Strategic Importance of Customer Experience Management (CXM) Within SMEs in Derby, Uk
Abstract
This report investigates the impact of Customer Experience Management (CXM) on the performance and sustainability of small and medium-sized enterprises (SMEs), particularly licensed restaurants in Derby. In an increasingly competitive business environment, where customer experience has become a key differentiator, this study seeks to bridge the gap between theoretical frameworks and practical applications of CXM in the SME context. The research is guided by the aim to develop and validate a diagnostic tool specifically tailored for assessing the effectiveness of CXM systems in SMEs. To achieve this, the study was structured around two key objectives: analysing existing CXM frameworks and investigating current practices in licensed restaurants. A comprehensive literature review established the theoretical foundations of CXM, drawing on seminal works such as Lemon and Verhoef's customer journey framework and Homburg et al.'s conceptualization of CXM as a higher-order resource. The thematic analysis revealed that while SMEs recognize the importance of CXM, there are significant challenges related to resource constraints, lack of formal feedback systems, and resistance to change. Despite these challenges, the study found that SMEs that invest in CXM—particularly through technology integration and customer feedback mechanisms—are better positioned to achieve customer loyalty and business growth.
Keywords
Customer experiencemanagementstrategymarketingSMESRestaurantsDerby
References
Abdigali, A., 2021. EnhanCXMent opportunities for the Customer Service of the CIS market in the Selected Company. Abdulwasiu, A.A., 2023. Service Quality and Customer Loyalty in Selected Retail Businesses in Lagos State, Nigeria. Akter, S., Hani, U., Dwivedi, Y.K. and Sharma, A., 2022. The future of marketing analytics in the sharing economy. Industrial Marketing Management, 104, pp.85-100. Beck, R., Müller-Bloch, C., & King, J. L. (2018). Governance in the blockchain economy: A framework and research agenda. Journal of the Association for Information Systems, 19(10), 1020-1034. Bocconcelli, R., et al. (2018). SMEs and marketing: a systematic literature review. International Journal of Management Reviews, 20(2), 227-254. Brakus, J. J., Schmitt, B. H., & Zarantonello, L. (2009). Brand experience: What is it? How is it measured? Does it affect loyalty? Journal of Marketing, 73(3), 52-68. Catalini, C., & Gans, J. S. (2020). Some simple economics of the blockchain. Communications of the ACM, 63(7), 80-90. Chen, Y., & Bellavitis, C. (2020). Blockchain disruption and decentralized finance: The rise of decentralized business models. Journal of Decentralized Finance, 2(2), 1-18. Cong, L. W., & He, Z. (2019). Blockchain disruption and smart contracts. The Review of Financial Studies, 32(5), 1754-1797. De Filippi, P., & Wright, A. (2018). Blockchain and the law: The rule of code. Harvard University Press. Duan, W., Gu, B., & Whinston, A. B. (2016). Do online reviews matter? An empirical investigation of panel data. Decision Support Systems, 89, 94-101. Enwe, E., 2020. B2B firms and their customers: Re-strategizing customer experience for competitive advantage. Fornell, C., et al., 2020. ACSI: Is Satisfaction Guaranteed? The Reign of the Customer: Customer-Centric Approaches to Improving Satisfaction, pp.71-96. Gahler, M., Klein, J.F. and Paul, M., 2023. Customer experience: Conceptualization, measurement, and application in omnichannel environments. Journal of Service Research, 26(2), pp. 191-211. Gherghina, S.C., et al., 2020. Small and medium-sized enterprises (SMEs): The engine of economic growth through investments and innovation. Sustainability, 12(1), p.347. Gilman, M., & Salder, J. (2020). The role of diagnostics as a means of engaged scholarship and enhancing SME research. International Journal of Entrepreneurship and Innovation, 22(2), 100-111. Gremler, D. D., et al. (2020). Behavioral intentions among service customers: A hierarchy of conceptual replications and extensions. Journal of Service Research, 23(1), 3-19. Hacker, P., & Thomale, C. (2018). Crypto-securities regulation: ICOs, token sales and cryptocurrencies under EU financial law. European Company and Financial Law Review, 15(4), 645-696. Haddad, C., & Dwyer, L. (2020). Blockchains and Distributed Ledgers: Opportunities and Challenges. Handayati, R., et al., 2024. Strategies for SMEs in Managing Big Data for Personalization and Customer Service EnhanCXMent. Journal of Contemporary Administration and Management (ADMAN), 2(2), pp.569-575. Holmlund, M., et al., 2020. Customer experience management in the age of big data analytics: A strategic framework. Journal of Business Research, 116, pp.356-365. Homburg, C., Jozi?, D., & Kuehnl, C. (2017). Customer experience management: toward implementing an evolving marketing concept. Journal of the Academy of Marketing Science, 45(3), 377-401. Hwang, J., & Seo, S. (2016). A critical review of research on customer experience management. International Journal of Contemporary Hospitality Management, 28(10), 2218-2246. Kandampully, J., Zhang, T., & Bilgihan, A. (2018). Customer experience management in hospitality: A literature synthesis, new understanding and research agenda. International Journal of Contemporary Hospitality Management, 30(1), 21-56. Kuehnl, C., Jozic, D. and Homburg, C., 2019. Effective customer journey design: consumers' conception, measurement, and consequences. Journal of the academy of marketing science, 47, pp.551-568. Lemon, K. N., & Verhoef, P. C. (2016). Understanding customer experience throughout the customer journey. Journal of Marketing, 80(6), 69-96. Liu, Y., & Jang, S. S. (2009). The effects of dining atmospherics: An extended Mehrabian-Russell model. International Journal of Hospitality Management, 28(4), 494-503. Mantravadi, S., Srai, J.S. and Møller, C., 2023. Application of MES/MOM for Industry 4.0 supply chains: A cross-case analysis. Computers in Industry, 148, p. 103907. Mattila, A. S., & Ro, H. (2008). Discrete negative emotions and customer dissatisfaction responses in a casual restaurant setting. Journal of Hospitality & Tourism Research, 32(1), 89-107. Namkung, Y., & Jang, S. S. (2008). Are highly satisfied restaurant customers really different? A quality perception perspective. International Journal of Contemporary Hospitality Management, 20(2), 142-155. Nekesa, T.B., 2020. Employee Empowerment and Customer Service Delivery in Selected Small and Medium Size Restaurants in Nairobi City County, Kenya. Oliver, R. L. (1999). Whence consumer loyalty? Journal of Marketing, 63(4_suppll), 33-44. Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Parsa, H. G., et al. (2005). Why restaurants fail. Cornell Hotel and Restaurant Administration Quarterly, 46(3), 304-322. Peppers, D. and Rogers, M., 2005. Customers don't grow on trees. Fast Company, 96, pp.25-26. Popli, S., & Rishi, B. 2021. The what, why and how of customer experience. In Crafting Customer Experience Strategy: Lessons from Asia (pp. 1-20). Emerald Publishing Limited. Pusceddu, G., 2023. BUSINESS STRATEGIES IN TIME OF CRISIS: LATEST DEVELOPMENTS AND TRENDS. Rane, N.L., Achari, A. and Choudhary, S.P., 2023. Enhancing customer loyalty through quality of service: Effective strategies to improve customer satisfaction, experience, relationship, and engagement. International Research Journal of Modernization in Engineering Technology and Science, 5(5), pp.427-452. Ryu, K., & Jang, S. S. (2007). The effect of environmental perceptions on behavioral intentions through emotions: The case of upscale restaurants. Journal of Hospitality & Tourism Research, 31(1), 56-72. Saura, J.R., Palacios-Marqués, D. and Ribeiro-Soriano, D., 2023. Digital marketing in SMEs via data-driven strategies: Reviewing the current state of research. Journal of Small Business Management, 61(3), pp.1278-1313. Sharma, Y., et al., 2021. How iot, ai, and blockchain will revolutionize business. In Blockchain, Internet of Things, and Artificial Intelligence (pp. 235-255). Chapman and Hall/CRC. Solthong, S., 2022. Improvement of the learning organization culture and customer experience performance of the car dealers of one US automotive company in Thailand using organizational coaching interventions. Sun, Y., et al., 2020. When digitalized customers meet digitalized services: A digitalized social cognitive perspective of omnichannel service usage. International Journal of Information Management, 54, p.102200. Vargo, S. L., & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68(1), 1-17. Yu, G., et al., 2022. Improving chronic disease management for children with knowledge graphs and artificial intelligence. Expert Systems with Applications, 201, p. 117026. Zetzsche, D. A., Arner, D. W., & Buckley, R. P. (2020). Decentralized finance. Journal of Financial Transformation, 59, 106-124.
More Articles from INTERNATIONAL JOURNAL OF MARKETING AND COMMUNICATION STUDIES
Direct Marketing Communications and Sustainable Marketing Performance in A Digital Age: A Systematic Literature Review
Author: Odijie, K. N, Adedoyin, S. A. PhD
Clickbait Strategies and Influence on Consumer Trust and Behavior
Author: Alaba Tobin-West Diamond, Stella. C. Enyindah PhD, Oyinkepreye Brisibe PhD
Digital Public Relations and Corporate Reputation Management Strategies of Oando, Seplat and Renaissance Africa Energy Companies in Nigeria
Author: Dickson, Lauren Dawari, Prof. Godwin B. Okon, Prof. Richard N. Amadi, Dr. Itieke-Idamieba Harry
Evaluating the Influence of Strategic Health Communication Campaign on Vaccine Hesitancy in Rural Rivers State Communities
Author: Gabriel, Obokuru, Prof. Nsereka, Barigbon Gbara, Dike, Harcourt Whyte PhD, Nwankpa Nduka N. PhD
Integrated Marketing Communications and Subscriber Growth in A Sub-Saharan Telecom Sub-Brand
Author: Rita Korkor Agyei1, Ogochukwu T. Izuchukwu2, Dominic Feboh3, Abiola Idowu4