Welcome to the Customer Journey!
Hi there! Welcome to these study notes on the Customer Journey. In this chapter, we’re going to look at the "story" of a customer’s relationship with a business. It’s not just about the moment someone hands over their cash; it’s about how they find out about a brand, why they choose it, and what happens after they buy. Understanding this helps businesses keep customers happy and coming back for more.
Don’t worry if some of these terms seem new—we’ll break them down step-by-step with plenty of examples you’ll recognize from your own life!
1.6.1 Stages of the Customer Journey
Think of the customer journey as a map. It shows every "touchpoint" (interaction) a person has with a business. The syllabus identifies five main stages that every business needs to manage carefully.
The Five Stages
1. Awareness
This is the "Hello!" stage. It’s when a potential customer first realizes a business exists. This might happen through a social media ad, seeing a shop on the high street, or hearing a friend mention a brand.
Example: You see a TikTok ad for a new brand of eco-friendly sneakers.
2. Consideration
Now the customer is interested, but they aren’t sure yet. They are "window shopping" and comparing the business to competitors. They might look at prices, read reviews, or watch "unboxing" videos.
Example: You go to the sneaker website and compare their prices and styles with Nike or Adidas.
3. Purchase
The big moment! The customer decides to buy. For the business, this stage must be as easy and smooth as possible. If the website crashes or the queue is too long, the customer might leave.
Example: You add the sneakers to your cart and pay using Apple Pay in seconds.
4. Retention
The sale is over, but the relationship isn't. Retention is about keeping the customer. The business wants you to come back again rather than going to a rival next time.
Example: The sneaker company sends you a 10% discount code for your next pair a month later.
5. Advocacy
This is the "Gold Standard." Advocacy is when a customer becomes a fan. They tell their friends how great the business is or post positive reviews online. This is basically free marketing for the business!
Example: Your friend asks about your cool new shoes, and you tell them they are the most comfortable sneakers you’ve ever owned.
Memory Aid: The AC-PRA Mnemonic
To remember the stages in order, think of: Always Carry Purple Ribbons Around.
(Awareness, Consideration, Purchase, Retention, Advocacy)
Why is the Customer Journey Important?
If a business ignores even one stage, they can lose money. For example, if they have great awareness (everyone knows them) but a terrible purchase stage (the website is broken), they won't make any sales. If they focus only on purchase but ignore retention, they have to spend a lot of money constantly finding new customers instead of keeping old ones.
Quick Review Box:
- Awareness: "I know you."
- Consideration: "I'm thinking about you."
- Purchase: "I'm buying from you."
- Retention: "I'm coming back to you."
- Advocacy: "I'm telling everyone about you!"
Key Takeaway: The customer journey is a continuous cycle. Successful businesses manage every stage to turn strangers into loyal fans.
1.6.2 Customer Experience (CX)
While the "journey" is the map, the customer experience is how the customer feels during that journey. It is the total of all interactions a customer has with a business.
What makes a good experience?
The syllabus highlights several factors that influence customer experience:
Speed and Quality of Service:
Nobody likes waiting. Whether it's how fast a burger is cooked or how quickly an email is answered, speed matters. However, it must be balanced with quality—a fast burger that is cold is still a bad experience!
Product Knowledge:
Have you ever asked a shop assistant a question and they didn't know the answer? It’s frustrating! Staff with high product knowledge build trust and help customers feel confident in their consideration stage.
After-Sales Service:
What happens if the product breaks or you need to return it? Good after-sales service (like a "no questions asked" return policy) makes a customer feel safe and encourages retention.
Personalisation:
This is when a business makes you feel like an individual, not just a number. It could be as simple as using your name in an email or suggesting products based on what you’ve bought before.
Analogy: It’s the difference between a coffee shop that just shouts "Latte!" and one where the barista says, "Morning, Sarah! Your usual latte?"
Measuring the Experience
Businesses can't just guess if customers are happy; they need to measure it. Common ways include:
- Customer Feedback/Reviews: Looking at star ratings on Google or Trustpilot.
- Complaints: A high number of complaints is a clear sign the experience is failing.
- Net Promoter Score (NPS): This is a simple survey asking: "On a scale of 0-10, how likely are you to recommend us to a friend?" This directly measures advocacy.
Did you know?
It can cost a business five times more to attract a new customer than it does to keep an existing one. This is why customer experience and retention are so vital for a business to stay profitable!
Common Mistakes to Avoid in Exams
- Mistake: Thinking the journey ends at the purchase.
- Correction: Remember that retention and advocacy are often the most profitable parts of the journey!
- Mistake: Using "Customer Service" and "Customer Experience" as the exact same thing.
- Correction: Customer service is one part of the experience (like after-sales service), but the experience also includes the product itself, the website design, and the brand's reputation.
Quick Review Box:
- Customer Experience (CX) = the "feeling" of the journey.
- Key drivers: Speed, Quality, Knowledge, After-sales, Personalisation.
- Measurement tools: Reviews, complaints, and NPS.
Key Takeaway: A positive customer experience leads to higher retention and advocacy, which helps a business grow its market share and revenue.