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The importance of customer experience (CX) in hospitality and tourism management has also changed by the notions of the experience economy. Featuring the view of Pine & Gilmore (1998) on the experience economy, it emphasizes the need to offer experiences that are memorable and unique to different clients in various service operation sectors, including but not limited to hotels, restaurants and tourism attractions (Kang et al., 2016; Mkono, 2012; Chen, 2019). In this regard, creating a positive and seamless CX is necessary to help improve satisfaction, customer loyalty, and brand equity. Studies conducted by Deloitte (2017) and Forbes (2020) reveal that the adoption of more customer-centric concepts that improve and enhance CX guarantees improved customer retention and engagement with ever-increasing equipotent experiential customers as opposed to product-seeking centric customers (National Restaurant Association, 2020).

CX is a complex construct that not only explains the direct activities of the customer towards the service provider but also includes indirect activities (Sundbo & Hagedorn-Rasmussens, 2008). It plays a huge role in the service experience and involves many aspects, including staff engagement, availability of technology and other customers (Kandampully et al., 2017). More so, where such experiences, as argued by Hongxiang (2011), could be more effectively done, customers might be satisfied. Unfavorable experiences will, in turn, lead to losses because the customers will stop doing business with the companies, which can threaten the image of the concerned businesses. This is exacerbated in hospitality cases where the quality of service experienced is only sometimes uniform owing to the service being time-bound and having varied levels of service delivery (Hwang & Seo, 2016).

In the present scenario, there is an engagement of clients in the developments of value about the firms, and it gives opinions and communicates with the firms even without a purchase (Brodie et al., 2011; Hollebeek et al., 2018). In the tip-banking Service decision-making conceptual system on structures and processes of risk management (McKinsey & Company,2009), it is noted that customer journeys are no longer two-dimensional and progressive but rather multi-faceted made up of several layers of touchpoints, both physical and remote, in any progression. This depiction of a customer’s interaction with a brand or service supports the need to create appropriate strategies for the different emotions and interactions an individual experiences.

The customer experience theory is based on, among other things, the S-O-R system (Stimulus-Organism-Response) (Mehrabian and Russell, 1974) and the co-creation (Prahalad & Ramaswamy, 2004) star. They pointed out, however, that the interaction depends not only on external factors (stimuli or excitations) but on internal ones as well – states of persons, both in their separate components and in the configuration of an experience with the brand/service. Finally, the experience economy (Pine, Gilmore 1998) provides:
●  an additional layer of complexity,
●  Postulating that today’s customers are more inclined to seek good experiences as an added value of the goods and services,
●  Thus making CX design more relevant to the travel, tourism, and hospitality industries.
The technological advancements brought about by the digital age and Artificial Intelligence (AI) are making customer experiences in banking industries more data-centric and predictive. With understanding through machine learning and natural language expression, this technology anticipates how a customer will behave, what support will be required, and when it will deliver such support. This technology improves customer experience and enhances business operations by reducing wastage of resources through analyzing customer behavior and aiding communication (AI-Enabled Customer Experience).
The field of CX research is experiencing increased interest due in part to the growing interest of researchers and practitioners in the impact of COVID-19, which has changed the scope of customer omnichannel engagement contending with elements of safety and hygiene and technology usage. In a post-pandemic world, players in the hospitality and tourism industry will be required to vary their CX approaches as law after the “new normal” era, incorporating elements such as hygiene, employee training and ways of communication through technology. Ultimately, an optimal customer experience (CX) approach, especially in periods of distress, will help preserve the loyalty and trust of the customers that the business enjoys.

By all accounts, the concept of Customer experience is very rich, complex and multidimensional. It has a place in the provider’s services and in the consumer’s emotions and thoughts. Theories like the SOR model of knowing customer value and the concept of co-creation play a huge supportive role in understanding CX. In this regard, as the industries grow, especially with the growth of AI, CX will always come to the forefront in determining customer satisfaction and the business’s profitability.

 

CASE STUDY

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Increasing Customer Experience (CX) Through Live Shopping – A Case Study of Flowlife Company Founded in 2016, Flowlife, a recovery technology company based in Sweden, specializes in retailing well-being and recovery-oriented massage and workout products to create its niche in the retail market. Without any brick-and-mortar stores, Flowlife markets its products online through its website and social media and works with prominent sports clubs or federations such as Djurgårdens IF and the Swedish Olympics Committee. In 2021, the brand took a leap in developing its digital capabilities by launching live shopping sessions, which helped the brand better serve its customers by using the Streamify platform to help resolve the disparity between physical shops and online shopping.

Thanks to the advent of live shopping, Flowlife has transformed how it views and engages with customers. While live shows occur, product demonstrations are carried out, creating an attractive and extensive consumer market. On the other hand, the audience is shown products where and how they can be effectively used or highlights the product in a playful yet educational manner, enhancing emotional attachment and trust. This perspective allows viewing customers not only as the end users of the already conceived ideas but as those who help create the ideas and also decide how the product will be based on needs at that present time.

Flowlife’s accomplishment with live shopping showcases the company’s flexibility in the digital market. The company has tactically employed this format to enhance its role in the value creation chain and to offer a more engaging and fulfilling experience for the customer. Flowlife can painlessly turn potential buyers into active ones as the enterprise eliminates psychological barriers often present in e-commerce. Flowlife case study shows how live shopping augmented customer experience. Managerial implications concerning interactive value creation also show how live shopping, considering purchases, not only facilitates customer interaction but also aids in value co-creation for the organization to win the competition through retailing innovations in the digital environment.

 

 

References:
Apostol, E., Villan, M., Jose, T., & Pasco, K. (2023). Customer Experience (CX) Design in the View of Managers: An Analysis of the Impact of Pandemic in the Local Hospitality and Tourism Industry. American Journal of Tourism and Hospitality (AJTH), 1(1), 16–26. https://journals.e-palli.com/home/index.php/ajth

Budiaji, L., & Novani, S. (2023). Exploring the Impact of Dual Distribution Channels on Customer Experience (CX): A Case Study in Indonesia B2B Market. American International Journal of Business Management (AIJBM), 6(5), 29–37.

Ekelow, A., & Lundberg, V. (2022). Live shopping as a tool to create an engaging customer experience.

Mokha, A. K., & Kumar, P. (2022). Examining the Interconnections Between E-CRM, Customer Experience, Customer Satisfaction and Customer Loyalty: A Mediation Approach. Journal of Electronic Commerce in Organizations, 20(1). https://doi.org/10.4018/JECO.292474

Safari, A., Purwoko, Setiawan, Z., Noor, L., & Nurdiani, T. (2024). The Influence Of Brand Image And Customer Experience On Customer Repurchase Intention With Product Quality As A Moderating Variable. Jurnal Ilmiah Edunomika, 8(1), 1–9.

Tulcanaza-Prieto, A. B., Cortez-Ordoñez, A., & Lee, C. W. (2023). Influence of Customer Perception Factors on AI-Enabled Customer Experience in the Ecuadorian Banking Environment. Sustainability MDPI, 15(16). https://doi.org/10.3390/su151612441