Exam: Tuesday dec 17, closed book.
Table of Contents
Session 1: Introduction to CX Management ............................................................................................................................................... 2
Session 2:................................................................................................................................................................................................ 4
Session 3: Customer Experience Management .......................................................................................................................................... 7
Session 4: Customer Experience Optimization ........................................................................................................................................ 12
Session 5: Customer Experience Optimization pt 2 .................................................................................................................................. 15
Session 5.2: Guest lecture ...................................................................................................................................................................... 16
Session 6: CX Disruptions pt 1 ................................................................................................................................................................ 18
Session 7: CX Disrubtions pt 2 ................................................................................................................................................................ 21
CX Appropriation pt 1 ............................................................................................................................................................................. 23
Session 8: Guest lecture + ...................................................................................................................................................................... 26
Appropriation pt 2 .................................................................................................................................................................................. 29
Session 9: Automated CX ....................................................................................................................................................................... 32
Session 10: Connected CX ..................................................................................................................................................................... 35
RECAP OF ALL THE MAIN QUESTIONS IN THE LECTURES ......................................................................................................................... 39
LEMON 2016: Understanding customer experience throughout the customer journey ............................................................................... 42
DE KEYSER 2020: Moving the customer experience field forward .............................................................................................................. 43
HOMBURG 2015: Customer experience management - toward implementing an evolving marketing concept............................................. 47
GAHLER 2023: Customer experience - conceptualization, measurement, and application in omnichannel environments ........................... 48
LI 2014: Attributing conversions in a multichannel online marketing environment ...................................................................................... 51
KRANZBUEHLER ‘19: Outsourcing pain, keeping pleasure ........................................................................................................................ 53
HERHAUSEN 2019: Loyalty formation for dicerent customer journey segments ......................................................................................... 53
VAN VAERENBERGH 2019: The service recovery journey .......................................................................................................................... 57
HERHAUSEN 2019: Detecting, preventing, and mitigating online firestorms in brand communities ............................................................. 58
HERHAUSEN 2023: Complaint deescalation strategies on social media .................................................................................................... 61
MILLER 2011: How should consumers’ willingness to pay be measured .................................................................................................... 61
HOMBURG 2005: Do satisfied customers really pay more? ....................................................................................................................... 64
HUANG 2018: Artificial intelligence in service .......................................................................................................................................... 66
THOMKE 2019: The magic that makes customer experiences stick ........................................................................................................... 68
REICHHELD 2003: The one number you need to grow .............................................................................................................................. 71
REICHHELD 2021: Net Promoter 3.0 ....................................................................................................................................................... 74
TEIXEIRA 2019: How to improve your company's Net Promoter Score? ...................................................................................................... 77
DE LANGHE 2017: Linear thinking in a nonlinear world ............................................................................................................................. 79
ANDERSON 2011: A step-by-step guide to smart business experiments .................................................................................................... 80
RAFI 2023: Expand your pricing paradigm ................................................................................................................................................ 83
LUCA 2016: Algorithms need managers, too ............................................................................................................................................ 86
HUME 2021: Why AI that teaches itself to achieve a goal is the next big thing ............................................................................................. 89
SIGGELKOW 2023: Create winning customer experiences with generative AI ............................................................................................. 91
PORTER 2014: How smart, connected products are transforming competition .......................................................................................... 93
PORTER 2015: How smart, connected products are transforming companies ........................................................................................... 96
SIGGELKOW 2022: The age of continuous connection.............................................................................................................................. 99
WORTMANN 2020: Capturing value in the IoT ........................................................................................................................................ 102
,Exam: Tuesday dec 17, closed book.
Notes Customer Experience Management
Session 1: Introduction to CX Management
The primary question explored is “What is Customer Experience Management?”
DEFINING CUSTOMER EXPERIENCE (CX)
• Definition: CX is a multidimensional concept that captures a customer's
cognitive, emotional, behavioural, sensorial, and social responses to a firm’s
o@erings across the customer’s entire journey.
• Evolution of CX: CX builds on earlier marketing concepts, such as:
o Customer Satisfaction: Meeting customer expectations.
o Service Quality: Providing reliable, high-quality services.
o Customer Relationship Management (CRM): Building and managing
customer relationships.
o Customer Centricity and Engagement: Placing the customer at the
heart of the business and fostering connections.
Example: CX may involve satisfaction from an easy online shopping experience, delight
from e@icient customer support, or frustration from a delayed order.
PHASES OF THE CUSTOMER JOURNEY
• Pre-Purchase: Need recognition, searching for information, evaluating options.
• Purchase: Decision-making, ordering, and transaction processes.
• Post-Purchase: Product usage, customer feedback, and post-purchase
engagement with the brand.
o Usage
o Post-usage
Example: For an online clothing store, pre-purchase may involve browsing reviews,
purchase involves placing the order, and post-purchase could include follow-up
communication or customer service interactions if issues arise.
TYPES OF TOUCHPOINTS
Touchpoints refer to interaction points between the customer and the brand:
• Brand-Owned Touchpoints: Managed directly by the company, e.g., websites,
advertisements, and loyalty programs.
• Partner-Owned Touchpoints: Managed jointly with partners, like loyalty
programs shared with other brands.
• Customer-Owned Touchpoints: Driven by the customer, often outside of brand
control, such as online communities.
• Social/External Touchpoints: Influences from others, such as customer
reviews, social media, or peer recommendations.
,Exam: Tuesday dec 17, closed book.
THE TOUCHPOINTS, CONTEXT, QUALITIES (TCQ) FRAMEWORK
• Touchpoints
o Types: Can be physical, digital, or human, and either brand- or customer-
controlled.
o Goal: Customers engage with touchpoints based on specific needs at
various stages of their journey.
o Example: During a flight booking process, brand-owned touchpoints
include the airline’s website, customer-owned touchpoints include
personal reviews, and social touchpoints could involve social media
influencer recommendations.
• Context
o Context Types:
§ Individual Context: Personal factors like mood, prior experience,
and financial situation.
§ Social Context: Influences from family, friends, or communities.
§ Market Context: Conditions shaped by market competitors or
trends.
§ Environmental Context: External factors like weather or broader
economic trends.
o Example: A customer might enjoy an online shopping experience more
when browsing on a sunny day (environmental context) than in gloomy
weather, which could a@ect their mood.
• Qualities
o Qualities encompass attributes that define customer reactions during
interactions:
§ Participation Level: How involved the customer is (e.g., active in
product customization).
§ Dimensionality: The range of sensory and emotional responses
(e.g., “think, feel, sense”).
§ Valence: Positive or negative experience.
§ Ordinariness: Whether the experience is common or unique.
§ Time flow: Duration and flow of the experience.
o Example: A customer in a VR store demo experiences high participation,
with multi-dimensional and positive engagement, which creates a
unique, memorable experience.
APPLYING THE TCQ FRAMEWORK IN CX MANAGEMENT
• Analyse Existing CX:
o Assess and streamline touchpoints, recognize contextual influences, and
evaluate the qualities experienced.
o Example: A retailer may adjust its mobile app to provide better
consistency with in-store services based on customer feedback.
• Design Desired CX:
o Define the desired qualities, determine contextual information needs,
and assess touchpoints for potential adjustments.
o Example: Introducing a feature in an app to notify customers of product
availability based on location context enhances the user experience.
, Exam: Tuesday dec 17, closed book.
CUSTOMER JOBS AND GOALS
Customers “hire” touchpoints to fulfil specific needs, known as customer “jobs,” which
include expected benefits and pains to avoid.
• Example: A customer might hire a brand’s chatbot to quickly address product
questions and clarify return policies, streamlining their shopping decision
process.
CREATING AND CAPTURING CUSTOMER VALUE
CXM aims to:
• Understand Market Needs: Identify customer demands and preferences.
• Design Customer-Driven Strategies: Develop experiences tailored to resonate
with customer expectations.
• Engage and Retain Customers: Build strategies that captivate and sustain
customer interest over time.
• Cultivate Profitable Relationships: Foster long-term, profitable customer
relationships through positive CX.
THREE CORE LAYERS OF CXM
• Cultural Mindset: The brand’s internal approach to CX as a competitive
advantage.
• Strategic Direction: Guidelines for aligning CX initiatives with market needs.
• Firm Capabilities: The company’s processes and routines for executing and
improving CX.
GOAL OF SESSION 1
MAIN QUESTION: “WHAT IS CUSTOMER EXPERIENCE MANAGEMENT?”
Customer Experience Management (CXM) is the strategic approach of designing,
managing, and continuously improving customer interactions throughout their
journey with a brand. It focuses on understanding and optimizing every touchpoint,
influenced by the customer’s context and aimed at creating positive, memorable
experiences that foster loyalty. CXM integrates a customer-centric cultural mindset,
strategic direction, and firm capabilities to achieve long-term, profitable
relationships.
Session 2:
TRENDS AND DEVELOPMENTS IN CX
• Journey-thinking & journey -doing completely embraced
o Shift from functional to emotional experience and from process to
journey.
Table of Contents
Session 1: Introduction to CX Management ............................................................................................................................................... 2
Session 2:................................................................................................................................................................................................ 4
Session 3: Customer Experience Management .......................................................................................................................................... 7
Session 4: Customer Experience Optimization ........................................................................................................................................ 12
Session 5: Customer Experience Optimization pt 2 .................................................................................................................................. 15
Session 5.2: Guest lecture ...................................................................................................................................................................... 16
Session 6: CX Disruptions pt 1 ................................................................................................................................................................ 18
Session 7: CX Disrubtions pt 2 ................................................................................................................................................................ 21
CX Appropriation pt 1 ............................................................................................................................................................................. 23
Session 8: Guest lecture + ...................................................................................................................................................................... 26
Appropriation pt 2 .................................................................................................................................................................................. 29
Session 9: Automated CX ....................................................................................................................................................................... 32
Session 10: Connected CX ..................................................................................................................................................................... 35
RECAP OF ALL THE MAIN QUESTIONS IN THE LECTURES ......................................................................................................................... 39
LEMON 2016: Understanding customer experience throughout the customer journey ............................................................................... 42
DE KEYSER 2020: Moving the customer experience field forward .............................................................................................................. 43
HOMBURG 2015: Customer experience management - toward implementing an evolving marketing concept............................................. 47
GAHLER 2023: Customer experience - conceptualization, measurement, and application in omnichannel environments ........................... 48
LI 2014: Attributing conversions in a multichannel online marketing environment ...................................................................................... 51
KRANZBUEHLER ‘19: Outsourcing pain, keeping pleasure ........................................................................................................................ 53
HERHAUSEN 2019: Loyalty formation for dicerent customer journey segments ......................................................................................... 53
VAN VAERENBERGH 2019: The service recovery journey .......................................................................................................................... 57
HERHAUSEN 2019: Detecting, preventing, and mitigating online firestorms in brand communities ............................................................. 58
HERHAUSEN 2023: Complaint deescalation strategies on social media .................................................................................................... 61
MILLER 2011: How should consumers’ willingness to pay be measured .................................................................................................... 61
HOMBURG 2005: Do satisfied customers really pay more? ....................................................................................................................... 64
HUANG 2018: Artificial intelligence in service .......................................................................................................................................... 66
THOMKE 2019: The magic that makes customer experiences stick ........................................................................................................... 68
REICHHELD 2003: The one number you need to grow .............................................................................................................................. 71
REICHHELD 2021: Net Promoter 3.0 ....................................................................................................................................................... 74
TEIXEIRA 2019: How to improve your company's Net Promoter Score? ...................................................................................................... 77
DE LANGHE 2017: Linear thinking in a nonlinear world ............................................................................................................................. 79
ANDERSON 2011: A step-by-step guide to smart business experiments .................................................................................................... 80
RAFI 2023: Expand your pricing paradigm ................................................................................................................................................ 83
LUCA 2016: Algorithms need managers, too ............................................................................................................................................ 86
HUME 2021: Why AI that teaches itself to achieve a goal is the next big thing ............................................................................................. 89
SIGGELKOW 2023: Create winning customer experiences with generative AI ............................................................................................. 91
PORTER 2014: How smart, connected products are transforming competition .......................................................................................... 93
PORTER 2015: How smart, connected products are transforming companies ........................................................................................... 96
SIGGELKOW 2022: The age of continuous connection.............................................................................................................................. 99
WORTMANN 2020: Capturing value in the IoT ........................................................................................................................................ 102
,Exam: Tuesday dec 17, closed book.
Notes Customer Experience Management
Session 1: Introduction to CX Management
The primary question explored is “What is Customer Experience Management?”
DEFINING CUSTOMER EXPERIENCE (CX)
• Definition: CX is a multidimensional concept that captures a customer's
cognitive, emotional, behavioural, sensorial, and social responses to a firm’s
o@erings across the customer’s entire journey.
• Evolution of CX: CX builds on earlier marketing concepts, such as:
o Customer Satisfaction: Meeting customer expectations.
o Service Quality: Providing reliable, high-quality services.
o Customer Relationship Management (CRM): Building and managing
customer relationships.
o Customer Centricity and Engagement: Placing the customer at the
heart of the business and fostering connections.
Example: CX may involve satisfaction from an easy online shopping experience, delight
from e@icient customer support, or frustration from a delayed order.
PHASES OF THE CUSTOMER JOURNEY
• Pre-Purchase: Need recognition, searching for information, evaluating options.
• Purchase: Decision-making, ordering, and transaction processes.
• Post-Purchase: Product usage, customer feedback, and post-purchase
engagement with the brand.
o Usage
o Post-usage
Example: For an online clothing store, pre-purchase may involve browsing reviews,
purchase involves placing the order, and post-purchase could include follow-up
communication or customer service interactions if issues arise.
TYPES OF TOUCHPOINTS
Touchpoints refer to interaction points between the customer and the brand:
• Brand-Owned Touchpoints: Managed directly by the company, e.g., websites,
advertisements, and loyalty programs.
• Partner-Owned Touchpoints: Managed jointly with partners, like loyalty
programs shared with other brands.
• Customer-Owned Touchpoints: Driven by the customer, often outside of brand
control, such as online communities.
• Social/External Touchpoints: Influences from others, such as customer
reviews, social media, or peer recommendations.
,Exam: Tuesday dec 17, closed book.
THE TOUCHPOINTS, CONTEXT, QUALITIES (TCQ) FRAMEWORK
• Touchpoints
o Types: Can be physical, digital, or human, and either brand- or customer-
controlled.
o Goal: Customers engage with touchpoints based on specific needs at
various stages of their journey.
o Example: During a flight booking process, brand-owned touchpoints
include the airline’s website, customer-owned touchpoints include
personal reviews, and social touchpoints could involve social media
influencer recommendations.
• Context
o Context Types:
§ Individual Context: Personal factors like mood, prior experience,
and financial situation.
§ Social Context: Influences from family, friends, or communities.
§ Market Context: Conditions shaped by market competitors or
trends.
§ Environmental Context: External factors like weather or broader
economic trends.
o Example: A customer might enjoy an online shopping experience more
when browsing on a sunny day (environmental context) than in gloomy
weather, which could a@ect their mood.
• Qualities
o Qualities encompass attributes that define customer reactions during
interactions:
§ Participation Level: How involved the customer is (e.g., active in
product customization).
§ Dimensionality: The range of sensory and emotional responses
(e.g., “think, feel, sense”).
§ Valence: Positive or negative experience.
§ Ordinariness: Whether the experience is common or unique.
§ Time flow: Duration and flow of the experience.
o Example: A customer in a VR store demo experiences high participation,
with multi-dimensional and positive engagement, which creates a
unique, memorable experience.
APPLYING THE TCQ FRAMEWORK IN CX MANAGEMENT
• Analyse Existing CX:
o Assess and streamline touchpoints, recognize contextual influences, and
evaluate the qualities experienced.
o Example: A retailer may adjust its mobile app to provide better
consistency with in-store services based on customer feedback.
• Design Desired CX:
o Define the desired qualities, determine contextual information needs,
and assess touchpoints for potential adjustments.
o Example: Introducing a feature in an app to notify customers of product
availability based on location context enhances the user experience.
, Exam: Tuesday dec 17, closed book.
CUSTOMER JOBS AND GOALS
Customers “hire” touchpoints to fulfil specific needs, known as customer “jobs,” which
include expected benefits and pains to avoid.
• Example: A customer might hire a brand’s chatbot to quickly address product
questions and clarify return policies, streamlining their shopping decision
process.
CREATING AND CAPTURING CUSTOMER VALUE
CXM aims to:
• Understand Market Needs: Identify customer demands and preferences.
• Design Customer-Driven Strategies: Develop experiences tailored to resonate
with customer expectations.
• Engage and Retain Customers: Build strategies that captivate and sustain
customer interest over time.
• Cultivate Profitable Relationships: Foster long-term, profitable customer
relationships through positive CX.
THREE CORE LAYERS OF CXM
• Cultural Mindset: The brand’s internal approach to CX as a competitive
advantage.
• Strategic Direction: Guidelines for aligning CX initiatives with market needs.
• Firm Capabilities: The company’s processes and routines for executing and
improving CX.
GOAL OF SESSION 1
MAIN QUESTION: “WHAT IS CUSTOMER EXPERIENCE MANAGEMENT?”
Customer Experience Management (CXM) is the strategic approach of designing,
managing, and continuously improving customer interactions throughout their
journey with a brand. It focuses on understanding and optimizing every touchpoint,
influenced by the customer’s context and aimed at creating positive, memorable
experiences that foster loyalty. CXM integrates a customer-centric cultural mindset,
strategic direction, and firm capabilities to achieve long-term, profitable
relationships.
Session 2:
TRENDS AND DEVELOPMENTS IN CX
• Journey-thinking & journey -doing completely embraced
o Shift from functional to emotional experience and from process to
journey.
