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Customer journey mapping: A valuable strategic tool in challenging times

Author: Anita Lawton

The “path to purchase” is becoming ever more

complicated, with the emergence of new channels

and shifting consumer preferences. At the same

time, long standing business models are in turmoil

with the entry of the likes of Airbnb and Uber.

Compounding all this are the particular challenges

faced by businesses operating in certain sectors

of the economy. For instance “brick & mortar”

merchants struggle to adapt to competition from

online alternatives, while banks carry the burden of

ever increasing regulatory intervention such as caps

on interchange fees in EU markets.

To help businesses respond to the formidable challenges

they face in these times of great change, “customer

journey maps” have become increasingly popular with

marketing and product development teams across many

industries.

“Customer journey mapping” is a process used to

collate, describe and thereby understand the experiences

of a customer as they interact with an organization.

It takes into account what happens to them, how

they respond and the actions they take. Among other

benefits, “customer journey mapping” can uncover key

“moments of truth” for customers and areas for cost

and efficiency savings.

The resulting “maps” are powerful, visual devices

that graphically document customer interactions and

experiences from the initial decision to purchase/acquire,

through research and evaluation, to choice, selection,

transaction and delivery. They are often used to reveal

gaps in service as well as opportunities for improvement

and innovation in customer interactions. As such, they

can be a catalyst for positive change, and may be applied

in a variety of situations, including:

• Navigating new channels or payment methods,

e.g., developing a mobile payment application

• Adding value by improving the customer experience

at different stages of the journey (small “tweaks”

yielding 2–5 percent improvements can be impactful)

• Simplifying the payment choice, discovering ways to

make it more automatic/subconscious; e.g., enabling

“card-on-file” for quick checkout

• Detecting potential new solutions to problems,

such as abandoned baskets; e.g., developing and

marketing new financing options

• Streamlining activities to contain costs and

reduce wastage

• Identifying competitive gaps and opportunities

to differentiate

• Capitalizing on revenue improvement opportunities.

For illustrative purposes, Figure 1 shows a simplified

“customer journey map” for a customer wanting a

new credit card to take on holiday. From the customer’s

perspective, their journey starts when they decide to

check out the options available in the market. Our card

issuer needs to ensure they are visible and available in

the appropriate channels. The prospective customer

investigates the options available, decides which best

suits their needs, applies for the card and then finally

activates it when it arrives. Of course, it is a lot more

complicated than that and the journey can be disrupted

at several points along the way. For instance, they may

fail credit scoring due to a thin file, or the card may be

delayed or lost in the post, so they don”t get it before

they depart.

Mapping the customer’s journey could help the card

issuer see where they are losing customers so that they

can identify ways to increase the number of successful

applicants without compromising credit standards.

ProblemSenior executives are facing

challenges in the “path to purchase”.

SolutionMapping the customer’s journey

can be an effective channel

management tool for growth.

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Depending on the findings of the mapping exercise, the

bank might consider using alternative methods to credit

score thin file customers, or look at other distributors or

methods for delivering cards to customers.

Following the “right” process is key to success

When executed well, “customer journey mapping” can

inform critical decisions and help to better position the

business to tackle current challenges and those that

lie ahead. Key to unleashing this potential is to follow

a “best practices” approach, an example of which is a

5-stage process:

1 Determine the purpose of the map, its start and

end points and, broadly, the steps in the journey.

2 Collate all the necessary inputs (see below).

3 Convene a workshop (see below), bringing

together all those responsible for different parts

of the customer journey to “walk in the customer’s

shoes” from beginning to end.

4 Use the workshop outputs to build the map

and analyze it to identify opportunities for

improvements and innovations.

5 Socialize the map and assign tasks to those

responsible for the aspects that need to change.

Set dates to review progress.

The inputs. Three types of component parts have to

be brought together to ensure that the map is founded

on a deep understanding of customer needs and

experiences. These include:

Facts and insights about internal processes —

what actually happens within the business

b Customer personas — who is making the

journey, what are their goals and priorities, how

do they think and feel

c Insights about the customer experience at each

stage of the journey

These may be derived from a range of sources,

including (but not limited to) in-depth primary

research with customers and front line staff,

mystery shopping, social media, customer

satisfaction audits and internal process audits.

The workshop. A facilitated workshop is an essential

part of the mapping process. It provides a forum to

explore what happens at each step of the journey and

perhaps most importantly, the transitions from one

step to the next. Many organizations are structured

departmentally, according to tasks. Colleagues

responsible for different activities don’t always know

what happens elsewhere in their own organization.

This can make it difficult to provide a fully streamlined

experience for customers, who sometimes can feel like

they are being passed around and falling between the

cracks that form at the transition points. The workshop

itself can be a very valuable exercise in giving the

participants a deeper understanding and appreciation

for the customer journey. As illustrated by Figure 2, it is

an interactive process, using flipcharts and post-it notes

to capture thoughts and ideas. These are ultimately

used as a basis for developing the actual map.

The actions and interactions that take place along

the customer journey provide the structure. Mapping

Figure 1: Simplified Customer Journey Map for New Credit Card Acquisitions

Customer Journeys

by product

Figure 1

Source: MasterCard Advisors

Customer Perspective“I want a new credit card.” “Can we approve?”

KYC + AML = YES

AML: “Anti-money laundering” compliance procedures KYC: “Know your customer” compliance procedures

• Set up account• Produce card & send

Which card?

Got it, now what?

Incentive to activate?

Usage campaigns

Issuer Perspective

Application

Activation

Usage

?

a

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involves describing how each interaction leads to

subsequent steps along the path to purchase as well as

highlighting where and how things can go wrong.

At all stages, it is important to pinpoint the impact

on the customer and the consequences for their

relationship with the card issuer (and any other

parties involved).

The ultimate outcome is a deep understanding of

the opportunities for process improvement and

enhancement of the customer experience.

Well executed “customer journey mapping”

exercises can reap significant rewards

Businesses can reap significant rewards from “customer

journey mapping” when they execute on a “best

practices” basis such as that outlined earlier. For

example, a recent “customer journey mapping” exercise

undertaken by MasterCard Advisors for a European

credit card issuer highlighted incremental improvement

opportunities in customer acquisition and onboarding,

cumulatively worth over €500,000 (Figure 3).

More specifically, the exercise uncovered

multiple opportunities for revenue enhancement

and cost savings:

Application: Improving the application process to

increase the number of completed applications, leading

to a revenue gain of €120,000

Decisioning: Introducing new technology and

alternative “Know-Your-Customer” checks to reduce

the number of incorrectly declined applications, leading

to gains worth €90,000

Fulfillment: Digitizing fulfillment offered the greatest

opportunity for cost savings, netting €220,000

Activation: Activation enhancements to motivate a

€90,000 increase in revenue through earlier card usage.

Conclusion

Every organization has its own “ecosystem” and each

customer is an individual, with his or her own particular

needs, expectations and circumstances. Mapping the

Figure 2: Photo from “Customer Journey Mapping” Workshop

Figure 3: Illustrative Example: Potential Gains from Proposed Initiatives at a European Card Issuer

Photo from

“Customer Journey

Mapping” Workshop

Illustrative Example:

Potential Gains from

Proposed Initiatives

at at European Card

Issuer

Figure 2

Figure 3

Source: Google

Source: MasterCard Advisors

Total cost savings and incremental revenue gains (Euros, in thousands)

Application FulfillmentDecisioning Activation Total

520

90

90

220

120

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customer journey is not an easy process. It takes time

and there are no shortcuts.

However, it is highly beneficial in terms of both financial

gains and improving customer experience. Overall,

we may identify six key takeaways to help ensure a

successful “customer mapping journey” initiative:

1 Start where your customer starts. An effective

journey starts where the customer starts, not

necessarily where you have control of the journey. How

can you influence the journey before they get to you?

2 Understand your customer’s goals / needs

for the journey. What is the customer trying to

accomplish? Is the journey the end or is it a means to an

end? e.g., “I don’t need a credit card, I need a way to

pay online securely.”

3 Understand the customer’s emotions, since

real loyalty is about emotional attachment to

the product. It is key to understand how that emotion

changes over the journey and hence its impact on

overall experience, whether positive or negative e.g.,

how do you deal with a stolen card? Does it differ

between travelling business executives and

occasional domestic card users?

4 Use primary research (qualitative and

quantitative) as a key input, ensuring that the

map is drawn from the customer’s perspective.

5 Be clear on which customers’ journeys are

being mapped. Use personas to describe

different segments.

6 Document all the key touchpoints. Identify

the “moments of truth” and highlight “hygiene”

factors vs. opportunities to delight.