Introduction of Managing The Customer Experience Assignment Sample

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Introduction of Managing The Customer Experience Assignment

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Customer Experience Management (CEM) is a process in which an organization tracks down all the data and information regarding the interaction between the organization and the customers. This process is done through evaluating customers’ sentiments as well as investing in various customer loyalty programs. Creating a customer experience map is also an important tool in understanding customer experience. Developing an emotional connection with the customers and capturing customer feedback and effectively working on it is helpful in creating a healthy relationship with the customers and thus increasing customer satisfaction rate. CRM is very important as it helps in strengthening the brand name and also helps in boosting revenue. The management technique is helpful for increasing customer loyalty as well. In this assignment, a detailed customer experience management is done over two Fast-food Companies, Dunkin Donuts, and Dominos to understand customer relationship management and the impact of digital technologies on CRM.

Brief information of two restaurants

Dominos

Domino’s Pizza is a restaurant chain founded in 1960 which mainly specializes in various kinds of Pizza. However, with time the restaurant chain offers various types of dishes that differ from region to region. The company has more than 1500 workers and the company is spread across 83 countries around the world. There are more than fifteen thousand stores of Domino’s Pizza. Domino’s Pizza Group is the largest franchisee of the United Kingdom’s fast food pizza delivery chain and the company is also listed on the London stock exchange. There are more than two thousand stores of Domino’s Pizza in the United Kingdom. The innovative and fast delivery system of the organization has made it popular around the world. The vastness in the menu and the constant innovation in food and marketing and advertisement have helped in organizational growth and development (Dominos. 2022). The restaurant chain has customers ranging from 10-to 70 tears and therefore has a huge market in the global economy. In the year 2020, the company recorded annual revenue of US$4,117 billion. Therefore, it can be said that the customer experience management is well developed in this restaurant chain and is still constantly upgraded as per their feedback. However, the recent pandemic situation has caused a huge toll on every sector of the economy. Therefore, effective measures are being taken to provide contactless and safe foods to their customers.

Dunkin donuts

Dunkin Donuts is a multinational coffee and doughnut company as was established in the year 1950. The restaurant chain is situated in more than 42 countries and has more than 12,900 outlets. Dunkin Donuts is one of the world’s largest coffee and doughnut shop chains and also has a variety of products on their menu ranging from bagels, munchkin, etc. The concept locations opened by Dunkin Donuts have helped in assembling different customers. The attractive interior and use of social media platforms and various other digital technologies have provided much recognition to the brand and thus helped in increasing demands. As the customer ranges from children of 6-7 years to adults 70-80 years, therefore the organization has a huge targeted market. The total revenue of Dunkin Donuts in the year 2019 was US$ 1.370 billion (Dunkindonut, 2022). Therefore, it can be said that the customer satisfaction rate and the customer experience management are much impressive in this organization. However, the recent pandemic situation has led to a decrease in the overall revenue due to the imposition of lockdown in various countries.

Needs of market segmentation for service industry

Market segmentation is very important for every service industry as it helps in understanding the needs of the customers. This helps the organizations to make necessary adjustments according to the feedback given by the customers. Market segmentation helps in fulfilling the wants of their customers and therefore promotes customer satisfaction which leads to brand value and growth of the organization as well. Furthermore, the market segmentation process helps organizations to make strategies according to the demand of the customers (Camilleri, 2018). This will not only help in the growth but also helps in the proper utilization of the resources. Market segmentation can help in developing effective promotional schemes that can be beneficial for the organization to promote its name and position in the global market. In long run, the market segmentation process is beneficial for making effective financial decisions as well as leads to better utilization of the resources. There are mainly four ways of segregating the market which are based on geographic segmentation. Demographic segmentation, psychographic segmentation, and behavioristic segmentation (Akramovich, and Muratovna, 2019). Though market segmentation strategies can vary from each other as in the international market the segmentation of the market in various sectors proves to be more effective than in the domestic market as the no. of target customers are quite low in comparison to that of the global market. As market segmentation helps in providing products and services to the specific needs of the customers therefore Customer Relationship Management is also well-developed. Therefore, the need for market segmentation in the service industry is very important.

Dominos

Dunkin donuts

Domino's Pizza has more than 15,000 locations around the country

Dunkin' Donuts has grown into an international conglomerate specializing in coffee and doughnuts.

The chain's consumers range in age from ten to seventy, making it a significant player in the worldwide economy. US$4,117 billion was the company's yearly revenue in 2020

. Dunkin Donuts' overall revenue for 2019 was $1.37 billion.

Restaurant chain's approach to customer experience management has matured and is currently being improved in response to consumer input.

The company has a high level of customer satisfaction and customer experience management.

Customer engagement

Customer engagement is the process of engaging customers and interacting with them using different ways in order to bond with the customers to strengthen the relationship. Mainly the process of customer engagement starts with verbal interactions which end at the customer buying the product or services. There are various examples of different companies of marketing strategies for customer engagement. For example, MasterCard uses “Be loyal to your customers and they’ll be loyal to you” as their tool for interacting and engaging the customers to avail their services. The main motive of customer engagement is to create loyal customers which will help in the market acquisition and provide effective demand for the organization to hold on to its market. Similarly, in the case of Dominos and Dunkin Donuts, the effective delivery system of Dominos and different promotional offers have helped in providing positive customer engagement with their customers. The innovation in marketing and advertisement as well as providing regional food choices has helped the organizations to grow and develop over the years (Bozkurt et al. 2020). Therefore, effective strategy and market research are the important and effective tools that are required in the process of customer engagement to acquire loyalty and positive relationship with the customers.

Customer Relationship Management (CRM)

Customer Relationship Management is a technology or tool which is used to manage the interactions of the customers with the organization. The main goal of CRM is to build a strong relationship with the customers for the growth and development of the organization. In a CRM system, all the data and information regarding the communication with the customers are recorded and analyzed to get an idea of the needs and wants of the customers (Juanamasta, et al. 2019). Therefore, according to the necessities effective strategies and product innovations are being done to increase sales of the product and the services. The CRM systems are very useful in service-providing industries like Domino’s and Dunkin Donuts as they are directly affected by the customer experience rate and therefore require upgradation according to customer feedback. CRM systems help organizations to stay connected and increase customer experience by fulfilling their necessities (Mossaei, 2021.). Therefore, to build a strong customer relationship it is important to build trust and genuinely care for the feedback provided by the customers. Being consistent in providing good service to the customer is also an important factor to build strong relationships and loyalty from the customers.

Managing customer experience

Managing customer experience is a type of marketing strategy in which customer satisfaction, as well as engagement, are evaluated to provide service according to their feedback. There are various ways which are required to be followed in order to manage customer experience, that are:

  • Empowerment of employees: Empowering the employees helps in providing motivation that helps in better performance of the employees. Therefore, the customer satisfaction rate also levels up due to employees’ better performance rate. Furthermore, empowering employees helps in creating confidence among them which is also helpful in customer engagement and therefore improves customer experience.
  • Improving customer service: Improved customer service is one of the effective and most important ways in which customer experience can be boosted. Providing support to the customers as well as fast and healthy delivery of the products helps in increasing customer satisfaction or experience level (Kandampully, et al. 2018). Therefore, it is important to make constant innovations to upgrade customer service for a better customer experience.
  • Use of advanced technologies: The use of advanced technology helps in providing fast services to the customer. Furthermore, with the help of technological devices, 24/7 support services can be provided to the customers which are very effective in enhancing the customer satisfaction rate (Witell, et al. 2020). For example, Dominos provide their customers a Facebook chat box through which they can order pizza any time.
  • Valuing employee’s feedback: As employees coordinate directly with the customers therefore it is important to value their feedback. As they know the need and wants of the customers which can be effective in increasing customer experience.

Customer segmentation

Customer segmentation is the process of dividing customers into groups on the basis of characteristics that are common so that the company can market the individual demands of each group separately. The segmentation can be done on the basis of job title, geography, products purchased, etc. The customer segmentation of Dunkin Donut is premised upon geographic segmentation. By means of separating markets as per the needs of the regional customers (Osei et al. 2021). Additionally for the franchise, it uses a targeting strategy utilizing the same menu for all locations with slight modifications. The supply chain model of Dunkin Donut is central with a central manufacturing unit that looks after the quality of its products. Their improved trucks always ship items at the right temperature.

The Target audience of Dunkin Donut is categorized into three types- Age 18-25 years, 25years and above, and family. Dunkin customers are regular customers which are premised upon a particular state of mind. As a mark of loyalty, Dunkin makes it easy for repeated customers to easily auto-charge their Dunking card. Dunkin has got hold of its customers' feedback even on social media and is in the process of involving them in the production process through a food designing contest.

The target customers of Dominos are people in the lower middle class and middle-class income group. It keeps the base price in check in order to attract customers. According to the statistics the share of Americans who have visited Dominos 33.4 percent belongs to the age group of 18-29 years. It stands at 31.22 percent for the age group of 30-49 years and 21.47 percent for the age group of 50-64 years. In the course of its customer segmentation, Dominos has to gather various information which was done by means of face-to-face or telephonic interviews, surveys, general research using the published information, and studying the focus group. In order to improve further, Dominos is set to utilize the data in order to create a database for even more effective communication, so that individual grievances of the customers their individual pReferences can be taken into account more effectively (Ramasubbareddy et al. 2020). At present, it has leaned more towards attracting the family emotions of the customers through its menus such as “Kids eat free card offer”, where kids get a free purchase on orders of a large pizza. It is luring customers with attractive discounts up to 25 percent for its first-time customers and up to 15 percent on repeat purchases.

Market segmentation

A differentiated marketing strategy is of utmost importance in the present scenario for a company to excel. As a matter of fact, successful companies are those which makes desired modification in their tactics and customize them as per the needs of the customers. Dominos owes its success to its customer-centric marketing strategy (KHAN et al. 2018). As a strategy to concentrate on a specific target group, Dominoes focuses mainly on middle-class young customers. The vibrant working professionals and the students with little time to cook form the niche segment for Dominoes. Dominos has been successful in shifting their taste of food and the ingredients as per the preference of the culture and place to which a customer belongs to. Being a global company, Dominoes has taken into account the local flavours and garnishing. In order to attract the little ones with fun food such as munch, Dominoes portrays a little boy asking for burgers in the TV ads (Owusu, and Agyemang, 2021). The positioning of Dominos is clear, specific, and customer-oriented. It positions its product as made of hand-picked, fresh, and pure ingredients. Its thirty-five-minute delivery or money-back policy has got a superior positioning with respect to its competitors. However, they have to do more work on positioning their Burger pizzas.

Dunkin Donuts has pursued a unique market segment for the Quick-service coffee house sector. It promoted itself as a coffee provider for the people on go. As it's a low involvement product with low failure threats and a low-price tag for an individual or a group dunking donut will be on automated purchase decisions. Dunking Donut expresso has the advantage of having espresso which can brew high-quality Caffeine. It uses 100 percent Arabica coffee and has its own specifications (Camilleri, 2018). In Asian countries, it goes through various marketing methods such as billboards, magazines, tv adverts, they have their own graphic logo design where a high coffee glass with the company name in hot green and orange shade prevails. These vibrant colors easily capture customers’ attention. As per Maslow’s theory, Dunkin Donut belongs to physiological needs. Dunkin Donuts follows stimuli, exposure, attention, interpretation, Memory, purchase, and intake decision in a chronological manner to create an impressive perception of their brand among consumers.

Impacts of digital technology in customer relationship management

Customer relationship management can be defined as the business practice of maintaining a healthy relationship with the client by means of several practices using different platforms and technologies. Digital technology is of immense importance for the company in customer relationship management as it can interact with a large number of customers fulfilling their demands and needs (Gil-Gomez et al. 2020). CRM can be of three types

Operational CRM - It can be defined as those services that help firms take care of their own customers. High technology expertise can provide them access to all information and provide a firm with a clear view of requirements (Foltean et al. 2019).

Analytical CRM- It refers to the electronic evaluation of the customer collected data. It helps in increasing customer retention rate. The customer’s interactions are analysed to get hold of the trends

Collaborative CRM- In this case, different departments of a firm like technical support, marketing, and sales share information of customers among them by means of interaction.

Dominos as a company believes in consumer convenience across all channels. It is keen on employing new techniques such as the NFC payment option on a pilot basis. It also has in its process, automated triggered email, and personalized or 1:1 communication including push notifications on mobile, digital display, and website as well. For seamless delivery, it is investing heavily in improving the service such as installing GPS and creating an online tracker to map the driver’s route (González-Serrano et al. 2020). Dominoes is pushing itself more towards effective data utilization as has now concentrated on developing part voice and chat service. It has hired tech staff such as developers and digital marketers to drive food delivery into the tech space Dominos is in search of scalable software automation such as Auto-pilot. It has the facility of bulk-targeted geo SMS that are sent across enormous databases every day.

To give experience to its customers Dominos collects information of the locality and the prevailing condition of the area associated with the delivery address. Dominos can well make use of Twilio and Smart Segments integrations in order to automatically segment their audience on the basis of their location given in the declaration form. Gradually customers of the same location can be grouped into one. Dominos has also put Google Ads campaigns to use with search-based Google advertising.

Dunkin Donut has also put absolute emphasis on the Digital aspect of its Customer Relationship Management. It has launched “On-The-go mobile ordering” and in course of time is dedicated to improving the On-The-Go experience for the guests. This has facilitated 20 percent of the transaction through mobile ordering in urban and high-volume locations. It has partnered with Doordash in the Middle East and is available to guests in one-third of the system. With the Dunkin in-house app with its IP, the brand can make app changes quickly. Curbside was added to the app for any franchise opting to offer the service. Dunkin is now laying emphasis on next-generation design facilitating contactless delivery. The digital orders inclusive of DD Perks, Curbside, and on-the-go delivery resulted in increasing sales from 13percent to 18 percent.

Conclusion

Customer experience Management aims at proper customer interaction across physical as well as a digital touchpoint, with the aims of providing personalized experiences driving brand loyalty and increasing revenues. In today's hyper-connected and hyper-competitive global market, customer experience has to be such that it can be critically differentiated from the rest in order to draw more customers towards it. For this, it has become a necessity to read the customer’s mind. For this, it is important to interact effectively with the customers at various touchpoints in order to gather information. Companies such as Dominos and Dunkin Donut aims at covering maximum customer at a minimum time through effective use of technology and at the same time through effective customer segmentation differentiate customers into groups as per their taste and choices and determine their marketing strategies in the years to come. All of them are aimed at improving customer loyalty, strengthening brand preferences, and boosting revenue through incremental sales. The attempt of both the companies towards personalization of experience have encountered them with technocrats who have attempted at consolidating loads of information into a single view of the customer in a lucid manner. In order to achieve totality both of them aimed at collaborative Customer relation management so that an integrated strategy can be made. Keeping in view the geographical difference their targeting and positioning of products have also taken different forms and thus their identity as a brand across the globe has varied However, the ultimate goal of both companies has always been in creating consistent brand experience across channels.

Reference

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Camilleri, M.A., 2018. Market segmentation, targeting and positioning. In Travel marketing, tourism economics and the airline product (pp. 69-83). Springer, Cham.

Dominos.co.in (2022). WORK TOGETHER, EAT TOGETHER. Available from: https://www.dominos.co.in/ [Accessed on: 24th March 2022]

Dunkindonut (2022), DUNKIN' DONUTS IN THE U.K. Retrieved from: https://dunkindonutsuk.weebly.com/the-market.html. [Accessed on: 24th March, 2022]

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González-Serrano, L., Talón-Ballestero, P., Muñoz-Romero, S., Soguero-Ruiz, C. and Rojo-Álvarez, J.L., 2020. A big data approach to customer relationship management strategy in hospitality using multiple correspondence domain description. Applied Sciences11(1), p.256.

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