THE EXPERIENCE–PROFIT CHAIN CUSTOMER EXPERIENCE ROLE IN MARKETING STRATEGY

Abstract

In last 15 years 'customer experience' has raised attention of researchers in fields of 'marketing strategy', 'consumer behavior' and 'retail management'. The issues of 'experience', 'game' and 'search for pleasure and excitement' are not new . Theoretical Framework - the experience- profit chainThe cause-to-effect link: Customer evaluation of lived experience ),hedonistic and utilitarian) , creates a highest 'customer value judgement' that breeds a remarquable 'Customer Loyalty' , and 'customer life-time value' & equity that breeds profit. This model was widely discussed by Pine & Gilmore- (The Experience Economy 1999). Pine & Gillmore argue about improving Customer Value to raise loyalty, competitiveness & profitability , businesses must orchestrate memorable events for their customers. In order to contributes to a competitive added-value edge.This value chain was previously introduced by pioneering study of Heskett, Sasser & Schlesinger (1997) and later approved by James L. Heskett, Earl Sasser? Joe Wheeler research (The Service Profit Chain 2008) We also referred to Holbrook M. model of customer experience framework :Hedonistic & Utilitarian values mix (Customer Value,Framework for Analysis & Research).Previous researches like Reichheld, (The Loyalty Effect 2001), provide us with an excellent study guidance to link loyalty and profit. Research objectivesOur research was conducted on a sampling of 1650 young users aged 18 to 24 years in Israel during 2014-16.Our study was performed on three levels of field research:Level A ( quantitative )Examined relationship between shopping experience mix which is critical to create highest satisfaction level among young customers , and their future purchase intention & habits.Level B (quantitative)Examines relationship between customers satisfaction level , their Brand loyalty intentions , and 'Customer life time value' .Level C ( qualitative )Was conducted on 35 stores located in 4 malls where quantitative research was performed.Outcome & RecommendationsCombining five factors of customer experience in marketing strategy (security, enjoyment, value, convenience, and evaluation)of business can significantly improve:- The attractiveness of purchase store.- The extension of customers' in store time spending The customer loyalty & 'life-time-value' breed increase of income and profit phase, This 1 year, Level C' research is conducted on 35 stores. It started in January 2015. Our primary exploratory qualitative research confirm our assumptions of clear experience profit linkage.