CX Body of Knowledge presentation 9 Oct 2018

Customer Experience
Body-of-Knowledge (CXBoK) –
Work in progress
9 October 2018
Presented by: Adré Schreuder (Prof)
Founder & CVO of Consulta
SAR & FCICM

ROADMAP OF CONTENTS
Slide 2
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Introduction to BoK (Body of Knowledge)
Scientific method & Search for Truth
Evolution of the CXBoK
Major Contributions to the CXBoK
Latest Contributions to the CXBoK
Integrate into CXBoK (WIP)

Creative Commons License: With acknowledgement to Diana Robinson – on Flickr.com: https://bit.ly/2NvyW8G 3
Source: https://en.wikipedia.org/wiki/Body_of_knowledge#cite_note-Oliver_2012-1

Creative Commons License: With acknowledgement to Diana Robinson – on Flickr.com: https://bit.ly/2NvyW8G
The systematic collection of activities and
outcomes in terms of their values, constructs,
models, principles and instantiations, which arises
from continuous discovery and validation work
by members of the profession and enables self-
reflective growth and reproduction of the
profession (Romme 2016).[4]
Slide 4
Source: https://en.wikipedia.org/wiki/Body_of_knowledge#cite_note-Oliver_2012-1

ROADMAP OF CONTENTS
Slide 5
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Creative Commons License: With acknowledgement to Diana Robinson – on Flickr.com: https://bit.ly/2NvyW8G Slide 6
Source: https://www.visionlearning.com/en/library/Process-of-Science/49/The-Nature-of-Scientific-Knowledge/185
1. Body of Knowledge
2. Scientific Process

SCIENTIFIC PROCESS:
1. Builds on previous ideas and constantly
growing
2. Deliberately shared through process of
Peer Review
3. Publication in Scientific literature –
evaluated & integrated into BoK
4. Subject to change: New data, models
replacing previous

Incorrect ideas may be upheld for
some amount of time, but
eventually the preponderance
of evidence helps to lead us to
correct these ideas.

MODEL FOR SCIENTIFIC & RATIONAL THINKING
Source: https://clearlens.org/3-tests-for-truth/
1. ONE GOAL: TRUTH
o Truth is the ultimate goal in all of our questions and
our pursuits.
o Truth is the most valuable thing in the world
o Churchill said about truth: “in warfare truth is the
most valuable thing in the world it's so valuable that
often times it's protected by a bodyguard of lies”

MODEL FOR SCIENTIFIC & RATIONAL THINKING
2. TWO CATEGORIES: in dealing with truth:
o CORRESPONDENCE THEORY
to which degree it corresponds to reality
o COHERENCE THEORY
the degree to which all the answers form a
coherent picture of the truth

3.THREE TESTS: to the truth
o LOGICAL CONSISTENCY
o EMPIRICAL ADEQUACY
o EXPERIENTIAL RELEVANCE

4. UNDENIABILITY
test for truth (student addressing his professor
“How do I know I exist?” and the professor’s
reply: “Whom shall I say is asking?)
5. Unaffirmability
test for falsehood
(the absence of proof is not the proof of
absence)
Source: http://exploreworldviews.com/tests-for-truth/

ROADMAP OF CONTENTS
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TQM of Edwards Deming
- Zero Defect, Six Sigma
ACSI Launched 1994
The Scandinavian approach
(Grönroos 1984)
The North American Debate
(PZB 1985: SERVQUAL, Gap-
based measure)
Jagdish Sheth introduced
Relationship
Management in mid 90’s
Growth & popularity of
CRM-systems
NPS introduced by
Reichheld in 2003 -
CEM era is born
Product
Quality Era
TQM
1950’s
Service
Quality Era
SERVQUAL
1988
Relationship
Quality Era
CRM
1995
Customer
Experience Era
CEM
2003

1955
Source: https://www.youtube.com/watch?v=tDu47czfwiI&t=62s

1988
Volume 64 Number 1 Spring 1988
SERVQUAL: A
Multiple-Item Scale for
Measuring Consumer
Perceptions of
Service Quality
A. PARASURAMAN VALARIE A. ZEITHAML
Foley's/Federated Professor of Retailing Associate Professor
and Marketing Studies of Marketing
Texas A & M University Duke University
College Station, Texas Raleigh-Durham, N. Carolina
LEONARD L. BERRY
Foley's/Federated Professor of Retailing
and Marketing Studies
Texas A & M University
College Station, Texas
This paper describes the development of a 22-item instrument (called
SERVQUAL) for assessing customer perceptions of service quality in
service and retailing organizations. After a discussion of the conceptu-
alization and operationalization of the service quality construct, the
procedures used in constructing and refining a multiple-item scale to

1988
Gap between what is expected and
what is experienced

1988
Adapted from original Gaps-Model of Parasuraman, Zeithaml & Berry - 1988
The GAP Never Mentioned
Expectations Perceptions
Delivery Interface
Management’s
understanding of
expectations
Marketing &
Communication
Experience
Standards
Gap 1
Gap 2
Gap 3
Gap 4
Gap 5
CEM = consistently
delivering/exceeding what
customers expect,
making customers feel great at
every “moment of truth”

1995
Source: https://www.youtube.com/watch?v=hic3DhzvxaQ&t=35s

2003
Source: https://www.youtube.com/watch?v=xr5EzwfiQdM&t=9s

2003
The term Customer Experience Management is
used within the broader context of Customer
Relationship Management (CRM)
“CEM is part of customer relationship
management (CRM) and the natural extension of
building brand awareness”
Source: Kirkby J, Wecksell J, Janowski W & Berg T, “The Value of Customer Experience Management”,
Strategic Analysis Report, March 2003

2003
Adapted from: Bitner M-J, “Building service relationships: It's all about promises”, Journal of the Academy of Marketing Science, Vol 23(4), 1995 & Kirkby J,
Wecksell J, Janowski W & Berg T, “The Value of Customer Experience Management”, Strategic Analysis Report, March 2003
Copyright Consulta 2018

Preconceived Ideas
Needs
Reactions
Managing Experience
Key Moments
Behaviours
EXPECTATIONS
PERCEPTIONS MOMENTS-OF-TRUTH

Creative Commons License: With acknowledgement to Diana Robinson – on Flickr.com: https://bit.ly/2NvyW8G Slide 24Creative Commons License: With acknowledgement of Luis Calçada – on Flickr.com: https://bit.ly/2IL7NO2
Customer Behaviors
Customer Brand
Commitment & Loyalty
Repurchase Behavior
Customer Defection
Word of Mouth &
Complaining Behavior
Creative Commons2.0 license. Copyright reserved by Abdulrahman Alkhozaim– Flicker.com,
https://www.flickr.com/photos/rwagan/4895801547
Customer
Commitment
Repurchase
Intentions
Price Perceptions &
Willingness to pay
Creative Commons2.0 license. Copyright reserved by Sebastiaan ter Burg – Flicker.com,
https://www.flickr.com/photos/ter-burg/8127175006
Behavioral Intentions
Recommend
Intentions (NPS)

Source: https://www.youtube.com/watch?v=1oO2FSRIRdA

Lacking Consistency

ROADMAP OF CONTENTS
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PURPOSE
Critically assess conceptual validity of customer experience as a
construct and
propose a model which integrates inter-personal relationships, service
quality and brands
DESIGN/METHODOLOGY/APPROACH
Review literature : key components of brands, relationships, quality,
emotions and perceptions

FINDINGS
Paradoxes in the term customer experience:
§ As a VERB, experience describes a process of learning, leading to
learned response, but
§ As a NOUN it emphasises novelty and the lack of predictable,
learned response.
§ By incorporating EMOTIONS and PERCEPTUAL DISTORTION over
time, customer experience overcomes many problems associated
with static, partial measures of service quality.

MEANING OF THE TERM “CUSTOMER EXPERIENCE”
• “The feeling of emotions and sensations as opposed to thinking”
and
• “. . . involvement in what is happening rather than abstract
reflection on an event”.
Some languages have different terms for the noun & verb
German
“Erfahrung/erfahren”
(Afrikaans = “ervaring”)
knowledge and expertise
gained after an event
German “Erlebnis/erleben”
(Afrikaans = “belewenis”)
a process of undergoing and
living through an event

Marketing Conundrum
associated with
predictable behaviors
Experience as a
learned outcome
Utilitarian view
Experience as a
novelty process
associated with
unpredictable response
Hedonistic view

UNDERSTANDING (DEFINING) THE CONSTRUCT “CUSTOMER EXPERIENCE”
Gupta & Vajic (2003) “... an experience occurs when a customer has any
sensation or knowledge acquisition resulting from some level of interaction
with different elements of a context created by the service provider”
Tangible & Process
Quality
Brand Relationships
Interpersonal
Relationships
Sequencing of
cues &
relationships
Effects of
Emotions on
Decoding
Perceptual
Distortion
over time
ATTITUDE

CHALLENGES IN MEASURING CUSTOMER EXPERIENCE:
• Complexity of context specific variables
• Non-linearity of customer experience
• Identification of an optimal level of experience
• Must include contextual parameters, sequencing of
events, retention in the memory (as attitude some
time after an event occurred)

ROADMAP OF CONTENTS
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THE THREE “MUSKETEERS”
2010
Source: https://adoptingfaithafathersunconditionallove.org/2016/04/24/the-amygdala-stopping-fight-or-flight-at-the-source/

Emotional arousal following a
learning event influences the
strength of the subsequent
memory of that event, so that
greater emotional arousal
following a learning event
enhances a person’s retention
of that memory.
Source: https://courses.lumenlearning.com/boundless-psychology/chapter/structure-and-function-of-the-brain/

As a result of the close functioning of the
hippocampus to the amygdala (close proximity)
memory formation is effected, particularly
emotionally based memories!
Amygdala
(Emotion)
Hippocampus
(Memory)

Fast
Unconscious
Automatic
Everyday decisions
Error Prone
System 1
Slow
Conscious
Effortful
Complex decisions
Reliable
System 2
Source: Daniel Kahnemann, Thinking, Fast and Slow. 2011

• System 1 - The Experiencing self
• System 2 - Remembering (evaluative) self
These two concepts of self are very different –

Peak-End Rule: The experience is evaluated by a composite moment –
the memory of difference between the peak-experiences and end-
experience
Positive Feeling
Gratify
Satisfy
Neutral
Bad
Horrible
Negative Feeling
Peak-end Analysis
Pleasure-Pain Gap
Anchoring
Adapted from: Sampson Lee – G-CEM, Effective Experience Framework 2.0, 2010 Whitepaper
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Journal of Retailing 85 (1, 2009) 31–41
Customer Experience Creation: Determinants, Dynamics
and Management Strategies
Peter C. Verhoefa,∗, Katherine N. Lemonb, A. Parasuramanc,
Anne Roggeveend, Michael Tsirosc, Leonard A. Schlesingerd
a University of Groningen, Faculty of Economics and Business, P.O. Box 800, NL-9700 AV Groningen, The Netherlands
b Boston College, Carroll School of Management, Fulton Hall 510, 140 Commonwealth Avenue, Chestnut Hill, MA 02467 United States
c University of Miami, School of Business Administration, P.O. Box 24814, Coral Gables, FL 33124, United States
d Babson College, 231 Forest Street, Wellesley, Massachusetts, United States
Abstract
Retailers, such as Starbucks and Victoria’s Secret, aim to provide customers a great experience across channels. In this paper we provide an
overview of the existing literature on customer experience and expand on it to examine the creation of a customer experience from a holistic
perspective. We propose a conceptual model, in which we discuss the determinants of customer experience. We explicitly take a dynamic view, in
which we argue that prior customer experiences will influence future customer experiences. We discuss the importance of the social environment,
self-service technologies and the store brand. Customer experience management is also approached from a strategic perspective by focusing on
issues such as how and to what extent an experience-based business can create growth. In each of these areas, we identify and discuss important
issues worthy of further research.
© 2008 New York University. Published by Elsevier Inc. All rights reserved.
Keywords: Self-service; Management strategies; Retail branding; Social Environment
Introduction
Creating superior customer experience seems to be one of
the central objectives in today’s retailing environments. Retail-
ers around the globe have embraced the concept of customer
experience management, with many incorporating the notion
into their mission statements. For example, Valero Energy Cor-
poration is committed to ensuring a positive retail experience for
customers by focusing on convenience, value and quality. Dell
computers focuses on delivering the best customer experience
in the markets the firm serves, while Toyota’s mission statement
is to sustain profitable growth by providing the best customer
experience and dealer support. Similarly, it has been argued
that the success of Starbucks is based on creating a distinc-
tive customer experience for their customers (Michelli 2007).
Additionally, a recent IBM report identifies customer experi-
∗ Corresponding author at: Department of Marketing, Faculty of Economics
and Business, University of Groningen, P.O. Box 800, 9700 AV, Groningen, The
Netherlands. Tel.: +31 503637065.
E-mail address: p.c.verhoef@rug.nl (P.C. Verhoef).
ence as a key factor for companies to use in building loyalty to
brands, channels and services (Badgett, Boyce, and Kleinberger
2007).
Yet despite the recognition of the importance of customer
experience by practitioners, the academic marketing litera-
ture investigating this topic has been limited. Publications on
customer experience are mainly found in practitioner-oriented
journals or management books (e.g., Berry, Carbone, and
Haeckel 2002; Meyer and Schwager 2007; Shaw and Ivens
2005). In general, these publications tend to focus more on
managerial actions and outcomes, than on the theories underly-
ing the antecedents and consequences of customer experience.
For example, Pine and Gilmore (1999) argued that creating
a distinctive customer experience can provide enormous eco-
nomic value for firms, and Frow and Payne (2007) derived
managerial implications, such as the careful management of
customer ‘touch points’, based on qualitative case studies. To
the best of our knowledge only a limited number of articles
explore customer experience in depth from a theoretical per-
spective. More specifically, Gentile, Spiller, and Noci (2007)
empirically investigate the specific role of different experi-
ential features in the success achieved by some well-known
0022-4359/$ – see front matter © 2008 New York University. Published by Elsevier Inc. All rights reserved.
doi:10.1016/j.jretai.2008.11.001
INTRODUCTION
The link between customer satisfaction and future behavioural intention has been
extensively researched, but the outcome of such research has been mixed. A range
JOURNAL OF MARKETING MANAGEMENT, 2008, Vol. 24, No. 1-2, pp. 69-85
ISSN0267-257X print /ISSN1472-1376 online © Westburn Publishers Ltd doi 10 1362/026725708X273920
Experiential values over time – a comparison of
measures of satisfaction and emotion
Nicole Koenig-Lewis, University of Wales Swansea, UK*
Adrian Palmer, University of Wales Swansea, UK
Abstract This paper reports on a longitudinal, quantitative study of the effects
of satisfaction and emotions on future behavioural intention. A review of the
literature identifies growing evidence of the effects of an individual’s emotional
state on consumption decisions. There is evidence that measures of satisfaction
are poor predictors of repeat buying behaviour, and this may be due to their failure
to adequately incorporate an affective element. In this study, 352 graduates who
attended a graduation ceremony were tracked over a period of six months and
their level of satisfaction, and the emotions evoked by the experience of attending
their ceremony were recorded. Satisfaction was observed to be a poor predictor
of an individual’s likelihood of recommending attendance at a future graduation
ceremony to a friend. Furthermore, satisfaction had a declining effect over time.
However, the level of positive emotions evoked after six months continued to be
strongly associated with behavioural intention. This paper informs methodologies
for measuring customer satisfaction, which have traditionally been undertaken
immediately after a service encounter, but evidence is presented that a survey
undertaken closer to the next point of consumption decisions/recommendation
may be a more valid and managerially useful measure.
Keywords Satisfaction, Emotions, Attitudes, Perceptual processes
JOURNAL OF
MARKETING
MANAGEMENT
*Correspondence details and biographies for the authors are located at the end of the article.

• “Yet, despite the recognition of the importance of customer
experience by practitioners, the academic marketing literature
investigating this topic has been limited.
• Publications on customer experience are mainly found in practitioner
oriented journals or management books … (and) tend to focus more
on managerial actions and outcomes…
• The literature in marketing, retailing and service management
historically has NOT considered customer experience as a separate
construct. Instead researchers have focused on measuring customer
satisfaction and service quality.”
Source: Verhoef, Peter C., Katherine N. Lemon, A. Parasuraman, Anne Roggeveen, Michael Tsiros and Leonard A. Schlesinger (2009), “Customer Experience
Creation: Determinants, Dynamics and Management Strategies,” Journal of Retailing, 85 (1), 31–41.

• Previous studies emphasised cognitive aspects of satisfaction –
growing body of evidence that affective measures of satisfaction
(which incorporate emotions) may be a better predictor of
behaviour.
• As a cognitive measure, satisfaction is more likely to be distorted
over time than a measure that incorporates an affective
component (emotions are more deep-seated and more stable over
time).
• Satisfaction should thus include a combination of an evaluative
(cognitive) and emotion-based (affective) response to a service
encounter.
Source: Verhoef, Peter C., Katherine N. Lemon, A. Parasuraman, Anne Roggeveen, Michael Tsiros and Leonard A. Schlesinger (2009), “Customer Experience
Creation: Determinants, Dynamics and Management Strategies,” Journal of Retailing, 85 (1), 31–41.

Creative Commons License: With acknowledgement of Don McCrady – on Flickr.com: https://bit.ly/2C3gguF 45
Source: Bob Thompson, Customer Experience vs. Customer Engagement — A Distinction Without a Difference? Customer Think blog – Nov 2014
http://Customerthink.com/Customer-experience-vs-Customer-engagement-a-distinction-without-a-difference/
“Customer engagement is something different, it’s a
behavior and attitude, an outcome of Customer
experience.”
Bruce Temkin (Managing Partner of the Temkin Group)
“Customer engagement is what you hope
Customers will do for you; it’s either enticed or
earned. Great CX earns it.”
Lynn Hunsaker (CEO of ClearAction)
“Customer engagement is how you engage with
Customers. By engaging with them you give them an
experience.”
Colin Shaw (CEO, Beyond Philosophy)
vs
vs

Source: https://www.youtube.com/watch?v=nnxePMhBtEA

47% Brand
Perspective
47% of Business view
Customer
Engagement from a
Marketing/
Brand and/or
Business process
perspective
40% of Business
view Customer
Engagement from a
Customer
Experience
perspective
40%
Customer
Perspective
Source: Rosetta Consulting. 2014 Customer ENGAGEMENT
Rosetta Consulting’s Customer Engagement Survey Part 1: The Marketer’s Perspective
http://www.rosetta.com/reports/Customer-engagement-rosetta-consulting-study/Customer-engagement-from-the-marketers-perspective
13%
ONLY 13%
see Customer Engagement
from a Brand & Customer
Perspective

Buy more Recommend
more
Respond
more
Commit
more

Involves the (Customer)
participation in the creation of
the core offering itself. It can
occur through shared
inventiveness, co-design, or
shared production of related
goods.
Source: Lusch, Robert F. and Stephen L. Vargo (2006), ‘‘Service-Dominant Logic: Reactions, Reflections and
Refinements,’’ Marketing Theory, 6 (September), 281-288.
Most cited
article in the
history of
Marketing
Theory

ROADMAP OF CONTENTS
Slide 50
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STRATEGIC IMPACT
Expansion Retention
Acquisition
ENABLERS
Planning
Designing
Delivering
Engaging
Responding
Knowing
PILLARS
People, Tools
& Insights
Focusing
Operations
Customer
Experience
Leadership &
Culture
VALUE
Strategic outcomes/objectives
of CX Program
STRATEGIC IMPACT
The action levers to reap
the benefits (VALUE)
of customer centricity
in the organization.
ENABLERS
Foundational behaviours
required to ensure
VALUE
PILLARS

CC MATURITY Development framework based on Maturity-level
MODEL
Provide a MODEL that can be used as narrative for
the business case for CC
CC DESTINY Strategic Directional guidance
CC BENCHMARK
Portfolio of evidence of current practices in the organisation (Intent,
Reality, Consistency, Impact)
CC ROADMAP Operational guidance (What? How? Who? When?)
CC FORECAST Forecasting value gains on CC-focus
CC DASHBOARD
Ongoing measurement of progress and feedback on corrective action
– Dashboard view
CC AUDIT Formal audit of CX systems, strategy & execution

CC MATURITY
Development framework based on Maturity-level

Leadership
and culture
Customer focused
leadership and culture
Focusing
operations
Focusing operations
on the Customer -
compliance, risk, IT,
HR, finance,
marketing, legal,
training
People, tools
and insights
Collecting information,
generating insights,
informing strategy,
informing Customer
value propositions and
empowering employees
Customer
experience
Based on insights
generated, design,
concepts, test, build,
delivery, scale and
renewal
Value
Creating and
measuring value: at
Customer, firm and
society level
Source: Worldbank - CGAP

CC Maturity
Level
classification 3 2 2
53
61
5160
Pillar1:Leadership
&Culture
The Customer Centricity
Maturity Model
Level 6: Engaged &
Sustained
Level 5: Entrenched &
Empowered
Level 4: Dedicated &
Reinventing
Level 3: Formalised &
Converted
Level 2: Getting involved &
Buy-in
Level1: Unconvinced but
Interested
Pillar2:Focusing
OperationsonCustomer
Pillar3:Empowering
Employees,Insights&
Tools
Pillar4:Customer
Experience
Overall score 2017: 54
Level 2: Getting involved & buy-in
Pillar5:Value
2 1
47

Creative Commons License: With acknowledgement to Diana Robinson – on Flickr.com: https://bit.ly/2NvyW8G Slide 56Creative Commons License: With acknowledgement of Greg Heartsfield – on Flickr.com: https://bit.ly/2NvhFwq
CC Maturity Model
Pillar 1: Leadership &
Culture
Pillar 3: Empowering
employees, insights &
tools
Pillar 4: Customer
experience
Pillar 5: Creating value
Pillar 2: Focusing
operations on the
customer
35 Statements:
Agreement
scale
_____
Aligned with 5
customer
centricity
pillars
Customer
Centricity
Maturity
Model

Maturity Path
Unconvinced but
Interested
1
Getting involved &
Buy-in2
Formalised &
Converted3
Dedicated &
Reinventing4
Entrenched &
Empowered5
Engaged &
Sustained6

Enablers►
▼ Pillars
KNOWING PLANNING DESIGNING DELIVERING ENGAGING RESPONDING
Pillar 1: Leadership &
Culture
CC MATURITY CC DESTINY CC ROADMAP
CC STRATEGIC
FRAMEWORK –
Roll Out
CC
MEASUREMENT
FRAMEWORK
(Reputational &
Transactional)
CC BENCHMARK
MEASURE
Pillar 2: Focusing
Operations on the
Customer
CC STRATEGIC
FRAMEWORK -
Planning CC
MASTERCLASS
CC JOURNEY
MAPPING
Current State Voice-of-
Customer
ChannelsPillar 3: Empowering
Employees, Insights,
and Tools
RCA (Root Cause
Analysis)
CC JOURNEY
MAPPING
Desired State
CEM / CEP
TRAINING
CEM / CEP
TRAINING
Pillar 4: Customer
Experience
CC VALUE PROP
CC ROADMAP
CC MATURITY
Pillar 5: Creating
Value
CC FORECAST
ROMI, Linkages Analysis,
Predictive Modelling
CC FORECAST

COPYRIGHT & INTELLECTUAL PROPERTY RIGHTS
Slide 59
All rights strictly reserved.
The intellectual capital contained and illustrated in this
presentation is the proprietary intellectual property of
Consulta (Pty) Ltd and may not be copied, infringed upon
in whatever manner, without the written consent of the
proprietary owners.
If you are interested to better understand and/or utilize
some of the tools and solutions contained in this
presentation – please get into contact with us (contact
details at the back of the slide deck.

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THANK YOU

CX Body of Knowledge presentation 9 Oct 2018

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