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 Contents
- 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
Objectives and Key Themes
This seminar paper aims to explore the utilization of Customer Journey Mapping (CJM) within the automotive industry. It investigates the potential of CJM as a tool for marketing management to understand and improve customer experience (CEx) across all touchpoints. The study examines the current landscape of the automotive industry, including market trends and changing customer behavior, to contextualize the application of CJM.
- The importance of Experience-Based Differentiation (EBD) in today's competitive market.
- The role of Customer Experience Management (CEM) in enhancing customer relationships.
- The application of Customer Journey Mapping (CJM) as a tool for understanding and improving CEx.
- Analysis of the automotive industry's characteristics and evolving customer behavior.
- The potential benefits of CJM for the automotive industry, including improved CEx, reduced churn, and increased revenue.
Chapter Summaries
Introduction: This introductory chapter sets the stage by highlighting the increasing importance of differentiation in today's commoditized markets. It emphasizes the shift towards Experience-Based Differentiation (EBD) and the evolving role of Customer Experience Management (CEM) beyond traditional Customer Relationship Management (CRM). The chapter establishes the relevance of studying Customer Journey Mapping (CJM) as a method for understanding and optimizing customer experiences across all touchpoints, referencing a McKinsey study on the positive impact of CJM on customer experience, revenue, and employee satisfaction. The introduction lays the groundwork for a deeper exploration of CJM in the automotive industry.
Customer Journey Mapping: This chapter delves into the core concept of Customer Journey Mapping (CJM). It explores the reasons for employing CJM, offering a thorough explanation of its methodology and practical applications. Importantly, it emphasizes that there is no single "correct" way to implement CJM, suggesting a degree of flexibility and adaptability in its use. This section provides a foundational understanding of CJM, preparing the reader for its application within the specific context of the automotive industry.
Automobile Industry: This chapter presents an overview of the automotive industry, focusing on relevant figures, market trends, and the dynamic shifts in customer behavior. This section serves to contextualize the application of CJM within a specific industrial sector characterized by unique dynamics and challenges. The analysis of industry trends and customer behavior offers essential insights to inform the subsequent discussion on the utilization of CJM within this particular industry.
Keywords
Customer Journey Mapping (CJM), Customer Experience (CEx), Customer Experience Management (CEM), Experience-Based Differentiation (EBD), Customer Relationship Management (CRM), Automotive Industry, Market Trends, Customer Behavior, Touchpoints, Revenue, Churn.
Frequently Asked Questions: Comprehensive Language Preview
What is the main topic of this document?
This document is a comprehensive language preview providing an overview of a seminar paper exploring the utilization of Customer Journey Mapping (CJM) within the automotive industry. It examines CJM's potential for improving customer experience (CEx) and its application within the context of market trends and changing customer behavior in the automotive sector.
What are the key themes explored in the seminar paper?
Key themes include the importance of Experience-Based Differentiation (EBD), the role of Customer Experience Management (CEM), the application of CJM as a tool for understanding and improving CEx, analysis of the automotive industry's characteristics and evolving customer behavior, and the potential benefits of CJM for the automotive industry (improved CEx, reduced churn, increased revenue).
What does the document include?
The document includes a table of contents, objectives and key themes, chapter summaries, and keywords. It provides a structured preview of the complete seminar paper, outlining the key arguments and findings.
What is the purpose of the "Customer Journey Mapping" chapter?
The "Customer Journey Mapping" chapter explains the core concept of CJM, its methodology, and applications. It emphasizes that there is no single "correct" way to implement CJM and highlights its flexibility and adaptability.
What is covered in the "Automobile Industry" chapter?
This chapter provides an overview of the automotive industry, focusing on relevant figures, market trends, and the changing dynamics of customer behavior. This contextualizes the application of CJM within the automotive sector, highlighting industry-specific challenges and opportunities.
What are the key takeaways from the "Introduction" chapter?
The introduction highlights the increasing importance of differentiation in today's market, the shift towards EBD and the evolving role of CEM. It establishes the relevance of CJM as a method for optimizing customer experiences and references studies supporting its positive impact.
What are the keywords associated with this seminar paper?
Key words include Customer Journey Mapping (CJM), Customer Experience (CEx), Customer Experience Management (CEM), Experience-Based Differentiation (EBD), Customer Relationship Management (CRM), Automotive Industry, Market Trends, Customer Behavior, Touchpoints, Revenue, and Churn.
What is the overall objective of the seminar paper?
The seminar paper aims to explore the utilization of Customer Journey Mapping (CJM) within the automotive industry to understand and improve customer experience across all touchpoints. It investigates CJM's potential as a tool for marketing management within the specific context of the automotive industry's unique characteristics and challenges.
- Quote paper
- Tobias Staudt (Author), 2014, The utilization of customer journey mapping in the automotive industry, Munich, GRIN Verlag, https://www.grin.com/document/284352
