#atom

The sum of all interactions between a customer and an organization

Core Idea: Customer Experience (CX) encompasses the complete journey a customer has with an organization across all touchpoints and channels over time, including cognitive, emotional, sensory, social, and behavioral responses to these interactions.

Key Elements

Scope and Dimensions

• Holistic View: Encompasses pre-purchase, purchase, and post-purchase experiences
• Multi-Channel Integration: Includes physical, digital, and human interactions
• Temporal Nature: Develops over time through repeated interactions
• Perceptual Reality: Based on customer's subjective interpretation of interactions
• Emotional Component: Feelings generated throughout the customer journey

Key Components of Customer Experience

1. Functional Components

   • Reliability: Consistent delivery of promised services
   • Efficiency: Minimizing customer effort and resource expenditure
   • Utility: Providing practical value and usefulness
   • Performance: Meeting or exceeding expected functionality

2. Emotional Components

   • Trust: Confidence in the organization's intentions and capabilities
   • Empathy: Understanding and addressing customer needs
   • Relationship: Connection between customer and organization
   • Delight: Exceeding expectations in meaningful ways

3. Sensory Components

   • Aesthetics: Visual, auditory, tactile aspects of interactions
   • Environmental factors: Physical surroundings in in-person interactions
   • Interface design: Digital touchpoint sensory elements

Customer Journey Mapping

• Touchpoints: Individual interactions between customer and organization
• Channels: Methods through which interactions occur (website, app, store, call center)
• Moments of Truth: Critical interactions with high impact on overall experience
• Pain Points: Areas of friction or dissatisfaction in the journey
• Emotions: Feelings experienced at each stage of the journey

CX vs. Related Concepts

• User Experience (UX): Subset focused on product/service usability and satisfaction
• User Experience Design: Process of creating positive UX within products
• Brand Experience: Perceptions based on brand identity and marketing
• Service Experience: Interactions with service delivery personnel and processes
• Customer Experience Management: Organizational approach to designing and improving CX

Business Impact

• Customer Loyalty: Repeat purchases and longer customer relationships
• Word of Mouth: Recommendations and positive sharing
• Price Premium: Willingness to pay more for superior experiences
• Reduced Churn: Lower customer attrition rates
• Competitive Differentiation: Experience as a distinguishing factor
• Increased Revenue: Higher customer lifetime value

Measurement Approaches

• Net Promoter Score (NPS): Likelihood to recommend
• Customer Satisfaction (CSAT): Satisfaction with specific interactions
• Customer Effort Score (CES): Ease of completing desired actions
• Customer Lifetime Value (CLV): Economic value of customer relationship
• Voice of Customer (VoC): Structured program to capture customer feedback
• Journey Analytics: Measurement across touchpoints and over time

Additional Connections

• Broader Context: Service Design (methodology for designing experiences)
• Applications: Omnichannel Strategy (implementation across channels)
• See Also: Voice of Customer Programs (systematic feedback collection)

References

1. Meyer, C. & Schwager, A. "Understanding Customer Experience." Harvard Business Review, 2007.
2. Lemon, K.N. & Verhoef, P.C. "Understanding Customer Experience Throughout the Customer Journey." Journal of Marketing, 2016.
3. Pine, B.J. & Gilmore, J.H. "The Experience Economy." Harvard Business School Press, 1999.

#customer-experience #cx #service-design #customer-journey #touchpoints

Connections:

Sources:

• From: Chou-Actionable Gamification