1

Programmae MSC Management

Module Name Consumer Experience Strategy

Schedule Term

Student Reference Number

Report Title

Date of Submission

1
2

Table of Contents
Introduction................................................................................................................................... 3

The importance of Customer Experience.......................................................................................3

Consumer Persona Creation...........................................................................................................4

Mapping the Customer journey......................................................................................................5

Omni Channel Marketing.............................................................................................................. 6

CX Performance Metrics............................................................................................................... 7

CX Processes in Different Industries.............................................................................................8

Apple INC & Instagram...........................................................................................................10

Conclusion................................................................................................................................... 10

References................................................................................................................................... 12

2
3

Introduction
The company which is selected for this report is Apple Inc. it is a multinational
technology company based in Cupertino, California, which is designing, developing and selling
consumer electronics, software’s of computer along with online services. Apple Inc; is famous
for its various range of products that includes; the iPhone, Apple Watch, iPad, Mac, as well as its
hardware products, software and services, including the iOS and macOS operating systems, the
iTunes media player, and the iCloud cloud storage service.

The importance of Customer Experience

Customer experience is defined as a collective perception of a customer for any company
or brand based which depends upon their interactions throughout the customer journey, including
all touchpoints, interactions, and emotions associated with the product or service. It encompasses
every interaction and touchpoint which customer feels with a business, from the start of inquiry
till the after purchase follow-up. The goal of delivering a positive customer experience is to
creating loyalty of the customers who are thinking to remain long-term with the company and
recommend it to others. A great customer experience can differentiate a business from its
competitors and lead to long-term success.

Customer experience (CX) is critical for Apple's products and services. Apple's success is
basically because of it’s ability to create products that are intuitive, easy to use, and visually
appealing, resulting in an excellent customer experience that has helped the company develop a
loyal customer base (Gawer & Cusumano, 2014).

Apple's focus on CX has helped the company differentiate its products from those of its
competitors and build a strong brand reputation. By providing a positive customer experience,
Apple has been able to generate customer loyalty, with many customers returning to purchase
additional products and services from the company. This has helped Apple to maintain a strong
market position and drive revenue growth.

Moreover, the importance of CX is reflected in Apple's retail stores, which are designed
to provide an immersive customer experience that helps customers to engage with Apple's

3
4

products and services. As noted by Forbes, Apple's retail stores have been a critical factor in the
company's success, providing customers with an opportunity to interact with Apple's products in
a way that is not possible through online channels alone (Heller, 2019).

Consumer Persona Creation

A consumer persona, also known as a buyer persona, it is a sort of representation which is
fictional for a company's ideal customer. The actual reason for creating consumer personas is to
help companies to better understand their customers better, including their preferences,
behaviors, pain points, and motivations(Christensen, Alton, Rising, & Waldeck, 2011).

Demographics Profile of Senior Motivation for Goals for using Pain points of
and story Person using product product product

Age: Over 65 The senior person is The senior person is The senior person Apple products and
years old technologically motivated to use have several goals services can help

Gender: Male literate, having been Apple products and for using Apple address several pain
exposed to services for several products and points for senior
Marital Status:
technology in the reasons, including services, including persons, including
Married
workplace and also staying connected staying connected social isolation,
Income: Fixed
through family with family and with family and difficulty accessing
Income
members. friends, accessing friends through information and
Education: information and video calls or entertainment, and
College-educated entertainment, and messaging apps, challenges with
simplifying accessing everyday tasks. By
Story everyday tasks. He information and providing user-
is also motivated to entertainment friendly interfaces
The senior person stay mentally active through apps and and accessibility

have retired and and engaged. streaming services, features, Apple

Moreover mainly and simplifying products can also
living with
due to its security everyday tasks help address
spouse. He is
feature is providing through digital tools physical and
interested in
senior person an such as calendars, cognitive
staying active,
intuition of being reminders, and limitations that may
spending time secure and safe virtual assistants. arise with age.

4
5

with family, and

pursuing hobbies
and interests. He
is also concerned
about his health

Mapping the Customer journey

A customer journey is all about the number of interactions along with the touch points a
customer is having with a company, from the start of awareness stage till after the purchase
support. The importance of a customer journey in CX strategy lies in its ability to help
companies understand the customer's perspective and identify pain points, needs, and
opportunities for better improving customer experience (Lemon, K. N., & Verhoef, P. C. 2016).

Stages of Journey Activities Feelings and Needs Potential

Opportunities
1- Awareness Advertisements, visit May feel curious or Improve its
Apple's website or skeptical advertising
social media pages
2- Consideration Research Apple Feel overwhelmed by Provide more
products and services the options guidance and support
online, visit an Apple to senior customers
store or retailer, and
compare features and
pricing

3- Purchase Online or in-store, Feel satisfied with the Streamline the

requiring assistance purchase process purchase process
from sales associates
or online support
4- Use Need assistance in Feel frustrated or User-friendly features

5
6

setting up and confused and may

accessing support need assistance in
through online using the product or
resources or customer service
service
5- Retention Purchase additional Feel satisfied with the Provide incentives
products, product or service and
may want to continue
using it
6- Advocacy Recommend Apple Feel positive and share Rewarding senior
products and services experience with others customers for sharing
to family and friends their positive feedback

Omni Channel Marketing

Omni channel marketing refers to a marketing strategy which is providing a seamless and
integrated experience of customer across multiple channels, including online and offline, to
create a consistent brand experience for the customer. Interaction plays a critical role in Omni
channel marketing as it facilitates communication and engagement between the customer and the
business at every touch point. By enabling customers to interact with the business across
multiple channels, businesses can create a personalized and seamless experience that meets the
customer's needs and preferences. Through interaction, businesses can collect valuable data on
customer behavior and preferences that can be utilized for personalizing the experience of
customer and enhancing the satisfaction of customer along with loyalty

Moreover, interaction in omnichannel marketing enables businesses to create a sense of

community and foster customer engagement and advocacy. By leveraging social media,
customer forums, and other interactive channels, businesses can create opportunities for
customers to engage with each other, share their experiences, and provide feedback to the
business.

6
7

Apple Inc. uses multiple sales and marketing channels to reach customers and provide them
with a seamless customer journey. Some of the key channels used by Apple include:

1. Online Store: Apple's online store is the primary channel for customers to purchase Apple
products and accessories. The online store provides a personalized shopping experience
for customers, with features such as product recommendations and easy checkout.
2. Retail Stores: Apple is having network across the globe inside the retail stores, over their
customers are supposed to interact with the products, attending number of events and
workshops and also looking for getting support.
3. Third-Party Retailers: Apple also sells its products through third-party retailers, such as
authorized resellers, carriers, and distributors.
4. Marketing and Advertising: Apple is using the different types of marketing and
advertising channels for promoting its products and build brand awareness, including TV
ads, digital ads, social media, and influencer marketing.
5. Customer Support: Apple is also providing services of customer support by using
different channels that includes phone, email, chat, and in-person support at retail stores.

Overall, Apple is highly potential in achieving a seamless journey of customers by

integrating these sales and marketing channels. Apple's online store and retail stores are closely
integrated, allowing customers to seamlessly move between channels and receive consistent
service and support. Apple's focus on providing a personalized and user-friendly experience
across all channels has helped to create a strong brand image and foster customer loyalty.

Furthermore, Apple's customer support services are highly regarded for their quality and
responsiveness, which has helped to reinforce the brand's reputation for providing exceptional
customer experiences.

CX Performance Metrics
Net Promoter Score (NPS) and Lifetime Value (LTV) are two important performance metrics
that can help companies like Apple to assess customer satisfaction and loyalty, and effectively
evaluating their strategies related to customer experience.

7
8

Net Promoter Score (NPS): NPS is a metric which is being used for measuring the loyalty of
customer and also measuring their satisfaction by asking every customers that how often they
would like to recommend their products with using a scale of 0-10. The NPS is calculated by
subtracting the percentage of detractors (customers who give a score of 0-6) from the percentage
of promoters (customers who give a score of 9-10), with the remaining percentage being
considered passive (customers normally gives a score of 7-8).

Formula: NPS = % Promoters - % Detractors

1. Lifetime Value (LTV): LTV is a metric used to estimate the total amount of revenue a
customer will generate over their lifetime with a company. LTV is calculated by
multiplying the average customer value (ACV) by the average customer lifespan (ACL).

Formula: LTV = ACV x ACL

In the case of Apple Inc., both NPS and LTV are important performance metrics to
consider. Apple is known for its strong brand image and customer loyalty, and NPS can help the
company measure and track customer satisfaction and loyalty over time. Moreover, Apple's
premium pricing strategy means that LTV is an important metric for estimating the long-term
revenue potential of each customer.

However, it's important to note that these metrics may not tell the full story of Apple's
success. Other metrics, such as customer retention rate, customer acquisition cost, and customer
lifetime margin, may also be important to consider in evaluating the effectiveness of Apple's
customer experience strategies.

Overall, NPS and LTV can provide valuable insights into customer satisfaction, loyalty, and
revenue potential, but they should be used in conjunction with other metrics to effectively
evaluating their strategies related to customer experience.

CX Processes in Different Industries

Customer experience (CX) critical success factors (CSFs) both are main elements which
organizations like Apple Inc. must prioritize to ensure successful CX initiatives. The three key
CX CSFs are governance, culture, and customer experience strategy design.

8
9

1. Governance: Governance refers to the structures and processes that guide CX decision-
making, such as defining roles and responsibilities, setting CX metrics and targets, and
ensuring CX initiatives align with overall business objectives. To implement effective
CX governance, Apple can establish a CX steering committee, designate a CX leader,
and develop a CX roadmap with clear milestones and deliverables.
2. Culture: Culture refers to the values, norms, and behaviors that shape the organization's
approach to CX. To build a CX-focused culture at Apple, the company can prioritize
employee training and development on CX principles, create CX-specific performance
metrics and incentives, and foster a customer-centric mindset across all departments.
3. Customer Experience Strategy Design: Customer experience strategy design refers to the
process of defining the company's CX goals, customer segments, touchpoints, and
desired outcomes. To implement effective CX strategy design, Apple can conduct
customer research and segmentation analysis, map out the customer journey across all
touchpoints, and prioritize initiatives that align with customer needs and preferences.

To implement these CX CSFs, Apple can follow a structured process, including the
following steps:

 Assessing the current state of CX at Apple and identify gaps and opportunities for
improvement.
 Define the CX vision, goals, and objectives based on customer needs and preferences.
 Develop a CX strategy that includes specific initiatives, timelines, and metrics to track
progress.
 Implement the CX strategy across all touchpoints, departments, and channels.
 Monitor and evaluate CX performance using metrics such as NPS, customer satisfaction,
and customer loyalty.
 Continuously improve CX based on customer feedback and evolving customer needs.

By prioritizing these CX CSFs and following a structured implementation process, Apple can
deliver a seamless and differentiated customer experience that drives customer loyalty and
business success.

9
10

Apple INC & Instagram

Apple Inc. and Instagram are two companies with a strong focus on delivering a positive
customer experience (CX). While the CX processes of each company differ in some respects,
there are similarities and key differences worth noting.

Apple Inc. has a highly structured CX process, beginning with its customer research and
segmentation analysis, which identifies the needs and preferences of its customers. Apple's CX
strategy is guided by a strong emphasis on design and innovation, with an eye towards creating a
seamless and differentiated customer experience across all touchpoints, from its website and
retail stores to its products and services. Apple's CX process also includes an extensive training
and development program for its employees, designed to cultivate a customer-centric mindset
and ensure that employees are equipped with the knowledge and skills needed to deliver an
exceptional customer experience.

In contrast, Instagram's CX process is more focused on creating an engaging and user-

friendly platform that encourages users to share and interact with content. Instagram's CX
strategy is centered on simplicity, with a focus on creating a streamlined and intuitive user
experience that is easy to navigate and use. Instagram's CX process is also highly data-driven,
with the company relying heavily on user feedback and analytics to inform its product
development and CX initiatives.

Despite these differences, both Apple and Instagram share a common commitment to
delivering a positive and differentiated customer experience. Both companies prioritize customer
research and feedback to inform their CX initiatives and rely on a mix of design, innovation, and
user engagement to create a seamless and engaging customer experience.

Conclusion
Apple's CX strategy is centered on design, innovation, and a focus on customer needs and
preferences. The company like heavily invest in research and development for creating products
that are intuitive, pleasant and easy to use. Apple's CX strategy has been very effective in
creating a strong customer base and maintaining a better brand reputation. By prioritizing design,
innovation, and customer service, Apple has been able to differentiate itself in a crowded and

10
11

competitive marketplace, and create a customer experience that is both seamless and
differentiated. So far, we discussed in consumer persona for senior customer, he was attracted
towards it because of its quality and safety feature. Secondly, we discussed about mapping the
customer journey, Omni channel marketing and etc., in which Apple has consistently ranked
highly in customer satisfaction surveys and has a loyal customer base.

11
12

References
Gawer, A., & Cusumano, M. A. (2014). Industry platforms and ecosystem innovation. Journal of
Product Innovation Management, 31(3), 417-433.

Heller, C. (2019). Apple's retail success formula: Innovative design and customer experience.
Forbes. Retrieved from https://www.forbes.com/sites/christopherheller/2019/05/21/apples-retail-
success-formula-innovative-design-and-customer-experience/?sh=5d1a5ab325af

Christensen, C. M., Alton, R., Rising, C., & Waldeck, A. (2011). The big idea: The new M&A
playbook. Harvard Business Review, 89(3), 48-60.

Peine, C. (2021). Buyer Persona: A Beginner's Guide to Building Your Marketing Persona.
Hubspot. Retrieved from https://blog.hubspot.com/marketing/buyer-persona-guide

Lemon, K. N., & Verhoef, P. C. (2016). Understanding customer experience throughout the
customer journey. Journal of Marketing, 80(6), 69-96.

Gallo, C. (2014). Mapping your customer journeys across touchpoints. Harvard Business
Review, 92(11), 62-68.

Verhoef, P. C., Kannan, P. K., & Inman, J. J. (2015). From multi-channel retailing to omni-
channel retailing: introduction to the special issue on multi-channel retailing. Journal of
Retailing, 91(2), 174-181.

Harris, L., & Dennis, C. (2019). Marketing the Apple brand: Examining consumer perceptions
and brand equity. Journal of Product & Brand Management, 28(5), 563-576.

Reichheld, F. F. (2003). The one number you need to grow. Harvard Business Review, 81(12),
46-54.

Verhoef, P. C., Lemon, K. N., Parasuraman, A., Roggeveen, A., Tsiros, M., & Schlesinger, L. A.
(2009). Customer experience creation: Determinants, dynamics and management strategies.
Journal of Retailing, 85(1), 31-41.

12
13

13