensure they are accurate and relevant.
Step 4

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

How does “Customer Persona”
enhances
“Customer Experience (CX)”?

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

  By understanding the specific needs and preferences of different customer
segments, a company can develop products that better meet the needs of its
Product Development customers.

 By creating targeted marketing campaigns based on customer personas, a

company can communicate more effectively with its customers and increase the
Marketing relevance of its messaging.

 By training customer service staff on the specific needs and preferences of

Customer Service different customer segments, a company can provide more personalized and
effective service.

 By identifying the needs and preferences of different customer segments, a

Experience Design company can design its physical spaces, products, and services to create a more
enjoyable and personalized experience for its customers.

Innovation  By understanding the specific needs and pain points of different customer
segments, a company can identify opportunities for innovation and improve its
products and services in ways that better meet the needs of its customers.

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

 Various Types of
“Customer Personas”

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

  These personas are based on demographic information such as age, gender, income, education,
and occupation. These personas can be used to understand the characteristics of different
customer segments and to tailor products, services, and marketing efforts to meet the specific
needs of these segments.

Demographic Personas  These personas are based on customer behavior, such as purchase history, usage patterns, and
preferences. These personas can be used to understand how customers interact with a
company's products or services and to tailor the customer experience to meet their specific
Behavioural Personas needs and preferences.

 These personas are based on the attitudes, values, and lifestyle of customers. These personas
Psychographic Personas can be used to understand how customers think and feel about a company's products or
services and to tailor the customer experience to meet their specific needs and preferences.

Goal-based Personas  These personas are based on the specific goals and objectives that customers have when
interacting with a company's products or services. These personas can be used to understand
the specific needs and pain points of different customer segments and to tailor the customer
experience to meet their goals.
Job-based Personas
 These personas are based on the specific job or role that a customer has within an organization.
They can be used to understand the specific needs and pain points of different customer
Industry-based Personas segments and to tailor the customer experience to meet the needs of different job roles.

 These personas are based on the specific industry or sector that a customer operates in. They
can be used to understand the specific needs and pain points of different customer segments
and develop tailored solutions to meet their needs

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

 Design Thinking
in
Customer Experience

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.
 Design Thinking
 Design Thinking is a problem-solving approach that emphasizes empathy and collaboration in order to
understand and address complex customer needs. It has been increasingly used to improve customer
experiences in a variety of industries.

 Design Thinking involves several key concepts, models, and approaches, including:

 Empathy: Understanding the customer's needs and perspectives through observation, research, and
interaction.

 Ideation: Generating and evaluating a wide range of potential solutions to customer problems.

 Prototyping: Rapidly creating physical or virtual prototypes of potential solutions to test and refine ideas.

 User Testing: Collecting feedback from real customers to validate and improve solutions.

 Iteration: Repeating the process of empathy, ideation, prototyping, and testing until a successful solution is
achieved.

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

 Goal of Design Thinking
 The goal of Design Thinking is to create innovative, customer-centric solutions that are well-suited to the
unique needs and preferences of the target market.

 By incorporating empathy and collaboration into the problem-solving process, organizations can create
solutions that are more effective, efficient, and enjoyable for customers.

 In terms of its role in customer experience, Design Thinking provides a structured and iterative approach to
improving the way customers interact with a brand.

 By starting with a deep understanding of customer needs and continuously testing and refining solutions,
organizations can create better, more impactful customer experiences that build brand loyalty and drive
business results.

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.
Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.
 Transforming the business with CX Design
 Discovering Customer Needs & Opportunities
 Uncovering underlying motivations
 Leading with Empathy
 Driving Innovations

Outcomes:
 Determining how and where the company meets the needs of the customers of tomorrow.
 Defining the target-state experience toward which the company should be working.

 Designing and Prototyping Solutions

Outcomes:
 Determining what a set of breakthrough ideas and solutions would look and feel like to customers.
 Establishing how the team can bring an idea to life to build momentum and gain buy-in from the rest of the
business.

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

 Transforming the business with CX Design
 Launch and Scale
Outcomes:
 De-risking the overall solution and getting to market faster.
 Ensuring metrics are clearly mapping to customer satisfaction in a way the UX team can iterate.

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

 Demonstration
in Customer Experience

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

 Impact of Demonstration on Customer Experience
 Demonstration plays a critical role in shaping customer experience. It is a way of showcasing a product or
service to potential customers, providing them with an opportunity to see, touch, and try it before making a
purchase decision.

 The impact of demonstration on customer experience is significant in several ways:

 Provides tangible evidence: Demonstrations provide tangible evidence of the features and benefits of a
product or service, making it easier for customers to understand and make informed decisions.

 Enhances confidence: Demonstrations help to build customers' confidence in the product or service,
especially if they are able to test it out for themselves. This leads to a more positive customer experience,
as they feel more assured about their purchase decision.

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

 Impact of Demonstration on Customer Experience
 Builds brand loyalty: A positive demonstration experience can help to build brand loyalty, as customers will
associate the product or service with a positive experience.

 Creates a memorable experience: A well-executed demonstration can create a memorable experience for
customers, which can impact future purchasing decisions and increase the likelihood of repeat business.

Overall, demonstration plays a crucial role in shaping customer experience, and can have a
significant impact on customer satisfaction, loyalty, and brand perception.

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

Critical Touchpoints
in
Customer Experience

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

 What are the critical touchpoints in Customer Experience?
 Critical touchpoints in the customer journey are the key interactions or experiences that have a significant
impact on the customer's overall perception of the company or brand.

 These touchpoints are important for a company to identify and optimize in order to improve customer
satisfaction and loyalty.

 Some examples of critical touchpoints in a customer journey include:

 First impression:
A customer's first interaction with a company, such as visiting a website or entering a store, can have a
significant impact on their perception of the brand.

 Purchase decision:
The process of making a purchase, including browsing, comparison, and decision-making, can be a critical
touchpoint that can influence a customer's satisfaction with their purchase and likelihood to return.

 Customer service:
Interactions with customer service, such as phone or email support, can be a critical touchpoint that can
greatly influence a customer's perception of a company.
Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.
 What are the critical touchpoints in Customer Experience?
 Some examples of critical touchpoints in a customer journey include:

 Delivery and follow-up:

The delivery process and any follow-up interactions, such as tracking the delivery or handling returns, can be a
critical touchpoint that can impact a customer's satisfaction with their purchase.

 Repeat purchase:
The process of making a repeat purchase can be a critical touchpoint, as it can influence a customer's loyalty
and likelihood to continue doing business with a company.

 Referral/ Word of Mouth:

Positive referral and word of mouth can be a critical touchpoint as it can have a huge impact on the company's
reputation and new customer acquisition.
It's important to note that different customers may have different critical touchpoints,
depending on their needs and preferences.
Therefore, identifying and optimizing critical touchpoints should be an ongoing process and it
should be tailored to different customer segments.
Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.
 Critical Role
of
Feedback Mechanisms
in
Customer Experiences

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

 Feedback Mechanism in Customer Experiences
 Feedback mechanisms play a critical role in the customer experience because they provide organizations with
valuable information about how customers perceive their products and services, what they like and dislike, and
what they would like to see improved.

 This information can then be used to make data-driven decisions about how to optimize the customer
experience.

 There are several types of feedback mechanisms that organizations can use, including:

 Surveys:
Surveys are a direct way to gather customer feedback, either through online or paper-based methods. Surveys
can be used to gather information on a wide range of topics, such as customer satisfaction, product features,
and customer support.

 Online Reviews:
Online reviews and ratings provide organizations with valuable feedback on their products and services. This
type of feedback is particularly valuable because it is easily accessible by potential customers who are
considering making a purchase.
Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.
 Feedback Mechanism in Customer Experiences
 There are several types of feedback mechanisms that organizations can use, including: (continued)…

 Social Media:
Social media platforms provide organizations with the ability to engage directly with customers, respond to
questions and comments, and gather feedback on their products and services.

 Customer Support Interactions:

Customer support interactions, whether through phone, email, or chat, provide organizations with valuable
insights into customer needs and challenges, and can help organizations identify areas for improvement in their
customer experience.

 User Testing:
User testing involves having real customers use a product or service and provide feedback on their experience.
This type of feedback is particularly valuable because it is based on real-world usage, rather than just
theoretical expectations.

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

 Food for Thought

By regularly gathering and analyzing feedback from customers, organizations can gain a deep
understanding of their customers' needs and expectations, and make data-driven decisions
to continuously improve their customer experience.

This in turn can lead to increased customer satisfaction, loyalty, and advocacy.

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

Tools of Customer Insights

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

 Critical Tools of Insights
 There are several tools and techniques that organizations can use to gather and analyze customer insights,
which can help enhance the customer experience.

 Some of these tools include:

 Surveys: Surveys are a common tool used to gather customer insights. They can be conducted through
various mediums such as email, phone, or in-person interviews, and they can be designed to gather
information on various aspects of the customer experience, such as overall satisfaction, service quality, and
product features.

 Customer Feedback Platforms: Customer feedback platforms allow organizations to collect and manage
customer feedback from various sources, including social media, chatbots, and online reviews. These
platforms help organizations to consolidate and analyze customer feedback to gain insights into areas
where the customer experience can be improved.

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

 Critical Tools of Insights
 Some of these tools include (continued)…

 Customer Analytics: Customer analytics tools allow organizations to analyze large amounts of customer
data, such as purchase history, demographics, and online behavior, to understand customer behavior and
preferences. This information can then be used to develop targeted and personalized customer
experiences.

 Voice of Customer (VOC) Programs: Voice of Customer programs are designed to gather customer
feedback and insights directly from customers, in order to understand their needs and preferences. This
information can be used to improve the customer experience, and to develop new products and services.

 Focus Groups: Focus groups are a qualitative research method where a small, diverse group of customers is
brought together to discuss their experiences with a product or service. Focus groups can be useful for
gaining a deeper understanding of customer needs and behaviors, and for generating ideas for improving
the customer experience.
By using these tools, organizations can gather valuable insights into customer needs and
preferences, and use that information to enhance the customer experience.
Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.
 Module Coverage
This module covered the following topics:

1. Servicescape: Tangible and intangible factors in the Servicescapes that impact the customer's
experience
2. Customer Personas
3. Role of design thinking in Customer Experience
4. Critical Touch Points in Customer Experience; Identifying hierarchy touchpoints at different
levels
5. Impact of Demonstration on Customer Experience
6. Digital landscape in experiences
7. Role of feedback mechanism in experiences
8. Touchpoints and tools of insights

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.

Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.
Dr. Aurobindo Kiriyakere, BE, MBA, Ph.D.