Lecture 3 Study Notes: Data Sources for Customer Experience Research

 1. Introduction

Understanding customer experience (CX) requires collecting accurate data on how customers interact with a brand across various touchpoints. Multiple research methods and data sources are available to evaluate and improve these experiences.

2. Satisfaction Surveys

Purpose:

  • To assess customer satisfaction with services or products.

  • Used to monitor performance over time and benchmark against competitors.

Delivery Methods:

  • Face-to-face

  • Telephone

  • Online (most common today)

Limitation:

  • Low response rates due to survey fatigue.

  • Response bias: Only customers with extreme positive or negative experiences tend to respond.

3. Net Promoter Score (NPS)

Developed by: Fred Reichheld

Key Question:

“How likely is it that you would recommend this organization to a friend or colleague?”

Response Scale:

  • 0 to 10

Customer Categories:

CategoryScore RangeDescription
Promoters9–10Loyal customers who promote the brand and repurchase.
Passives7–8Satisfied but not enthusiastic; vulnerable to competitor offers.
Detractors0–6Unhappy customers likely to leave or speak negatively.

NPS Formula:

NPS = % Promoters – % Detractors

Advantages:

  • Simple, fast, and easy to administer

  • Generally achieves higher response rates

  • Tracks performance over time

Limitations:

  • Doesn’t identify specific problems or touchpoints

  • Cultural bias in response interpretation (e.g., US vs. Europe)

  • Not diagnostic — follow-up research is required to understand why detractors exist

4. Customer Effort Score (CES)

  • Also a single-question metric

  • Measures ease of interaction with the organization

  • Example: "How easy was it to resolve your issue today?"

Focuses on:

  • Complaint resolution

  • Ordering process

  • Customer service interactions

5. Mystery Shopping

Definition:

A participant observation method where trained individuals pose as customers to evaluate service quality.

Common Sectors:

  • Banks

  • Hotels

  • Restaurants

  • Retail

  • Government departments

Focuses On:

  • Operational processes (e.g., cleanliness, speed, staff presentation)

  • Adherence to standards rather than subjective customer satisfaction

Benefits:

  • Provides objective operational feedback

  • Encourages better service by keeping staff alert

  • Enables reward and recognition for high-performing teams

Limitations:

  • Staff may behave differently if they suspect mystery shoppers

  • Cannot capture true customer emotion or perception

6. Ethnographic Studies

Definition:

Involves researchers immersing themselves in the natural environment of customers to observe and understand behaviors and experiences.

Methods:

  • Observation

  • In-the-moment questioning

  • Self-reporting by customers using:

    • Video

    • Audio

    • Photos

    • Diaries

Examples:

  • Watching customers use kitchen appliances at home

  • Accompanying shoppers to malls

  • Observing nightlife behavior (entry, bar interaction, dancing, exit)

Strengths:

  • Captures authentic behavior in context

  • Avoids the bias of post-experience surveys

  • Identifies emotional responses, subtle cues, and unmet needs

Limitations:

  • Time-consuming and resource-heavy

  • Observer presence may influence behavior (Hawthorne effect)

  • May lack generalizability across larger populations

7. Comparing Methods

MethodData TypeFocus AreaProsCons
Satisfaction SurveyQuantitativeGeneral satisfactionScalable, trackableLow response, biased
NPSQuantitativeLoyalty and recommendationSimple, actionable metricLacks depth, cultural interpretation
CESQuantitativeEase of interactionFocused on pain pointsNarrow scope
Mystery ShoppingObservationalService delivery complianceObjective, real-world dataNot emotional, can be artificial
EthnographyQualitativeDeep behavior and emotionAuthentic insights, context-richTime-intensive, small sample sizes

8. Application in Practice

An effective customer experience strategy uses a combination of these tools:

  • NPS to monitor brand loyalty

  • CES to evaluate ease of service

  • Mystery shopping to ensure service standards

  • Ethnography to discover hidden customer needs and emotional triggers

Reading Reference

  • Buttle, F. & Maklan, S. (2019). Customer Relationship Management: Concepts and Technologies. 5th edn. Routledge.

    • Chapter 7, pp. 210–214: Satisfaction measurement and performance management techniques

    • Upcoming reading on: Mystery Shopping: Using Deception to Measure Service Performance

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