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Customer journey in B2B SaaS business models

Written by M. Opanasenko

Paper category

Master Thesis

Subject

Business Administration>Marketing & Sales

Year

2017

Abstract

Thesis: Customer journey “As a result, journey becomes the core of the customer experience brand-as important as the product itself in providing a competitive advantage.” (Edelman et al.). "If customer experience is a key business differentiator in many industries today, sustainable advantages will only come from the operational layer that connects the definition and realization of that experience." (Chief Experience Officer. DCX Practice Capgemini) "Even if the company does not have annoying customer service Problem, it may also be beneficial to determine the most important journey-working hard can help them find a competitive advantage.” (Rawson, Duncan, and Jones, 2013) Barriers to entry and business models affect the market. Therefore, expanded customer bargaining power has led to intensified competition. These changes will affect customer behaviors that are formed under the conditions of limited time, extensive services and e-commerce availability, which will directly affect brand loyalty (Deloitte CPA Limited, 2013). These changes have brought new conditions and requirements for market competition. One of them is the customer journey as a business differentiator and competitive advantage (Edelman et al.). According to Edelman, the customer journey is the path formed by the customer through service and led by the company. Since the service-dominant logic includes the company's participation in customer value generation and value consumption (Grönroos, 2008), the customer journey can be considered as part of these processes. Therefore, customer journey management has become as important as product or service management. Edelman emphasized that the purpose of the customer journey is to shorten the loyalty cycle and lock in customers. The key components of the customer journey are automation, personalization, contextual interaction and journey innovation. Managing and improving these components can create a competitive advantage and have an impact on customer loyalty. Therefore, the customer journey approach requires new roles and functions in the company, such as a customer experience manager or a Scrum team. The activities of the Scrum team are summarized as execution-oriented, fast, agile, continuous testing and iterative improvement (Edelmal, etc.). The overall responsibility of the Scrum team is to design and conceptualize the customer journey through the user interface, develop applications and integrate third-party software to fog the customer journey, track and analyze customer interactions, measure journey variables to achieve a higher level of customization, and consider the full picture of the customer From the back-end development to the journey of marketing activities, ensure that the marketing activities are supported and carried out in accordance with the customer journey. Kilian emphasized the importance of using agile methods to provide customer experience and create customer journeys (Kilian, Sarrazin, and Yeon, 2015). 2.3 Customer Journey Map A research conducted by B. Temkin of Forrester Research, Inc. points out five steps that outline the customer journey. The following are:-Collection of internal insights-Initial hypothesis development-Customer process, demand and perception research-Customer research analysis-Customer journey map (Temkin, 2010) Customer journey map reflects customer processes, needs and perceptions through interaction with the company. Customer journey The output of the map is to define the problem areas that affect the customer experience. Customer journey and customer experience are related concepts that reflect the company's participation in customer value co-creation and use of value. One of the first studies on customer experience was conducted by Abbot, who stated that “what people really want is not a product, but a satisfying experience” (Abbot 1955, p. 40). Later studies in the field of customer experience confirmed that every service transfer leads to customer experience (Brakus, Schmitt, and Zarantonello, 2009). Chandler and Lusch define customer experience as the output of interaction with different participants in the entire ecosystem. The customer experience can be conceptualized through the customer journey, as customers interact with the company through different touch points during the buying cycle (Lemon and Verhoef, 2016). Berry, Carbone, and Haeckel determined the two components of customer experience function and emotion. The first one is related to the function and quality of the product or service, and the last one is related to the emotion, feeling, atmosphere and environment of the delivered product or service (Berry , Carbone and Haeckel, 2002). Lemke, Clark and Wilson, and Verhoef suggest a broader definition of customer experience, including the customer’s cognitive, emotional, sensory, social, and spiritual responses to all interactions with the company (Lemke, Clark, and Wilson, 2010). Therefore, customer experience is a multidimensional concept viewed from different perspectives: from the customer's perspective (Schmitt, 2010); from the company's perspective; and from the company's perspective on delivery experience (Berry, Carbone, and Haeckel, 2002). 2.4 Customer interaction "A key element of understanding and managing customer experience is the ability to measure and monitor customer reactions to the company's products, especially customer attitudes and opinions"-(Lemon and Verhoef, 2016). Due to the development of digital technology, the number of interactions and the number of customers has increased, which affects the complexity of the customer journey (Lemon and Verhoef, 2016). Identify key customer journey map indicators (Temkin, 2010) to measure customer experience. Lemon and Verhoef recommend the following stages of the customer journey map: pre-purchase, purchase, and post-purchase. Each step includes different types of customer interactions. Read Less