South African Journal of Industrial Engineering November 2016 Vol 27(3) Special Edition, pp 23-36

TOWARDS A HOLISTIC CUSTOMER EXPERIENCE MANAGEMENT FRAMEWORK FOR ENTERPRISES

L. du Plessis1,2*# & M. de Vries1†

ARTICLE INFO ABSTRACT

Article details We have entered the age of the customer where customer choice is
Presented at the 27th annual
conference of the Southern African the main differentiator between enterprises. Therefore, enterprises
Institute for Industrial Engineering need to shift their focus to customer experience management (CEM).
(SAIIE), held from 27-29 October 2016
at Stonehenge in Africa, North West,
A survey conducted within the telecommunications sector indicated
South Africa a gap between theoretical CEM approaches and their
implementation in enterprises. Although a systematic literature
Available online 11 Nov 2016
review and inductive thematic analysis of CEM literature revealed
nine common themes, none of the existing approaches includes all
Contact details of these themes in a comprehensive way. Based on those nine
* Corresponding author
[email protected]
themes, this paper presents a new holistic framework for CEM that
managers and practitioners concerned with improving customer
# The author was enrolled for an M experiences could use.
Eng (Industrial) degree in the
Department of Industrial and
Systems Engineering, University OPSOMMING
of Pretoria

† The author was enrolled for a D

Phil (Engineering Management)
Dit is die era van die kliënt — waar kliënte keuse die hoof
degree in the Department of differensieerder vir ondernemings geword het. Ondernemings moet
Industrial and Systems nou hulle fokus skuif na kliënte-ervaringsbestuur. ’n Studie gedoen
Engineering, University of
Pretoria in die telekommunikasie sektor het ’n gaping gevind tussen huidige
teoretiese benaderings en hoe hulle prakties geïmplementeer word
deur maatskappye. ’n Sistematiese literatuurstudie en induktiewe
Author affiliations
1 Department of Industrial and tematiese analise van kliënte-ervaringsbestuur literatuur het nege
Systems Engineering gemene temas opgelewer. Dit is ook gevind dat geen van die
University of Pretoria, South benaderings holisties al nege temas bevat nie. Die artikel stel ’n
Africa
nuwe benadering voor — ’n holistiese raamwerk vir kliënte-
2 Knotion Consulting (Pty) Ltd ervaringsbestuur wat deur bestuurders en praktisyne gebruik kan
word vir die verbetering van kliënte-ervarings.
DOI
http://dx.doi.org/10.7166/27-3-1624

1 INTRODUCTION

As customers’ expectations for choice between products, services, and preferred channels increase,
customer service excellence becomes increasingly important to all enterprises that deliver a product
or a service to their customers. The service-profit chain [1, 2] is one of the earliest concepts that
addresses the importance of quality customer service and its cause-and-effect relationships with
other variables in the enterprise. The service-profit chain establishes relationships between
profitability, the customer, and the employee.

Forrester Research [3] argues that since 2010 we have entered the Age of the Customer;
manufacturing strength, distribution power, and information mastery have started to dissolve as
competitive boundaries, and have largely become commoditised. According to Manning and Bodine
[3], customer choice is becoming the main differentiator, and enterprises need to shift their focus
to customer experience management (CEM).

The customer experience challenge is one faced by all services companies, including those in
telecommunications. As these companies face increased competition and declining average revenue

23
per user (ARPU) [4], they also have to focus on customer experience improvement to differentiate
their services from their competitors. A global survey conducted by the Tele-management Forum,
which sampled 18 telecommunications service providers, indicated that the majority of them
(especially those in emerging countries such as South Africa) identified CEM as an important strategic
focus area [5].

However, implementing a capability for good CEM in an enterprise and improving the customer
experience continuously are not simple matters. Many factors influence the customer’s experience
and inevitably affect customer satisfaction or dissatisfaction. The service-profit chain [1,2]
mentions service value, employee loyalty, productivity and satisfaction, as well as internal service
quality, as factors that influence the customer experience. According to Meyer and Schwager [6] ,
customer experience does not improve until it becomes a top priority and until a company’s work
processes, systems, and structure change to reflect this customer-centric priority. Rae [7] agrees
that companies are starting to focus on the importance of customer experience and the complex
mix of strategy, integration of technology, orchestrating business models, brand management, and
executive commitment.

A survey was conducted to assess the maturity of CEM in telecommunication companies in South
Africa and the use of existing CEM approaches and tools, as well as their perceived success/usability
[8]. The survey questions were based on a study by Forrester [9], in which the maturity and practices
of 86 customer experience professionals from global companies were assessed. The survey was sent
to various employees in large telecommunication companies in South Africa, and 32 responses were
obtained. The detailed survey discussion and the results are discussed in Du Plessis [8]. The key
findings from the survey results indicated that:

• Many telecommunications providers are focused on CEM as a strategic initiative, and have
dedicated, centralised CEM teams. However, CEM efforts are still distributed across the
enterprise, and are not coordinated in a single, holistic approach.
• The biggest obstacles to CEM implementation were: (1) Operational priorities override
importance; (2) The enterprise culture is not conducive to customer-centricity; (3) A lack of
understanding of customer experience and CEM; and (4) A knowledge gap about how to
operationalise customer experience and channel the results to the business to drive change.

Based on the results of the preliminary survey, it can be argued that there is a gap between current
theoretical CEM approaches and their practical implementation in South African telecommunication
enterprises. A research question that needs to be investigated is whether a comprehensive CEM
approach that includes existing CEM tools and techniques in a holistic way could enhance their value,
and lead to improved customer experiences within a telecommunication enterprise. In searching for
a comprehensive CEM approach, this paper presents the results of a systematic review of the existing
CEM literature, followed by an inductive thematic analysis to extract nine common themes from the
existing CEM approaches. Since the thematic analysis of the existing literature indicates that none
of the existing theoretical approaches includes the nine themes in a comprehensive way, it is
suggested that a holistic CEM framework is developed. The main contribution of this paper is the
development of a comprehensive CEM framework, based on the nine themes identified in the
literature. Implementation of the framework should ultimately lead to improved customer
experiences and higher profits for the enterprise.

The structure of this article is as follows: Section 2 presents the research approach that was followed
and the data-gathering instruments that were used to elicit nine common themes from the existing
CEM literature. Section 3 presents the results of the systematic literature review to define key
concepts within CEM. Section 4 presents the quantitative results of the inductive thematic analysis
of existing CEM models and frameworks, from which nine prominent CEM themes were derived.
Section 5 presents the CEM framework, including a short discussion of the framework components.
Section 6 concludes with recommendations for future work.

2 RESEARCH METHOD

Since the main objective of this study was to design an artefact in the form of a holistic CEM
framework, a design science research approach from Vaichnavi and Keuchler [10] was adopted. This
approach consists of five process steps. Figure 1 provides an overview of the design cycle and its
interpretation for this study in terms of the process steps.
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 Knowledge Process Interpretation for this study
Flows Steps

Awareness of A need exists for a holistic CEM

problem framework.

It is suggested that a holistic

CEM framework be developed,
Circumscription
Suggestion based on the nine themes
identified from literature.

Development Develop the CEM framework.

Evaluate the utility of the CEM

Evaluation framework.
Operation and
Goal Knowledge

Interpret the evaluation results.

Conclusion

Figure 1: Design cycle for developing the CEM framework

With reference to Figure 1, the first step in the design cycle is the preliminary awareness step,
where a preliminary survey was conducted and documented in Du Plessis [8] to confirm and identify
the need for a holistic framework for CEM. A systematic literature review was conducted as a scoping
review to provide a summary of the topics relating to customer experience, and as a prelude to
refining the research. Thereafter, in order to identify themes for CEM inductively from the
literature, the systematic review was refined to a more evidence-based review, with an inductive
thematic analysis, which verified the theoretical gap for a comprehensive CEM approach.

The main steps and guidelines used for carrying out a systematic review of Hidalgo et al. [11] are
discussed next.

1. Define the search terms. According to Colicchia and Strozzi [12], a systematic review can start
with search terms, and not necessarily with a particular research question as originally
required, especially where the review is conducted for scoping purposes. Thus the following
key words were identified for the initial review: customer experience, CEM, customer service
quality, perceived quality, customer satisfaction, and quality improvement.
2. Identify the databases, search engines, and journals that may need to be searched manually,
and query them with the chosen search terms. Since the study aimed to create an
academically-sound yet practical framework for CEM, sources from both academia and practice
needed to be used. Academic platforms searched included EbscoHost, Emerald Full Text, IEEE
Xplore, SAGE, ScienceDirect, and SpringerLink. These were supplemented with material
acquired via Google Scholar searches and citations and references from other work or scholars.
The material was also supplemented with input from practice through personal contacts, from
citations and references from practitioners, and from management books and websites.
3. Decide on and apply filters for inclusion and exclusion. For the initial scoping review, no filters
were applied other than the subject/keyword filters. All abstracts were reviewed for relevance
in terms of two criteria: (a) Does the material define customer experience or CEM? or (b) Does
the material provide a context for customer experience regarding aspects that impact
perceived experience or service quality? For the second round, which comprised the inductive
thematic analysis, the search was refined to include material from CEM models and frameworks
for identifying common themes. Guidelines from Guest et al. [13] were used during the
inductive thematic analysis. The number of citations was used as an indication of article
quality.
4. Ensure that the resulting articles are representative, by repeating the filtering process. This
study was conducted over the course of two years, and the literature review was updated
continually to ensure that the material used included the most recent and relevant literature
available.

With reference to Figure 1, the second step in the design cycle is the suggestion step. We suggested
the development of a holistic CEM framework, based on the nine themes that were identified during
the inductive thematic analysis. Since the CEM framework had to provide methodical guidance for
using existing CEM tools and techniques in a holistic way, we followed the method-design guidelines
of Offermann et al. [14] during the development step of the design cycle (see Figure 1) — i.e., the

25
development of the CEM framework. Figure 1 also includes an evaluation step and a conclusion,
which will form part of future work.

3 LITERATURE REVIEW

This section provides an overview of the existing CEM literature (Section 3.1), defines customer
experience (Section 3.2), summarises key factors that influence customer experience (Section 3.3),
and defines CEM (Section 3.4).
3.1 Existing CEM literature review
According to Fiegen [15] , a systematic literature review of 30 years should reveal evidence of a
maturing research methodology. Thus the literature from 1980 to 2014 was analysed for this study.
The timeline in Table 1 provides an indication of the evolution of the literature for the past 30 years,
starting with the work on service quality in the 1980s, and highlighting the most prominent works.
With the emergence of the service-profit chain [2] and the link between customer service and its
impact on profit, marketing, and brand management, professionals became interested in the
subject. Pine and Gilmore’s [16] article “The Experience Economy” first coined the term ‘customer
experience’, and from there many authors (practitioners and academics alike) have given attention
to the topic. This has led to multiple streams of research, with some focusing still on experience
measurement or quality measurement, whereas others have focused more on the analysis of
dimensions that influence customer experience. Another prominent difference in the literature on
customer experience is that some professionals have focused on the customer perspective of the
experience, whereas others have focused on the enterprise perspective. Only more recently (from
2008 onwards) has literature on CEM emerged, along with methods, models, and frameworks for
implementing CEM in an enterprise.
3.2 Definition of customer experience
Throughout the literature, multiple meanings are associated with the term ‘customer experience’
[43, 44]. Gentile et al. [27] provide a holistic definition of customer experience: “The customer
experience originates from a set of interactions between a customer and a product, a company, or
part of its organization, which provoke a reaction. This experience is strictly personal and implies
the customer’s involvement at different levels (rational, emotional, sensorial, physical, and
spiritual)”. Meyer and Schwager [6] elaborate that the interaction can either be direct and initiated
by the customer, such as an intentional purchase, or the interaction can be indirect, which involves
unplanned encounters with the company, such as advertising, news, reviews, or unplanned activities
in the course of purchase or service. Verhoef et al. [35] agree with this definition, adding that the
experience is holistic in nature and encompasses the total experience of the customer through its
search, purchase, consumption, and after-sale phases, and may involve multiple channels. Shaw et
al. [38] add that the experience is measured against the customer’s expectations across all these
moments of contact.

Recently, much simpler definitions have been given by practitioners. For instance, some authors
argue that customer experience is how your customers perceive their interactions with your company
[46], or that customer experience is a blend of the physical product and/or service and the emotions
it evoked before, during, and after engaging with your organisation across any touch point [48]. From
a telecoms best-practice perspective, Rich [5] defines customer experience as the result of
observations, perceptions, thoughts, and feelings arising from interactions and relationships over an
interval of time between a customer and their provider. Customer experience is not based only on
a single encounter with the customer, but rather on the entire lifecycle or collective encounters a
customer has with the company, including advertising, purchasing, using, service interactions,
cancelling the contract, or disposing of a product. Thus the customer experience is touch-point
agnostic and time agnostic.

26
 Table 1: Overview of timeline for important works in the literature on customer experience

Time 1990 1995 2000 2005 2010 2015

Zarantonello
Service quality Parasuraman Lemke et al. [36];
et al. [25];
and experience et al. [17]; Klaus and Maklan
Brakus et al.
measurement Zeithaml [18] [37]
[52]

Berry and
Carbone [51];
Berry et al. Frow and
General
[19]; Payne [26];
customer and Pine and
Heskett et Schmitt [20]; Gentile et al. Shaw et al. [38];
service Gilmore
al. [2] Carù and Cova [27]; Nasution et al. [39]
experience and [16]
[21]; Meyer and
link to profit
Shaw [22] Schwager [6];
Grewal et al.
[28]

Organisational
Blanchard et
design for Mosley [29];
al. [23];
customer Harris [30]
Galbraith [24]
experience
Voss and
Zomerdijk Zomerdijk and Voss
Experience
[31]; [40];
design
Patrício et al. Patrício et al. [41]
[32]
Kamaladevi [42];
Palmer [43];
Johnston and Kong
[44];
Worldwide
Burns [9];
Customer [33];
Clatworthy [45];
Experience Rae [7];
Manning and Bodine
Management Fisk [34];
[46];
(CEM) Verhoef et al.
Mummigatti [47];
[35]
Leather [48];
Newbery and
Farnham [49];
Walker [50]

3.3 Summary of customer, enterprise, and service relationships

Based on the literature that was reviewed and presented in Table 1, this section summarises the
complexity of the customer-enterprise-service relationship and the key factors that influence
customer experience. Figure 2 presents a conceptual model that consolidates the existing literature
on the interaction between an enterprise and the customer:

• The overlap of the two parallelograms in the model reflects the customer–enterprise overlap,
which indicates that the service experience occurs at the point where the customer and
enterprise meet (as in a model from Johnston and Kong [44]).
• The rounded rectangles in Figure 2 represent relevant enterprise capabilities and customer
actions (intensions or expectations that have an effect on perceived quality).
• Various constructs on Figure 2 are linked via arrows, indicating causal links between them.
• The ‘Moderators’ rectangles in Figure 2 represent the factors influencing the service process
between the customer and the enterprise.
• Perceived quality or service experience is measured through the four dimensions highlighted
in Klaus and Maklan [37]: product experience, outcome focus, moments-of-truth, and peace-
of-mind (POMP).
The ‘Consumer Moderators’ rectangle refers to the factors influencing the consumer’s
perception, which include the six dimensions of experience highlighted in Schmitt [20] and
Gentile et al. [27]. Two additional consumer moderators were added: past experience (t-1)
from Verhoef et al. [35] and external influences (e.g., word of mouth advertising) from Johnson
and Kong [44]. The consumer moderators influence the customer’s service expectation, which
in turn impacts on the perceived quality of the experience.

27
 Enterprise
External
Management 4
Communications to
perception of
customers
customer
expectation
Macro Economic Moderators
2
-Economy
Enterprise Translation of -Politics
Moderators perception into -Competitor Activities
1 -Brand perception
service quality
-Service quality
specifications
-Product quality
-Network quality
-Retail atmosphere 3
-Assortment
-Price
Bad quality
-Experience in
alternative channels Input Service Experience (t) Outcome
Perceived quality Intention not to
-Retail Brand Service Delivery Recommend or
Process (POMP)
Repurchase

Situation Moderators Good quality

-Location/ type of store 5
-Employee satisfaction
- Company culture

Service Expectation Intention to

Recommend or
Repurchase
Consumer Moderators

-Personal Needs (emotive, physical, relational,

sensorial, pragmatic, and cognitive) Action - Repurchase
-Past experience (t-1)
-External influences (Word of Mouth etc.)

Customer
LEGEND
Moderator Macro
Process/ grouping Decision Direct
Factors influencing 1 Gap
Funtion (Enterprise/ Causal Link
the processes Customer)

Figure 2: Enterprise-customer service model

• The ‘Macro Economic Moderator’ rectangle represents the external factors (not controlled by
the enterprise or the consumer) that can influence perceived quality. External factors include
the current state of the economy, politics, exchange rates, competitor activities, regulatory
activities, and the company’s brand [28, 35].
• The ‘Enterprise Moderators’ rectangle represents the multiple factors impacting service
delivery from the enterprise side. The enterprise management team has perceptions of the
customer’s expectations, and these perceptions are translated into experience quality
specifications (including service, product, and network quality, as modelled by Lemke et al.
[36]). The service quality specifications are used to design the ‘experience’, and can include
factors such as the channel or service interface, retail atmosphere, price, products,
assortment, brand, service personnel, and even the service process as represented by Verhoef
et al. [35]. How these enterprise factors are designed (based on the customer’s expectations)
and delivered (based on the enterprise’s capabilities) ultimately affects how the service is
experienced.
• The ‘Situation Moderators’ rectangle represents the factors that will have an impact on the
service delivered or experienced, even though it is not directly part of the design of the
customer’s experience. The ‘Situation Moderators’ include employee factors such as employee
satisfaction and company culture [53] and the type and location of the store [35].
• The Gap Model [17] is also incorporated, indicating five gaps as numbered circles in Figure 2:

1. The gap between management’s perception of consumer expectations and the consumer’s
actual expectations.
2. The gap between management’s perception of consumer expectations and how these are
translated into service quality specifications (customer experience design).
3. The gap between the designed service quality specifications and its actual delivery by the
enterprise.
28
4. The gap between the service delivered by the enterprise and how this service is advertised or
communicated to the customer.
5. The gap between the service that was expected by the customer and the perceived quality.

Figure 2 indicates the complexity and multi-faceted nature of customer experience as a management
area. Experiences are impacted by various factors; some are directly under the control of the
enterprise, such as the service given, the quality of the product, or even hygiene factors, whose
importance is only noticed in their absence. Some factors are not under the control of the enterprise
(such as available parking space, word-of-mouth advocacy, critique, competitive behaviour, or other
macro-economic factors), and these factors all combine to contribute to perceptions of the
experience.
3.4 CEM definitions
CEM represents the discipline, methodology, and/or process used to manage a customer's cross-
channel exposure, interaction, and transaction with a company, product, brand, or service
comprehensively [20]. It encompasses every aspect of a company’s offering; the quality of customer
care, but also advertising, packaging, product and service features, ease of use, and reliability [6].
These definitions indicate that CEM is a broad field that attempts deliberately to align the enterprise
and various activities in an enterprise ultimately to deliver good customer experiences that satisfy
the enterprise’s customers.

The preliminary systematic literature review revealed that there are a number of approaches
(models and frameworks), practices, and guidelines for implementing CEM, or how to ensure delivery
of good customer experiences. The next section presents the results of an inductive thematic
analysis of selected approaches.

4 ANALYSIS RESULTS

From the initial literature review, 23 approaches (models and frameworks) from different authors
were identified that relate specifically to CEM, from the period between 1993 and the more recent
approaches developed in 2014. The approaches were analysed using Guest et al.’s [13] inductive
thematic analysis guidelines to derive themes for CEM. In this section, the method and the results
of the thematic analysis on CEM approaches are discussed.
4.1 Identifying the themes
The results of the inductive thematic analysis indicated that most of the approaches incorporate
elements from two common high level themes, with some covering elements of either one or the
other, and some covering elements of both themes. These high level themes are:

• A customer experience implementation or management process.

• Organisational capabilities that support good customer experiences.

Regarding the first main theme, ‘the customer experience implementation or management process’,
most customer experience approaches include a cycle of four phases that could also be classified as
four sub-themes: customer understanding, customer experience design, customer experience
measurement, and customer experience change implementation.

When analysing the second theme, ‘organisational capabilities that support good customer
experiences’, five sub-themes emerged: strategy, leadership, organisational design, culture, and
systems, technology and processes.

In accordance with Guest et al.’s [13] best practices for thematic analysis, a code book was created
to define and identify the themes and to ensure consistency in coding. Using these codes, a
quantitative analysis followed — discussed next.

4.2 Quantitative analysis results

Table 2 provides a summary of the number of occurrences of each theme in the analysed approach
content.

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The nine identified themes occurred in most of the approaches analysed, although some themes
were more prominent than others. The most prominent themes that occurred in most models were
experience design, experience change implementation, culture, and customer understanding. Also,
it was revealed that none of the analysed approaches or articles covered all nine of the defined
themes. Since the thematic analysis was performed in accordance with Guest et al.'s [13] six
guidelines, the nine identified themes are representative of the existing CEM approaches, and can
be used as a basis for developing a holistic CEM framework. The CEM framework development is
presented and discussed in Section 5.
Table 2: CEM framework theme classification (content analysis results)

Classification Number of occurrences

Customer experience design and implementation
process:
Customer understanding 20
Experience design 26
Experience implementation 22
Experience measurement 16
Organisational factors influencing customer
experience:
Leadership 10
Organisational design 4
Strategy 19
Culture 22
Systems / Technology / Processes 10
Grand total 149

5 THE CEM FRAMEWORK

Using the nine themes identified during the inductive thematic analysis along with Offermann et
al.’s [14] method design guidelines, a creative process was followed to construct the CEM
framework’s components. Section 5.1 provides the context for the CEM framework, and Section 5.2
provides the CEM framework and its components.
5.1 Framework context
The objective of the CEM framework is to provide guidance to practitioners on how to align an
enterprise to be more customer-centric, and how to implement principles of customer-centricity in
an enterprise, which should lead to an enhanced experience for their customers. This section starts
with a definition of CEM as a common term of reference, followed by an introduction of the two
main components of the CEM framework, its scope and intended audience, prerequisites for its use,
and a graphical representation of its components.
5.1.1 Applicable definitions
The CEM framework supports the following definition for CEM: “CEM represents the discipline,
methodology and/or process used to comprehensively manage a customer’s cross-channel exposure,
interaction and transaction with a company, product, brand or service” [20]. Thus CEM is seen as a
capability used by enterprises to define, deliver, and manage good customer experiences.
5.1.2 Main components
The CEM method consists of two main parts (derived from the literature in Section 3):

• Part 1: A customer experience design and implementation process. This process is sequential,
but is also a continuous improvement process, since the customer’s needs and requirements
constantly change. These needs must be re-evaluated periodically to ensure that the enterprise
is still aligned to deliver on customers’ expectations.
• Part 2: Prerequisite building blocks ensure organisational readiness in support of the customer
experience process.

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5.1.3 Scope and audience
The CEM framework is intended to be applied in all enterprises and all industries. The intended
audience of the CEM framework is customer experience officers, marketing segment managers, or
other managers in the enterprise who intend to improve the experience of their customers. The CEM
framework can also be used by management consultants who assist enterprises to improve customer
experiences.
5.1.4 Prerequisites
CEM framework Part 1 prerequisites: Employees who are involved need to have a preliminary
understanding of the customer segment for the implementation of CEM Part 1. In the customer
experience understanding phase, the research tools that can be used are stipulated. However, since
customer research is usually time-consuming, it is suggested that the enterprise has a well-defined
customer research team that continually updates the customer research. At the very least, the
enterprise needs to be willing to conduct a short survey to obtain a minimum level of understanding
of the customer segment and of their requirements and expectations of the enterprise, prior to using
this framework.

CEM framework Part 2 prerequisites: The organisational building blocks defined in the CEM
framework are stipulated as a prerequisite for organisational readiness in support of the customer
experience implementation process (i.e., CEM framework Part 1). Since enterprises differ in size
and maturity level in respect of the building blocks, this framework does not require full maturity
of all building blocks before the CEM framework is used. However, the CEM framework Part 1 may
be less effective if the organisational building blocks are immature.
5.1.5 Graphical representation
Figure 3 gives an overview of the CEM framework, which consists of two main parts:

The Customer Experience Management Framework

PART 2: Building Blocks
PART 1: Customer Experience Design and Implementation Process:
for Customer Experience:
1
Customer Customer Experience
1.1 Define the segment and assess customer requirements
1 Experience 1.2 Define customer needs and requirements of the journey Strategy
understanding
2
2.1 Define the macro journey Leadership Buy-in
Customer 2.2 Define the micro journeys or steps including customer
2 perspective, enterprise perspective and support requirements
Experience 2.3 Define the moments of truth 3
design 2.4 Map the positive experience, versus negative experience Customer Experience
outcomes or service failures as well as the detection mechanisms
Culture
Customer 3.1 Define internal (process) measurements 4 Customer Experience
3 Experience 3.2 Define external (customer) measurements
3.3 Implement escalation mechanisms ready Organisational
measurement
Design
5
Customer 4.1 Identify gaps in experience design versus current Customer Experience ready
organisational capability
Experience 4.2 Differentiate between new enterprise actions, or existing systems, processes and
4
Change actions and prioritise improvement initiatives technology
implementation 4.3 Establish working groups

Figure 3: The CEM framework

Part 1 is a customer experience design and implementation process, consisting of four stages. The
stages are sequential (as indicated by the black arrows between the stages in Figure 3), but also
iterative (as indicated by the curved arrow on the left), since customer needs and requirements
constantly change. Customer needs must be re-evaluated periodically to ensure that the enterprise
is still aligned to deliver on the customer’s expectations.

Five building blocks are required for organisational readiness in support of the customer experience
process, as indicated in Part 2 of Figure 3. These building blocks are not sequential. However, the

31
double-sided black arrow between Part 1 (on the left) and Part 2 (on the right) indicates that there
is a dependency between the implementation process and the building blocks.
5.2 Framework detail
In this section, more detail is provided for Part 1 (see Table 3) and Part 2 (see Table 4) of the CEM
framework, describing the detailed actions/guidelines, tools, and techniques that are suggested, and
the desired outcomes expected for each phase or building block. Table 4 provides detail on the
organisational elements in support of the customer experience implementation process.
Table 3: The CEM framework Part 1: Customer experience implementation process
Implementation of the customer experience process
Phase Actions / Guidelines Tools / Techniques Desired outcomes
1 1.1 Define the segment. The customer canvas. Defined customer segments,
understanding

1.2 Define customer needs prioritised for maximum

Customer

and requirements for the business benefit.

journey (after Step 2.2). Understanding of customer
needs and expectations.

2 2.1 Define the macro journey. Action research; Value chain Defined high level journey for
2.2 Define the micro journeys, mapping/Process mapping; a customer segment.
including customer Service blueprint; Defined lower level journey
perspective, enterprise Journey mapping; for a particular customer
Design customer journey

perspective, and support Moment mapping; Poka- segment.

requirements (systems, people Yoke/ Fail-safeing.
and information). Identified moments of truth.
2.3 Define the moments of
truth (highest value) aligned Identified failure points,
to the expectations defined in resolutions, and detection
Step 1.2. mechanisms.
2.4 Map the positive
experience versus negative
experience of outcomes or
service failures, as well as the
detection mechanisms.
3 3.1 Define internal (process) Combination of customer A process dashboard
measurement points, or Key (perception) and enterprise measuring all key customer
Customer experience

Performance Indicators (KPIs) (descriptive and outcome) processes and moments of

for future measurement. measures. truth.
measurement

3.2 Define external (customer) Feedback mechanisms to

measurement points (KPIs) for Benchmarking. monitor customer feedback
future measurement, and continually.
implement escalation Defined competitor
mechanisms. performance on key
3.3 Benchmark key customer processes.
processes against competitors.

4 4.1 Identify gaps in experience Gaps identified from the Defined initiatives for
design versus current failure/mitigation analysis improving customer
change implementation
Customer experience

organisational capability. defined in Step 2.4; experience.

4.2 Differentiate between new Prioritisation matrix; Prioritised list of initiatives,
enterprise actions and existing Action research focus groups; according to impact on
actions, and prioritise Cross-functional process customer satisfaction and
improvement initiatives. owners. customer dissatisfaction.
4.3 Establish working groups A mobilised, cross-functional
to implement initiatives, working group with delegated
monitor progress, and give authority to implement
feedback to executive process customer experience
owners. initiatives.

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 Table 4: The CEM framework Part 2: Organisational building blocks
Building blocks
Building Actions / Guidelines Tools / Techniques Desired outcomes
block
1 1.1 Define the customer Customer strategy A defined customer vision and
Define the customer vision. questions; Customer strategy that is understood and
experience strategy 1.2 Define the customer segmentation; Customer endorsed throughout the
experience strategy per profitability; Customer enterprise.
customer segment (using management strategy.
information gathered from
customer understanding,
Steps 1.1 and 1.2).
1.3 Communicate and
cascade the strategy.
2 2.1 Assign a Chief Customer Organisation maturity Formal executive leadership
Experience Officer. assessment for CCO commitment for customer
Create leadership

2.2 Assign process owners to readiness. experience initiatives.

the identified prioritised Owners with the required
buy-in

processes (using the authority assigned to key

processes identified in the customer processes.
customer experience journey
design, Step 2.2).
2.3 Create management buy-
in and commitment.
3 3.1 Implement customer A workforce (employees and
experience branded training. partners) that understands and is
Implement a customer

3.2 Implement a reward and motivated by the customer

experience culture

recognition system. experience strategy, and how

3.3 Implement performance their jobs impact on the
management KPIs for all customer experience.
employees specific to
customer experience.
3.4 Ensure that the
recruitment process targets
customer experience-centric
candidates.
4 4.1 Implement an An organisational structure that
Align the organisational

organisational structure that supports the key customer

functions to customer

supports the end-to-end processes end-to-end,

customer segment processes eliminating silos and breakages
segments

if required. in the customer chain.

4.2 Ensure alignment of
Service Level Agreements
(SLAs) across functions.

5 5.1 Create a customer A defined technology and data

experience-centric strategy that aligns with the
Implement systems, processes, and
technology aligned to customer

technology strategy customer strategy.

incorporating the new A consolidated data warehouse
technology requirements of for all customer transactions.
experience strategy

customers. A BI toolset and skills to

5.2 Create a single view of implement customer analytics
the customer. and forecasting.
5.3 Create a customer Standards that are implemented
analytics or Business and used to manage change to
Intelligence (BI) capability. any systems, processes,
5.4 Create a set of technology, or data
consistent customer infrastructure.
experience standards to be
used for all system and
process design initiatives.

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6 CONCLUSION AND RECOMMENDATIONS

CEM is becoming a strategic focus area, especially within the telecommunications industry. Yet a
preliminary survey conducted by Du Plessis [8] to assess the maturity of CEM in telecommunication
companies in South Africa indicated a gap between current theoretical CEM approaches and their
practical implementation. In the search for a comprehensive CEM approach, this paper presented
the results of a systematic literature review of the existing CEM literature. From the literature
review, key concepts for customer experience and CEM were defined. In addition, the literature on
service and quality management, customer satisfaction, and perception management was
synthesised within a single model, called the enterprise-customer service model (see Figure 2),
which is also one of the contributions of this paper. The enterprise-customer service model
consolidates the intricacies of the customer-enterprise relationship, and indicates that the service
experience occurs at the point where the customer and the enterprise meet. Various enterprise
capabilities and customer intentions or expectations have an impact on perceived quality. In
addition, multiple moderators (consumer, macro-economic, enterprise, and situation) directly or
indirectly influence perceived quality. The model also highlights five gaps that can have a negative
effect on perceived quality.

The enterprise-customer service model created the necessary context for analysing existing CEM
approaches (models and frameworks) and identifying nine common themes via inductive thematic
analysis, while applying guidelines from Guest et al.[13]. The results of the inductive thematic
analysis validated the existence of nine common themes. The results also indicated that no single
approach addresses the nine themes comprehensively.

Following a design research approach to address the gap in the existing CEM literature, this paper
presented a newly-developed artefact, a holistic CEM framework, as its main contribution. Using the
nine themes identified during the inductive thematic analysis and the guidelines of Offermann et al.
[14] on method design, a creative process was followed to construct the CEM framework
components.

The CEM framework, which consists of two parts, is intended to be applied in all enterprises and all
industries, and is useful to managers and practitioners who are concerned with improving customer
experiences. Part 1 of the CEM framework provides a customer experience design and
implementation process, while Part 2 provides prerequisite building blocks that ensure
organisational readiness in support of the customer experience process (Part 1).

Derived from nine common themes in the literature, the CEM framework is a theory-ingrained
artefact that consolidates existing fragments of CEM practices, tools, and techniques in a holistic
framework. Future work is required to evaluate the utility and validity of the framework by
implementing it in a telecommunications enterprise.

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