Skip to main content

Measuring and Managing Customer Experience (CX): What Works and What Doesn’t

  • Chapter
  • First Online:
The Palgrave Handbook of Service Management

Abstract

This chapter outlines key conceptualizations of Customer Experience (CX) and commonly used ways customer experience is measured, pointing out the advantages and limitations of the methods and metrics. There is no doubt that customer experience is important to both customers and organizations. However, the ways customer experience is measured by a large number of organizations globally has severe limitations at best, and at worst, the results are misleading. Customer satisfaction measures and the Net Promotor Score (NPS) have been used extensively to measure CX. In this chapter we show that NPS can be very misleading with organizations believing their customers are happy when clearly they are not. Relying on quantitative scores alone can result in significant financial losses for firms. We outline the latest thinking on CX measures demonstrating better ways to measure the customer experience over time and in real time. The chapter also discusses the importance of touchpoints and emotions expressed by customers across their journeys at the various touchpoints and the need to understand touchpoints from the customer’s perspective. We demonstrate how Artificial Intelligence (AI) can provide organizations with deep insights into what customers really think and feel and identify where the problems are, as well as the root causes, to assist organizations address problems and provide great customer experiences.

Use new technology with purpose to make the experience feel more human—without creating frustrations for customers and while empowering employees.

—Clarke and Kinghorn (2018)

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 189.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 249.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 249.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Ascarza, E., & Hardie, B. G. (2013). A joint model, or usage and churn in contractual settings. Marketing Science, 32(4), 570–590.

    Article  Google Scholar 

  • Baxendale, S., Macdonald, E. K., & Wilson, H. N. (2015). The impact of different touchpoints on brand consideration. Journal of Retailing, 91(2), 235–253.

    Article  Google Scholar 

  • Becker, L., & Jaakkola, E. (2020). Customer experience: Fundamental premises and implications for research. Journal of the Academy of Marketing Science, 48, 630–648.

    Article  Google Scholar 

  • Bitner, M. J., Faranda, W. T., Hubbert, A. R., & Zeithaml, V. A. (1997). Customer contributions and roles in service delivery. International Journal of Service Industry Management, 8(3), 193–205.

    Article  Google Scholar 

  • Bolton, R., McColl-Kennedy, J. R., Cheung, L., Gallan, A. S., Orsingher, C., Witell, L., & Zaki, M. (2018). Customer experience challenges: Bringing together digital, physical and social realms. Journal of Service Management, 29(5), 776–808.

    Article  Google Scholar 

  • Bolton, R. N., Gustafsson, A., McColl-Kennedy, J. R., Sirianni, N. J., & Tse, D. K. (2014). Small details that make big differences: A radical approach to consumption experience as a Firm’s differentiating strategy. Journal of Service Management, 25(2), 253–274.

    Article  Google Scholar 

  • Brynjolfsson, E., Hu, Y. L., & Rahman, M. S. (2013). Competing in the age of omnichannel retailing. MIT Sloan Management Review, 54(4), 23–29.

    Google Scholar 

  • Chapman, P., Clinton, J., Kerber, R., & Khabaza, T. (2000). CRISP-DM 1.0 step-by-step data mining guide. ftp://ftp.software.ibmcom/software/analytics/spss/support/Modeler/Documentation/14/UserManual/CRISP-DM.pdf

  • Clarke, D., Kinghorn, R. (2018). Experience is everything: here’s how to get it right. https://www.pwc.com/us/en/advisory-services/publications/consumer-intelligence-series/pwc-consumer-intelligence-series-customer-experience.pdf

  • Culotta, A., & Cutler, J. (2016). Mining brand perceptions from twitter social networks. Marketing Science, 35(3), 343–362.

    Article  Google Scholar 

  • De Keyser, A., Lemon, K. N., Klaus, P., & Keiningham, T. L. (2015). A Framework for Understanding and Managing the Customer Experience. Working Paper Series No. 15-121, Marketing Science Institute. www.msi.org/reports/a-framework-for-understandingand-managing-the-customer-experience/

  • Dixon, M., Freeman, K., & Toman, N. (2010). Stop trying to delight your customers. Harvard Business Review, 88, 116–122.

    Google Scholar 

  • Edvardsson, B., Enquist, B., & Johnston, R. (2010). Design dimensions of experience rooms for service test drives: Case studies in several service contexts. Managing Service Quality: An International Journal, 20(4), 312–327.

    Article  Google Scholar 

  • Flavián, C., Ibáñez-Sánchez, S., & Orús, C. (2019). The impact of virtual, augmented and mixed reality technologies on the customer experience. Journal of Business Research, 100, 547–560.

    Article  Google Scholar 

  • Forrester. (2016). 72% of Businesses Name Improving Customer Experience their Top Priority. Retrieved January 14, 2018, from https://goo.gl/k55uNy

  • Frow, P., & Payne, A. (2007). Towards the ‘perfect’ customer experience. Journal of Brand Management, 15(2), 89–101.

    Article  Google Scholar 

  • Grönroos, C. (1998). Marketing services: The case of a missing product. Journal of Business & Industrial Marketing, 13, 322–338.

    Article  Google Scholar 

  • Hevner, A. R., March, S. T., Park, J., & Ram, S. (2004). Design science in information systems research. MIS Quarterly, 28(1), 75–105.

    Article  Google Scholar 

  • Holmlund, M., Van Vaerenbergh, Y., Ciuchita, R., Ravald, A., Sarantopoulos, P., Villarroel Ordenes, F., & Zaki, M. (2020). Customer experience Management in the age of big data analytics: A strategic framework. Journal of Business Research, Feb, 1–10.

    Google Scholar 

  • Homburg, C., Jozić, D., & Kuehnl, C. (2017). Customer experience management: Toward implementing an evolving marketing concept. Journal of the Academy of Marketing Science, 45(3), 377–401.

    Article  Google Scholar 

  • Kranzbuhler, A., Kleijnen, M., Morgan, R. E., & Teerling, M. (2018). The multilevel nature of customer experience research: An integrative review and research agenda. International Journal of Management Reviews, 20(2), 433–456.

    Article  Google Scholar 

  • Lemon, K. N. (2016). The art of creating attractive consumer experiences at the right time: Skills marketers will need to survive and thrive. GfK Marketing Intelligence Review, 8(2), 44–49.

    Article  Google Scholar 

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

    Article  Google Scholar 

  • McColl-Kennedy, J. R., Zaki, M., Lemon, K. N., Urmetzer, F., & Neely, A. (2019). Gaining customer experience insights that matter. Journal of Service Research, 22(1), 8–26.

    Article  Google Scholar 

  • Meyer, C., & Schwager, A. (2007). Understanding customer experience. Harvard Business Review, 85(2), 116–126.

    Google Scholar 

  • Moorman, C. (2021, February 2021). Top ten results from the CMO survey. Retrieved March 30, 2021, from https://tinyurl.com/yx75qt3f

  • Morgan, B. (2019). The 20 Best Customer Experience Metrics For Your Business. Forbes. Retrieved March 31, 2020, from https://www.forbes.com/sites/blakemorgan/2019/07/29/the-20-best-customer-experience-metrics-for-your-business/?sh=6286e01058cc

  • Neslin, S. A., Gupta, S., Kamakura, W., Lu, J., & Mason, C. H. (2006). Defection detection: Measuring and understanding the predictive accuracy of customer churn models. Journal of Marketing Research, 43(2), 204–211.

    Article  Google Scholar 

  • Pang, B., & Lee, L. (2008). Opinion mining and sentiment analysis. Foundations and Trends in Information Retrieval, 2(1-2), 1–35.

    Article  Google Scholar 

  • Rawson, A., Duncan, E., & Jones, C. (2013). The truth about customer experience. Harvard Business Review, 91(9), 90–98.

    Google Scholar 

  • Reichheld, F. (2003). One number you need to grow. Harvard Business Review, 81(12), 46–55.

    Google Scholar 

  • Schmitt, B., Brakus, J. J., & Zarantonello, L. (2015). From experiential psychology to consumer experience. Journal of Consumer Psychology, 25(1), 166–171.

    Article  Google Scholar 

  • Singh, S. N., Hillme, S., & Wang, Z. (2011). Efficient methods for sampling responses from large-scale qualitative data. Marketing Science, 30(3), 532–549.

    Article  Google Scholar 

  • Techrepublic. (2017). Unstructured data: A cheat sheet. Retrieved August 9, 2019, from www.techrepublic.com/article/unstructureddata-the-smart-persons-guide

  • Tirunillai, S., & Tellis, G. J. (2014). Mining marketing meaning from online chatter: Strategic brand analysis of big data using latent Dirichlet allocation. Journal of Marketing Research, 51(4), 463–479.

    Article  Google Scholar 

  • Toman, N., Dixon, M., & DeLisi, R. (2013). The effortless experience: Conquering the new battleground for customer loyalty. Penguin.

    Google Scholar 

  • Van Doorn, J., Mende, M., Noble, S. M., Hulland, J., Ostrom, A. L., Grewal, D., & Petersen, J. A. (2017). Domo Arigato Mr Roboto: Emergence of automated social presence in organizational frontlines and customers’ service experiences. Journal of Service Research, 20(1), 43–58.

    Article  Google Scholar 

  • Verhoef, P. C., Kannan, P. K., & Inman, J. J. (2015). From multichannel to Omichannel Channel retailing: Introduction to the special issue on multi-channel retailing. Journal of Retailing, 91(2), 174–181.

    Article  Google Scholar 

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

    Article  Google Scholar 

  • Villarroel Ordenes, F., Theodoulidis, B., Burton, J., Gruber, T., & Zaki, M. (2014). Analyzing customer experience feedback using text mining: A linguistics-based approach. Journal of Service Research, 17(3), 278–295.

    Article  Google Scholar 

  • Voorhees, C. M., Fombelle, P. W., Gregoire, Y., Bone, S., Gustafsson, A., Sousa, R., & Walkowiak, T. (2017). Service encounters, experiences and the customer journey: Defining the field and a call to expand our lens. Journal of Business Research, 79(10), 269–280.

    Article  Google Scholar 

  • Xiang, Z., Zvi, S., John, H. G., & Muzaffer, U. (2015). What can big data and text analytics tell us about hotel guest experience and satisfaction?. International Journal of Hospitality Management, 44, 120–130.

    Google Scholar 

  • Zaki, M. (2019). Digital transformation: Harnessing digital Technologies for the Next Generation of services. Journal of Services Marketing, 33(4), 429–435.

    Article  Google Scholar 

  • Zaki, M., & McColl-Kennedy, J. R. (2020). Text Mining Analysis Roadmap (TMAR) for Service Research. Special Issue on Qualitative Methods in Service Research, Journal of Services Marketing, 34(1), 30-47.

    Google Scholar 

  • Zaki, M., McColl-Kennedy, J. R., & Neely, A. (2021). AI can help you hear what your customers are trying to tell you!. Harvard Business Review. https://hbr.org/2021/05/using-ai-to-track-how-customers-feel-in-real-time

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Janet R. McColl-Kennedy .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

McColl-Kennedy, J.R., Zaki, M. (2022). Measuring and Managing Customer Experience (CX): What Works and What Doesn’t. In: Edvardsson, B., Tronvoll, B. (eds) The Palgrave Handbook of Service Management. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-91828-6_35

Download citation

Publish with us

Policies and ethics