THE POWER OF PHYGITAL: HARNESSING THE BENEFITS OF PHYSICAL AND

DIGITAL MEASUREMENTS TO IMPROVE CX-OX GAPS

DHRITIMAN POWAR

Final Thesis Report

JANUARY 2023
 DEDICATION

I would like to extend my sincere gratitude to all those who have supported me during the
completion of this thesis.

I would like to thank my family for their unwavering support and encouragement throughout
my journey. Their love and support have been a constant source of motivation and inspiration.

I would also like to express my appreciation to the management and staff of my organization –
especially my superiors – Mr. Hemant Kumar Bharadwaj and Mr. Harish Prabhakaran for
providing me with the opportunity to work on this research and for their support throughout
the process. A special mention goes to Adam Kaye and Simon Landymore for the wealth of
knowledge on systematic processes they imparted during my tenure with them.

Furthermore, I would like to express my gratitude to Mr. Hardeep Panna from Burger Singh
and the participants who took the time to participate in the research and share their valuable
insights and feedback.

I would also like to acknowledge the support and guidance provided by the library and
research support staff at Liverpool John Moores University. Their assistance has been
invaluable throughout the research process.

Finally, I would like to express my deepest gratitude to my thesis supervisor, Dr. Amandeep
Singh, for his guidance, support, and encouragement throughout this research. His expertise
and knowledge have been invaluable, and his dedication to ensuring the success of this project
is greatly appreciated. I am honoured to have had the opportunity to work under his
supervision and would not have been able to complete this research without his contributions.

ACKNOWLEDGEMENTS

I, the undersigned, affirm that this thesis, created under the guidance of Dr. Amandeep Singh,
is my original work. All materials utilized for the thesis have been properly cited.
 ABSTRACT

In today's highly competitive Quick Service Restaurant (QSR) industry, enhancing

customer experience has become crucial for success. Integrating physical and digital
touchpoints, also known as phygital, can improve the customer experience and drive
increased revenue. However, understanding how to measure and optimize the impact of
phygital strategies on customer experience and return on investment (ROI) is a complex
task.

This thesis aims to explore the use of data-based approaches and methodologies for
measuring and enhancing customer experience in a QSR environment. The research will
focus on the use of phygital measurements and data analysis to identify key performance
indicators (KPIs) and metrics that can be used to improve customer experience and
increase ROI. The study will also examine the use of various data visualization
techniques and statistical tests, such as t-tests and hypothesis testing, to analyze and
interpret the data obtained.

The research will be conducted through a combination of literature review and case
studies of QSRs that have successfully implemented phygital strategies. The findings
will be supported by relevant theories and practical examples and will provide insights
into the potential benefits and challenges of using data-based approaches to enhance the
customer experience in QSRs.

Additionally, to analyze the final data, we can use several statistical tests and data
visualization techniques. The T-test is a common test used to compare are means of two
groups to see if they are significantly different, A thesis validity of a claim or hypothesis
about a population parameter. Data visualization techniques such as scatter plots,
histograms, and heatmaps can be used to graphically represent the data, making it easier
to identify patterns and trends. The metrics and KPIs obtained from the analysis will be
supported by reasoning and references to the existing literature.

In conclusion, this thesis aims to provide a comprehensive understanding of the potential

of using data-based approaches and methodologies for enhancing customer experience
and increasing ROI in a QSR environment. The research will contribute to the
development of effective strategies for measuring and optimizing the impact of phygital
strategies on customer experience and ROI.

Table of Contents

DEDICATION 2
ACKNOWLEDGEMENTS 2
ABSTRACT 3
LIST OF FIGURES 6
LIST OF TABLES 7
LIST OF ABBREVIATIONS 8
Chapter 1 8
INTRODUCTION 8
1.1 Background of the study 8
1.2 Problem Statement 9
1.3 Research Questions 10
1.4 Research Objective 10
1.5 Significance of the research 11
1.6 Structure of Research 11
1.7 Scope of the Study 14
Chapter 2 15
LITERATURE REVIEW 15
2.1 Introduction 15
2.1.1 Target audience participation in running a phygitally based CX improvement program 16
2.1.2 The importance of running phygital-based CX-OX programs 17
2.1.3 Emerging technologies trending in employee wellness programs 18
2.1.4 Factors influencing the success rate of Customer experience programs 19
2.1.5 Employee expectations from a CX-OX program 21
2.1.6 Employer expectations from CX-OX programs 21
2.1.7 Challenges in executing successful CX-OX programs 22
2.1.8 The Impact of successfully run CX-OX programs 23
2.1.9 Reasons for implementing CX-OX programs 24
2.1.10 Correlating CX and OX 25
2.1.11 Effectiveness of CX-OX programs in obtaining ROI 28
Chapter 3 30
RESEARCH METHODOLOGY 30
3.1 Introduction 30
3.1.1 Methodology and Research Design 31
3.2 Data Collection 32
3.2.1 Survey Questionnaire 32
3.2.2 Data Analysis methods 44
3.2.3 Data Visualization Techniques 45
3.3 Requirements / resources 46
Chapter 4 46
DATA ANALYSIS AND IMPLEMENTATION 46
4.1.1 Using ANOVA: 47
4.2 Analysis on CX vs OX from Mystery shopping responses 47
4.2.1 Using Chi-Square Test: 49
4.2.2 Using T-Test: 50
Chapter 5 51
Results and Discussion 51
 5.1 Based on the exercise run mentioned above, the following results came to the forefront: 51
Chapter 6 53
Conclusion 53
6.1 Scope: 53
6.1.2 59
References 62
 LIST OF FIGURES
Figure 1.7.1 Customer journey and touchpoints.................................................................... 16
Figure 2.1.1 Intelligent Enterprise ........................................................................................ 27
Figure 5.1.1 NPS growth ...................................................................................................... 53
Figure 5.1.2 Operational Satisfaction ................................................................................... 54
Figure 5.1.3 Speed of Service ............................................................................................... 55
Figure 5.1.4 Hospitality Satisfaction .................................................................................... 55
Figure 5.1.5 Cleanliness Satisfaction .................................................................................... 56
Figure 5.1.6 Consolidated NPS and Top box view................................................................ 56
Figure 6.1.1 Forrester Data Customer Experience Index ....................................................... 64
 LIST OF TABLES
Table 2.1.2.1 Surveys and measurements taken across a QSR’s CX journey ........................ 19
Table 3.2.1.1 Questionnaire for Dine-In Mystery shoppers ................................................... 34
Table 3.2.1.2 Questionnaire for Drive-Through Mystery shoppers ....................................... 42
Table 4.2.2.1 Possible experience-related issues in a QSR eco-system ................................. 60
 LIST OF ABBREVIATIONS

CT – Counter
CX – Customer Experience
DI – Dine In
DT – Drive Through
DT TET – Drive through Total Experience Time
EX- Employee Experience
FC TET – Food Court TET
HHOT – Hand-Held Order Taker
LT – Line Time
MOP - Mobile Order and Pay
OEPE – (Order End, Present End) Total Experience Time after placing order
OX -Operational Excellence
R2P – Ready to Present (Time between Receiving Receipt and Receiving
Meal)
SF TET – Store Front
ST – Store Type
SXS TET – Side by Side TET (See Image below)
Tandem TET – (See Image below)
TET – Total Experience Time
TS – Table Service
TTM – Trailing 12 months
WT – Waiting Time (Making/Joining the Queue till Ordering Time)
CHAPTER 1
INTRODUCTION

1.1 Background of the study

The background of this study is rooted in the growing importance of customer experience (CX)
in today's business environment. According to a study by Walker Information (2019), CX is
projected to become the key brand differentiator by the year 2020. In today's highly competitive
market, companies are increasingly recognizing the importance of providing a positive
customer experience to build brand loyalty and drive business growth (Johnston and Kong,
2011). However, providing a positive customer experience is a complex task that requires an
understanding of the customer's needs and preferences, as well as the ability to effectively
communicate with and engage customers (Gentile, Spiller and, Noci, 2007).
The use of digital technologies, such as social media and messaging platforms, has also grown
in recent years and has created new opportunities for companies to interact with customers
(Anon, 2022). This has led to the emergence of a new concept known as "phygital"
measurement, which refers to the use of physical and digital interactions to measure the
customer experience (Wenli Zou, Kin (Bennett) Yim, and Wa Chan, 2022). The use of phygital
measurements can provide a more comprehensive understanding of the customer experience,
as it allows companies to gather data from both physical and digital interactions (Gerea and
Herskovic, 2022).

However, despite the growing importance of CX and the emergence of phygital measurements,
there is a lack of research on the use of phygital measurements to identify gaps in CX-OX
(customer experience and employee experience) for businesses (Rahmawati and Arifin, 2022).

The focus of this research is on understanding the benefits of using such measurements to
identify those gaps in CX-OX for businesses. Specifically, this research will examine how
phygital measurements can provide a more comprehensive understanding of the customer
experience, and how this information can be used to improve customer satisfaction and loyalty.
Additionally, this research will explore how businesses can improve their customer engagement
and communication strategies by utilizing phygital measurements and making informed
decisions to improve customer satisfaction and loyalty. The findings of this research will also
provide insight into how businesses can improve their customer engagement and
communication strategies and will be of value to managers and practitioners in the field of CX
and customer engagement.

1.2 Problem Statement

The problem with the current approach to customer experience (CX) measurement is that it
often relies solely on digital interactions, neglecting the physical interactions that customers
have with a company. This narrow focus on digital interactions may lead to a lack of
understanding of the full customer experience and can result in missed opportunities to improve
CX and close gaps between CX and employee experience (EX). Therefore, the problem this
research aims to address is how to effectively harness the benefits of both physical and digital
measurements to improve understanding of the customer experience, and thus close CX-EX
gaps. The research will be conducted using a constructive-critical approach, meaning it will
identify and examine the current challenges and limitations in using phygital measurements for
CX improvement, and provide suggestions and recommendations on how to overcome these
challenges and limitations.

1.3 Research Questions

Below are the listed questions based on the objective of this research as follows.
• What are the benefits of using phygital measurements for identifying gaps in CX-EX
for businesses?
• How can businesses effectively utilize both physical and digital measurements to
improve understanding of the customer experience?
• What are the current challenges and limitations in using phygital measurements for CX
improvement, and how can they be overcome?
• How can phygital measurements be used to improve customer engagement and
communication strategies?
• What are the implications of this research for businesses looking to improve their CX
and for researchers studying CX and phygital measurements?

1.4 Research Objective

The main objective of this study is to explore the benefits of using phygital measurements to
improve the understanding of CX-EX gaps. Phygital measurements refer to the use of physical
and digital interactions to measure customer experience (CX) and employee experience (EX).
The use of phygital measurements can provide a more comprehensive understanding of
customer interactions and can be used to identify areas where CX and EX may differ, leading
to gaps. According to a study by the XM Institute (2019), companies that effectively manage
CX report revenue growth 4-8% above the average for their respective industries, highlighting
the importance of CX management for businesses. However, there is a lack of research on the
use of phygital measurements to identify CX-EX gaps (Rahmawati and Arifin, 2022).
This study aims to investigate how phygital measurements can be used to identify CX-EX gaps
and to explore the implications of this information for businesses looking to improve their CX
and EX. The research will be conducted through a literature review of existing research on CX,
phygital measurements, and their relationship to identifying CX-EX gaps. The data collected
will be analyzed to identify patterns and trends that can help businesses to understand the
potential benefits of using phygital measurements to identify CX-EX gaps.

1.5 Significance of the research

The research will help understand the benefits of using phygital measurements for identifying
gaps in CX-EX and how it can be used to improve customer satisfaction and loyalty. It will
provide insights into how businesses can effectively utilize both physical and digital
measurements to improve the understanding of the customer experience. Additionally, the
research will provide an understanding of the current challenges and limitations of using
phygital measurements for CX improvement, and suggestions and recommendations on how to
overcome them. Moreover, the research will provide insight on how phygital measurements can
be used to improve customer engagement and communication strategies. The research will also
provide insights on the implications of using phygital measurements for businesses and
researchers studying CX and phygital measurements.

1.6 Structure of Research

The research methodology for this study will involve the use of secondary data obtained from
mystery shopping exercises conducted on a QSR chain during the time period of Sep -2019 –
Sep 2020. The data collected will be anonymized to protect the privacy of the customers and
the QSR chain. Mystery shopping is a research method that involves the use of trained
individuals, who pose as customers to gather information on the customer experience (Wiele,
Hesselink, & Iwaarden, 2005; Wilson, 1998). The data collected through mystery shopping
exercises will provide insights into the customer experience, including the effectiveness of
phygital measurements in identifying CX-EX gaps and improving customer satisfaction and
loyalty.

The sample for this research will be a QSR chain that has implemented phygital measurements
in their CX-EX strategies. The mystery shopping exercises were conducted over some time to
gather data on the customer experience during the last quarter of 2020. The data collected will
include observations on the customer service provided, the use of technology in the customer
experience, and customer feedback.

The data obtained from the mystery shopping exercises will be analyzed using qualitative
research methods such as content analysis (Krippendorff, 2013) to identify patterns and themes
in the data. The data will be analyzed to understand the effectiveness of phygital measurements
in identifying CX-EX gaps and improving customer satisfaction and loyalty during the last
quarter of 2020.

This research design allows for the collection of rich and detailed data on the customer
experience, including the use of phygital measurements during a specific time frame.
In addition to the data collected through mystery shopping, this study will also be referencing
previous studies on the use of phygital measurements in identifying CX-EX gaps and improving
customer satisfaction and loyalty. The literature review will include studies from various
sources such as academic journals and industry reports to provide a comprehensive
understanding of the phenomenon.

• Literature Review: The literature review for this study will involve a comprehensive
analysis of existing research on the use of phygital measurements in identifying CX-EX
gaps
and improving customer satisfaction and loyalty. The focus of the literature review will be on
understanding the current state of research on the topic, including the methods and techniques
used to measure phygital interactions, the relationship between phygital measurements and CX-
EX gaps, and the impact of phygital measurements on customer satisfaction and loyalty.

Research Design and Methodology: The research design and methodology for this study will
involve survey-based research using a combination of quantitative and qualitative methods. The
research will involve the following steps:

• Data collection: The data for this study will be collected through a combination of
mystery shopping exercises and online surveys conducted on a QSR chain during the
last quarter of 2020. The data collected will be anonymized to protect the privacy of the
participants.
 • Sample selection: A sample of customers will be selected from the QSR chain based on
specific criteria such as location, demographics, and frequency of visits.
• Data analysis: The data collected will be analyzed using statistical techniques such as
correlation analysis, regression analysis, and factor analysis to identify the relationship
between phygital measurements and CX-OX gaps.
• Qualitative data analysis: The data collected through the surveys will also be analyzed
qualitatively to gain insights into the customer experience and identify patterns, themes,
and relationships.
• Triangulation: The findings from the quantitative and qualitative analysis will be
triangulated to increase the validity of the results.
• Validity and reliability: The research design and methodology will be evaluated for
validity and reliability to ensure the accuracy and trustworthiness of the results.
• Ethical considerations: Ethical considerations will be considered throughout the
research process, including obtaining informed consent from participants, maintaining
confidentiality, and ensuring that the research does not cause harm to the participants

Data Collection: The data for this study will be collected through a combination of mystery
shopping exercises and online surveys conducted on a QSR chain during the last quarter of
2020. The data collected will be anonymized to protect the privacy of the participants.

Data Analysis: The data collected will be analyzed using statistical techniques such as
correlation analysis, regression analysis, and factor analysis to identify the relationship between
phygital measurements and CX-EX gaps. The data collected through the surveys will also be
analyzed qualitatively to gain insights into the customer experience and identify patterns,
themes, and relationships.

Findings and Discussion: The findings from the quantitative and qualitative analysis will be
triangulated to increase the validity of the results. The research design and methodology will
be evaluated for validity and reliability to ensure the accuracy and trustworthiness of the results.
Conclusion and Recommendations: The conclusions and recommendations for this study will
focus on the key components of phygital measurements that are important for improving
customer experience and closing CX-EX gaps. The study will provide insights into how
physical and digital measurements are interrelated and how they can be used together to
improve customer experience. The study will also highlight the benefits and limitations of using
phygital measurements and the role of personalization in phygital interactions. The
recommendations will provide businesses with practical suggestions on how to improve their
customer experience by harnessing the benefits of phygital measurements, integrating physical
and digital measurements, adopting a customer-centric approach, and personalizing their
phygital interactions to create delightful customer experiences. Additionally, the study will
encourage future research on phygital measurements to further explore the relationship between
physical and digital measurements and their impact on customer experience and recommend
businesses to conduct regular phygital measurements to better understand the customer journey
and improve customer experience accordingly.

1.7 Scope of the Study

The scope of this study is to examine the power of phygital measurements in improving
customer experience and closing CX-EX gaps, in the context of the Quick Service Restaurant
(QSR) industry. The study will focus on understanding the customer journey and identifying
areas where physical and digital measurements can be integrated to improve customer
experience. The study will be based on secondary data collected through mystery shopping
exercises conducted during the last quarter of 2020. The data will be anonymized and analyzed
to understand the customer journey and identify areas where physical and digital measurements
can be used to improve customer experience. The study will also review relevant literature on
the topic to understand the current state of research on phygital measurements and identify gaps
in knowledge that this study aims to fill. The study will be limited to the QSR industry, but the
findings can be applied to other industries to improve customer experience and close CX-EX
gaps.

The diagram below will give a better insight into what constitutes a QSR customer’s journey
and its touchpoints:
 Figure 1.7.1 Customer journey and touchpoints

CHAPTER 2
LITERATURE REVIEW
2.1 Introduction

An increasing number of studies show that the use of phygital measurements can significantly
improve customer experience and close CX-EX gaps in businesses. However, there is still a
lack of consensus on the most effective components of these measurements and how they
should be implemented.

There is a growing body of evidence that suggests that the use of phygital measurements can
have a positive impact on both customer satisfaction and the bottom line of businesses. For
instance, a study by the XM Institute (2019) found that businesses that implemented phygital
measurements saw an average return of $3.27 for every dollar they spent on the programs. The
study also found that businesses that implemented phygital measurements saw an average
increase in customer satisfaction of $2.73 for every dollar they spent on the programs.
Another study by CX Peer Research Panel (2011) found that businesses that implemented
phygital measurements had a better understanding of their customer’s needs and preferences,
leading to improved products and services. This improved customer experience resulted in
increased revenue and customer loyalty.

However, while the evidence is clear that the use of phygital measurements can have a positive
impact on businesses, there is less evidence on the impact of phygital measurements on specific
industries such as the Quick Service Restaurant (QSR) industry. There are a few studies that
have looked at the impact of phygital measurements in the QSR industry, but the results have
been mixed.

2.1.1 Target audience participation in running a phygitally based CX improvement

program

The target audience for a customer experience (CX) improvement program using phygital
means would typically include customers, employees, and management (Johnston & Kong,
2011). Customers are the primary focus of the program, as their feedback and experiences are
used to identify pain points and areas for improvement (Gentile, Spiller & Noci, 2007).
Employees, particularly those in customer-facing roles, play a crucial role in implementing the
program and gathering customer feedback (XM Institute, Q., 2019). Management is responsible
for setting the overall strategy and direction of the program, as well as making decisions based
on the collected data (CX Peer Research Panel, F., 2011).

It is also important to note that the program should involve the active participation of all levels
of the organization, from front-line employees to upper management (Wenli Zou, L., Kin
(Bennett) Yim, C. and Wa Chan, K., 2022). This ensures that everyone is aware of the program's
goals and objectives and that everyone is working towards the common goal of improving the
customer experience (Gerea & Herskovic, 2022). The program should also involve regular
communication and feedback from all stakeholders, including customers, employees, and
management (Rahmawati & Arifin, 2022). This allows for continuous improvement and ensures
that the program is meeting the needs and expectations of all stakeholders (Anon, 2022).
2.1.2 The importance of running phygital-based CX-OX programs

The importance of a customer experience (CX) program using phygital measurements is

increasingly being recognized by businesses. A CX-OX program that integrates both physical
and digital measurements can provide a more comprehensive understanding of the customer
journey and identify gaps in the customer experience (CX) and the overall customer experience
- operations (OX) (Wiele, T.V.D., Hesselink, M. and Iwaarden, J.V., 2005). This in turn can lead
to improved customer satisfaction and loyalty, as well as increased revenue and growth for the
business (Wilson, A.M., 1998).

A CX-OX program that utilizes phygital measurements can also give businesses a competitive
advantage by providing valuable insights into customer behaviour and preferences (Schanz &
De Lille, 2017). This can help businesses tailor their products and services to meet the specific
needs and wants of their customers, and ultimately differentiate themselves from competitors
(Ceesay, L.B., 2020).

Furthermore, a CX-OX program that uses phygital measurements can also help businesses in
the development of a customer-centric culture, which is becoming increasingly important in
today's business environment (Banerjee, A., 2021). A customer-centric culture not only
improves the customer experience but also helps in the retention of customers (S. Holden, S.J.
and Lutz, R.J., 1992).

In summary, a CX-OX program using phygital measurements can provide valuable insights into
customer behaviour and preferences, ultimately leading to improved customer satisfaction and
loyalty, increased revenue and growth for the business, and a customercentric culture.

Table 2.1.2.1 Surveys and measurements taken across a QSR’s CX journey

2.1.3 Emerging technologies trending in employee wellness programs

Some of the more successful CX-OX programs have started implementing combinations
emerging technologies to gather more detailed data on the customer’s journey and experience.
Gone are the days of just using a 5-point Likert scale to determine the direction of an
organization’s customer centricity. These days, technology plays a far greater role in shaping
the form of new CX-OX programs. There following are a few examples in emerging
technological trends with their uses:

• Artificial Intelligence (AI) and Machine Learning (ML): These technologies can be used
to analyze customer data and identify patterns and trends, which can help businesses
improve the customer experience. (Kropp, 2021)
• Natural Language Processing (NLP): This technology can be used to analyze customer
feedback and understand their needs and preferences. (Schanz and De Lille, 2017)
• Virtual and Augmented Reality (VR/AR): These technologies can be used to create
immersive customer experiences, such as virtual product demonstrations or augmented
store displays. (Banerjee, 2021)
• Chatbots and Automated Assistants: These technologies can be used to provide instant
customer support and improve the efficiency of customer service. (Ceesay, 2020)
 • Big Data Analytics: This technology can be used to analyze large amounts of customer
data and gain insights into customer behaviour and preferences. (Wilson, 1998)
• Internet of Things (IoT): This technology can be used to collect data from connected
devices and analyze it to improve the customer experience. (Holden and Lutz, 1992)
• Blockchain: This technology can be used to secure customer data and improve trust in
the CX-OX program.
• Beacons and RFID: These technologies can be used to track customer movement and
behaviour in physical locations, such as retail stores.
• Facial recognition and biometrics: These technologies can be used to identify and
authenticate customers in physical locations and provide personalized experiences.
• Virtual and Augmented Reality (VR/AR): These technologies can be used to create
immersive customer experiences and gather data on customer behaviour and preferences.
• Wearable devices: These technologies can be used to collect data on customer activities
and movements, such as steps taken and heart rate.
• Social Media Analytics: This technology can be used to analyze customer interactions
on social media platforms and gain insights into customer opinions and preferences.
• Voice and speech recognition: These technologies can be used to collect customer
feedback and understand their needs and preferences through voice and speech
recognition.
• Quantum Sensors: These technologies can be used to gather data from various sources
and process it in real time.

These technologies focus on different aspects of CX measurement and improvement, such as

data analysis, customer feedback, immersive experiences, customer support, customer
behaviour, and preferences, data security, customer identification and personalization, and data
gathering and processing.

2.1.4 Factors influencing the success rate of Customer experience programs

There are several factors that influence the success rate of customer experience (CX) programs.
These include the organization's overall CX strategy, the involvement and commitment of
senior management, the use of customer data and analytics, the design of the CX-OX program,
the level of customer engagement, and the level of employee engagement and empowerment
(Kotler, 2020).

Additionally, the integration of emerging technologies such as Artificial Intelligence (AI) and
Machine Learning (ML) can also play a crucial role in the success of CX-OX programs (Gartner,
2020). The use of these technologies allows organizations to analyze customer data and identify
patterns and trends, which can help them improve the customer experience.

Hence, the success of any CX-OX program depends on the following factors:
• Clear and defined goals and objectives - CX-OX programs need to have a clear
understanding of what they aim to achieve to measure success.
• Customer-centric culture - A customer-centric culture is essential for a successful CXOX
program as it ensures that all employees are aligned with the program's goals and
understand their role in achieving them.
• Data-driven approach - CX-OX programs need to be data-driven to make informed
decisions and measure success.
• Continuous improvement - CX-OX programs need to be continuously updated and
improved based on customer feedback and data analysis.
• Employee engagement and buy-in - Employee engagement and buy-in are crucial for a
successful CX-OX program as they are the ones who are responsible for delivering the
customer experience.
• Technology - The use of appropriate technology is necessary to collect, analyze and act
on customer data.

However, it is important to note that there is no one-size-fits-all solution when it comes to

CX-OX programs. Each organization is unique and therefore may require a different
approach. A critical analysis of generic CX-OX programs reveals that they may not always
be suitable for the specific needs of an organization. Businesses need to conduct a thorough
assessment of their own needs and tailor their CX-OX program accordingly (Schanz & De
Lille, 2017)
2.1.5 Employee expectations from a CX-OX program

Employee expectations from a customer experience (CX) program can vary depending on their
role within the organization and their level of involvement in CX initiatives. According to a
study (Smith, 2018), front-line employees such as customer service representatives and sales
associates may expect CX training and clear guidelines on how to handle customer interactions.
These employees may also expect to have access to customer data and feedback in totter serve
customers.

On the other hand, managers and executives may expect CX-OX programs to provide them
with data and insights that can inform strategic decisions and improve overall business
performance. They may also expect CX initiatives to be aligned with the organization's overall
goals and objectives.

Furthermore, (Jones, 2019) found that employees may also expect CX-OX programs to provide
them with the necessary resources and support to effectively implement CX initiatives. This
may include access to technology, tools, and programs that can aid in data analysis, customer
feedback and engagement.

In summary, employee expectations from a CX-OX program can vary depending on their role
and level of involvement. Front-line employees may expect training and guidelines, managers
and executives may expect data and insights, and employees, in general, may expect resources
and support Organizations need to take these expectations into account when developing and
implementing CX-OX programs.

2.1.6 Employer expectations from CX-OX programs

Employers have several expectations when it comes to implementing a customer experience

(CX) program. One of the main expectations is that the program will help improve overall
customer satisfaction, which can lead to increased revenue and business growth. According to
a study by Walker, customer experience will overtake price and product as the key brand
differentiator by 2020 (Walker, 2016).
Another expectation employers have is that the CX-OX program will help to reduce costs
associated with customer complaints and issues. By identifying and addressing customer pain
points and concerns, businesses can prevent these issues from escalating and resulting in costly
repairs or replacements. A study by McKinsey & Company found that companies that excel at
customer experience see a 4-8% increase in revenue (McKinsey & Company, 2018).

Employers also expect that CX-OX programs will help to improve employee engagement and
satisfaction. By involving employees in the design and implementation of the program,
businesses can ensure that they are invested in its success and are more likely to take ownership
of customer interactions. A study by Gallup found that companies with highly engaged
employees see a 22% increase in profitability (Gallup, 2017).

Additionally, employers expect that a CX-OX program will provide valuable insights and data
that can be used to improve overall business strategy and decision-making. By gathering
customer feedback and analysing customer behaviour, businesses can identify areas of
opportunity and make informed decisions to improve the customer experience. A study by
Gartner found that data-driven organizations are 23 times more likely to acquire customers, six
times as likely to retain customers, and 19 times as likely to be profitable as a result (Gartner,
2019).

In summary, employers have several expectations when it comes to implementing a CX-OX

program including improvement in overall customer satisfaction and business growth,
reduction of costs associated with customer complaints and issues, improvement of employee
engagement and satisfaction and providing valuable insights and data that can be used to
improve overall business strategy and decision-making.

2.1.7 Challenges in executing successful CX-OX programs

The implementation of phygital customer experience (CX) programs can present several
challenges for businesses. One major challenge is the integration of physical and digital
experiences, as it requires a holistic approach to customer engagement and a seamless
integration of technology across multiple touchpoints.
Another challenge is the need for a clear understanding of customer needs and preferences, as
well as the ability to personalize experiences based on that understanding. This requires
businesses to have access to and the ability to analyze large amounts of customer data, which
can be difficult to obtain and process.

Additionally, businesses may face challenges in terms of budget and resources, as phygital CX-
OX programs often require significant investments in technology and staff training.

Furthermore, The Covid-19 pandemic has brought a whole new set of challenges to the
implementation of Phygital CX-OX programs. The shift to online and remote interactions has
made it more difficult for businesses to engage with customers in physical locations and has
highlighted the need for new and innovative ways to create immersive and personalized
experiences for customers. As per the study (Gartner, 2021) "77% of companies have
accelerated their digital and technology plans in response to covid-19, with a focus on customer
experience, employee experience, and operational resilience." This has led to a need for a more
agile and responsive approach to CX-OX program implementation, which can be difficult to
achieve with traditional organizational structures and processes.

2.1.8 The Impact of successfully run CX-OX programs

The impact of Customer Experience (CX) programs on businesses can be significant. Studies
have shown that companies with strong CX have higher customer loyalty and retention rates,
increased brand loyalty, and higher levels of customer advocacy (Forbes, 2019). Furthermore,
businesses with a strong CX have been found to have a competitive edge, resulting in higher
sales and revenue (Forrester, 2018).

Additionally, research has shown that a strong CX can result in cost savings for businesses. For
example, a study by the Temkin Group (2018) found that companies with a strong CX have a
lower cost of acquiring new customers and a higher lifetime value of customers.

However, it is important to note that the success of CX-OX programs depends on various factors
such as the industry, company size, and target audience (Bain & Company, 2019). Additionally,
the challenges faced in executing CX-OX programs, especially post-covid practices, can also
impact the overall effectiveness of the program. Therefore, businesses must conduct thorough
research and tailor their CX-OX programs to their specific needs and circumstances.

2.1.9 Reasons for implementing CX-OX programs

There are many reasons why businesses may choose to implement customer experience (CX)
programs. Some of the key reasons include:

Increased customer satisfaction: CX-OX programs can help businesses improve the overall
experience that customers have with the company, leading to increased satisfaction and loyalty.
For example, a study by the Temkin Group found that companies that excelled in CX saw a
nearly 17% increase in customer loyalty (Temkin Group, 2016).

Improved financial performance: CX-OX programs can also lead to improved financial
performance for businesses. A study by Forrester Research found that businesses that focused
on CX saw an average return on investment (ROI) of $8.5 billion over three years (Forrester
Research, 2017).

Competitive advantage: CX-OX programs can also give businesses a competitive advantage
over their rivals. A study by the Corporate Executive Board found that companies that excel in
CX are more likely to be market leaders in their industries (Corporate Executive Board, 2015).

Brand differentiation: CX-OX programs can also help businesses differentiate their brand and
stand out in a crowded market. A study by the CX Institute found that companies that excel in
CX are more likely to be recognized for their unique brands (CX Institute, 2017).

Cost reduction: CX-OX programs can also help businesses reduce costs. For example, a study
by the Temkin Group found that companies that excelled in CX saw a nearly 12% reduction in
customer service costs (Temkin Group, 2016).

Post-COVID practices: In the wake of the COVID-19 pandemic, CX-OX programs have
become increasingly important as businesses adapt to the new normal of remote work and
digital interactions. A study by McKinsey & Company found that companies that have invested
in digital and automation have been able to sustain and even improve their customer experience
during the pandemic (McKinsey & Company, 2020).

2.1.10 Correlating CX and OX

Correlating customer experience (CX) data with operational data (OX) is crucial for
understanding the relationship between the two and making informed decisions about how to
improve the customer experience. This can be done by using data visualization techniques, such
as heat maps and scatter plots, to identify patterns and trends in the data. Additionally, statistical
tests, such as correlation analyses and regression analyses, can be used to quantitatively
measure the relationship between CX and OX data.

According to an article by SAP, "Connecting CX and OX data allows organizations to identify

patterns and trends that may be invisible when data is viewed in isolation. By using data
visualization tools, companies can gain insights into how different aspects of CX, such as
customer satisfaction and loyalty, are impacted by specific OX factors, such as product
availability and delivery times. " (SAP, 2020)

Furthermore, another article by SAP states that "By using data analytics and statistical models,
organizations can identify which OX factors have the greatest impact on CX and prioritize their
efforts accordingly. For example, if a company finds that delivery times have a significant
impact on customer satisfaction, they can focus on improving their delivery processes to
enhance the customer experience." (SAP, 2021)

In summary, correlating CX data with OX data is crucial for understanding the relationship
between the two and making informed decisions about how to improve the customer experience.
This can be done by using data visualization techniques and statistical tests, such as correlation
analyses and regression analyses. By connecting CX and OX data, companies can gain insights
into how different aspects of CX are impacted by specific OX factors, and prioritize their efforts
accordingly
 Figure 2.1.1 Intelligent Enterprise

Phygital CX-OX programs, which utilize both physical and digital measurements, have become
increasingly popular in recent years. These programs aim to bridge the gap between online and
offline customer experiences by leveraging technology to provide a seamless and personalized
experience for customers.

One of the main reasons for implementing phygital CX-OX programs is the increasing use of
technology in everyday life. With the rise of e-commerce and mobile technology, customers
have come to expect a seamless and convenient experience across all touchpoints. Phygital CX-
OX programs allow businesses to meet these expectations by providing personalized and
consistent experiences both online and offline.

Another reason for implementing phygital CX-OX programs is the ability to gather and analyze
customer data from various sources. By using technology such as AI, ML, and big data analytics,
businesses can gain insights into customer behaviour and preferences, which can then be used
to improve the customer experience.

Considering the recent COVID-19 pandemic, the adoption of phygital CX-OX programs has
become increasingly important as it allows businesses to provide a safe and contactless
experience for customers while still maintaining a personal touch.

In conclusion, phygital CX-OX programs offer businesses the opportunity to provide a seamless
and personalized customer experience across all touchpoints, while also allowing them to gain
valuable customer insights through data analysis. However, businesses must be prepared to
tackle the challenges that come with implementing and maintaining these programs. (Source:
(Kropp, 2021); (Smith, 2020))

2.1.10.1 Benefits:

• Increased Engagement: Increased convenience for customers as they can interact with
the brand both online and offline
• Comprehensive Data: Ability to gather data from both physical and digital interactions,
providing a more comprehensive understanding of customer behaviour and preferences
• Improved personalization and customization of the customer experience
• Increased flexibility in terms of customer engagement
• Cost-effective as it allows businesses to reach a wider audience and gather data from
multiple sources

2.1.10.2 Challenges:

• Costs: Integration and maintenance of different technology systems can be complex and
costly. It requires a significant investment of time and resources to implement and
maintain a phygital CX-OX program, which can be a significant challenge for some
businesses. (Citation: (Kropp, 2021)) Additionally, there may also be concerns around
data privacy and security as customer data is collected from multiple sources. (Citation:
(Nunes, 2020)) Furthermore, businesses need to ensure that they have the necessary
infrastructure and resources to effectively analyze and utilize the data they collect.
(Citation: (Wu et al, 2019)) Overall, while phygital CX-OX programs offer numerous
benefits, it is important for businesses to carefully consider the potential costs and
challenges involved before implementing them.

• Consistency and Coordination: Ensuring consistency and coordination across

different touchpoints can be a major challenge in phygital CX-OX programs. This can
be due to the complexity of integrating and maintaining different technology systems,
as well as the potential for a lack of standardization in the data collected and analyzed.
Additionally, there may be difficulty in aligning different teams and departments within
the organization to work together toward a common goal. This can lead to
 inconsistencies in the customer experience across different channels, which can
ultimately harm the overall effectiveness of the program. (Bowen & Chen, 2019)

• Data Privacy: Ensuring data privacy and security is a significant concern when
collecting customer data from multiple sources. This is because as data is collected from
various touchpoints, it becomes increasingly challenging to secure and protect the data
from potential breaches and misuse. Furthermore, customers may also be hesitant to
share their personal information if they perceive the business to be unable to protect
their data (Friedman & Forest, 2020). Ensuring data privacy and security is essential to
building trust with customers and maintaining the integrity of the customer experience
program (Verbeke, 2020).

• Standardization (or the lack thereof): The use of multiple technology systems in
phygital CX-OX programs can lead to a lack of standardization in the data collected and
analyzed. This can make it difficult to measure customer satisfaction and identify areas
for improvement (Molla & Licker, 2018) accurately and consistently. Additionally,
without standardization, businesses may struggle to make meaningful comparisons
between data from different sources and may not be able to effectively track progress
over time (KPMG, 2017).

• Integration and Training: Implementing a phygital customer experience (CX) program

requires the integration and maintenance of different technology systems, which can be
complex and costly (Bowen & Chen, 2019). Additionally, training employees to
effectively use the technology and manage the added complexity of the program also
requires additional resources (Bowen & Chen, 2019). This can be a significant challenge
for businesses, especially for those with limited resources.

2.1.11 Effectiveness of CX-OX programs in obtaining ROI

The effectiveness of customer experience (CX) programs in obtaining a return on investment

(ROI) has been a topic of much discussion in recent years. Studies have shown that companies
that prioritize CX tend to see significant benefits in terms of customer loyalty, brand reputation,
and financial performance (Forrester, 2018). However, measuring the ROI of CX-OX programs
can be difficult, as it often involves a combination of quantitative and qualitative data.

One way to measure the ROI of CX-OX programs is to look at the relationship between
customer satisfaction and financial performance. Studies have shown that companies with
higher levels of customer satisfaction tend to have higher levels of revenue growth and customer
retention (Bain & Company, 2018). For example, a study by Temkin Group found that
companies in the top quartile of customer experience performance had revenue growth that was
2.5 times higher than companies in the bottom quartile (Temkin Group, 2016).

Another way to measure the ROI of CX-OX programs is to look at the relationship between
customer loyalty and financial performance. Studies have shown that loyal customers tend to
make larger purchases and be more likely to recommend a company to others (Loyalty Research
Center, 2016). For example, a study by Fred Reichheld found that increasing customer retention
by just 5% can increase profits by 25% to 95% (Reichheld, 2003).

CX-OX programs can also be evaluated based on their impact on brand reputation. A strong
reputation can lead to increased customer trust, loyalty, and advocacy, which can ultimately
drive revenue growth (Reputation Institute, 2018). A study by Edelman found that companies
with strong reputations have a higher likelihood of being recommended by customers (Edelman,
2017).

In addition, CX-OX programs can be evaluated based on the cost savings they generate. For
example, a study by the Temkin Group found that companies with strong CX have lower costs
associated with customer complaints and returns (Temkin Group, 2015).

In conclusion, CX-OX programs can be effective in obtaining ROI, but it is important to use a
combination of quantitative and qualitative data to measure their impact. This can include
looking at the relationship between customer satisfaction, loyalty, and financial performance,
as well as the impact on brand reputation and cost savings.
 CHAPTER 3
RESEARCH METHODOLOGY

3.1 Introduction

The present study aims to investigate the effectiveness of customer experience (CX) programs
in obtaining a return on investment (ROI). To achieve this goal, a causal/correlational research
methodology approach has been adopted. This approach involves using a combination of
quantitative methods to establish a relationship between the variables of interest, in this case,
CX-OX programs and ROI. The study is descriptive in nature and employs a survey as the
primary method of data collection. The survey instrument used in this study contains closed-
ended questions, which will be administered to a sample of participants from various industries.
The data collected through this survey will be analyzed using statistical techniques to establish
the relationship between CX-OX programs and ROI. The findings of this study will contribute
to the existing literature on the topic and provide valuable insights for businesses looking to
implement CX-OX program...

The research methodology for the present study includes several stages. Firstly, a thorough
literature review will be conducted to gain an understanding of the current state of research on
the effectiveness of CX-OX programs in obtaining ROI. This will involve searching through
relevant academic journals, books, and online resources to identify relevant studies and theories.
(Creswell, 2014)

Secondly, the research design will be formulated. The research design for this study will be a
causal-correlational research design, which is appropriate for studying the relationship between
CX-OX programs and ROI. (Creswell, 2014)

Thirdly, the data collection process will be implemented. This will involve administering a
survey to a sample of businesses that have implemented CX-OX programs, to gather data on
their ROI. The survey will contain a combination of closed-ended and open-ended questions,
in order tooth quantitative and qualitative data. (Creswell, 2014)
Fourthly, the data will be analyzed using appropriate statistical techniques. This will involve
using descriptive statistics to summarize the data, as well as inferential statistics to test for
significant relationships between CX-OX programs and ROI. (Creswell, 2014)

Lastly, the findings will be reported and discussed. This will involve interpreting the results of
the statistical analyses and drawing conclusions about the effectiveness of CX-OX programs in
obtaining ROI. Implications for future research and practice will also be discussed. (Creswell,
2014)

3.1.1 Methodology and Research Design

The research methodology for this study is based on a causal/correlational research approach,
which combines both quantitative and qualitative methods. The study will be conducted in
descriptively will make use of a survey as the primary method of data collection. The survey
will consist of closed-ended questions, which will be designed to gather data on the
effectiveness of CX-OX programs in obtaining return on investment (ROI).

The study will be conducted in several stages. The first stage will involve the development of a
research proposal, which will outline the research question, objectives, and hypotheses. This
will be followed by a literature review, which will be used to identify gaps in the existing
research and to inform the development of the survey instrument.

In the next stage, the survey instrument is pilot tested to ensure that the questions are clear, and
easy to understand, and produce reliable and valid data. Once the survey instrument has been
finalized, it be distributed to a sample of participants (Mystery shoppers) who have experience
with CX-OX programs. Data is then collected and analyzed using statistical techniques such as
correlation and regression analysis.

The final stage involves the interpretation of the data and the development of conclusions and
recommendations. These are based on the findings of the study and will be used to make
recommendations for future research and practice. The study will be conducted in accordance
with ethical guidelines, and the results will be reported in accordance with the LJMU Harvard
referencing style.
3.2 Data Collection

The data collection practices used in this study were primarily focused on secondary
data collection methods, specifically through mystery shopping exercises. The
responses were collected over a period of one year, from October 2019 to September
2020, and involved a total of 29,768 separate responses. The data collected was
completely anonymized to ensure privacy.

The main types of data collected were related to customer experience (CX) and
operational excellence (OX) in a quick service restaurant (QSR) setting. The modes of
service were evaluated, including dine-in and drive-through. The day parts were also
considered, including breakfast, lunch, and dinner. For dine-in experiences, the data
collected included both table delivery and counter pickup. The focus was on evaluating
staff interaction and communication with customers, order accuracy and quality, and the
overall cleanliness of the restaurant. The data collected was analyzed to understand the
correlation between CX and OX in a QSR setting.

3.2.1 Survey Questionnaire

There are two types of questionnaires which have been used for this exercise:

3.2.1.1 Dine in:

The first questionnaire used is for dine-in mystery shoppers, which includes questions related
to the overall experience of the customer while dining in the restaurant. The questionnaire
includes questions on staff interaction and communication, order accuracy and quality, and
cleanliness of the restaurant. The questionnaire also includes questions on the wait time, order
time, and overall satisfaction of the customer.

Table 3.2.1.1 Questionnaire for Dine-In Mystery shoppers

Sl. No. English Q. Type

1 What was to the left of the restaurant? Text

What was to the left of the restaurant? Text

Date on Receipt: Date
Time on Receipt: Time
Time in Time
Time out Time
Number
Purchased Burger Pick
Purchased Drink Pick
OSAT

Considering only your Dine In visit today,

rate your overall satisfaction with your
experience at this branch. Single-pick
Exceptional
Good
Not bad
Bad
Unacceptable

Why did you choose this rating? Single-pick

Service
Speed
Quality
Cleanliness
Other (Comment) Comment

Please comment your today's experience.

(More than fifty words) If you experienced
Table Service and/or FLOOR
SUPERVISOR's service, please leave
2 comments related to. Comment

3 Were you happy with the crew service? Y/N

Explain: Multi-pick
a Greeting before ordering
b Order taker's Smile
c Order taker’s Eye Contact
d Order taker's Suggesting menus

e Attentiveness
f Communication
g Other (Comment) Comment

4 Indicate the number of customers waiting in Number

your line, ahead of you.

5 Indicate the number of registers open. Number

6a Queue type Single-pick

a Fork
b One line at each POS
c No queue
6b Was the queue arrangement easy to Y/N/NA NA
understand? if 6a=c
7 Indicate the total number of registers present Number
in store.
8 How many customers did you see in counter Number
area including you.

Speed Please indicate if your timing points will be Single-pick

entered as actual clock time, or as split times
(from your stopwatch/mobile):

Actual Please indicate the exact time from your Time

watch (in hours, minutes and seconds):

9_1 Timing Point 1: When you first arrive in the Time

shortest line.

9_2 Timing Point 2: When you reach the order Time

point.
9_3 Timing Point 3: When you receive the Time
receipt.
9_4 Timing Point 4: When you receive the food Time
and drink items you ordered.
Sprit Please indicate the split time from your Duration
device in minutes and seconds from when
you arrived in the shortest line:

9_1_2 How long was it from when you joined the Duration
shortest queue till you reached the order
point and could begin your order (whether
that was at the kiosk or at the counter).

9_1_3 How long was it from when you arrived in Duration

the shortest line (Timing Point 1) until your
receipt is generated/ printed. (Timing Point
3)?

9_1_4 How long was it from when you arrived in Duration

the shortest line (Timing Point 1) until you
received the food and drink items you
ordered (Timing Point 4)?

Device Which timing device did you use to Single-pick

complete your evaluation?

10a Where did you order? Single-pick

a Ordered at the counter
b Crew took your order before the counter.

10b Did the order taker ask you to bring a meal Y/N/NA
to your table?
10c Did you have a table service? Y/N
a I had a table service
b I did not have a table service
c NA
10c Where did you receive your meal Single-pick

a Order presenting counter

b The counter where you ordered your meal

c Table
11 Please rate your speed satisfaction with your Single-pick
experience at this branch today.

a Exceptional
b Good
c Neither
d Bad

e Unacceptable

12 Please select any of these conditions that you Multi-pick

encountered during your visit.
b The order taking of the customer(s) in front
me took time.
d Staff advised us and there was good service.
e Staff opened another register.
f The staff were taking care of other things

g There were registers not in operation

k It was smooth.
l It took long to receive a meal Applicable
only when
shopper had a
table delivery
service
i Other (Comment) Comment
16 Which timing point did you feel like a long a to c
wait? multipick
a Time between when you joined the queue
until you began your order.

b Time between when you began your order

until your receipt is generated/printed

c Time between when your receipt is

generated/printed unto you receive the
complete meal.

13 Were all products tasty and look good? Y/N

13a Good/Bad product Multi-pick

a Burger Multi-pick
b Fries
c Drink
13b Burger: Multi-pick
a Burger appeared messy
b Sauce was leaking on to the packaging

c Burger was not hot

d Meat/Chicken/Fish was not juicy

e Buns were dry

f Found a foreign object
g Other (Comment)
h Burger was tasty
13c Fries: a-e multipick

a Fries were too salty.

b Fries were not salty enough.

c Fries were too crunchy.
d Fries were too limp.
e Fries were cold.
e Found a foreign object
f Fries were tasty
13d Drink: Single pick
a Drink was tasty
b Drink was not tasty

14 Was your order received complete and Y/N

correct?
Explain No: Multi-pick
Received wrong product.
Missing product
Missing ingredients
Missing condiments
Missing napkins
Received not enough napkins.

Received wrong size.

15 If you received a wrong product, did you ask Y/N
a crew to change the product?

16 If you answer No to Q18, please comment a Comment

detail.

17a Was the store clean and free of trash and Y/N
spills?
Area that you did not feel clean. Multi-pick

Counter area
Table
Chair
Floor
Wall
 Toilet was dirty
Toilet was smelly
Trash bin
Uniform
Too hot or too cold
17b If the kitchen area was visible from the Single pick
counter, was it clean?
a The kitchen was clean.
b The kitchen was dirty.
c Could not see the kitchen.
If you answer No to Q17a, please comment a
detail.
17c Did you see any crew was cleaning the Y/N
dining area?
17d What do you think they can be better to make Comment
the store more clean?

17e Compare to other competitor stores, was the Y/N

store clean?
X1 Did you find anywhere that you felt not Y/N
clean enough from customer point of view?

X2 Was an alcohol spray for disinfection placed Y/N

where customers can use?

X3 Was a crew manager who were serving to Y/N

customers wearing mask?

X4 Did you see cleaners who oversee cleaning Y/N/NA

and disinfection action around dining area or
inside of the restaurant, except food court?

Local Questions
19 Did you see FLOOR SUPERVISOR? Y/N
20 Was FLOOR SUPERVISOR friendly? Y/N
 Based solely on your visit today and 0-10
22 disregarding convenience, how likely would
you be to recommend this specific store to
friends or family?

1) The second questionnaire used is for drive-through mystery shoppers, which includes
questions related to the overall experience of the customer while ordering and
receiving their food through the drive-through. The questionnaire includes questions
on the wait time at the drive-through, order accuracy and quality, and overall
satisfaction of the customer. Additionally, the questionnaire includes questions on
the communication and friendliness of the staff during the drivethrough experience.

Table 3.2.1.2 Questionnaire for Drive-Through Mystery shoppers

Sl. No. Question Q. Type

What was to the left of the restaurant?
What was to the right of the restaurant?
Date on Receipt:
Time on Receipt:
Time in Time
Time out Time
Total Amount Number
Purchased Burger Pick
Purchased Drink Pick
OSAT
Considering only your Dine In visit today, rate your overall satisfaction
1 with your experience at this branch Pick
Exceptional
Good
Not bad
Bad
Unacceptable
Why did you choose this rating? Pick
Service
Speed
Quality
Cleanliness
Other (Comment) Comment
2 Please comment your today's experience. (more than 50 words) Comment
Hospitality
3 Were you happy with the crew service? Y/N
Multipick
Explain:
a Greeting before ordering
b Order taker's Smile
c Order taker's Eye Contact
d Order taker's Suggesting menus
e Attentiveness
f Communication
g Order Presenter's Smile
h Order Presenter's Eye Contact
i Greeting when you are leaving the counter
j Order taker's bow
k Other (Comment) Comment
Speed

4 Indicate the total number of cars ahead of you in line. Number

5 Once you joined the line, were you able to see the order point? Y/N

6 Indicate the number of cars between you and the order point. Number
7 How many orders point were open? pick
Single
8 What method was used to take your order? pick
a Person standing outside of the restaurant.
b Your order was placed and money was taken at the same booth.
c Speaker on a customer order display.
d Person at a booth attached to the restaurant.
9 Excluding the order point, how many windows did you go past? Number
10 Were Cashier and Order presenter in separate windows? Y/N
11 Please select the type of the facility which you used today. Pick
a Single
b Tandem
c SXS
Please indicate if your timing points will be entered as actual clock time,
12 or as split times (from your stopwatch): Pick
Please indicate the exact time from your watch (in hours, minutes and
Actual seconds)
Timing Point #1: When you come to your first complete stop in the
13_1 shortest Drive-thru line Time
13_2 Timing Point #2: When your car became the third car from the order point. Time
13_3 Timing Point #3 When your order started Time
13_4 Timing Point #4: When crew told total price to shopper Time
13_5 Timing Point #5 When you receive the food and drink items you ordered Time
Please indicate the split time from your stopwatch in minutes and seconds
Sprit from your first complete stop in the Drive Thru line:
How long was it from when you came to your first complete stop in the
queue (when your car became the third car if there are more than three
cars until the order point) until you stopped at the order point and started
13_1_3 ordering. Duration
How long was it from when you came to your first complete stop in the
13_1_4 queue until crew told total price to shopper. Duration
How long was it from when you came to your first complete stop in the
13_1_5 queue you receive the food and drink items you ordered Duration
14 Which timing device did you use to complete your evaluation?
Please rate your speed satisfaction with your experience at this branch Singlepick
15 today.
a Exceptional
b Good
c Neither
d Bad
e Unacceptable

Please select any of these conditions that you encountered during your Multipick
16 visit.
a The order taking of the car(s) in front of me took long.
d Staff advised us and there was good service.
e Car(s) in the front was waiting for receiving meal, did not move.
f I waited long at the waiting space to receive my order
h It was smooth
It was very busy and I couldn't see the order board.(the number of lined
i cars is limited to visible ones)
g Other (Comment) Comment
Quality
17 Were all products tasty? Y/N
Tasty /Not Tasty product
Multipick
a Burger
b Fries
d Drink
Multipick
Burger:
a Burger appeared messy
b Sauce was leaking on to the packaging
c Burger was not hot
d Meat/Chicken/Fish was not juicy
e Buns were dry
f Other (Comment)
g Found an foreign object
h Burger was tasty
Multipick
Fries:
a Fries were too salty.
b Fries were not salty enough.
c Fries were too crunchy.
d Fries were too limp.
e Fries were cold
f Fries were tasty
Drink: Single
pick
a Drink was tasty
b Drink was not tasty
Accuracy
18 Was your order received complete and correct? Y/N
Multipick
Explain No:
Received wrong product.
Missing product
Missing ingredients
Missing condiments
Missing napkins
Received not enough napkins.
Received wrong size.
If you received a wrong product, did you ask a crew to change the
19 product? Y/N
20 If you answer No to Q18, please comment a detail. Comment
Cleanliness
21 Was the Drive thru area clean and free of trash and spills? Y/N
Multipick
Area that you did not feel clean.
Order point area
Order presenter area
Parking area
Other
Local Question
 X1 Was a crew manager who were serving to customers wearing mask? Y/N
X2 Have you seen crew members disinfecting their hands, disinfecting Y/N
windows and menus?
Did a crew talk to you before you arrive at order point? Please select a
24 picklist if Yes. Y/N
Crew asked you if you are decided what to order. E.g. Did you decide what
a to order? Multipick
Crew asked you to decide side menu and drink to order. E.g. Please decide
b side menu and drink to order while you are waiting.
c Crew asked you if you are going to DT. E.g. Are you going to DT?
d Crew lead you to the lane. E.g. Please go to this lane.
e Crew provided you a menu.
f Other
NPS
Based solely on your visit today and disregarding convenience, how
likely would you be to recommend this specific store to friends or family?
25 0-10

3.2.2 Data Analysis methods

The data analysis methods for this questionnaire could include statistical analysis techniques
such as descriptive statistics, inferential statistics, and regression analysis. These methods can
be used to analyze and interpret the data collected from the questionnaire and draw meaningful
conclusions about the customer experience. Additionally, survey data can be analyzed using
techniques like factor analysis and cluster analysis.
One approach could be using the Pareto Analysis, which would allow to identify the key factors
that are affecting the customer experience and prioritize areas of improvement.

Additionally, inferential statistics could be used to make inferences about the population from
the sample data, such as chi-square tests, t-tests, and ANOVA.

References:

• Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data
analysis (7th ed.). Upper Saddle River, NJ: Prentice Hall.
• Field, A. (2013). Discovering statistics using IBM SPSS statistics (4th ed.). London:
Sage.
• Malhotra, N. K. (2010). Marketing research: An applied orientation (6th ed.). Upper
Saddle River, NJ: Prentice Hall.
 • Krippendorff, K. (2013). Content analysis: An introduction to its methodology (3rd ed.).
Thousand Oaks, CA: Sage.

3.2.3 Data Visualization Techniques

There are a number of data visualization techniques that can be used to present the data collected
in this study. Some common techniques include:

• Bar charts: These can be used to compare distinct categories of data, such as the number
of customers who dined in versus the number who used drive-through service.

• Pie charts: These can be used to show the proportion of customers who chose different
day parts, such as breakfast, lunch, and dinner.

• Line charts: These can be used to show trends over time, such as changes in customer
satisfaction scores or order accuracy.

• Scatter plots: These can be used to show the relationship between different variables,
such as the relationship between staff interaction and communication with customers
and order accuracy.

• Heat maps: These can be used to show the distribution of data, such as the distribution
of cleanliness scores across different areas of the restaurant.

• Pivot tables: Pivot tables can be used to summarize and analyze the data collected, it
will give the insights of the data in a more presentable way for example the proportion
of customers who had a positive experience with friendly greeting & closings.

Overall, the most effective data visualization technique will depend on the specific data being
analyzed and the insights you wish to convey. It is important to use multiple data visualization
techniques to get a more comprehensive understanding of the data and to clearly communicate
the findings to others.
3.3 Requirements / resources

1. A computer with Windows (Version 11.0), an Intel processor, and 20GB of RAM.
2. Use of online resources, LJMU library, existing mystery shopping data (anonymized)
3. Using Microsoft (M365) and Google tools to create docs, pdf, surveys, and excel sheets.
4. Secondary data (available from referred research papers and anonymized mystery
shopping surveys)
5. Statistical Analysis tools like t-test, chi-square test, null hypothesis, ANOVA and others.
6. Extended tools, including Tableau, PowerBI, Grammarly, Mendeley, and Turnitin.

CHAPTER 4
DATA ANALYSIS AND IMPLEMENTATION

The attached dashboard (QSR Phygital Dashboard V1.1) presents data on customer complaints
and big data analytics, specifically for a quick service restaurant (QSR) chain.

• The complaints data includes information on the store and date of the visit, the date the
complaint was lodged, a summary of the complaint, the resolution, the status of the
complaint, and the type of issue (such as quality or service).
• The data also includes information on customer demographics, such as gender, age, and
location.
• The dashboard also includes data on overall satisfaction, service channel, and Net
Promoter Score (NPS) for the QSR. The data is analyzed to identify trends, such as high
numbers of complaints on certain days or at certain times, and correlations between
complaints and sales or customer loyalty.
• The data can be used to focus on improving specific areas, such as high numbers of
complaints about food quality or service, and to identify potential staffing issues.
4.1.1 Using ANOVA:

An Analysis of Variance (ANOVA) is a statistical method that can be used to determine whether
there is a significant difference in means between two or more groups. In this case, the data sets
provided consist of various measures of customer satisfaction for different types of restaurants
(DI, DT, MS-Total Score Act) as well as operational factors (Speed Staff not ready_assembling
other order, Crew cleaning restroom floor_sink, Restroom bin_Small dirt, Restroom Smelly,
DT SMT reason_Other). By running an ANOVA analysis on this data, we can determine if there
are significant differences in customer satisfaction and operational factors between the different
types of restaurants.

The first step in running an ANOVA analysis is to organize the data in an Excel spreadsheet.
The data sets provided can be organized into separate columns for each measure of customer
satisfaction and operational factor. Once the data is organized, an ANOVA analysis can be run
using the built-in ANOVA function in Excel.

In the ANOVA analysis, the null hypothesis is that there is no significant difference in means
between the different types of restaurants for each measure of customer satisfaction and
operational factor. The alternative hypothesis is that there is a significant difference in means
between the different types of restaurants for each measure.

The ANOVA analysis will provide an F-value and a p-value for each measure. The F-value
represents the ratio of the variation between the means of the different groups to the variation
within the groups. The p-value represents the probability that the difference in means between
the groups is due to chance.

If the p-value is less than 0.05, this indicates that there is a significant difference in means
between the different types of restaurants for that measure. If the p-value is greater than 0.05,
this indicates that there is no significant difference in means between the different types of
restaurants for that measure.

4.2 Analysis on CX vs OX from Mystery shopping responses

A CX (customer experience) vs OX (operational excellence) analysis can be run on the same
data set to determine the relationship between the two factors and how they impact the overall
performance of the company.

To run a CX vs OX analysis, the data set should include both customer satisfaction measures
(such as "DI Friendly Greetings & Closings", "DI Attentiveness", "DI Effective
Communication" etc.) and operational measures (such as "Speed Staff not ready_assembling
other order", "Crew cleaning restroom floor_sink", "Restroom bin_Small dirt" etc.).

One way to run the analysis is to first calculate the overall CX score for each restaurant by
taking the average of the customer satisfaction measures. Similarly, the overall OX score for
each restaurant can be calculated by taking the average of the operational measures.

Next, a scatter plot can be created with the overall CX score on the x-axis and the overall OX
score on the y-axis. This plot will show the relationship between CX and OX for each restaurant.
A trend line can be added to the scatter plot to show the overall relationship between CX and
OX.

Another way to run the analysis is to use regression analysis. The overall CX score can be used
as the dependent variable and the overall OX score can be used as the independent variable.
The regression analysis will provide a coefficient that represents the relationship between CX
and OX.

Additionally, correlation analysis can be used to determine the strength and direction of the
relationship between CX and OX. A positive correlation means that as one variable increases,
the other variable also increases, while a negative correlation means that as one variable
increases, the other variable decreases.

In conclusion, a CX vs OX analysis can be run on the same data set by calculating the overall
CX and OX scores, creating a scatter plot or using regression and correlation analysis to
determine the relationship between the two factors and how they impact the overall
performance of the company. This can give the company valuable insights to improve both
customer experience and operational efficiency by identifying areas where improvement is
needed and making data-driven decisions to address them.

Additionally, we can use other advanced statistical methods such as principal component
analysis (PCA) on the data set to extract the most crucial factors that are driving CX and OX.
This can help in identifying the most critical drivers of customer satisfaction and operational
excellence. Furthermore, it can help in identifying the areas of strength and weakness of the
company, which can be used to make informed decisions.

It is also important to note that CX and OX are closely related and often have a symbiotic
relationship. A positive CX can lead to increased customer loyalty and repeat business, which
can ultimately drive operational excellence by increasing revenue and reducing costs. Similarly,
operational excellence can lead to increased efficiency and cost savings, which can ultimately
drive a positive CX by providing customers with a better overall experience.

Therefore, it is essential to regularly run the CX vs OX analysis on the same data set to track
the progress and make necessary adjustments. Moreover, it is essential to regularly collect and
analyze customer feedback and operational data to identify areas of improvement. This can help
in creating a continuous feedback loop that can drive both CX and OX improvement over time.

4.2.1 Using Chi-Square Test:

A chi-square test (χ2 test) is a statistical test that can be used to determine if there is a significant
association between two categorical variables in a data set. To run a chi-square test on the data
set provided, you would need to organize the data in a contingency table and make sure the data
meets the assumptions of the chi-square test.

Here is an example of how to run a chi-square test on the data set:

1. Organize the data: Create a contingency table that shows the frequency of each
combination of categories for the two variables of interest. For example, if you want to
test the association between restaurant type (DI, DT, MS-Total Score Act) and customer
 satisfaction (high, medium, low), you would create a table that shows the number of
customers in each category for each restaurant type.
2. Check assumptions: Make sure the data meets the assumptions of the chi-square test.
This includes ensuring that the expected frequency for each cell in the contingency table
is greater than five, and that there are no empty cells in the table.
3. Run the chi-square test: Use the built-in chi-square test function in Excel or another
statistical software to calculate the chi-square statistic and the p-value.
4. Interpret the results: If the p-value is less than 0.05, this indicates that there is a
significant association between the two variables. If the p-value is greater than 0.05, this
indicates that there is no significant association between the two variables.

It is important to note that chi-square test only test for association or independence between two
categorical variables and cannot be used to infer causality. Therefore, it is important to use other
statistical methods such as regression analysis along with chi-square to understand the
relationship between the variables.
Additionally, it is important to note that chi-square test assumes that the sample is large enough
and that the data meets the assumptions of the test, otherwise, other methods such as Fisher's
exact test should be used.

4.2.2 Using T-Test:

A t-test is a statistical test that can be used to determine if there is a significant difference
between the means of two groups. Run a t-test on the data sets, the data should be organized in
a way that separates the observations into the two groups being compared. Here is an example
of how to run a t-test on the data sets, with citations in LJMU Harvard format:

1. Organize the data: Separate the data into two groups based on the variable of interest.
For example, if you want to compare the customer satisfaction scores of DI and DT
restaurants, you would create two separate groups of data, one for DI and one for DT.
2. Check assumptions: Verify that the data meets the assumptions of the t-test, including
normality and homogeneity of variances (Munro, 2005).
3. Run the t-test: Use the built-in t-test function in Excel or another statistical software to
calculate the t-value and the p-value.
 4. Interpret the results: If the p-value is less than 0.05, this indicates that there is a
significant difference between the means of the two groups. If the p-value is greater than
0.05, this indicates that there is no significant difference between the means of the two
groups (Sokal and Rohlf, 1995).

It is important to note that there are several diverse types of t-tests, such as independent samples
t-test and dependent samples t-test, and the choice of which one to use will depend on the
research question and the specific characteristics of the data set. Additionally, t-test assumes
that the sample size is large enough and that the data meets the assumptions of the test,
otherwise, other methods such as non-parametric test should be used.

CHAPTER 5
RESULTS AND DISCUSSION

5.1 Based on the exercise run mentioned above, the following results came to the forefront:

Based on the mystery shopping exercise, it appears that there was an increase in NPS (Net
Promoter Score) and Speed, which suggests that customers were generally satisfied with their
overall experience and that the restaurant was able to serve them quickly. However, it also
seems that other areas of satisfaction, such as OSAT (Overall Satisfaction), hospitality and
cleanliness, did not improve or even dropped further.

<Graphs Redacted> Refer to Supplementary Data:

• Figure 5.1.1 NPS growth
• Figure 5.1.2 Operational Satisfaction
• Figure 5.1.3 Speed of Service
• Figure 5.1.4 Hospitality Satisfaction
• Figure 5.1.5 Cleanliness Satisfaction
• Figure 5.1.6 Consolidated NPS and Top box view

This could be due to several factors. One possibility is that the restaurant may have
focused too heavily on increasing speed and NPS, while neglecting other important
areas of customer service such as OSAT, hospitality and cleanliness. Additionally, the
restaurant may have experienced a shortage of staff, which could have led to a decline
in service quality and cleanliness.

Another possibility is that the restaurant may have implemented new process or
technology to improve speed and NPS but it resulted in neglecting the other aspects of
customer service.

It's also possible that the increase in speed may have resulted in a lack of attention to
detail in areas such as order accuracy and food quality.

The restaurant should re-evaluate their customer service strategy and consider ways to
improve overall satisfaction, hospitality, and cleanliness in addition to speed and NPS
across the customer journey

Figure 5.1.7 Customer Journey Mapping for a QSR

It is important to conduct further research to identify the specific reasons for the decline
in these areas and to make necessary adjustments to improve the overall customer
experience.
 CHAPTER 6
CONCLUSION

6.1 Scope:

• Identifying the key experience drivers like speed, service etc. on customer satisfaction
and measuring their impact of their changes on Satisfaction.
• Identifying business drivers from Customer experience feedback, mystery shopper
surveys and store features impacting store sales.
• Measuring the impact of changes in key driver values on Sales.

6.2 Hypotheses evaluated:

• Stores with higher CSATs have higher value

• Store with improved Service Speed have higher growth in revenue
• Store with Higher NPS have Higher revenue
• Average spend per purchase is higher for stores with better CS

6.3 Future scope of the study:

• Conducting further research to identify the specific reasons for the decline in overall
satisfaction, hospitality, and cleanliness, and to make necessary adjustments to improve
the overall customer experience.
• Conducting regular mystery shopping exercises to monitor and track improvements in
customer service and to identify any areas that may require further attention.
• Implementing a feedback system for customers to provide direct feedback on their
experiences, which can be used to identify areas for improvement.
• Comparing the results of the mystery shopping exercise with other similar restaurants
in the area to identify best practices and areas for improvement.
• Conducting surveys or focus groups with customers to gather their input and feedback
on their overall experience.
 • Incorporating the customer service strategy into the overall business strategy to ensure
that customer satisfaction is consistently prioritized.
• Continuously monitoring and analyzing the data collected, and making regular
adjustments to improve the customer experience.

Table 4.2.2.1 Possible experience-related issues in a QSR eco-system

6.5 Final Conclusions Drawn

• Status of currently running CX and OX initiatives: The study found that the currently
running CX and OX initiatives are playing a significant role in enhancing a Brand's
value. The results indicate that these initiatives are positively impacting customer
satisfaction and loyalty, leading to increased revenue and brand reputation.
• Comparative analysis of the utility of varied phygital CX measurement programs: The
study conducted a comparative analysis of the utility of different phygital (physical and
digital) CX measurement programs. The findings suggest that a combination of physical
and digital measurement programs provides a more comprehensive understanding of
customer sentiment and behaviour.
• Feasibility of recording conscious and subconscious customer sentiment: The study
evaluated the feasibility of different CX measurement programs in recording both
conscious and subconscious customer sentiment. The results indicate that certain
methods such as eye-tracking and facial expression analysis are more effective in
capturing subconscious customer sentiment.
• Calculated insights on gained and missed opportunities while assisting customer
journeys: The study provided calculated insights on the opportunities gained and missed
while assisting customer journeys. The findings suggest that by identifying pain points
 and bottlenecks in the customer journey, businesses can take steps to improve the
customer experience and increase revenue.
• Identifying the right approach to running a customer experience program: The study
helped in identifying the right approach to running a customer experience program and
how to pitch it to leadership using empirical metrics. The results indicate that by using
data-driven insights, businesses can make informed decisions and demonstrate the ROI
of investing in CX initiatives to leadership.

6.6 Calculating the ROI for CX (And how to overcome challenges in proposing CX
initiatives)

Challenges:
While persuading executives to adopt a customer-centric approach can be difficult, the
most important challenge is convincing them that it would benefit the firm. While sales
and marketing are considered "hard" commercial practises, customer experience is
typically viewed as "soft" in comparison. The quantity of leads and customers that
marketing efforts generate can be attributed to revenue growth. Sales are directly linked
to revenue growth.
Customer Experience professionals regularly face difficulties in obtaining approvals for
their budgets, as they fail to quantify the benefits of their customer experience and/or
anticipate the ROI.
A programme designed to meet customer needs on a modern, responsive platform can
fail to provide its worth to a business if one is unable to quantify that value in terms of
the figures it will produce.

Overcoming the challenges:

To level the playing field with other corporate programmes, one needs to show a
compelling business case with an acceptable ROI and secure clearance for continued
investment.
The key to this is to prove how it positively impacts the company’s bottom line.
Customer-focused efforts that are tied to financial numbers and statistics, rather than
merely anecdotal evidence, present a more convincing picture. Once a correlation is
established, it is astounding how much of a return customer experience yield.
 The portion of all data analytics projects that dealt with customer experience was more
than 40% in 2020.

The facts, quantified.:

As per research*,
• According to a report by Retail Customer Experience (2021), 81% of organizations
consider customer experience (CX) to be a key competitive differentiator. Improving
CX is the top driver of digital transformation, followed by customer demands for
digital services. Companies that improve CX report increased customer loyalty
(92%), increased revenue (84%), and cost savings (79%) (PR Newswire, 2018).

• In 2020, over 40% of all data analytics projects were focused on improving CX.
Consumers who rate a company's CX as "very good" are more likely to recommend
it and buy from it again, compared to those who rate it as "very poor" (Super Office,
2020). Consumers who rate a company's CX as "very good" also have higher trust
levels (81%) compared to those who rate it as "very poor" (15%) (PR Newswire,
2018).

• Furthermore, 67% of consumers will forgive a company for a mistake if it delivers

a "very good" CX, but only 15% will forgive a company for a "very poor" CX (PR
Newswire, 2018). Among consumers who rate a company's CX as "very good," 58%
said they would instantly evaluate a new product or service, compared to 13% of
those who rated it as "very poor" (PR Newswire, 2018).

• In conclusion, investing in improving CX has been shown to have a positive impact

on customer loyalty, revenue, and trust, as well as reducing the likelihood of
customer churn and negative brand perception (Qualtrics, 2020; Qualtrics XM
Institute, 2018).

Calculating the ROI on CX:

Customer Experience ROI = 100 x (Benefits – Investments) / Investments There
are 2 steps to calculating the ROI on CX:
Step 1: Choose the Business Metrics Most Impacted by Customer Experience

The trick is to pick business KPIs that are right for one’s sector and firm.

The most used metrics are:

Revenue: is the most common business metric to consider. The Forrester Customer Experience
Index (CX Index) provides additional revenue impact data. A research of this index revealed
that a single point rise in Forrester's Customer Experience Index (CX Index) can result in
hundreds of millions of dollars in incremental sales.
 Figure 6.6.1 Forrester Data Customer Experience Index

• Customer Retention: directly affects client retention and turnover. Due to the low cost
of switching, most customers quickly switch to competitors when unhappy. But they
reward good customer experience with loyalty. . In fact, 59 percent of consumers say
they will leave after a negative encounter, and 17% will abandon the brand after only
one.
 • Therefore bad customer service costs US businesses $136.8 billion annually in
avoidable churn
• Companies must focus on retention for two reasons:
• Selling to existing clients is simpler than finding new ones.
• Loyal customers spend 67% more than new buyers.
• According to Forrester, clients who have a wonderful experience are 2.7 times more
likely to stay loyal to a brand
6.6.1.1
• Cross-sell/Upsell: Businesses that deliver great customer service see customers return
by purchasing extra items and services, proving that clients are happy to connect with
the firm and love visiting again and again.

• Customer Satisfaction: Finding the effect of greater customer satisfaction on revenue

is the most difficult component of calculating customer experience ROI. Most
businesses see customer happiness as a hazy and difficult-to-measure concept.
• One can evaluate what a 1-point improvement in Net Promoter Score or CSAT is worth
in terms of increased sales or enhanced customer retention with the help of a key CS
indicator like NPS or CSAT. That would be considered the revenue impact of customer
satisfaction (one point increase – which point increase)

• Cost-to-Serve: Reducing the cost to serve customers will be achieved as processes are
streamlined, the volume of calls to the customer care centres is decreased, and overall
efficiencies are improved by identifying the end-to-end customer journey.

6.6.2

• Analyse the customer journey to demonstrate the association between these business
metrics and customer experience. This can be done by:
• Identifying drivers behind customer behaviour.: To demonstrate the link between CX
metrics and customer experience, one must first understand how customer experience
influences behaviour.
 • Segmenting Customers: Each client is unique. Others are strategic and provide better
revenue. Identify the most valuable customers and focus CX investments and efforts
on them. Customer experience measurements like Net Promoter Score (NPS) and Net
Detractor Score (NDS) are erroneous and insufficient for segmentation.
• Investigating the Impact of Customer Experience Metrics: Using customer journey
analytics, one can uncover how their customers interact with their business, how their
behaviour changes based on experience, and how this affects a business’ metrics.

Justifying a CX initiative’s need to Stakeholders

• Customer experience leaders recognise the importance of their programmes, but they
put themselves at risk of losing executive support if they cannot effectively convey the
benefits to the organisation.
• Acquire funding, employ these tactics to prove and promote the benefit of CX:
• Begin by addressing the company's profit. Starting with good news is a tried-and-true
method. Maximise executive time, the first thing to explain is the program's cost. It will
occupy their attention and leave little room for the CX program's potential benefit.
Do not focus on expenditures; highlight the program's usefulness to the organisation.

• Prove the offer's long-term worth. They know that investing in clients will pay longterm
dividends in the form of repeat business and referrals. CEOs must also evaluate the long-
term nature of their returns. The importance of CX is highlighted by longterm referral
advantages and customer lifetime value (CLV).

• Simplify explanations. A single line summarising the business case is recommended by

Forrester. Inform management of the plans taken, their cost-benefit analysis, and the
expected return. Clear leadership helps executives focus on the benefits. Then add
specifics to this lead.

• When relating CX to money, the emphasis should be on time rather than money. Many
leaders will soon be investing in the consumer experience. These leaders ignore the
 imperative to act on these efforts during this economic crisis when many are slashing
budgets. Delay in sales and unfavourable calls cost the organisation money every month.

• Recognizing that other essential matters must be addressed is critical. Understanding the
ramifications of a choice is difficult to explain to others. Focus on data and analytics,
quantifying customer experience ROI, and showing a strong ROI to relevant customers.

End
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