CIDCM Final Exam Review

CIDCM Final Notes

Chapter 1: Introduction to CIDCM & Customer Journey

• CIDCM Defined:

  • Stands for Customer Information and Distribution Channel Management.

  • Focuses on the strategic use of customer data and managing the pathways through which services are sold.

• Customer Journey:

  • Defines the series of interactions between a customer and a company as the customer pursues a specific goal.

• Customer Journey Map (CJM):

  • A visual presentation of the journey that identifies touchpoints and the information needed or collected at each stage.

• Google’s 5 Stages of Travel:

  • A typical traveler’s journey consists of the following stages:

  1. Dreaming

  2. Planning

  3. Booking

  4. Experiencing

  5. Sharing

• Stages of the Journey:

  • While Google defines travel in five stages, this course focuses on three specific funnel stages:

  1. Develop Awareness: Realizing a problem.

  2. Interact: Comparing providers.

  3. Convert: Deciding to book or download.

• Touchpoints:

  • Specific locations or spaces (both online like a website and offline like a lobby) where a brand meets a customer.

Chapter 2: Multi-Sided Platforms (MSPs)

• Multi-Sided Platform:

  • Defines a business that enables direct interactions between two or more distinct customer groups (e.g., buyers and sellers) without owning the resources exchanged.

• Value Unit:

  • The specific item or information exchanged on the platform (e.g., an Airbnb room or an Uber ride).

• Core Interaction:

  • The primary activity that attracts users, consisting of participants, value units, and filters.

• Network Effects:

  • These occur when the number of users impacts the value of the platform:

  • Same-side effects: More users of one group improve value for that same group.

  • Cross-side effects: Growth on one side increases value for the opposite group.

• Design Elements:

  • Successful platforms must perform three functions:

  1. Pull: Attract users.

  2. Facilitate: Reduce friction and ensure trust.

  3. Match: Efficiently connect sides using data.

• Monetization Strategies:

  • Include charging transaction fees (commissions), subscriptions for access/tools, or advertising for better placement.

Chapter 3: Data Types and Their Uses

• Quantitative Data:

  • Numerical information used for statistical analysis (e.g., demand forecasting and price optimization).

• Qualitative Data:

  • Descriptive information like reviews and feedback used to understand guest preferences and sentiment.

• Structured vs. Unstructured Data:

  • Structured Data: Organized in databases (rows and columns) and is easily searchable.

  • Unstructured Data: Includes images, emails, free-text; has no identifiable structure.

• Database Management System (DBMS):

  • A program utilized to enter, organize, and retrieve data from a collection of files.

• CRM (Customer Relationship Management) Data Problems:

  • Common issues: Missing key information, out-of-date data, unverified data, lack of insight, inability to find new prospects, and privacy concerns.

• Segmentation & Value Propositions:

  • Using demographic, geographic, and psychographic data to describe typical personas and address their specific problems or frustrations.

Chapter 4: Customer Journey Mapping & Milestone 2

• Touchpoints:

  • Locations or spaces (online or offline) where a guest meets a brand.

• Marketing Tactics:

  • Specific actions or configurations deployed at a touchpoint (e.g., SEO or social media ads).

• Funnel Stages:

  • Focus remains on:

  1. Develop Awareness: Realizing a problem.

  2. Interact: Comparing providers.

  3. Convert: Deciding to book/download.

Chapter 5: Purchase Behaviour across Hospitality Customer Groups

• Purchase Decision-Making Process:

  • Five distinct stages:

  1. Problem Recognition: Identifying a need.

  2. Information Search: Seeking solutions.

  3. Evaluation of Alternatives: Comparing options.

  4. Purchase Decision: Making the final choice.

  5. Post-Purchase Behaviour: Reflecting on the experience.

• Customer Segments:

  • Leisure Travelers: Value relaxation, adventure, and unique experiences.

  • Business Travelers: Seek convenience, efficiency, and reliable services like fast Wi-Fi.

  • Families: Prioritize safety, value, and kid-friendly amenities.

  • Millennials/Gen Z: Desire social responsibility, personalisation, and unique local experiences.

  • Luxury Clients: Demand exclusivity, privacy, and bespoke service.

• Psychological Ownership:

  • A state where customers are more likely to book because they feel a sense of ownership over the decision, often enhanced through customisation.

• Influencing Factors:

  • Decision-making can be shaped by:

  • Psychological: Attitudes.

  • Social: Recommendations/reviews.

  • Economic: Budget considerations.

  • Technological: Usage of apps/AI.

Chapter 6: Owned Channels

• Owned Channels:

  • Digital touchpoints fully controlled by the brand (e.g., website, mobile app, and email lists).

• Information Architecture (IA):

  • The structural design of shared information environments that organizes and labels content to support usability.

• Card Sorting:

  • A user experience design technique where experts or users group topics intuitively to create navigation paths.

• Content Marketing:

  • Creating and sharing valuable content to nurture relationships and answer guest questions throughout the journey.

• Channel Roles:

  • A website typically covers the entire customer journey, while a mobile app focuses on search, purchase, and retention using tools like GPS and push notifications.

• Mobile Performance:

  • Key factors include fast load times, image optimization, and HTTPS security.

Chapter 7: Strengthening Owned Channels

• Distribution Channel Marketing:

  • Marketing actions on paid or earned channels (like OTAs) to gain competitive advantages and improve ranking.

• Persuasive Design (PET):

  • A model incorporating Persuasion, Emotion, and Trust to convert "lookers into bookers" on digital platforms.

• Apples Room Concept:

  • A strategy to avoid commoditization by offering unique, direct-only packages that differentiate a hotel from its competitors on OTAs.

• Driving Direct Bookings:

  • Hotels can implement the Apples Room Concept to offer unique packages (local experiences or amenities) exclusive to their website, differentiating from OTAs.

• OTAs as Showrooms:

  • Utilizing platforms like Booking.com as a discovery funnel for new customers, aiming to convert them to direct channels for repeat stays.

Chapter 8: Earned & Paid Channels & Social CRM

• SEM (Search Engine Marketing):

  • A strategy using both SEO (search engine optimization for free results) and SEA (search engine advertising, or paid advertising) to increase visibility.

• Push vs. Pull:

  • Push channels: Utilize algorithms (e.g., social media) to inspire desire.

  • Pull channels: Capture users already having purchase intent (e.g., Search Engines/OTAs).

• Distribution Pyramid:

  • A long-term strategy transitioning from platform dependency (paid) to developing a loyal community of fans (owned).

• SCRM (Social CRM):

  • The integration of social media with traditional CRM systems to enhance relationships through social listening and personalized engagement.

Chapter 9: Milestone 3 Introduction & Coaching

• Data-Driven Interface Design:

  • Focuses on applying the "filter and match" functions to a mobile app interface designed for two distinct personas.

• Three Key Stages of Interface Design:

  1. Initial Sign-Up Stage:

  • Involves unique questions encompassing both rational and emotional factors to understand personas better. Data collected includes user unwinding habits or music preferences for better matching.

  1. The Matching Stage:

  • Utilizes collected data to pair compatible users. Successful matching depends on both static data (demographics) and dynamic data (e.g., real-time location or browsing history).

  1. The Retention Stage:

  • Requires moving beyond simple contact lists or discounts; platforms should build communities where both sides contribute and interact, supported by features like transaction history, statistics, and leaderboards.

• Mobile Design Best Practices:

  • Interfaces should be icon-driven and intuitive, using common icons and buttons to optimize limited screen space and minimize typing needs.

• Data Structuring:

  • Utilizing tags is essential to convert unstructured user data (e.g., free-text descriptions) into structured, searchable data that the platform's algorithm can process.

Chapter 11: Customer Retention

• Loyalty Defined:

  • Describes staying faithful to a brand, ignoring competitors’ offerings, including those that may be objectively better.

• Loyalty Programs (LP):

  • Provide a data structure for personalization; do not guarantee loyalty by default.

• Community for Retention:

  • Emotional loyalty is achieved when customers sense belonging, cultivating true communities owned by the platform that allow both parties to contribute.

CRM & SCRM

• CRM Elements:

  • Involves managing detailed customer information and touchpoints to maximize loyalty.

• SCRM (Social CRM):

  • Integrates social media with traditional CRM systems to leverage social engagement and listening in relationship building.

• Why Retention Matters:

  • Retention is more cost-efficient than acquisition; loyal customers tend to spend more, act as brand ambassadors, and are less price-sensitive.

Chapter 12: Customer Retention and Data Analysis

• Customer Lifetime Value (CLV):

  • A key metric representing the total revenue a customer generates throughout their entire relationship with a brand.

• Net Promoter Score (NPS):

  • A measure of customer satisfaction based on their likelihood to recommend the brand to others.

• Importance-Performance Analysis (IPA):

  • A strategic tool that evaluates service attributes by mapping them into four quadrants:

  1. Focus Here: Urgent improvement required.

  2. Maintain Performance: Keep performing well in this area.

  3. Low Priority: Not a current focus for improvement.

  4. Reallocate Resources: Reconsider allocation of resources in this area.

• Retention vs. Loyalty:

  • Loyalty programs build a data structure for tracking, whereas true emotional retention is fostered through community and personalized experiences rather than just discounts.

• Emerging Trends:

  • The future of retention may involve AI-driven personalization, experience-based rewards, and collaborations across industries.

• Personalisation vs. Customasation:

  • Personalisation: The brand uses data to tailor experiences (e.g., remembering a customer’s birthday).

  • Customasation: Guests are allowed to choose their own preferences (e.g., selecting a pillow type).