Understanding customer journey from the lenses of complexity theory

The present article develops an argument that conceptualizing the customer journey as a complex system provides both a systematic portrayal of the complex and holistic nature of customer experience and an opportunity to serve as an integrative framework for differing definitions in the service literature. A comprehensive literature review reflecting the contemporary understanding of the concept of customer journey is presented. Theoretical and practical implications of adopting a complexity theory-based stance in customer experience research are discussed under five fundamental tenets of complexity theory.     

Applying Transactional NPS for Customer Journey Insight: Case Experiences and Lessons Learned

ABSTRACT

While the concept of “customer journeys” is widely taken up to support service design and management, practical frameworks for routine monitoring of customer experience in the context of customer journeys are lacking. This article proposes a framework for applying the widely used transactional Net Promoter Score (NPS) as a means for gathering insight into customers' experiences of a customer journey. We present lessons learnt from three case trials of the framework elements within a telecom service provider, involving the analysis of more than 1,700 quantitative and qualitative customer responses from transactional NPS surveys.     

How to create a realistic customer journey map

Although many articles discuss customer journey mapping (CJM), both academics and practitioners still question the best ways to model the consumer decision journey. We contend that most customer journey maps are critically flawed. They assume all customers of a particular organization experience the same organizational touchpoints and view these touchpoints as equally important. Furthermore, management lacks an understanding of how to use CJM as a cross-functional, strategic tool that promotes service innovation. This article proposes a solution to the unwieldy complexity of CJM by linking customer research to the CJM process and by showing managers how to develop a customer journey map that improves a customer's experience at each touchpoint. Using the case of an actual retail mall, we show that common CJM assumptions about the equal importance of all touchpoints are fundamentally wrong, and how easy it is for retail managers and strategic planners to make incorrect judgements about customer experience. This article demonstrates through a case study how customer research helped a mall's strategic management team understand which touchpoints were more or less critical to customer experience. It also shows key strategic initiatives at each touchpoint, resulting in cross-functional input aimed to advance service innovation at the mall.     

Determinants of ex-customer winback in financial services

Financial services play important roles in consumers' lives, and switching providers is a relatively onerous task, but customers often terminate their relationships with a provider. How can a provider best regain lost customers, and what are the determinants of ex-customer winback? Using data from a financial services provider, this research examines 11 factors occurring before, during and after a termination, to study their influence on consumers' propensity to revive a relationship with a previously abandoned service provider. The results indicate that income and variety-seeking preferences are negatively correlated with a customer's likelihood of considering the former brand in the future. Positive associations and evaluations of the former brand are positively correlated with the winback potential. The results can guide managers of financial service providers as to the most significant factors to be analysed in estimating the chances of winning back a lost customer.     

The WOW factor: Creating value through win-back offers to reacquire lost customers

Customer reacquisition provides firms with high financial and service improvement benefits. The implications of this research are meant to stimulate a new research stream towards a theory of customer reacquisition management as well as to provide service firms with a framework to regain defected customers. Through two studies, we develop an empirical model that identifies the factors driving win-back offer effectiveness. The findings indicate that, in order for win-back offers to be effective, service providers must consider a customer's reasons for leaving and their relationships with the current service provider. Value determinants (price and service benefits provided in the win-back offer), social capital and service importance play a prominent role in shaping customer switch-back intentions regardless of the level of previous satisfaction, regret, or delight with the new service provider.     

Customer Experience Creation: Determinants, Dynamics and Management Strategies

Retailers, such as Starbucks and Victoria's Secret, aim to provide customers a great experience across channels. In this paper we provide an overview of the existing literature on customer experience and expand on it to examine the creation of a customer experience from a holistic perspective. We propose a conceptual model, in which we discuss the determinants of customer experience. We explicitly take a dynamic view, in which we argue that prior customer experiences will influence future customer experiences. We discuss the importance of the social environment, self-service technologies and the store brand. Customer experience management is also approached from a strategic perspective by focusing on issues such as how and to what extent an experience-based business can create growth. In each of these areas, we identify and discuss important issues worthy of further research.     

Service providers’ sustainable service innovation: service-dominant logic

This study examined the service innovation in different service providers with multiple case-study approach. From the perspective of service-dominant logic, four service innovation development models can be distinguished in Technology Development Program companies in Taiwan, including service system integrator and niche market, innovative service solution provider and niche market, innovative service solution provider and mass market, and service system integrator and mass market. Service providers develop ICT platforms, customer relationship management systems, community commerce services, and multi-channel services that are appropriate for a specific industry. On the one hand, active improvement of ICT service system integration extends company capabilities toward external cooperative partners through the provision of integrated product services and comprehensive solutions. On the other hand, innovative service solutions optimize consumer experience and customer relationship management and improve business effectiveness and reduce operations costs due to an important role assigned to services and experience in product sales.     

Service quality,perceived value,corporate image,and customer loyalty in the context of varying levels of switching costs

The current study moves beyond customer‐perceived value and corporate image and demonstrates that switching costs are important factors in influencing a customer's decision to stay with a service provider. This work finds support for a contingency model involving customer‐perceived value, corporate image, and switching costs. The results indicate that the impacts of customer‐perceived value and corporate image on customer loyalty decrease under conditions of high switching costs. Implications of the results are discussed. © 2010 Wiley Periodicals, Inc.     

Service failure and recovery in using technology-based self-service: effects on user attributions and satisfaction

This study examines service failure and recovery in using technology-based self-service (TBSS) systems to determine the effects of a variety of relevant factors on negative customer/user attributions to the service provider, to employees who try to help in recovery, and to the technology itself, as well as the effects on customer/user satisfaction with the failure/recovery experience. The findings show that immediate recovery of TBSS failures reduces negative attributions and increases customer/user satisfaction with the experience, as does a low-anxiety environment around the kiosk. Technology error (as opposed to user error) decreases user satisfaction. Employee assistance decreases negative attributions to the employee but increases negative attribution to the technology. Some interactions were found among the experimental factors that are also meaningful.     

Interactional service failures in a pseudorelationship: The role of organizational attributions

The current research investigates customer responses to interactional service failures, such as a service provider who is rude or inattentive, or unfriendly. We study interactional failures within pseudorelationships, which exist when a customer interacts repeatedly with the same firm but encounters different employees across service occasions. Empirical results demonstrate that customers’ responses to these interactional failures distinguish between the offending employee and the organization. Dissatisfaction with the organization critically depends on the customer's attribution of globality—how widespread the interactional failure is throughout the organization. Globality attributions and dissatisfaction with the organization can be lowered by excellent past experience with the organization; however, that same positive experience increases dissatisfaction with the offending employee. Thus, customers’ discrimination of the organization and employee in a pseudorelationship can work in the organization's favor after an interactional failure, and managing customers’ attributions of globality should be a managerial priority.     

Exploring the customer's intention to switch firms: The role of customer‐related antecedents

This study examined the customer‐related antecedents of the customer's intention to switch firms. Customer citizenship behavior was a key element in this study. Scholars have extensively studied the antecedents of customer citizenship behavior. However, the way that customer citizenship behavior relates to other attitudinal variables and the intention to switch has scarcely been analyzed. The proposed hypotheses were verified using partial least squares variance‐based structural equation modeling applied to 947 users of beauty care service firms in five countries. The results suggest that customer citizenship behavior is an antecedent of satisfaction, trust, and attitudinal loyalty. Two of these variables influence customers’ intentions to abandon relationships with the service provider. The implications of these findings enhance managers’ and scholars’ understanding of the determinants of customers’ intentions to switch firms.     

大型百货商场顾客体验影响因素的实证研究

笔者对大连市的九家大型百货商场进行了一次实证研究,探究顾客体验的影响因素对顾客体验的影响机理。实证研究发现:顾客维度因素、情境维度因素、交通维度因素是影响顾客体验的三个主要维度因素(其中,情境维度因素是最重要的维度因素);服务功能质量是顾客体验最重要的影响因素,它不仅直接影响顾客的感知体验和情感体验,一些影响因素也通过它间接地影响顾客的感知体验和情感体验。     

The influence of satisfaction on customer retention in mobile phone market

This study examines the determinants of customer satisfaction and customer loyalty in the Peruvian mobile phone market. Based in a survey to 1259 customers, Multinomial Logit and GSEM estimations show how determinants of customer satisfaction can be assessed when satisfaction is measured through ordered categorical data. The results confirm that in mobile phone market Customer Satisfaction influences strongly on Customer Loyalty, and in turn Loyalty is an important determinant of Customer Retention. In contrast with previous literature, this study identified the differentiated influence of diverse factors on positive and negative customer satisfaction categories. Indeed while results show that quality of service assessments made by customers had a significant impact on both negative and positive customer satisfaction categories; assessments of other service attributes like customer care, information on tariffs and plans and billing clarity, only showed a significant statistical influence on positive categories of customer satisfaction. Similar asymmetrical results were found with regard to other economic, socioeconomic and geographical determinants of customer decisions. As well, an analog effect is also observed in the relationship between customer satisfaction and loyalty, where only positive satisfaction assessments helps to explain the loyalty of users. Finally, results show that while satisfaction can be identified as a powerful cause of CR, switching barriers did not deter more demanding customers to switch to alternative carriers, suggesting that recent pro-competition regulatory reforms implemented in Peru contributed to reduce these barriers to competition in mobile markets.     

Antecedents of customer loyalty in residential energy markets: Service quality,satisfaction, trust and switching costs

A conceptual framework is proposed that analyses the effect of perceived service quality, customer satisfaction, trust in the energy provider and perceived switching costs on customer loyalty in residential energy markets. Three distinct dimensions of perceived service quality are identified: technical quality of core services, technical quality of peripheral services and service process quality (functional service quality). The proposed model is tested within the scope of a representative survey of Spanish residential energy customers. Regarding the dimensions of service quality, the results indicate significant effects only of service process quality on satisfaction and, indirectly, on customer loyalty. Loyalty effects of further variables in the model are significant.     

Enhancing Customer Engagement Through Consciousness

Firms and academics recognize the importance of creating an engaged customer base, though an in-depth understanding of how to achieve it is limited. This article proposes that firms that use consciousness as a foundational philosophy can create a more engaging and meaningful customer experience. A retailer or service provider with foundations in consciousness has a higher purpose and values that get espoused and fulfilled throughout the organization, working in a way to optimize benefits to its multiple stakeholders (investors, employees, customers, suppliers, the environment, the community). Building on these foundations, retailers can achieve deeper engagement with customers, deliver outstanding customer experiences, create emotional connections with customers, and establish a shared identity based on a clear purpose and values.     

Reconceptualizing value creation: Exploring the role of goal congruence in the Co-creation process

As companies gradually shift from the exchange view to the resource integration view, the creation of value also shifts from the customer sphere to the joint sphere. As a result, the customer and service provider are responsible for co-creating value through resource integration. However, it raises the question of whether customers are capable of contributing to the co-creation of value. Our study proposes a framework of how goal congruence plays a pivotal role in the resource integration process between all actors in the joint sphere. When the level of goal congruence between customer and service provider actors is high, it stimulates the exchange of valuable resources from all actors, which leads to the actual experience of co-creation resulting in value-in-use and improves service outcomes, i.e., customer satisfaction and loyalty. Data were collected through a field survey from salon-and-spa customers (n = 530) and PLS-SEM was employed to test the hypotheses and further analysis. The results show that goal congruence impacts customer satisfaction and loyalty through value-in-use. Therefore, suggesting service providers to properly socialize their goals will be a good strategy to increase customer capability to co-create value and ultimately enhance customer satisfaction and loyalty.     

The effects of overall similarity regarding the customer-to-customer-relationship in a service context

This study applies the similarity effect to customer-to-customer-relationships. First, a customer categorisation in regard to their overall similarity is performed using multidimensional scaling (MDS). Second, overall similarity effects are shown. The predictions are tested based on recent research suggesting that overall similarity has positive effects in relation to attitudes towards the service, attitudes towards other present customers as well as the subject's intentions—such as choosing a service provider and recommending the service provider. Our findings are consistent with our predictions. Furthermore, the service context is discussed controversially and we establish that similarity has an effect beyond different service contexts.     

Perception value of product-service systems: Neural effects of service experience and customer knowledge

Digital trends in product-service system (PSS) development focus on developing win-win solutions for both companies and customers, particularly when considering human behavior issues. It is useful for the PSS provider to know the PSS value creation mechanism when customers are buying and utilizing a PSS, particularly in the service-dominant logic (SDL) and cognitive neuroscience perspective. This study solved the PSS implementation that satisfied the demands of both customers and manufacturers and the value cocreation mechanism during product and service configuration with the impacts of consumer learning and the service experience. The proposed neuroscience methodology is based on an ERP (event-related potential) experiment using PSS stimuli, representing the perception value creation process during customer decision making and the PSS configuration process. The effectiveness of the service experience is more important than customer knowledge during PSS value perception due to positive emotions with pleasant memories for the service experience and the conflicting cognition process of customer learning. The combination of service science and neurology may measure and observe human behavior and psychology through the brain science method and effectively solve the human factors in service science. The findings suggest a more objective and personalized understanding of PSS value perception, particularly the practical requirements of a resulted-oriented PSS and an application-oriented PSS.     

Seamless experience in the context of omnichannel shopping： scale development and empirical validation

In recent years, delivering a superior seamless experience (SE) for customers has become one of the most crucial aspects of omnichannel marketing for omnichannel retailers. However, research lacks a common understanding of what the SE is and how customers evaluate the SE throughout their omnichannel shopping journeys, and the effects of the SE on important customer behaviors remain unexplored. Drawing on omnichannel customer experience research, following the scale development process, this research conceptualize and develop a scale to measure the SE construct. Building on the customer experience quality framework, this research further examines the effects of customers’ prior SE on repurchase intention, word of mouth (WOM), and customer influence behavior in the omnichannel shopping context. The SE scale is developed and validated by performing 15 semi-structured interviews, 62 open-ended questionnaires, and three online surveys with 884 useable respondents in total. The effects of SE are then validated via partial least squares modeling with 307 useable respondents. The findings confirm that the SE construct is a formative second-order construct composed of six reflective first-order dimensions. Our empirical findings indicate that the overall SE has a direct and significant impact on the foregoing three customer behaviors. Managers can use the SE scale as an effective omnichannel approach to design a seamless shopping journey and maintain long-term relationships with customers.     

Oh my gosh,I got to get out of this place! A qualitative study of vicarious embarrassment in service encounters

Vicarious embarrassment is a negative emotion, which is experienced by an individual when others misbehave. People can feel vicariously embarrassed when observing other people's pratfalls or awkward appearance. For instance, vicarious embarrassment is elicited when watching reality TV or in service encounters where many other customers are present. However, the relevance of vicarious embarrassment in physical service environments has not yet been thoroughly analyzed in the context of service encounters. The objective of the present study is to close this research gap and to introduce the phenomenon of vicarious embarrassment to service research. The findings of 25 in‐depth interviews indicate that vicariously embarrassing incidents mostly occur in service encounters and that these incidents are triggered by the violation of social norms in both customer‐to‐customer and customer‐to‐employee interactions. The authors of the present paper identified closeness of relationship, the service context, and parties involved as important situational variables influencing vicarious embarrassment and further emotional, cognitive, and behavioral consequences for the observing person. From a managerial point of view, the relevance of vicarious embarrassment in physical service environments is caused by negative spillover effects of the service experience, which lead to decreasing customer satisfaction, negative word‐of‐mouth and purchase intentions, and a negative impact on the overall image of the service provider.