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The impact of knowledge management on customer journey Joram Jansen Student number: 11339799 University of Amsterdam, Faculty of Science Thesis Master Information Studies: Business Information Systems Final version: August 22, 2017 Supervisor: ir. A. M. Stolwijk Examiner: dr. J. Brunner Abstract. More and more organizations pay attention to their customers’ experiences. Many have been trying to measure customer experience resulting in a lot of data (Meyer & Schwager, 2007). The problem is that measuring customer experience does not tell managers how to improve it. In this study, the following question is central: How can Knowledge Management (KM) contribute to optimize the experiences (journey) of customers of service organizations? This research makes clear that KM can be used for optimizing the customer journey. By combining qualitative and quantitative research methods, a first step is taken in describing how service organizations can use KM to do this. By combining customer interviews, interviews at a marketing department and literature research, a customer journey for service organizations is defined. This journey consists of 10 important touchpoints which are influenced by at least 44 factors. The importance of these touchpoints and related factors is made clear by taking a survey (of 175 customers of a service organization). Discussing the survey results with involved employees of the customer journey results in different, for management important, relations between customer experiences and KM. One of the highlights is that customer experience can be optimized by providing accessible technical self-service information to customers. Also, up-to-date and precise appointment related information is important for customers. For front-office employees, the availability of technical-, and customer information is found as contributive to optimize a customer journey. Another important outcome is that changing technical tacit knowledge to more codified knowledge can lead to better customer experiences. This study can help managers to improve their customer journeys. Keywords. Customer Journey, Customer Experience, Customer Satisfaction, Knowledge Management, Service Quality.

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The impact of knowledge management on

customer journey

Joram Jansen

Student number: 11339799

University of Amsterdam, Faculty of Science

Thesis Master Information Studies: Business Information Systems

Final version: August 22, 2017

Supervisor: ir. A. M. Stolwijk

Examiner: dr. J. Brunner

Abstract. More and more organizations pay attention to their customers’

experiences. Many have been trying to measure customer experience resulting in a lot of data (Meyer & Schwager, 2007). The problem is that measuring customer

experience does not tell managers how to improve it. In this study, the following

question is central: How can Knowledge Management (KM) contribute to optimize the experiences (journey) of customers of service organizations? This research

makes clear that KM can be used for optimizing the customer journey. By

combining qualitative and quantitative research methods, a first step is taken in describing how service organizations can use KM to do this. By combining customer

interviews, interviews at a marketing department and literature research, a customer

journey for service organizations is defined. This journey consists of 10 important touchpoints which are influenced by at least 44 factors. The importance of these

touchpoints and related factors is made clear by taking a survey (of 175 customers

of a service organization). Discussing the survey results with involved employees of the customer journey results in different, for management important, relations

between customer experiences and KM. One of the highlights is that customer

experience can be optimized by providing accessible technical self-service information to customers. Also, up-to-date and precise appointment related

information is important for customers. For front-office employees, the availability

of technical-, and customer information is found as contributive to optimize a customer journey. Another important outcome is that changing technical tacit

knowledge to more codified knowledge can lead to better customer experiences.

This study can help managers to improve their customer journeys.

Keywords. Customer Journey, Customer Experience, Customer Satisfaction,

Knowledge Management, Service Quality.

2

Table of contents

1. Introduction ......................................................................................................... 4

1.1. Customer Journey ......................................................................................... 4

1.2. Knowledge management ............................................................................... 4

1.3. Research objective ........................................................................................ 4

1.4. Research questions ........................................................................................ 5

2. Literature review .................................................................................................. 5

2.1. Service Design .............................................................................................. 6

2.2. Conceptual Framework ................................................................................. 6

2.3. Customer Experience and Customer Journey ............................................... 7

2.4. Customer Satisfaction ................................................................................... 7

2.5. Service Quality ............................................................................................. 8

2.6. Knowledge Management .............................................................................. 9

2.7. Customer experience and Knowledge management ..................................... 9

3. Methodology ...................................................................................................... 10

3.1. Open interviews with customers ................................................................. 10

3.2. Literature research ...................................................................................... 11

3.3. Open interviews service company .............................................................. 11

3.4. Analysing preliminary results ..................................................................... 11

3.5. Survey ......................................................................................................... 11

3.6. Analyzing survey results ............................................................................. 12

3.7. Semi structured interviews .......................................................................... 12

3.8. Customer Journey Mapping ........................................................................ 12

4. Results ............................................................................................................... 12

4.1. Customer Journey ....................................................................................... 13

4.1.1. Customer touchpoints .......................................................................... 13

4.2. Influencing factors ...................................................................................... 13

4.2.1. Search for contact- and self-service information ................................. 14

4.2.2. Report a malfunction ........................................................................... 14

4.2.3. Try to solve the malfunction itself ....................................................... 15

4.2.4. Make an appointment ........................................................................... 15

4.2.5. Receive an appointment confirmation ................................................. 16

4.2.6. Change the appointment by customer .................................................. 16

4.2.7. Change the appointment by the company ............................................ 16

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4.2.8. The service appointment ...................................................................... 16

4.2.9. Make a follow-up appointment ............................................................ 17

4.2.10. Receive confirmation and optionally invoice .................................... 17

4.2.11. Payment ............................................................................................. 18

4.2.12. Communication afterwards ................................................................ 18

5. Discussion .......................................................................................................... 18

6. Conclusion ......................................................................................................... 19

References ............................................................................................................. 20

Appendix A: Customer perceptions of quality and customer satisfaction ............. 22

Appendix B: I-Space framework ........................................................................... 22

Appendix C: Customer Journey Mapping ............................................................. 23

Appendix D: Influencing factors of customer satisfaction .................................... 24

Appendix E: Homogenous subsets of the touchpoints ........................................... 25

Appendix F: Customer Journey Map ..................................................................... 25

4

1. Introduction

1.1. Customer Journey

We are entering - or have already entered - the experience economy (Nenonen et al.,

2008). Nowadays, creating a strong customer experience is an important leading

management objective (Lemon and Verhoef, 2016). A recent study by Accenture (2015)

shows that improving the customer experience received the most number one rankings

when executives were asked about their top priorities for the next 12 months. Currently,

organizational attention in customer management is mainly focused on customers’ value

creation for organizations. The focus is mainly on metrics such as customer lifetime

value (CLV) instead of value creation for customers (Kumar and Reinartz 2016; Lemon

and Verhoef, 2016).

Customers now interact with organizations through many touchpoints in multiple

channels and media (Verhoef et al., 2015). Their experiences are influenced by different

factors such as peer customers (Brynjolfsson et al., 2013), which results in a reduced

control of increasingly complicated customer journeys. The strongly increased potential

customer touchpoints and the reduced control of the experiences require organizations to

integrate different business functions to create positive customer experiences. Examples

of these are information technology (IT), service operations, logistics, marketing and

human resources. Overall, it has become more complicated for firms to create, attempt

to manage and control the journey of its customers (Edelman and Singer 2015; Lemon

and Verhoef, 2016).

1.2. Knowledge management

A concept that organizations can help to optimize their customers’ journeys is knowledge

management (KM). Davenport (1994) defined KM as “the process of capturing,

distributing, and effectively using knowledge”. A more specific and one of the most cited

definitions is created by the Gartner Group: “a discipline that promotes an integrated

approach to identify, capture, evaluate, retrieve, and share all of an enterprise's

information assets” (Duhon, 1998). Currently, KM is considered as one of the most

important management research issues (Serenko and Bontis, 2016). A reason for this is

that it can positively influence innovativeness, organizational competitiveness and

economic performance (Donate and Guadamillas, 2015, Serenko and Bontis, 2016).

1.3. Research objective

This study examines how KM can contribute to the optimization of customer journeys.

To get more detailed results, the research concentrates on the service industry. It is

plausible that especially in this kind of industry, each different customer requires specific

(technical and non-technical) knowledge. Service organizations, from a customer

perspective, can be divided in four quadrants (typologies) which show two opposites

(figure 1). First, incidental and frequent customer moments of contact. Second, free

available services and services which require switching costs. In literature, different

quadrants are used to specify service typologies or organizations (e.g. Gallouj, 2002).

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The figure, used in this report is derived from a combination of these quadrants and is

used to generalize the results. This research focuses on service organizations which

require switching costs and which have incidental contact with customers. In this

research, attention will be given to organizations which offer service and maintenance.

The following definition of a service organization is used: an organization that offers

service and maintenance within a contract or warranty. Customers are defined as owners

of a service object which is serviced by a company.

Both concepts, customer journey and KM are discussed in literature extensively.

However, there is limited research done about the effects of them on each other. This

paper tries to gain better insight into the effects of using KM to influence customer

journeys by focusing on the service industry. One objective of this research is to collect

existing literature about these topics. Because the literature on this topic is limited, an

extension will be made by doing empirical research (interviews and a survey).

Figure 1. Typologies of service.

1.4. Research questions

This research aims to make clear the effect of KM on customer journeys in the service

industry. To give more insights in these effects, the following research question is

answered in this study: How can Knowledge Management contribute to optimize the

experiences (journey) of customers of service organizations?

To be able to answer this question, the following sub-questions are answered first:

• How does the journey look like for customers of service organizations?

• What experiences are important for customer satisfaction?

• How is knowledge and information managed, shared and used in the customer

journey of service organizations (front-/back office, service operations and

knowledge systems)?

• How can Knowledge Management optimize offered services?

2. Literature review

In order to answer the research questions, an extensive review of literature related to the

research questions is presented. First an explanation is given about Service Design.

Second a conceptual framework is provided which shows the concept related to the

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research scope and their relations. Finally, the different concepts are explained and

discussd.

2.1. Service Design

In the last years, the traditional ‘product design thinking’ is strongly influenced by so

called ‘Service Design thinking’. This change has an impact on society, industry and

economy (Vargo & Lusch, 2008; Rodriguez & Peralta, 2014). The western world,

delivers mainly products which are brought on the market in a service oriented way

(Polaine et al., 2013). For example, most installation companies not only sell products,

they also offer contractual services. Organizations in all kind of industries acknowledge

the importance of ‘customer experience’ strategies to differentiate themselves from their

competitors. (Teixeira et al., 2012; Shaw & Ivens, 2005; Polaine et al., 2013; Tjeng et

al.,1999).

Service Design is a design discipline with the focus on offering the right customer

experience on the right moment. It helps organizations to positively influence their

customers’ experiences which can lead to a competitive advantage. The process to design

the customer experience of a service or product in advance is a recent development in

this field (Texeira et al., 2012; Bitner et al., 2008). In the Service Design discipline,

different visualization techniques are used to design and evaluate services (Segelstorm

et al., 2010). An important technique is customer journey mapping which will be

explained later is in this literature review.

2.2. Conceptual Framework

The conceptual framework, presented in this paragraph, shows the related concepts

to the study. The ‘equal to’ lines visualize the aspects that form the concepts customer

satisfaction and service quality. As discussed in this chapter, service quality impacts

customer satisfaction and customer experience. Customer Satisfaction is a key element

of customer experience which is shown with the single sided arrow. As later will be

defined, the customer journey is the collection of all touchpoints to reach a specific goal

for a customer. Thus, customer journey is a collection of different customer experiences.

The relation between these two concepts is showed with a two-sided arrow because

customer experience can be influenced by other experiences in the customer journey and

vice versa. The goal of this study is to investigate how Knowledge Management can help

optimizing customer experience (and thus the customer journey). For this reason, the

relationship with KM and these two concepts is shown with a one-sided arrow.

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Figure 2. Conceptual Framework

2.3. Customer Experience and Customer Journey

Companies nowadays focus on creating customer loyalty and a competitive advantage

by creating favourable customer experiences (Badgett et al., 2007). Literature provide

multiple visions on, and definitions of customer experience. In their research, Pine and

Gilmore (1998) conceptualized the idea of experiences as distinct from goods and

services. They state that instead of buying a product or service, a consumer purchases an

experience to spend time enjoying a series of events that a company stages to engage

him in an inherently personal way. Other researchers add to this that every service

delivery, regardless from its nature and type, leads to a customer experience (Schmitt et

al., 2015). Gentile et al. (2007) define the concept as “a set of interactions between a

customer and a product, a company, or part of its organization, which provoke a reaction

which is strictly personal and implies the customer's involvement at different levels

(rational, emotional, sensorial, physical, and spiritual”. The definition of Meyer and

Schwager (2007) corresponds to this.

As stated by Gentile et al. (2007), customer experience consists of one or more

contacts between a customer and an organization or product. These moments of contact

are called touchpoints (Homburg et al., 2015; Rosenbaum et al., 2017). The collection of

all touchpoints to reach a specific goal for a customer is called a customer journey

(Rosenbaum et al., 2017). Literature provides different factors that influences customer

experience/journey (Jorritsma, 2010; Frow & Payne, 2007). A selection of these factors

are used to compile a list of influencing factors of the customer experience of service

organizations.

2.4. Customer Satisfaction

One key element of understanding and managing customer experience is the ability

to measure and monitor the reactions of customers to organization offerings (Lemon and

Verhoef, 2016). This can be described as customer satisfaction. Customer satisfaction

has drawn the interest of managers and academics for more than four decades because

they see that customers are one of the most important sources of organizations’ revenue

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(Tam, 2004). Customers are always aiming to get maximum satisfaction from the

products or services that they buy (Tam, 2004). Satisfaction has been conceptualized as

a result from a comparison of customer expectations and the delivered performance

(Lemon and Verhoef, 2016). In line with this definition Churchill and Surprenant (1982)

recognize that satisfaction is a result of comparing what customers receive against to

what they give up to get a service. Other authors have a broader view, they see

satisfaction as an emotional feeling, resulting from evaluating a service (Westbrook,

1981). Like different other studies, in this paper a combination of both views is used to

define customer satisfaction: “an emotional response, that results from a cognitive

process of evaluating the service received against the costs of obtaining the service”

(Woodruff et al., 1991; Rust and Oliver, 1994; Tam, 2004).

Different researchers stated that factors such as (perceived) service quality, product

quality and pricing can affect customer satisfaction (Wilson et al., 2008; Agbor, 2011).

Wilson et al. (2008) provided a model that shows relevant factors of customer

satisfaction and their relationships (see appendix A); service quality, product quality,

pricing, a situational- and a personal factor. Because of the fact that the focus of this

study is specifically on service organizations, not all factors (i.e. product quality) are

relevant.

The National Business Research Institute (NBRI) also provided some relevant

dimensions to measure customer satisfaction: service quality, innocently, speed of

service, pricing, complaints or problems, trust in employees and the closeness of the

relationship with contacts in your firm (NBRI, 2009). Some of these dimensions

correspond with the model of Wilson et al. (2008).

2.5. Service Quality

Different researchers discovered an important relationship between service quality and

customer satisfaction (Meyer & Schwager, 2007; Tam, 2010; Agbor, 2011; Tavanazadeh

and Aligholi, 2014). Service quality is defined by different researchers as the extent to

which customer perceptions of service match with their expectations (Parasuraman,

1988; Zeithaml et al., 1990). Thus, service quality can intend how customers are served

in an organization which is important for organizations (see paragraph 2.4).

One of the most used measurements of service quality is the SERVQUAL model by

Parasuraman et al. (1985). In this model, 97 attributes are identified which have an

impact on service quality. These attributes were condensed into ten dimensions which

are later, because of corresponding ones, grouped in five dimensions (Parasuraman et al.,

1988). The dimensions are important to access customer’s expectations and perceptions

on delivered services (Agbor, 2011; Kumar, 2009). The five dimensions are listed below:

• Tangibility: physical facilities, equipment, and appearance of personnel

• Reliability: ability to perform the promised service dependably and accurately

• Responsiveness: willingness to help customers and provide prompt service

• Assurance: knowledge and courtesy of employees and their ability to inspire

trust and Confidence

• Empathy: caring individualized attention the firm provides to its customers

Kang en Bradley (2002) argued that customers are well able to perceive and estimate the

quality of an information service. Although confusion between the expected and the

adequate quality can lead to ambiguity (De Vries, Kasper and Van Helsdingen, 1999),

9

this research focuses only on the desired service. This prevents the potential disadvantage.

The dimensions and attributes of the model are used to make survey questions to study

influencers of the satisfaction and experience of service organizations’ customers.

2.6. Knowledge Management

Weggeman (2000) defined knowledge as “the, partly unconscious, ability that allow

people to perform certain tasks”. This is a combination of explicit knowledge, which is

knowledge that is noticeable, stored and not dependent on people (information). and

explicit knowledge which is personal knowledge and therefore more difficult to share

(experience, skills and attitude). In this report, the definition of Duhon (1998) is used: “

a discipline that promotes an integrated approach to identify, capture, evaluate, retrieve,

and share all of an enterprise's information assets”. According to Duon, these assets may

include databases, documents, policies, procedures, and previously un-captured expertise

and experience in individual workers.

Boisot (1999) believes that knowledge and information flows can be divided into

the degree of structure and to its degree of diffusion. He argues that these are positively

correlated, the more information is structured, the faster and more extensively it can be

shared. Tacit knowledge (low codification) flows very slowly between employees and

often only in face-to-face situations. Codified knowledge, by contrast, can diffuse rapidly

throughout a population. In line with this vision, Boisot (1999) developed the

Information Space framework (I-space framework) which represents the degree of

structure of knowledge (abstraction and codification) to its diffusion within a population

of agents. The framework can help organizations in assessing how its knowledge is

currently being structured and shared. A more detailed description of the framework is

provided in Appendix B.

2.7. Customer experience and Knowledge management

Different authors described relationships between KM and customer satisfaction (or

related concepts i.e. service quality). In this paragraph, these relations are discussed.

KM can improve customer satisfaction through self-service capabilities. By offering

self-service tools, for example a FAQ page on the website of an organization can

eliminate the need to speak directly with an employee. This helps customers to rapidly

find the information they want. According to an international survey in different

industries conducted by Van Belleghem (2013), 70% of consumers expect a self-service

option for handling questions and complaints. This indicates a relationship between KM

and customer experience.

Skarzynski (2016) argues that KM impacts the efficiency of customer service of

organizations. KM makes it possible to handle questions and service requests faster than

without KM. This positively affects customer experience.

Maoz (2016) describes that ineffective KM can lead to a reduced productivity and

poor customer satisfaction for organizations. He describes that an improved delivery of

contextual knowledge to employees or customers reduces the time to answer. Effective

KM can lead to more informed and knowledgeable internal and external customers which

has a positive effect on the customer experience.

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3. Methodology

In order to answer the research questions, a combination of qualitive and quantitative

research methods was used. According to Gable (1994), “combining the main strength

of survey research (generalizability/external validity) with the main strength of case

studies (discoverability) can yield a superior piece of research”. Figure 3 visualizes the

research process, in this chapter the different used methods are explained.

Figure 3. Schematic representation of the process

For this research, a case study was done at Feenstra, one of the biggest service

companies in the Netherlands. The biggest and most important division of the company

is the one that services heating systems. To scope the research and to find useful and

comparable data, this study only focused on this division. The scope was further specified

by only focussing on B2C customers who own a heating system. Only the malfunction

solving process was considered. This specification was done because otherwise the data

was not well comparable. Within the focus group, customers can have a contract type A

(cheaper, but only labour and travel costs are included) or a contract type B (more

expensive, but all possible costs are included). In this research, customers with both

contracts were included.

3.1. Open interviews with customers

To define the different touchpoints in the customer journey, two open interviews

were done with a senior marketer and a business analyst at Feenstra. Because measuring

human feelings can be difficult, different researchers argue that the best way to know

how customers feel and what they want is to ask them (Levy, 2009; Agbor, 2011). Open

interviews allow the researcher to understand respondents´ perception of their experience

as an interpreter (Sofaer, 1999). As input for these interviews, a draft with touchpoints,

based on the experiences of the researcher was presented. After discussing these

touchpoints, a first version of the customer journey map (CJM) was made. A more

specific description of the customer journey mapping method is provided in appendix C.

11

3.2. Literature research

To find a list of influencing factors of the touchpoints, literature research was done

about related concepts. Especially attention was given to the way that these concepts can

influence each other. Examples of relevant keywords used to search in literature

databases (e.g. Ebsco and Catalogue Plus) were knowledge management, customer

journey, customer experience and service quality. The found determinants and attributes

were used to compile a list of influencing factors of the customer experience in the

service industry.

3.3. Open interviews service company

Next to the literature study, 5 open interviews were done with customers in different

age groups (21,35,58, 74 and 86). The different touchpoints were explained to the

customers and there was asked what they find important during these moments. First, the

questions were asked without showing the previously collected factors, but when

customers experienced difficulties with considering factors, examples were given.

3.4. Analysing preliminary results

Combining the found factors and dimensions with the outcomes of the interviews

and the literature review resulted in a list of 65 customer experience influencers, sorted

by moment of contact. Before testing the factors, the list was analyzed and discussed

again with a senior marketer from Feenstra. After discussing, the list was shortened to

prevent a too long survey (with negative effects on the response). After removing

irrelevant factors to KM (e.g. the clothing of the mechanics and their politeness), the list

had a total of 44 influencing factors (see appendix D).

3.5. Survey

To test the importance of the factors, a survey was set up. For each touchpoint, a

matrix question with associated factors was made. Also, a question was added to test the

importance of the different touchpoints. For the questions about the factors a variant of

the Likert scale was used (see paragraph 4.2). For the used scale was chosen to prevent

that respondents only answer ‘very important’.

The survey was designed and was taken in the online survey designing platform

SurveyMonkey. This platform was chosen because SurveyMonkey offers many

possibilities in designing a survey and analyzing the results. First the survey was tested

by sending it to 25 test respondents (Feenstra employees, and other selected people).

After testing, the formulation of some questions was changed. The final version of the

survey was sent by e-mail to 1.000 randomly selected customers with contract type A

and 1.000 randomly selected customers with contract type B. The survey was sent on

Tuesday evening, the for this survey optimal moment (Checkmaret, 2017). To reach the

highest number of respondents possible with the available resources, 4 gift cards were

given to randomly selected respondents and a reminder was sent. The response was 175

people which is 8,75%.

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3.6. Analyzing survey results

The results were analyzed separately in SPSS. For each question, a ‘one-way

ANOVA’ test was performed to measure if the factors or touchpoints differed

significantly from each other. For the questions for which the ‘one-way ANOVA’

showed significant differences, a post-hoc test was used to localize the differences (Field,

2009). To measure the effect size of the measured differences, Partial Eta Squared was

calculated. The Partial Eta Squared was calculated to gain insight into the effect size of

the found differences. Hereby Cohen’s rule of thumb was used: .02(small effect

size), .13(medium effect size) and .26(large effect size) (De Vocht, 2013).

3.7. Semi structured interviews

After analyzing the survey results, all involved people in the customer journey were

listed and discussed with a business analyst from Feenstra. For every direct role in the

customer journey, a Feenstra employee was interviewed (telephone operator, web care

employee, planner, marketer, engineer and administrative worker). The goal of this

round of interviews was to investigate the information and knowledge needed during

every step in the customer journey. This information was used for making a CJM.

Another goal of the interviews was to investigate how KM can contribute to optimize the

customer experience at the different touchpoints. To reach these goals, an in-depth, semi-

structured with open-ended questions interview was most appropriate. In-depth

interviews contain open-ended questions and follow-up probes to obtain an in-depth

understanding of participants’ experiences, perceptions, opinions, feelings, and

knowledge (Rosenthal, 2016). During the interviews, the results of the survey were

presented. After transcribing the interviews, the interviews were coded to relate KM

statements to the touchpoints. The different factors related to the touchpoints were used

as a code. Other interview questions for these semi-structured interviews were based on

the I-Space framework (Boisot, 1999) which is discussed in appendix B.

3.8. Customer Journey Mapping

Customer Journey Mapping (CJM) was used to visualize the information and knowledge

flows in the defined customer journey. The created CJM was used (see appendix F) to

understand the organization’s customer experience better and to determine the

importance of KM in this process. In the column ‘customer’, not only the information

and knowledge is shown, but also the physical evidence of the services. This is what a

customer receives after purchasing a service.

4. Results

In the first paragraph of this chapter (paragraph 4.1), the created customer journey is

shown. In addition to this, an analysis of the different touchpoints related to the journey

is given. For each touchpoint, different influencers (factors) of customer experience are

defined. In paragraph 4.2 for each touchpoint, the most important factors are described

according to the survey results.

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4.1. Customer Journey

In the studied malfunction solving process, there are different exceptions possible. For

example, in some cases a service appointment must be changed. In one of the open

interviews, a business analyst of Feenstra argued that these exceptions (situational

factors/moderators) could be an important factor, this is in line with the research of

Verhoef et al. (2009). The most common exceptions are included in the following

journey. The horizontal figure shows the different phases in the process and the text

above represents the customer touchpoints.

Figure 4. Customer Journey of the malfunction process

4.1.1. Customer touchpoints

For the part of the survey that considers the importance of the touchpoints, the

following Likert scale is used; 1: little influence, 2: moderate influence, 3: a lot of

influence, 4: very much influence and 5: decisive. The survey shows that ‘the service

appointment’ is the most important touchpoint for customers. This touchpoint is

significantly more important than all other touchpoints except for ‘report a malfunction’.

This touchpoint, together with ‘make an appointment’, is significantly more important

than the other touchpoints. The found Partial Eta Squared of 0.150 indicates that the

effect size of the differences between the importance of the touchpoints is medium. The

power of the test is 1.00. An overview with all touchpoints and how they significantly

differ is shown in appendix E. The most important touchpoints are listed below:

• The service appointment

• Report a malfunction

• Make an appointment

• Make a follow-up appointment

• Change the appointment by company

4.2. Influencing factors

For the part of the survey that considers the importance of the single factors, the

following Likert scale is used: 1: not important, 2: moderately important, 3: important,

4: very important and 5: crucial. To show the importance of the factors relative to each

other, the factors are divided by their sample means in the following classes: <3.00:

14

somewhat important (20% least important factors), => 3.00 and <3.72: medium

important and =>3.72: highly important (20% most important factors). An overview of

the found factors and their importance is shown in appendix D.

4.2.1. Search for contact- and self-service information

The ANOVA and post-hoc tests indicate that it is significantly most important that

customers can find organization’s contact information in an easy way. Relative to all

other factors, this factor is highly important. The possibility to choose a communication

channel and the availability of self-service information are significantly less important.

Both factors do not significantly differ from each other and are indicated as medium

important. The Partial Eta Squared of 0.184 indicates a medium effect size. This means

that differences between the factors differ moderately. The power of the test is 1.00.

In the interviews, no direct relations with KM are given. However, the interviewed

business analyst argued the importance of a ‘contact us’ page to provide an overview of

all supported communication channels. This is in line with Matthew (2015). When firms

store all used contact information of customers, KM can be used to recognize customers

during upcoming service requests. In this situation, customers can be helped faster which

positively affects their experiences.

4.2.2. Report a malfunction

The most important factor within this moment of contact is a well-accessible customer

service with minimal waiting times. This factor is significantly more important than all

other factors within this touchpoint and relative to all other factors, the factor is highly

important. The factor of directly coming into contact with the right person and the factor

about technical-, product- and customer related knowledge of the customer service

employee are significantly less important. The last two discussed factors are indicated as

medium important. The found Partial Eta Squared of 0.135 indicates that the effect size

of the differences between the importance of the touchpoints is medium. This means that

the factors, related to this touchpoint, differ moderately from each other. The power of

the test is 1.00.

During the interview with the telephone operator, she emphasized that waiting times

can be minimized by making available self-service information for customers. According

to the interviewed business analyst, the number of incoming service requests was

reduced since simple technical knowledge is available via a tool on the website. In this

tool, customers can search on fault codes. He added, using self-service information

positively affects customer experience because of shorter waiting times.

The telephone operator also discussed another KM solution to optimize customer

experience: a tool that provides technical knowledge to customer service employees.

Based on object types and fault codes, the tool shows possible solutions for customers

and other relevant information such as images of the service objects. Having this

information has positive effects on the efficiency of phone calls. The interviewee adds

that using a knowledge bank with question scripts and other training information

combined with the described tool, helps telephone operators with rapidly locating

problems and formulating them clearly for engineers.

An outcome of the interview with the web-care employee is that managing and

sharing information about customer contacts can also contribute to an optimized

customer experience. She emphasized that it is important that all front-office employees

see both social media contact and other customer history (i.e. by phone or service visits).

15

According to her, using different systems with different user rights to see information,

leads to irritated customers (because of ignorant employees) and inefficient contacts. The

telephone operator agreed to this and added that automatically identifying customers by

their phone number also leads to fewer necessary questions (about their identity etc.) and

thus less irritated customers and more efficient phone calls (see paragraph 4.2.1).

4.2.3. Try to solve the malfunction itself

Within this touchpoint, customers find it significantly most important that

employees know exactly how their heating system looks like and where all buttons are

located. Also getting personal assistance is indicated as highly important. Both factors

are indicated as medium important. The found Partial Eta Squared of 0.115 indicates that

the effect size of the found differences is small. This means that the factors, related to

this touchpoint, differ little from each other. The power of the test is 1.00.

As described in paragraph 4.2.2, a tool with technical knowledge for customer

service employees which contains information and images of the service objects, can

positively influence the most important factor of this moment of contact: the technical

knowledge of customer service employees.

4.2.4. Make an appointment

Within this touchpoint, customers find it most important that an engineer will be on

location the same day or maximum one day later. This factor is indicated as one of the

most important factors in this study. Receiving a cost indication and getting a precise

time indication for the appointment (maximum blocks of three hours) are significant

more important than other factors but less important than the first discussed one. Also,

the possibility of making an appointment during the first moment of contact is one of the

most important factors of this test. The last three factors are, relative to all other factors,

indicated as medium important. The found Partial Eta Squared of 0.130 indicates that the

effect size of the found differences is medium. This means that the factors, related to this

touchpoint, differ moderately from each other. The power of the test is 1.00.

The interview with a planner and telephone operator made clear that it is not possible

to give a precise cost indication before the service appointment has taken place. It is not

possible to know exactly what the problem is before an engineer has analyzed it. This

makes giving a cost indication at this moment unreliable and not relevant. However, it is

possible to inform customers about their contract conditions (what costs are included and

what costs not). According to the interviewees, this also affects the customer experience

positively. For this reason, it is important that the front office employee can easily see

the customer’s contract terms when making an appointment.

As described above, an important factor is receiving a precise time indication for an

appointment. According to the planner, appointments are made in blocks of a few hours

because it is difficult to predict how long an appointment will take place. According to

the interviewed engineer, KM can be used to optimize this. For example, it is clear that

many morning appointments take place at the end of the morning. Making this

information insightful for customers will have a positive impact on their experience.

These customers don’t have to stay at home the first hours of an agreed appointment

block.

According to the interviews it is important to include all engineers in a central

planning instead of creating separate ones for each region. KM can be used to consider

the skills and knowledge of engineers, the material in their vans, and their location to

16

make a more flexible and efficient planning. In this way, KM can help to make fast

appointments and to give more precise time indications.

4.2.5. Receive an appointment confirmation

The studied factors within this touchpoint differ significantly from each other.

Customers find receiving an appointment confirmation more important than the

availability of information about the engineer. Relative to the other factors, receiving the

confirmation is indicated as medium important. Providing the engineer’s name and photo

is indicated as somewhat important. The found Partial Eta Squared of 0.197 indicates

that the effect size of the found differences is medium. This means that the factors, related

to this touchpoint, differ moderately from each other. The power of the test is 1.00.

According to the telephone operator, sending an appointment confirmation is a good

method to share all relevant information about an appointment. This will prevent

miscommunication about service appointments.

4.2.6. Change the appointment by customer

Within this touchpoint, two factors are studied which differ significantly from each

other. When changing an appointment, for customers the most important factor is that it

is possible to change their appointment at all times without costs. This factor is indicated

as medium important. Less important than this is to let customers choose which

communication channel they use when changing their appointment which is indicated as

somewhat important. The found Partial Eta Squared of 0.068 indicates that the effect size

of the found differences is small. This means that the factors, related to this touchpoint,

differ little from each other. The power of the test is 0.997.

For this moment of contact, the same KM related suggestions are relevant as

described in paragraph 4.2.4. In the interviews, no specific suggestions were given about

changing an appointment.

4.2.7. Change the appointment by the company

Focusing on changing an appointment, respondents find it most important that they

are informed directly when an appointment has to be changed and that it is possible to

directly make a new appointment. Both factors belong to the most important factors of

the study, the other two factors are indicated as medium important. Because of the Partial

Eta Squared of 0.131, the effect size of the differences is medium. This means that the

factors, related to this touchpoint, differ moderately from each other. The power of the

test is 1.00.

Also for this moment of contact, the same suggestions given in paragraph 4.2.4 are

relevant. According to the interviewed planner, for this touchpoint it is extra important

that customers are contacted as quickly as possible. This is in line with the survey results.

When calling, the planner has to have access to customer information, customer history

and the availability of the engineers to be able to directly make a new appointment (see

CJM appendix F).

4.2.8. The service appointment

For the service appointment, the most important factor is that the engineer acts

professional. Significantly less important is that the malfunction is fixed during the first

appointment. However, both factors are still indicated as highly important. The factor

17

about being on time and receiving a message fifteen minutes before arriving are

significantly less important and indicated as medium important. The effect size of the

differences is large when looking to the Partial Eta Squared of 0.453. This means that

the factors, related to this touchpoint, differ greatly from each other. The power of this

test is 1.000.

As described above, customers find it the most important that the engineer acts

professional. The interviews with the engineer and the business analyst make clear that

when engineers need technical information or help on location, in most of the times they

call each other. The open interviews with customers show that this has a negative effect

on their professionality because it looks like the engineer does not have enough skills

and/or knowledge. By providing technical information to engineers via a knowledge

system, the number of phone calls can be reduced and engineers look more professional.

A KM related suggestion to optimize the first-time-fix percentage of malfunctions

was given by the interviewed planner. The mainly reason that a malfunction cannot be

fixed during the first appointment is the absence of needed parts of service objects. To

reduce the number of these cases, it is important to compare the stock parts of engineers

with the presumably broken ones. For this reason, planners need information about the

stock of the engineers and the type of the customer’s service object when making

appointments. The previously described supportive tool with technical knowledge

(paragraph 4.2.2) can be supportive for identifying presumably broken parts.

The engineer also argued that the availability of customer information and the

malfunction history of a specific service object enables him to predict what the problem

is more thoroughly (see CJM in appendix F). When having this information, he can

directly take the right material with him to fix the malfunction in an efficient way. Also,

the availability of product- and price information is necessary to give customers a cost

indication. Both affect customer experience positively.

4.2.9. Make a follow-up appointment

The two most important factors associated to the making of a follow-up appointment still

differ significantly from each other. Most important is the possibility to directly make

this appointment with an engineer. The less important factor is that the customer can

choose a moment for the appointment from different options. Both factors are indicated

as medium important relative to the other factors. The measured effect size is with an

Partial Eta Squared of 0.182 determined as medium which means that the factors, related

to this touchpoint, differ moderately from each other. The power of the test is 1.00.

Because customers find it most important to directly make a new appointment, it is

needed that the engineers have information about possible moments for appointments.

In his interview, the business analyst argued that engineers can be equipped with a

planning tool to make appointments independently instead of first contacting the

planning department. Thus, engineers act more professional.

4.2.10. Receive confirmation and optionally invoice

For this touchpoint, significantly most important is making clear what work has been

done. This factor is indicated as highly important. Showing how the total price is

calculated is significantly less important but still indicated as medium important. The

found Partial Eta Squared of 0.191 shows that the effect size of the found differences is

medium. This means that the factors, related to this touchpoint, differ moderately. The

power of the test is 1.00.

18

To reach an optimal customer experience at this point, it is important that engineers

describe their performed work and used materials correctly and upload this information

to the service management system directly. When this is described clearly, it is possible

to directly send a confirmation which shows the performed work, used parts and prices.

According to the survey results, this has a positive impact on the customer experience.

4.2.11. Payment

The different factors related to the payment do not differ significantly from each other.

The possibility to choose how to pay and the support of modern payment methods are

both indicated as medium important. The effect size of this test is medium with an Partial

Eta Squared of 0.127. This means that the factors, related to this touchpoint, differ

moderately from each other. The power of this test is 0.984.

According to the administrative employee, at this point of the journey it is

recommended that one single system is used for the registration and administration of

service appointments. When separate administration systems are used, a delay in the

communication between them (after finishing a case, it has to be synchronized first) can

cause problems. One of the problems is that it is not possible for customers to pay directly

after an appointment. This leads to limited payment possibilities.

The interviewee also argued that customers using an automatically direct debit,

commonly want to know at what time a payment is collected. Using a system that makes

this information insightful for customers and/or engineers leads to a better customer

experience.

4.2.12. Communication afterwards

Both factors about this touchpoint differ significantly. Receiving information about

discounts and tips is less important than receiving a request for feedback. Both factors

are indicated as somewhat important. The Partial Eta Squared of 0.060 indicates a small

effect size of this difference. This means that the factors, related to this touchpoint, differ

little from each other. The power of this test is 0.993.

According to the business analyst and the marketer, KM can be used to personalize e-

mails, advertisements, etc. based on the type and age of service objects for example.

However, the limited influence of this touchpoint and associated factors minimize the

effect on customer experience.

5. Discussion

From the previous chapter, it became clear that there are 44 KM related factors that can

influence the customer experience of service organizations. The different factors are

tested on importance using a survey of 175 respondents, which make this part of the

study robust. The power of all tests is around 1.00, which indicates that the chance of not

finding differences in the importance of the factors is nil.

According to Wilson et al. (2008), next to the found factors, customer satisfaction is

also influenced by a situational- and personal factor. Both factors are hard to include in

a model because they describe unforeseen circumstances. A factor affects the customer

experience more when something during a touchpoint goes wrong. Based on the

statistical part of the survey, the importance of factors in the most common situations

19

(which are situated in a single company) are considered. Future research at other

companies can give a general confirmation of this view.

To get clear conclusions, the scope of the study covers the most important- and

common touchpoints for the researched company. Examples of less important

touchpoints which can be optimized by using KM are handling (different kinds of)

questions at the customer service (Skarzynsk, 2016). To get a more complete overview

of the customer journey, other touchpoints can be researched in the future.

The results of the survey are discussed with involved employees of the customer

journey which are seen as experts of the processes because they are daily involved with

them. By doing this, it has become clear that KM can positively affect the customer

journey. Because of the fact that only one organization is in the scope, in future work,

interviews with more technical KM experts (from other organizations) can possibly make

clear the existence of new relations. It is recommended to focus on the organizations

discussed in paragraph 1.3 (figure 1) first. Because these organizations have similar

characteristics, it is plausible that the different results can be generalized.

The study makes clear that organizations can use KM to improve their customer

journey. Suggestions to do this are given. The extent to which the different suggestions

affect the journey can be studied in new research.

6. Conclusion

This study shows that the customer journey of solving malfunctions at service

organizations can consist of 10 moments of contact (touchpoints). Based on the survey,

it can be concluded that the customer experience in the researched company is most

influenced by the following moments of contact: the service appointment, reporting a

malfunction, making an (follow-up) appointment and changing an appointment by the

company.

Combining customer interviews, interviews at a marketing department and literature

research, resulted in a list of 44 factors which influence customer experience at the

different touchpoints. A survey is used to categorize the factors on importance. Because

the most important factors are covered in the most important touchpoints, it can be

concluded that these results strengthen each other. By discussing the tested factors with

the interviewed experts, different relations with KM are found. The interviews make

clear that providing accessible self-service information to customers can have a positive

effect on customer experience. Problems can be fixed rapidly, and waiting times can be

reduced. These results are in line with Van Belleghem (2013).

Other interviews show the importance of the availability of usable technical

information and customer contact information for front-office employees. This can lead

to an efficient handling of service requests which affects customer experience.

Another interview showed the importance of continuous monitoring planning(s) and

providing up-to-date and precise information about appointments to customers.

The survey shows that customers find it highly important that engineers act

professionally. Changing tacit technical knowledge to more codified knowledge, leads

to a more rapid diffusion of knowledge between engineers (Boisot, 1999). This can result

in more professional services which improve the customer experience.

A final found relation is that using an overall system, instead of different smaller

systems, could prevent synchronization-delays and for example not supportive payment

20

methods. This also has an impact on the customer experience. These results show how

KM can contribute to the optimizing of the customer journey of service organizations.

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Appendix A: Customer perceptions of quality and customer satisfaction

Customer perceptions of quality and customer satisfaction (Wilson et al., 2008)

Appendix B: I-Space framework

Using the I-Space framework (Boisot, 1999) results in four types of knowledge (Boxer,

2006):

- Public knowledge, such as textbooks and newspapers, which is codified and

diffused.

- Proprietary knowledge, such as patents and official secrets, which is codified

but not diffused. Here barriers to diffusion have to be set up.

- Personal knowledge, such as biographical knowledge, which is neither

codified nor diffused.

- Common sense – i.e. what ‘everybody knows’, which is not codified but widely

diffused.

23

The original framework is three-dimensional and considers the degree of

codification, abstraction and diffusion. Different researchers use different kinds of the I-

space model, also two-dimensional versions are used (Leong, 2005; Child et al., 2014).

In this paper, the attributes of the two-dimensional version are used (figure 3) to get

clearer and simpler results.

Two-dimensional I-Space framework (Boisot, 1999)

Appendix C: Customer Journey Mapping

Customer journey mapping (CJM) is a strategic management tool to understand an

organization’s customer experience. The method is popular by both academics and

practitioners and many service organizations employ it (Rosenbaum et al., 2017). The

idea behind CJM is to make a visualization of the sequence of events through which

customers may interact with a service organization during a service exchange process.

The method lists all possible customer touchpoints during the process. By understanding

these touchpoints, for organizations it is possible to improve the customer experience

associated with each touchpoint.

In a customer journey map, customer touchpoints are typically depicted horizontally

according to a process flow. On the vertically axis different categories, depending on the

purpose of the map, can be depicted with strategical information associated with the

different touchpoints. Different academics dismiss the importance of the vertical axis

and see CJM only as a visualization of the customer touchpoints associated to an

organizational process (Rosenbaum et al., 2017). Academics with an opposite opinion

argue that although a CJM without a vertical axis can help managers to understand the

customer experience, it is not useful for helping them to promote innovation within a

service system (Rosenbaum et al., 2017). Therefore, they think for these purposes, a CJM

with only a horizontal axis is useless. Another group of academics encourage managers

and researchers to set up the vertical axis as an emotional journey of customer feelings,

emotions and thoughts that cannot be observed directly (Lingqvist et al., 2015). A last

group of CJM academics see the vertical axis as a space where managers can plan

24

activities such as design opportunities, customer objectives and employee tasks (Elzinga

et al., 2009; Dasu & Chase, 2010). Critics argue that this type of CJM expands vertically

and becomes more complex.

Organizations should regard the vertical axis of a customer journey map as

specifying the key components of the entire service system, showing how marketing,

human resources, operations, and information technology can work together to meet

customer expectations at every touchpoint (Bitner et al., 2008). In this paper, a version

of this specified CJM is used. Using customer, front-office, back-office, operation and

information-/knowledge systems the information flows that are needed during the

customer journey can be visualized. This visualization is used to discuss the importance

of KM in the customer journey. By doing so, the CJM process is inherently linked to the

service blueprinting process, another service innovation tool.

Appendix D: Influencing factors of customer satisfaction

# Factor Moment of contact Importance

1 Contact information is easy to find Search for contact- and self-service information

Highly important

2 The customer service is well accessible with minimal waiting

times

Report a malfunction Highly important

3 Receiving a cost indication with contact information Make an appointment Highly important

4 An engineer will be on location the same day or maximum one

day later

Make an appointment Highly important

5 Possibility to directly make a new appointment Change the appointment by the

company

Highly important

6 Company contacts customer directly about the change Change the appointment by the company

Highly important

7 The malfunction is fixed during the first appointment The service appointment Highly important

8 The Engineer acts professional The service appointment Highly important 9 It is possible to directly make a follow-up appointment with the

engineer

Make a follow-up appointment Highly important

10 It is clear how the total cost price is calculated Confirmation and invoicing Highly important 11 Self-service information is available Search for contact- and self-

service information

Medium important

12 Customer can choose communication channel Search for contact- and self-service information

Medium important

13 The customer service employee has enough technical knowledge

to analyze the problem

Report a malfunction Medium important

14 The customer service employee knows which type of service

object a customer has and the history of it

Report a malfunction Medium important

15 The customer speaks directly to the right person Report a malfunction Medium important 16 No menu when calling the company Report a malfunction Medium important

17 The customer service employee knows exactly how the service

object looks like and where are the buttons are located

Try to solve the malfunction itself Medium important

18 The customer gets personal guidance Try to solve the malfunction itself Medium important

19 Supporting documents and videos are available Try to solve the malfunction itself Medium important

20 Customer gets a precise time indication for the appointment Make an appointment Medium important 21 Making an appointment at night or during the weekend is

possible

Make an appointment Medium important

22 It is possible to make a possible during the first contact Make an appointment Medium important 23 It is possible to choose a moment from different options Make an appointment Medium important

24 Possible preparations for the customer are communicated clearly Make an appointment Medium important

25 Receive an appointment confirmation Receive an appointment confirmation

Medium important

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26 It is possible to change an appointment without costs Change the appointment by

customer

Medium important

27 Company contact customer personally, without automatic messages

Change appointment by Company Medium important

28 The cause of the change is communicated clearly Change appointment by Company Medium important

29 The engineer is on time The service appointment Medium important 30 Possible to choose a moment from different options Make a follow-up appointment Medium important

31 The performed work is explained clearly Payment Medium important

32 Possible the choose the payment method Payment Medium important

33 Modern payment methods are supported (e.g. contactless paying

and iDeal)

Payment Medium important

34 Possible to pay directly or after the appointment Payment Medium important 35 Possible to choose which communication channel is used

(omnichannel)

Try to solve the malfunction itself Somewhat important

36 Get information about what work should be performed Make an appointment Somewhat important

37 Know which engineer is coming by name and photo Receive an appointment

confirmation

Somewhat important

38 Possible to choose which communication channel is used

(omnichannel)

Change the appointment by

customer

Somewhat important

39 Receive a message 15 minutes before the engineer arrives The service appointment Somewhat important 40 Engineer asks how the customer experienced the appointment The service appointment Somewhat important

41 For both appointments, the same engineer is deployed Make a follow-up appointment Somewhat important

42 Possible to choose to receive the invoice digital or hardcopy Receive confirmation and optionally invoice

Somewhat important

43 Company asks for feedback to improve her service Communication afterwards Somewhat important

44 Receive information about discounts and tips Communication afterwards Somewhat important

Appendix E: Homogenous subsets of the touchpoints

The following table shows the different touchpoints of the studied customer journey with

associated importance. The percentage represents the respondents that answered that the

touchpoint has a lot of influence on their satisfaction.

Touchpoint 1 2 3 4 5 =>3

Communication afterwards 2.68 54,36% Search for contact- and self-service

information

2.77 59,33%

Payment 2.80 2.80 74,66%

Receive an appointment confirmation 2.90 2.90 69,33%

Change the appointment by customer 2.90 2.90 70,00%

Try to solve the malfunction itself 2.92 2.92 70,66%

Receive confirmation and optionally invoice 2.93 2.93 2.93 67,78%

Change the appointment by the company 3.13 3.13 77.33% Make a follow-up appointment 3.27 3.27 84,00%

Make an appointment 3.49 93,33%

Report a malfunction 3.60 3.60 89,34% The service appointment 3.92 96,66%

Appendix F: Customer Journey Map

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