Commoditized products and volatile market environments frame the setting that companies are facing today. Thereby, the importance of differentiation as key to company’s growth is more relevant than ever. It is widely assumed that differentiation often refers to products or market positions. However, more recently, the concept of Experience Based Differentiation (EBD) emerged as an idea for companies to build sustainable relations and loyalty by delivering a superior, differentiated experience to customers.
Managers have become increasingly aware that customers are their most valuable assets. However, pure Customer Relationship Management (CRM) is not sufficient anymore. Thus, Customer Experience Management (CEM) takes CRM to the next level by integrating customer experience (CEx) and emotions during interactions into consideration (Fatma 2014). Tracing the considerably increasing number of customer touch points and derive so called customer journey maps, helps companies to understand the broader reasons of performance gaps and thus address root causes. A recent study by McKinsey & Company (2013) revealed that companies that are able to map and optimize relevant customer journeys reinforce superior CEx, reduce churn and increase revenue, and, as a result, built sustainable relationships. In addition, greater employee satisfaction and an increased effectiveness of cross-functional collaborations have been observed. However, most companies fail to strategically align and manage the CEx across all touch points and miss a great opportunity to differentiate. This gives relevance to a study on the potential of Customer Journey Mapping (CJM), as a way for the marketing management to understand CEx during all interactions.
In the process of the present work, the concepts of Customer Experience (CEx), Customer Experience Management (CEM), Customer Journeys (CJ), as well as Customer Journey Mapping (CJM) are important. Therefore, the basic idea of these concepts will be characterized and explained in this sub-chapter.
The terms CEx and CEM have been introduced to the marketing management several years ago and have its roots in the concepts of service quality and customer service, which evolved during the eighties and nineties (Drotskiie, 2009, p. 363). Today, a common understanding of the frequently cited concept of CEx is “the user’s interpretation of his or her total interaction
Table of Content
1 Introduction
1.1 Relevance and Objectives
1.2 Definition of relevant Terminology
1.3 Structure of the work
2 Customer Journey Mapping
2.1 Customer Journey Mapping – Why to talk about?
2.2 Customer Journey Mapping – What is it all about?
2.3 Customer Journey Mapping – No right or wrong
3 Automobile Industry
3.1 Automobile Industry – Figures and Trends
3.2 Automobile Industry – Changing Customer Behavior
4 Utilization of Customer Journey Mapping in the Automobile Industry
5. Conclusion and Outlook
Objectives and Core Themes
This paper examines the potential of Customer Journey Mapping (CJM) as a strategic marketing tool to enhance Customer Experience (CEx) within the automotive industry, specifically addressing performance gaps and changing consumer behaviors.
- The evolution and strategic importance of Customer Experience Management.
- Methodological frameworks for visualizing customer interactions and touch points.
- Analysis of structural changes and megatrends impacting the automotive industry.
- Identification of critical pain points in the automotive customer purchase journey.
- Strategies for integrating online and offline channels to improve customer retention.
Excerpt from the Book
Customer Journey Mapping – No right or wrong
As already mentioned, CJM has scarcely been considered as an independent construct in academic literature. Consequently, current research misses an elementary definition of the basic elements and the general execution of CJM. In recent years, however, concepts like MomentMapping® (Colin Shaw & Ivens, 2002), Brand Touchpoint Wheel (Davis & Dunn, 2002), Performance and Improvement Maps, as well as Tactical Maps (Morgan, 2013) have been introduced and have been widely accepted by practitioners. Following extensive research, the authors understanding of the basic elements of CJM is the representation of customer actions, as well as Key Moments-of-Truth (MoT) and major PP. Key MoT are of significant importance for the CEx, as they represent the “make” or “break” of the customer relation. Major PP indicate where the CEx is likely to become difficult or negative to the customer (Morgan, 2013). A general rule of execution is not possible to formulate, due to the fact, that there is no single right of execution. Thus, CJM’s can fulfill different purposes. Some maps integrate all phases and touch points, highlight key MoT and PP, and formulate improvement levers (Oxford Strategic Marketing, 2012). Others, such as tactical maps, focus on the actions on single touch points, highlight major PP, and formulate improvement measures. Therefore, each company has to identify the CJM-concept that fits to its current situation, or even come up with an own, new CJM-concept.
Summary of Chapters
1 Introduction: Provides the context of commoditized markets and introduces Experience Based Differentiation as a strategic necessity for companies.
2 Customer Journey Mapping: Discusses the necessity of CJM in modern marketing and defines the core components of the mapping process.
3 Automobile Industry: Analyzes the structural shifts and megatrends, such as urbanization and digitalization, that are redefining the automotive sector.
4 Utilization of Customer Journey Mapping in the Automobile Industry: Applies the CJM framework to identify specific pain points and opportunities for improvement in the automotive purchase process.
5. Conclusion and Outlook: Summarizes findings regarding the need for consistent, data-driven customer experience strategies and suggests future research directions.
Keywords
Customer Journey Mapping, Customer Experience, Automotive Industry, Customer Experience Management, Touch Points, Moments of Truth, Pain Points, Digitalization, Consumer Behavior, Customer Lifetime Value, Multi-channel, Marketing Strategy, Brand Loyalty, Experience-Based Differentiation, Data Integration.
Frequently Asked Questions
What is the primary focus of this seminar paper?
The paper explores how Customer Journey Mapping can be utilized by automotive companies to understand and improve customer experiences in a changing and increasingly digital market.
What are the central themes discussed in the work?
Key themes include the shift from traditional CRM to Customer Experience Management, the impact of industry megatrends on car buyers, and the practical application of journey maps to identify service gaps.
What is the core research objective?
The objective is to evaluate the potential of CJM as a tool for marketing management to align touch points strategically and address root causes of customer dissatisfaction.
Which scientific methodology is employed?
The work utilizes a literature-based analysis combined with the application of established CJM frameworks to evaluate the current automotive sales environment.
What aspects of the automotive industry are covered in the main body?
The main body covers market figures, the influence of digitalization on buyer behavior, and the transition challenges between online research and offline dealership interactions.
Which keywords best characterize the research?
The research is best described by terms such as Customer Journey Mapping, Customer Experience, Automotive Industry, Digitalization, and Pain Points.
How does the author define a "Moment of Truth"?
Moments of Truth are defined as critical touch points that represent the "make" or "break" of a customer relationship, significantly influencing the overall customer experience.
Why is a centralized data system highlighted as a requirement?
A centralized data warehouse is considered essential to manage the transition between offline and online channels and to overcome the barriers caused by decentralized retailer data ownership.
- Arbeit zitieren
- Tobias Staudt (Autor:in), 2014, The utilization of customer journey mapping in the automotive industry, München, GRIN Verlag, https://www.hausarbeiten.de/document/284352
