FINANCIAL IMPACT OF CUSTOMER EXPERIENCE MANAGEMENT - EVIDENCE FROM KOSOVO BANKING MARKET
Customers are becoming increasingly sophisticated in their expectations. Customers are seeking engaging experiences that stimulate, entertain, educate and/or challenge. In the minds of customers brands that can provide such experiences are clearly more valuable as compared to brands that don’t was written in the research paper of Schmitt in year 1999.
Consistent delivery of outstanding service has become a must for every organization. Customer experience is considered as a key determinant of customer satisfaction and loyalty and with high impact on the financial growth of the organization. With its exceptional impact on customer behavior, companies are utilizing customer experience for gaining market differentiation through superior services and relationship management with their customers.
Designing and mapping right customers’ journeys for their key processes and products is enabling companies to improve their market position through better customer experience provided to their customers. Additionally, companies are positively changing customer perception by increasing their product and service value for the price that customers are paying. As a result, this approach is enabling companies to improve their market position by improving their recommendation scores.
This research paper showed that financial institutions operating in Kosovo market have a great opportunity in investing in loyalty, better experience management as well as in improving their recommendation score. Findings showed that a customer centric culture within the organization that puts customer at the heart of everything that company is doing is lacking. Customers perception toward banks in Kosovo is negative since there is no value for the money their spent however they strongly believe that a better experience offered from the bank will change banking in Kosovo.
Allred, T. A., & Addams, H. L. (2000). Service quality at banks and credit unions: What do their customers say. ManagementServiceQuality., 10(1), 52-60
Anderson, Eugene W. and V. Mittal (2000), “Strengthening the Satisfaction-Profit Chain,” Journal of Service Research, 3, 107-120.
Anderson, Eugene, ClaesFornell, and Roland Rust (1997), “Customer Satisfaction, Productivity,and Profitability: Differences Between Good and Services,” Marketing Science, 16 (2), 129-145.
Biedenbach, G., &Marell, A. (2010). The impact of customer experience on brand equity in a business-to-business service setting. Journal of Brand Management, 17(6), 446-458.
Bernhardt, Kenneth, Naveen Donthu, and Pamela Kennett (2000), “A Longitudinal Analysis ofSatisfaction and Profitability,” Journal of Business Research, 47, 161-171
Carbone LP, Haeckel SH (1994) Engineering customer experience. Journal of Marketing Management 3(3):8–19
Churchill GA Jr, Suprenant C (1982) An investigation into the determinants of consumer satisfaction. Journal of Marketing Research 19:491–504
Central Bank of Kosovo (2011) Financial Stability Report (2)
Central Bank of Kosovo (2012) Financial Stability Report (3)
Coyles, Stephanie and Timothy Gokey (2002), “Customer Retention Is Not Enough,” TheMcKinsey Quarterly, 2, 81-89.
Ding, D.X., Huang, Y., &Verma, R. (2011). Customer experience in online financial service: A study of behavioural intentions for techno ready market segments. Journal of Service Management, 22(3), 344-366
Gruca, Thomas S. and Loopo L. Rego (2005), “Customer Satisfaction, Cash Flow and Shareholder Value,” Journal of Marketing, 69 (July), 115-30
Maklan, S. & Klaus, P. (2011) Customer experience: are we measuring the right things? International Journal of Market Research, 53, 6, pp.771–792.
Martilla, J.A. & James, J.C. (1977) Importance-performance analysis. Journal of Marketing,
, 1, pp. 77–79.
Mascarenhas, O.A., Kesavan, R. &Bernacchi, M. (2006) Lasting customer loyalty: a total customer experience approach. Journal of Consumer Marketing, pp. 23, 7, 397–405
Pine BJ II, Gilmore JH (1998) Welcome to the experience economy. Harvard Business Review 76(4): pp. 97–105
Pine II BJ and Gilmore JH (1999) The experience economy. Harvard Business Review. July–August, Boston, MA: pp. 18–23
Smith, S. & Milligan, A. (2002) Uncommon Practice: People who Deliver a Great Brand Experience. Harlow, UK: Pearson Education.
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, pp. 31-41.
Yi, Y., & Gong, T. (2009). An integrated model of customer social exchange relationship: The moderating role of customer experience. The Service Industries Journal, pp. 1513-1528.
Zeithaml, Valarie A. (1988), “Consumer Perceptions of Price, Quality, and Value: A Conceptual Model and Synthesis of Research,” Journal of Marketing, 52 (July), 2-22.