Exam summary Customer Experience Management

Summary CXM – MSC Marketing
Table of Contents
What is customer experience management?..................................................................................1
De Keyser, A., Verleye, K., Lemon, K. N., Keiningham, T. L., & Klaus, P. (2020). Moving the
customer experience field forward: introducing the touchpoints, context, qualities (TCQ)
nomenclature...................................................................................................................................2
Homburg, C., Jozić, D., & Kuehnl, C. (2017). Customer experience management: toward
implementing an evolving marketing concept...............................................................................3
Lemon, K. N., & Verhoef, P. C. (2016). Understanding customer experience throughout the
customer journey.............................................................................................................................4
Thomke, S. (2019). The magic that makes customer experiences stick.......................................6
Reichheld, F. F. (2003). The one number you need to grow.........................................................7
Teixeira, T.S., & Mendes, R. (2019). How to improve your company’s Net Promoter Score....8
Reichheld, F. F., Darnell, D., & Burns, M. (2021). Net Promoter 3.0..........................................9
Marketing Measurement Models (Miguel Solera)........................................................................9
The Marketing Response Curve (“S-Curve”).............................................................................10
How to best capture value from customers?..........................................................................10
Customer Experience Appropriation...........................................................................................11
Miller, K. M., Hofstetter, R., Krohmer, H., & Zhang, Z. J. (2011). How should consumers’
willingness to pay be measured?...................................................................................................12
Rafi, M. (2023). Expand your pricing paradigm.........................................................................15
Van Vaerenbergh, Y., Varga, D., De Keyser, A., & Orsingher, C. (2019). The service recovery
journey: Conceptualization, integration, and directions for future research...........................17
Herhausen, D., Grewal, L., Cummings, K. H., Roggeveen, A. L., Villarroel Ordenes, F., &
Grewal, D. (2023). Complaint de-escalation strategies on social media....................................19
Herhausen, D., Ludwig, S., Grewal, D., Wulf, J., & Schoegel, M. (2019). Detecting,
preventing, and mitigating online firestorms in brand communities........................................21
Herhausen, D. (2020). How to keep complaints from spreading................................................22
Technology-enabled personalization strategies (Prof. Sven Henkel).........................................23
Automated customer experience..................................................................................................25
Huang, M. H., & Rust, R. T. (2018). Artificial intelligence in service........................................26
Luca, M., Kleinberg, J., & Mullainathan, S. (2016). Algorithms need managers, too..............27

What is customer experience management?
Customer Experience (CX) is a multidimensional construct focusing on the
customer’s cognitive, emotional, behavioral, sensorial, and social responses
to a firm’s offerings across the entire customer journey. This journey consists of
three stages: Pre-Purchase, Purchase, and Post-Purchase.

Marketing aims to create value for customers through positive experiences and
capture value through long-term, profitable relationships.

,De Keyser, A., Verleye, K., Lemon, K. N., Keiningham, T.
L., & Klaus, P. (2020). Moving the customer experience
field forward: introducing the touchpoints, context,
qualities (TCQ) nomenclature.
The TCQ Framework
The TCQ model explains how customer experiences are formed and how firms can
design them.
1. Touchpoints (T)
o All interaction points between customer and firm, categorized by:
 Stage: pre-purchase, purchase, post-purchase
 Nature: physical, digital, human
 Control: firm-controlled vs. non-firm-controlled
2. Context (C)
o Temporary internal or external factors that shape how customers perceive
touchpoints. Context includes:
 Individual: mood, finances
 Social: family, communities
 Market: competitors, complementary offerings
 Environmental: weather, politics
3. Qualities (Q)
o Attributes describing the nature of the customer’s response:
 Participation level: low ↔ high
 Dimensionality: how many “types” of reactions the customer has,
and how strong they are. (emotional, cognitive, sensory, social,
behavioral)
 Valence: wether the experience is negative or positive
 Ordinariness: ordinary ↔ extraordinary
 Timeflow: short/monotone ↔ long/dynamic

Use of TCQ:

 Evaluate current experiences by analyzing touchpoints, context, and qualities.
 Design new experiences by choosing desired qualities and building suitable
touchpoints.

, Homburg, C., Jozić, D., & Kuehnl, C. (2017). Customer
experience management: toward implementing an
evolving marketing concept.
This paper defines CXM as the process of using culture, strategy, and capabilities to
continuously renew and improve customer experiences, aiming for long-term loyalty.

Customer Experience Management (CXM) Framework
1. Cultural mindset = the shared belief among managers that customer
experience is central to the company’s success and should guide every
strategic choice.
o Experiential response orientation: Experiences must evoke multiple
responses (sensorial, emotional, cognitive, relational, behavioral), not just
satisfaction.
o Touchpoint journey orientation: Focus on the entire journey (prepurchase
→ purchase → postpurchase) instead of isolated touchpoints.
o Alliance orientation: Value of partnerships to create integrated
experiences across the customer’s wider “ecosystem.”
2. Strategic direction = guidelines shaping how the organization approaches
the market. Effective CX strategy ensures:
o Thematic cohesion: consistent messages across touchpoints
o Consistency: Corporate identity elements (design, communication,
interaction) remain stable across all touchpoints.
o Connectivity: seamless cross-channel transitions
o Context sensitivity: experiences adapted to customer goals and situational
factors
3. Firm capabilities = embedded processes that enable strong CXM, such as:
o Touchpoint journey design: Planning and modeling customer journeys from
the customer’s perspective.
o Touchpoint prioritization: Data-driven resource allocation to the most
critical touchpoints.
o Touchpoint journey monitoring: Systematic tracking of performance across
touchpoints.
o Touchpoint adaptation: Using monitoring data + customer research to
refine or innovate touchpoints.
o These capabilities support organizational ambidexterity:
 Short-term cycles: Monitoring → adaptation → prioritization →
incremental improvements
 Long-term cycles: Journey design → radical innovation

Lemon, K. N., & Verhoef, P. C. (2016). Understanding
customer experience throughout the customer journey
Time Topic area Contribution to customer experience
frame
1960s Customer buying Introduced the foundational view of customer
– behavior process experience (cx) as a process spanning the entire
1970s models purchase journey.
1970s Customer Developed early metrics to assess overall cx by
satisfaction and measuring customer perceptions and attitudes.
loyalty
1980s Service quality Identified the contextual elements of cx (e.g.,
atmospherics, environment). Laid early
groundwork for journey mapping via service
blueprinting.