Ces 1
Ces 1
Ces 1
Student Reference
Number
(SRN)
Assessment Title
I hereby declare that I have read and understood BPP’s regulations on plagiarism and that
this is my original work, researched, undertaken, completed, and submitted in accordance
with the requirements of the BPP School of Business and Technology.
The word count, excluding contents table, bibliography, and appendices, is ___2,950_ words.
Note: To ensure uniqueness and get rid of any overlaps with the source text, the updated
assignment has been completely rewritten.
Additionally, CX is crucial to ChenOne's client retention strategy. For ChenOne, maintaining
devoted clients is essential to long-term success. ChenOne strives to cultivate long-term
relationships with clients in order to earn their continuous loyalty and repeat business by
consistently delivering excellent experiences.
5: CX performance metrics
A company's customer experience strategy can indeed be evaluated and measured for success
using performance metrics like Net Promoter Score (NPS) and Customer Lifetime Value (LTV).
Net Promoter Score (NPS):
NPS is a widely used metric to measure customer satisfaction and loyalty. It assesses the
likelihood that customers would recommend a business's products or services to others (Gao et
al., 2023). Customers are asked to rate their likelihood of recommending the business on a scale
from 0 to 10, and based on their responses, they are categorized into three groups:
Promoters (scoring 9-10): These are highly satisfied and loyal customers who are likely to refer
others to the business.
Passives (scoring 7-8): These customers are content but not highly motivated to promote the
business.
Detractors (scoring 0-6): Dissatisfied customers who may spread negative feedback about the
business.
To calculate the NPS, subtract the percentage of detractors from the percentage of promoters:
NPS = % Promoters - % Detractors
For example, if 50% of respondents are promoters and 20% are detractors, the NPS would be 30
(50 - 20).
Customer Lifetime Value (LTV):
LTV is a metric that estimates the total net revenue a business can expect to generate from a
particular customer over the duration of their relationship (Homburg et al., 2017). It takes into
account factors such as the average order value, purchase frequency, customer retention rate, and
purchasing patterns. LTV is calculated using the following formula:
LTV = Average Order Value × Purchase Frequency × Customer Lifespan
For instance, if the average order value is $100, the customer lifespan is 5 years, and the
purchase frequency is twice a year, the LTV would be $1,000 (100 x 2 x 5).
Importance of NPS and LTV for ChenOne:
Customer Satisfaction:
Both NPS and LTV are crucial performance indicators for ChenOne. A higher NPS score
indicates a strong base of promoters who are satisfied with ChenOne's products and services,
providing insights into strengths and potential areas for improvement (Jain et al., 2017).
Promoters are also more likely to engage in word-of-mouth advertising, recommending ChenOne
to others, which can drive brand expansion and attract new customers (Kandampully et al.,
2018).
Business Profitability:
LTV is valuable for assessing the financial value of customers over their lifetimes. By measuring
LTV, ChenOne can identify its most valuable customers and focus on strategies to retain and
increase their value. LTV also provides insights into customer behavior and purchasing trends,
allowing ChenOne to tailor marketing efforts, offer targeted promotions, and enhance the overall
customer experience.
In conclusion, NPS and LTV are essential metrics for evaluating ChenOne's customer experience
strategy. NPS helps measure customer happiness and loyalty, while LTV assesses the financial
impact of customer relationships. Utilizing these performance indicators, ChenOne can better
understand and enhance its customer experience, leading to increased customer satisfaction,
loyalty, and overall business success.
6: Conclusion
This study focused on ChenOne's customer experience (CX) approach in Pakistan, a prominent
retailer that sells household goods, clothing, and lifestyle items. Through various sections
comparing its CX practices with Instagram, including consumer personas, customer journey
mapping, omnichannel marketing, performance metrics, and CX critical success factors, we have
gained insights into ChenOne's CX strategy.
The conclusion drawn from this report is that ChenOne has successfully implemented a
customer-centric CX strategy. The company demonstrates a strong commitment to understanding
its customers, providing personalized experiences, and integrating multiple sales and marketing
channels to deliver a seamless customer experience. ChenOne's use of performance indicators
such as NPS and LTV allows them to assess and monitor the success of their CX efforts.
Moreover, ChenOne's focus on CX critical success factors, such as leadership, governance,
culture, and customer experience strategy design, further contributes to the effectiveness of their
CX strategy. By drawing comparisons between its CX processes and those of Instagram,
ChenOne showcases its unique strengths in catering to the specific needs of its Pakistani
consumer base.
Overall, ChenOne's customer experience strategy exhibits a comprehensive understanding of its
customers and a proactive approach to delivering exceptional experiences. This positions the
company for continued success in the competitive retail market. ChenOne's dedication to
customer-centricity will likely drive customer satisfaction, loyalty, and business growth,
ensuring a strong market presence and continued prosperity in the future.
References
BILGIHAN, A., KANDAMPULLY, J. & ZHANG, T. 2016. Towards a unified customer experience in online
shopping environments: Antecedents and outcomes. International Journal of Quality and
Service Sciences, 8, 102-119.
BOLTON, R. N., MCCOLL-KENNEDY, J. R., CHEUNG, L., GALLAN, A., ORSINGHER, C., WITELL, L. & ZAKI, M.
2018. Customer experience challenges: bringing together digital, physical and social realms.
Journal of service management, 29, 776-808.
DE KEYSER, A., LEMON, K. N., KLAUS, P. & KEININGHAM, T. L. 2015. A framework for understanding and
managing the customer experience. Marketing Science Institute working paper series, 85, 15-
121.
FOROUDI, P., GUPTA, S., SIVARAJAH, U. & BRODERICK, A. 2018. Investigating the effects of smart
technology on customer dynamics and customer experience. Computers in Human Behavior, 80,
271-282.
GAO, L., DE HAAN, E., MELERO-POLO, I. & SESE, F. J. 2023. Winning your customers’ minds and hearts:
Disentangling the effects of lock-in and affective customer experience on retention. Journal of
the Academy of Marketing Science, 51, 334-371.
HOMBURG, C., JOZIĆ, D. & KUEHNL, C. 2017. Customer experience management: toward implementing
an evolving marketing concept. Journal of the Academy of Marketing Science, 45, 377-401.
JAIN, R., AAGJA, J. & BAGDARE, S. 2017. Customer experience–a review and research agenda. Journal of
Service Theory and Practice, 27, 642-662.
KANDAMPULLY, J., ZHANG, T. C. & JAAKKOLA, E. 2018. Customer experience management in hospitality:
A literature synthesis, new understanding and research agenda. International Journal of
Contemporary Hospitality Management, 30, 21-56.
MCCOLL-KENNEDY, J. R., GUSTAFSSON, A., JAAKKOLA, E., KLAUS, P., RADNOR, Z. J., PERKS, H. & FRIMAN,
M. 2015. Fresh perspectives on customer experience. Journal of Services Marketing.
ZOLKIEWSKI, J., STORY, V., BURTON, J., CHAN, P., GOMES, A., HUNTER-JONES, P., O’MALLEY, L., PETERS,
L. D., RADDATS, C. & ROBINSON, W. 2017. Strategic B2B customer experience management: the
importance of outcomes-based measures. Journal of Services Marketing.