Advertisement

Striking the Right Balance: How to Design, Implement, and Operationalize Customer Experience Management Programs

  • Philipp “Phil” KlausEmail author
  • Bo Edvardsson
Chapter

Abstract

In today’s economy companies focus on generating customer loyalty and a competitive advantage by creating favorable customer experiences (CX) (Badgett et al. 2007). Customer’s value perceptions are the outcome of their customer experiences (Meyer and Schwager 2007). Therefore, companies need to design, implement and manage corresponding customer experiences. Klaus and Maklan (2012) posit that CX recently receives significant attention as a business performance driver, and scholars and companies alike agree that CX is a, if not the, key strategic objective (Verhoef et al. 2009). Some companies develop a CX strategy to emphasize the strategic importance of experiential value, but both, scholars and managers struggle to understand fully the multifaceted concept of CX and its impact on financial performance (Klaus and Maklan 2013).

Keywords

Customer Satisfaction Service System Emotional Attachment Customer Behavior Customer Experience 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Alam, I., & Perry, C. (2002). A customer-oriented new service development process. Journal of Services Marketing, 16(6), 515–534.CrossRefGoogle Scholar
  2. Alderson, W. (1965). Dynamic behavior and executive action. Homewood, IL: Richard D. Irwin.Google Scholar
  3. Badgett, M., Boyce, M. S., & Kleinberger, H. (2007). Turning shoppers into advocates. Somers, NY: IBM Institute for Business Value.Google Scholar
  4. Belk, R. W. (1988). Possessions and the extended self. Journal of Consumer Research, 15(2), 139–168.CrossRefGoogle Scholar
  5. Berry, L. L., Carbone, L. P., & Haeckel, S. H. (2002). Managing the total customer experience. MIT Sloan Management Review, 43(Spring), 85–89.Google Scholar
  6. Bitner, M. J., Ostrom, A. L., & Morgan, F. N. (2008). Service blueprinting: A practical technique for service innovation. California Management Review, 50(Spring), 66–94.CrossRefGoogle Scholar
  7. Bryman, A. (2004). Qualitative research on leadership: A critical but appreciative review. The Leadership Quarterly, 15(6), 729–769.CrossRefGoogle Scholar
  8. Chandler, D. J., & Vargo, S. L. (2011). Contextualization and value-in-context: How context frames exchange. Marketing Theory, 11(1), 35–49.CrossRefGoogle Scholar
  9. Chandrasekara, K. (2008). Business model innovation for future wireless services. Journal of Business and Public Policy, 2(2), 1–8.Google Scholar
  10. Chen, I. J., & Popovich, K. (2003). Understanding customer relationship management (CRM): People, process and technology. Business Process Management Journal, 9(5), 672–688.CrossRefGoogle Scholar
  11. Churchill, A. G., Jr. (1979). A paradigm for developing better measures of marketing constructs. Journal of Marketing Research, 16(February), 64–73.CrossRefGoogle Scholar
  12. Cook, S. (2008). The contribution revolution: Letting volunteers build your business. Harvard Business Review, 86(October), 60–69.Google Scholar
  13. Cova, B., & Salle, R. (2008). Marketing solutions in accordance with the S-D logic: Co-creating value with customer network actors. Industrial Marketing Management, 37(May), 270–277.CrossRefGoogle Scholar
  14. Coviello, E. N., Brodie, R. J., Danaher, P. J., & Johnston, W. J. (2002). How firms relate to their markets: An empirical examination of contemporary marketing practices. Journal of Marketing, 66(July), 33–46.CrossRefGoogle Scholar
  15. Danaher, J. P. (1998). Customer heterogeneity in service management. Journal of Service Research, 1(November), 129–139.CrossRefGoogle Scholar
  16. Davenport, H. T., & Short, J. E. (1990). The new industrial engineering: Information technology and business process redesign. Sloan Management Review, 31(Summer), 11–27.Google Scholar
  17. Di Gregorio, S. (2000). Using NVivo for your literature review. Paper presented at strategies in qualitative research: Issues and results from the analysis using QSR NVivo and NUD*IST. London, UK. Retrieved August 3, 2011 from http://www.sdgassociates.com/downloads/literature_review.pdf
  18. Ding, D. X., Hu, P. J.-H., Verma, R., & Wardell, D. G. (2010). The impact of service system design and flow experience on customer satisfaction in online financial services. Journal of Service Research, 13(February), 96–110.CrossRefGoogle Scholar
  19. Edvardsson, B., Anders, G., & Lars, W. (2008). Customer integration in service innovation. In G. Faiz, D. Faridah, & G. Faiz (Eds.), The handbook of innovation and services (pp. 301–317). Northampton, MA: Edward Elgar.Google Scholar
  20. Edvardsson, B., Enquist, B., & Johnston, R. (2010). Design dimensions of experience rooms for service test drives: Case studies in several service contexts. Managing Service Quality, 20(4), 312–327.CrossRefGoogle Scholar
  21. Edvardsson, B., Tronvoll, B., & Gruber, T. (2011). Expanding understanding of service exchange and value co-creation: A social construction approach. Journal of the Academy of Marketing Science, 39(April), 327–339.CrossRefGoogle Scholar
  22. Edvardsson, B., Gloria, N. G., Choo, Z., & Firth, R. (2013). Why is service-dominant logic based service system better? International Journal of Quality and Service Sciences, 5(2), 171–190.CrossRefGoogle Scholar
  23. Eichentopf, T., Kleinaltenkamp, M., & van Stiphout, J. (2011). Modelling customer process activities in interactive value creation. Journal of Service Management, 22(5), 650–663.CrossRefGoogle Scholar
  24. Ford, C., Edvardsson, B., & Enquist, B. (2012). Managing the innovation co-creation challenge: Lessons from service exemplars Disney and IKEA. Organizational Dynamics, 41, 281–290.CrossRefGoogle Scholar
  25. Gilmore, H. J., & II Pine, J. (2002). Customer experience places: The new offering frontier. Strategy and Leadership, 30(4), 4–11.CrossRefGoogle Scholar
  26. Glaser, G. B. (2002). Conceptualization: On theory and theorizing using grounded theory. International Journal of Qualitative Methods, 1(Spring), 1–31.Google Scholar
  27. Glaser, G. B., & Strauss, A. (1967). The discovery of grounded theory: Strategies for qualitative research. Chicago, IL: Aldine Publishing Company.Google Scholar
  28. Grover, V., & Kohli, R. (2012). Cocreating IT value: New capabilities and metrics for multifirm environments. MIS Quarterly, 36(1), 225–232.Google Scholar
  29. Guenzi, P., & Georges, L. (2010). Interpersonal trust in commercial relationships: Antecedents and consequences of customer trust in the salesperson. European Journal of Marketing, 44(1/2), 114–138.CrossRefGoogle Scholar
  30. Guest, G., Bunce, A., & Johnson, L. (2006). How many interviews are enough?: An experiment with data saturation and variability. Field Methods, 18(February), 59–82.CrossRefGoogle Scholar
  31. Hair, J. F., Black, W., Babin, B., & Anderson, R. E. (2009). Multivariate data analysis (7th ed.). Upper Saddle River, NJ: Prentice Hall.Google Scholar
  32. Håkansson, H., & Snehota, I. (Eds.). (1995). Developing relationships in business networks. London, UK: Routledge.Google Scholar
  33. Hennig-Thurau, T., Malthouse, E. C., Friege, C., Gensler, S., Lobschat, L., Rangaswamy, A., et al. (2010). The impact of new media on customer relationships. Journal of Service Research, 13(August), 311–330.CrossRefGoogle Scholar
  34. Hsu, C.-L., & Lu, H.-P. (2007). Consumer behavior in online game communities: A motivational factor perspective. Computers in Human Behavior, 23(May), 1642–1659.CrossRefGoogle Scholar
  35. Jaworski, J. B., & Kohli, A. K. (1993). Market orientation: Antecedents and consequences. Journal of Marketing, 57(July), 53–70.CrossRefGoogle Scholar
  36. Johnston, R., & Clark, G. (2008). Service operations management: Improving service delivery (4th ed.). Harlow, UK: Financial Times Prentice Hall.Google Scholar
  37. Kaplan, R. S., & Norton, D. P. (2004). The strategy map: Guide to aligning intangible assets. Strategy and Leadership, 32(5), 10–17.CrossRefGoogle Scholar
  38. Karpen, I. O., Bove, L. L., & Lukas, B. A. (2012). Linking service-dominant logic and strategic business practice: A conceptual model of a service-dominant orientation. Journal of Service Research, 15(February), 21–38.CrossRefGoogle Scholar
  39. Kellogg, L. D., & Chase, R. B. (1995). Constructing an empirically derived measure for customer contact. Management Science, 41(November), 1734–1749.CrossRefGoogle Scholar
  40. Klaus, P. (2011). Quo Vadis, customer experience? In C. Rusconi (Ed.), Beyond CRM: Customer experience in the digital era. Strategies, best practices and future scenarios in luxury and fashion (pp. 165–175). Milano: Franco Angeli.Google Scholar
  41. Klaus, P. (2013a). New insights from practice – exploring online channel management strategies and the use of social media as a market research tool. International Journal of Market Research, 55(6), 829–850.CrossRefGoogle Scholar
  42. Klaus, P. (2013b). The case of Amazon.com: Towards a conceptual framework of online customer service experience (OCSE) using emerging consensus technique (ECT). Journal of Services Marketing, 27(6), 443–457.CrossRefGoogle Scholar
  43. Klaus, P., & Maklan, S. (2007). The role of brands in a service dominated world. Journal of Brand Management, 15(2), 115–122.CrossRefGoogle Scholar
  44. Klaus, P., & Maklan, S. (2011). Bridging the gap for destination extreme sports: A model of sports tourism customer experience. Journal of Marketing Management, 27(13/14), 1341–1365.CrossRefGoogle Scholar
  45. Klaus, P., & Maklan, S. (2012). EXQ: A multiple-item scale for assessing service experience. Journal of Service Management, 23(1), 5–33.CrossRefGoogle Scholar
  46. Klaus, P., & Maklan, S. (2013). Towards a better measure of customer experience. International Journal of Market Research, 55(2), 227–246.CrossRefGoogle Scholar
  47. Leavy, B. (2012). Collaborative innovation as the new imperative – Design thinking, value co-creation and the power of pull. Strategy and Leadership, 40(2), 25–34.CrossRefGoogle Scholar
  48. Lemke, F., Clark, M., & Wilson, H. (2011). Customer experience quality: An exploration in business and consumer contexts using repertory grid technique. Journal of Academy of Marketing Science, 39(December), 846–869.CrossRefGoogle Scholar
  49. Lusch, F. R., & Vargo, S. L. (2006). Service-dominant logic: Reactions, reflections and refinements. Marketing Theory, 6(September), 281–288.CrossRefGoogle Scholar
  50. Lusch, F. R., Vargo, S., & O’Brien, M. (2007). Competing through service: Insights from service-dominant logic. Journal of Retailing, 83(1), 5–18.CrossRefGoogle Scholar
  51. Lusch, F. R., Vargo, S., & Tanniru, M. (2010). Service value networks and learning. Journal of the Academy of Marketing Science, 38(Spring), 19–31.CrossRefGoogle Scholar
  52. Matthing, J., Sandén, B., & Edvardsson, B. (2004). New service development learning from and with customers. International Journal of Service Industry Management, 15(5), 479–498.CrossRefGoogle Scholar
  53. McColl-Kennedy, J. R., Vargo, S. L., Dagger, T. S., Sweeney, J. C., & van Kasteren, Y. (2012). Health care customer value co-creation practice styles. Journal of Service Research.Google Scholar
  54. Meyer, C., & Schwager, A. (2007). Understanding customer experience. Harvard Business Review, 85(February), 116–126.Google Scholar
  55. Michelli, J. A. (2007). The Starbucks experience. New York, NY: McGraw-Hill.Google Scholar
  56. Miles, M. B., & Huberman, A. M. (1994). Qualitative data analysis. Thousand Oaks, CA: Sage.Google Scholar
  57. Normann, R., & Ramírez, R. (1993). From value chain to value constellation: Designing interactive strategy. Harvard Business Review, 71(July/August), 65–77.Google Scholar
  58. Osterwalder, A., & Pigneur, Y. (2010). Business model generation: A handbook for visionaries, game changers, and challengers. London, UK: Wiley.Google Scholar
  59. Osterwalder, A., Pigneur, Y., & Tucci, C. L. (2005). Clarifying business models: Origins, present, and future of the concept. Communications of the Association for Information Systems, 16(1), 1–25.Google Scholar
  60. Papazoglou, M. P., Traverso, P., Dustdar, S., & Leymann, F. (2007). Service-oriented computing: State of the art and research challenges. Computer, 40(November), 64–71.Google Scholar
  61. Payne, F. A., Storbacka, K., & Frow, P. (2008). Managing the co-creation of value. Journal of the Academy of Marketing Science, 36(Spring), 83–96.CrossRefGoogle Scholar
  62. Peñaloza, L., & Mish, J. (2011). The nature and processes of market co-creation in triple bottom line firms: Leveraging insights from consumer culture theory and service dominant logic. Marketing Theory, 11(1), 9–34.CrossRefGoogle Scholar
  63. Porter, M. E. (1985). Competitive strategy: Techniques for analyzing industries and competitors. New York, NY: Free Press.Google Scholar
  64. Reay, P., & Seddighi, H. R. (2012). An empirical evaluation of management and operational capabilities for innovation via co-creation. European Journal of Innovation Management, 15(2), 259–275.CrossRefGoogle Scholar
  65. Rust, T. R., & Espinoza, F. (2006). How technology advances influence business research and marketing strategy. Journal of Business Research, 59(October), 1072–1078.CrossRefGoogle Scholar
  66. Ryan, W. G., & Bernard, H. R. (2003). Techniques to identify themes. Field Methods, 15(February), 85–109.CrossRefGoogle Scholar
  67. Sanders, P. (2012). What would Steve Jobs do? Cambridge, UK: McGraw Hill Ryerson.Google Scholar
  68. Schau, J. H., Muñiz, A. M., & Arnould, E. J. (2009). How brand community practices create value. Journal of Marketing, 73(September), 30–51.CrossRefGoogle Scholar
  69. Silvestro, R., Fitzgerald, L., Johnston, R., & Voss, C. (1992). Towards a classification of service processes. International Journal of Service Industry Management, 3(3), 62–75.CrossRefGoogle Scholar
  70. Spohrer, J., Maglio, P. P., Bailey, J., & Gruhl, D. (2007). Steps toward a science of service systems. Computer, 40(January), 71–77.CrossRefGoogle Scholar
  71. Strauss, A., & Corbin, J. M. (1990). Basics of qualitative research: Grounded theory procedures and techniques. Newbury Park, CA: Sage.Google Scholar
  72. Thompson, C. J. (1990). Eureka! and other tests of significance: A new look at evaluating interpretive research. In M. E. Goldberg, G. Gerald, & R. W. Pollay (Eds.), Advances in consumer research (Vol. 17, pp. 25–30). Provo, UT: Association for Consumer Research.Google Scholar
  73. Vargo, L. S., & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68(January), 1–17.CrossRefGoogle Scholar
  74. Vargo, L. S., & Lusch, R. F. (2006). Service-dominant logic: What it is, what it is not, what it might be. In R. F. Lusch & S. L. Vargo (Eds.), The service-dominant logic of marketing: Dialog, debate, and directions (pp. 43–56). New York: M. E. Shape.Google Scholar
  75. Vargo, L. S., & Lusch, R. F. (2008a). Service-dominant logic: Continuing the evolution. Journal of the Academy of Marketing Science, 36(Spring), 1–10.CrossRefGoogle Scholar
  76. Vargo, L. S., & Lusch, R. F. (2008b). From goods to service(s): Divergences and convergences of logics. Industrial Marketing Management, 37(November), 254–259.CrossRefGoogle Scholar
  77. Vargo, L. S., & Lusch, R. F. (2011). It’s all B2B…and beyond: Toward a systems perspective of the market. Industrial Marketing Management, 40(February), 181–187.CrossRefGoogle Scholar
  78. Vargo, L. S., Lusch, R. F., & Akaka, M. A. (2010a). Advancing service science with service-dominant logic: Clarifications and conceptual development. In P. P. Maglio, C. A. Kieliszewski, & J. C. Spohrer (Eds.), Handbook of service science, service science: Research and innovations in the service economy (pp. 133–156). New York: Springer.CrossRefGoogle Scholar
  79. Vargo, L. S., Lusch, R. F., Akaka, M. A., & He, Y. (2010b). The service-dominant logic of marketing: A review and assessment. Review of Marketing Research, 6(2), 125–167.Google Scholar
  80. Verhoef, C. P., Lemon, K. N., Parasuraman, A., Roggeveen, A., Tsiros, M., & Schlessinger, L. A. (2009). Customer experience creation: Determinants, dynamics and management strategies. Journal of Retailing, 85(March), 31–41.CrossRefGoogle Scholar
  81. Wägar, K., Roos, I., Ravald, A., & Edvardsson, B. (2012). My customers are in my blind spot: Are they changing and I cannot see it? Journal of Service Research, 15(2), 150–165.CrossRefGoogle Scholar
  82. Witell, L., Kristensson, P., Gustaffson, A., & Löfgren, M. (2011). Idea generation: Customer co-creation versus traditional market research techniques. Journal of Service Management, 22(2), 140–159.CrossRefGoogle Scholar
  83. World Bank. (2009). World development report 2009: Reshaping economic geography. Washington, DC: The World Bank.CrossRefGoogle Scholar
  84. Xie, C., Bagozzi, R. P., & Troye, S. V. (2008). Trying to prosume: Toward a theory of consumers as co-creators of value. Journal of the Academy of Marketing Science, 36(1), 109–122.CrossRefGoogle Scholar
  85. Yi, Y., & Gong, T. (2012). Customer value co-creation behavior: Scale development and validation. Journal of Business Research, 66(9), 1279–1284.CrossRefGoogle Scholar
  86. Zomerdijk, G. L., & Voss, C. A. (2010). Service design for experience-centric services. Journal of Service Research, 13(February), 67–82.CrossRefGoogle Scholar

Copyright information

© Springer International Publishing Switzerland 2014

Authors and Affiliations

  1. 1.Prof. Dr. Phil Klaus & Associates ConsultingLondonUK
  2. 2.CTF-Service Research Center and Vice RectorKarlstad UniversityKarlstadSweden

Personalised recommendations