The aim of this report is to understand the customer experience (CX) strategy for Coca-Cola’s Sprite in the UK. The analysis delves into defining CX, creating a Generation Z consumer persona, mapping their journey, reviewing the efficiency of omnichannel marketing, and evaluating performance indicators, all while acknowledging the crucial role that CX plays in fostering customer loyalty. This research showcases Coca-Cola’s Sprite CX strategy’s performance in a dynamic market context, emphasising the company’s commitment to continuous customer pleasure and brand loyalty. It will be ensured by focusing on crucial success elements and providing a comparison analysis with PepsiCo.
The importance of customer experience
Customer Experience or CX basically emphasizes the relationship between a business and its customers. It can be defined as the overall perception and interaction a customer makes with a specific brand across their purchasing journey, encompassing each touchpoint right from initial awareness to after-purchase assistance (Ceesay, 2020). CX is the comprehensive synthesis of all the emotions, perceptions, and exchanges that build what customers think of a brand. CX is largely about the emotional connection and satisfaction that are gained from every aspect of brand interaction, rather than just the product. High levels of loyalty and retention of customers are ensured for an organisation that provides outstanding customer experiences (Bascur, and Rusu, 2020). A positive CX implies greater brand advocacy, greater customer trust, and long-term competitive advantage over rivals.
CX is extremely important to Coca-Cola, particularly with regard to their product Sprite in the UK. The soft drink business offers more than just beverages; it also promotes a way of life and a feeling of community (Chaulagain, 2020). Customers identify Sprite not simply as a cool beverage but also as times of fulfilment, revitalization, delightness, and energy. Because it directly affects brand loyalty, repeat business, and total market share of Coca-Cola, maintaining a great customer experience (CX) is crucial.
An excellent consumer experience (CX) for Sprite goes beyond the drink’s flavour. It encompasses how consumers find, buy from, and interact with the brand (Xiang, 2022). A smooth and enjoyable interaction with the brand across several touchpoints, including websites, vending machines, and physical stores, strengthens the emotional connection between the customer and the brand. Furthermore, a better CX turns into a differentiator in a market that is competitive and where customers have a wide range of options. An outstanding CX approach produces favourable word-of-mouth, social media advocacy, and trust among customers (Xiang, 2022). Customer satisfaction is more important to Coca-Cola than simply a one-time purchase; it makes them brand ambassadors who spread the word and help Sprite continue to succeed across UK.
Consumer persona creation
Consumer Persona Definition: A consumer persona refers to a semi-fictional representation of a suitable customer derived from real data and market research. It provides a thorough insight of a particular target population by extending beyond demographics to include behaviours, motives, and objectives (Märtin et al., 2023).
Role in Developing Effective CX Strategy: The creation of consumer personas is essential to a strategy that is customer-centric. Businesses can personalise their goods, marketing, and whole customer experience strategy by learning about the needs, tastes, and pain points of a particular demography (Lemon, and Verhoef, 2016). This focused strategy improves client loyalty, engagement, and satisfaction.
A consumer persona of a generation z (aged 22):
Lily
Demographics and story · Gender: Female · Age: 22 years · Education: Under-Graduate · Urban · Socially Active Profile Lily is pursuing her graduation in Science field, living in an urban setting. She is enthusiastic about social connections and embraces a dynamic lifestyle. Motivations for using Sprite (West et al., 2020) · Looks for interesting and energizing drink selections for get-togethers. · Loves to buy things that fit a lifestyle focused on health. · Attract to vibrant and modern products which are appealing to her generation Goals for using Sprite · To drink a beverage that goes well with his social activities and satisfying thirst (Graham, 2016). · To experience a trendy and appetizing drink that reflects her personality. Pain points a Sprite addresses · Few options for healthy drinks available. · Want for innovation and diversity in beverage selections
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Lily is a representation of Sprite’s intended Generation Z customer. A CX approach that suits her tastes and improves her overall Sprite experience can be developed by Coca-Cola, aligning with her motivations, goals, and pain areas in mind (West et al., 2020).
Mapping the customer journey
Customer Journey Map: A Customer Journey Map refers to an illustration of a customer’s whole interaction with a product or service (Rosenbaum et al., 2017). From awareness to post-purchase assistance, it describes every encounter, touchpoint, and feeling that a client experiences during their lifetime.
Importance to CX Strategy: A Customer Journey Map is essential to a CX strategy because it offers companies a glimpse into the customer’s world, allowing them to pinpoint areas of discontentment, pain spots, and opportunities for improvement (Rosenbaum et al., 2017). It helps to make the experience more smooth and personalised, which increases customer fulfilment and loyalty.
Purpose of Customer Journey Map: The key purpose is to determine the customer’s journey, allowing businesses to align their strategies with customer needs and expectations. It allows for targeted changes by providing a thorough understanding of the customer’s interactions and emotions at every stage (Machala, 2018).
Customer Journey Map for Generation Z (Aged 22):
Stage | Activities/Touchpoints/Interaction | Needs & Feelings | Opportunities for Improvement |
Awareness | Online presence and social media exposure, | Interest in and desire for fashionable products | Improved online presence and collaborations (Machala, 2018) |
Consideration (Machala, 2018) | Influencer reviews and online research | Reliability and Authenticity | Accurate product information |
Purchase | Online or Offline purchase, uninterrupted checkout process | Convenient transaction | Optimized checkout process |
Post-Purchase (Machala, 2018) | Product feedback and Social media sharing | Community, satisfaction | Proactive customer assistance |
The above infographic provided a thorough summary of Sprite’s customer journey for Generation Z. A better informed CX approach can be implemented when each stage, its related activities, emotions, and demands are understood (Halvorsrud et al., 2016). Coca-Cola can improve the whole experience by identifying areas for development, which helps to ensure that Sprite successfully reaches the intended demographic.
Omnichannel marketing
Omnichannel Marketing: Omnichannel marketing refers to a strategy that incorporates different sales and marketing channels for delivering a seamless and cohesive customer experience (Manser Payne et al., 2017). It establishes uniformity between various offline and online touchpoints, resulting in a cohesive brand presence.
Role of Customization: In omnichannel marketing, customisation refers to tailoring promotions, content, and interactions to suit the unique interests of each individual consumer (Petersen et al., 2022). As a result of feeling like they have a more unique relationship to the company, customers are more engaged, loyal, and satisfied.
Identification of Sales and Marketing Channels for Sprite: Coca-Cola has a strong omnichannel marketing approach for Sprite, reaching and interacting with customers through a variety of channels.
Online Platforms:
Social Media: Interacting with consumers through using content, promotions, and user-generated material via Instagram, Facebook, Twitter (Chaulagain, 2020).
E-commerce Websites: Facilitating online shopping and subscription services.
Vending Machines:
Strategically implementing vending machines in high-traffic areas, providing proper access to Sprite
Retail Stores:
Working together with supermarkets, convenience outlets, and grocery stores to guarantee Sprite’s availability at real retail locations
Partnerships and Collaborations:
Collaborating with local businesses, influencers, and event organizers for Sprite’s promotion in unique and reliable ways (Chaulagain, 2020).
Branded Apps:
Building and maintaining a mobile app for Sprite, offering exclusive promotions, loyalty rewards, and a smooth platform for communication.
Customer Service Platforms:
Providing customer support across several channels, such as email, social media, and online chat, to ensure fast and effective problem-solving
Conclusion on Seamless Customer Journey: The key to Coca-Cola’s successful multichannel approach is its ability to stay committed to its core brand identity while accommodating the particulars of each channel. Sprite has an appealing and smooth customer experience in the competitive beverage industry thanks to its dedication to ease, accessibility, and personalization, all of which meet the expectations of today’s customers (Susilo, and Dizon, 2024). Through its omnichannel marketing approach, Coca-Cola’s Sprite exhibits a positive attempt to create a smooth consumer journey. Customers can communicate with Sprite consistently across a range of touchpoints through the integration of branded applications, collaboration opportunities, retail locations, vending machines, and online and customer support platforms. Customized content across many platforms, loyalty points, and personalized advertisements all demonstrate the importance of customization. Through customization, Sprite becomes more relevant and appealing to a wider range of consumer tastes, improving the entire customer experience (Susilo, and Dizon, 2024).
CX performance metrics
CX Performance Metrics:
- Customer Effort Score (CES):
Customer Effort Score is a metric that evaluates how easy it is for customers to utilize a product or service. It is produced from a customer satisfaction survey. It shows how much work a consumer has to do to utilize a service or product, locate the information they require, or get a problem fixed, along with interacting with a brand, taking into account their whole experience (Purcărea, 2017). After an engagement, consumers often assess their amount of effort on a scale (e.g., 1–7), with lower ratings denoting better experiences. CES is a useful metric for pinpointing issues, concentrating on minimizing consumer effort and boosting overall satisfaction. As a beverage brand, Sprite primarily relies on how accessible and enjoyable it is for consumers. An effective CES assures that customers can easily obtain Sprite, which encourages recurring business and customer loyalty. As consumers’ preferences for digital interactions and online transactions evolve, assessing customer effort also has to adapt to the changing needs of consumers (Purcărea, 2017).
Relevance: For Sprite, the CES tool is very important since it helps Coca-Cola determine how simple it is for customers to get and enjoy the beverage. Customers’ pleasure and loyalty are strongly impacted by aspects like how simple it is to make purchases online, where to find Sprite information, and how easy it is to contact customer service. Reducing consumer effort in these domains promises a more seamless and pleasurable experience, consistent with Sprite’s marketing as an easily accessible and refreshing beverage.
- Customer Equity (CE):
Customer Equity of CE is a key metric that helps businesses determine a customer’s overall lifetime value to a business by taking into account both present and prospective earnings. It calculates the long-term impact of customer relationships on the profitability and growth of a business (Madhani, 2020). The average purchase amount, frequency of purchases, and customer lifetime are multiplied to calculate CE. This tool also offers information on client retention, loyalty, and the total amount of money that consumers spend with the company. For Coca-Cola to make strategic decisions, it is essential to comprehend the long-term value of Sprite consumers. Coca-Cola can ensure an uninterrupted source of income by concentrating on retention tactics and finding high-value consumers (Madhani, 2020). Sprite’s popularity and widespread awareness make consumer loyalty essential to maintaining its market position. CE assists in calculating and ranking initiatives to increase total customer lifetime value.
Relevance: For Sprite, CE is important since it demonstrates the significance of each customer’s long-term significance and customer loyalty. To optimize customer retention and income, Coca-Cola must have a thorough grasp of the lifetime value of Sprite customers to customize marketing efforts, loyalty initiatives, and product developments (Fader, 2020). CE takes into account a customer’s contribution to market influence and brand advocacy in addition to their financial effect.
CX processes in different industries
Within the field of Customer Experience (CX), a few critical success factors (CSFs) function as indicators for businesses seeking to improve customer happiness and retention. These CSFs, which are Measurement, Structure, and People, are essential in determining how a business approaches CX (Parahita et al., 2021).
Structure: An organizational structure that prioritizes customer-centricity and encourages collaboration is essential to delivering great customer experience (CX). A global leader in the food and beverage sector, PepsiCo has an explicit organizational structure designed to incorporate CX into its business processes (Igwele, 2023). The organization emphasizes collaboration between functions across the divisions in charge of product development, sales, and marketing by using a matrix organizational structure. This framework makes sure that CX is taken into account in all aspects of the business and is not restricted to a single area. PepsiCo’s ability to swiftly respond to shifting consumer tastes and market conditions is achievable by its matrix structure, which further demonstrates its dedication to providing a reliable and satisfying customer experience (Igwele, 2023).
People: This is another critical factor that focuses on fostering a customer-centric culture within the organization. PepsiCo understands how critical empowered and motivated staff is to providing outstanding customer experience. The organization makes sure that staff members at every level are aware of how their responsibilities affect customer satisfaction through focused training programs (Igwele, 2023). This strategy is consistent with the industry’s broad recognition that employee behaviors and mindsets have a significant impact on a company’s customer experience (CX) performance (Dai, 2021). PepsiCo creates a holistic approach to customer experience (CX) that transcends individual touchpoints by fostering a culture that prioritizes customer-centricity and enables its personnel to actively participate in pleasant customer encounters.
Measurement: The third CSF that businesses use to determine whether their CX activities are successful is effective measurement. PepsiCo uses a wide range of measuring techniques, including as data analytics, social media monitoring, and consumer surveys. Periodic evaluations of consumer feedback and performance indicators yield insightful information that helps PepsiCo pinpoint areas for development and change its approach appropriately (Chua et al., 2020). In the dynamic and competitive food and beverage industry, constant measurement is essential for staying adjusted to evolving consumer tastes as well as market trends. In line with industry best practices, PepsiCo is committed to continuous measurement, highlighting the necessity for businesses to modify their customer experience (CX) strategy in response to real-time outcomes.
Comparative Analysis:
In the context of customer experience (CX), the key success factors of measurement, people, and structure are widely accepted; however, there are significant distinctions regarding the way CX processes are implemented across different companies (Bai, 2023). Below is the comparative research highlighting the ongoing significance of these CSFs by examining the differences in CX approaches between Coca-Cola and PepsiCo.
Structure in Comparative Context: With its flexible matrix architecture, PepsiCo’s organisational structure is designed to support its wide range of products in the food and beverage sector. Cross-functional cooperation is made easier by this structure, which is consistent with the variety of goods they offer (Bai, 2023). Coca-Cola, on the other hand, which is well-known for its narrowly focused beverage products has a more simplified hierarchical structure, which enables quick decision-making and quick response to market needs. The operational needs and product diversification of the sector determine either hierarchical or matrix structure is best. While PepsiCo’s matrix design complements its numerous product lines, Coca-Cola’s more concentrated approach may benefit from a different organisational arrangement (Chua et al., 2020).
People in Comparative Context: People are still prioritised as a CSF, but how they are expressed differs based on the dynamics of the sector. PepsiCo’s training programmes are tailored to the specifics of the food and beverage industry, placing a strong emphasis on the value of knowing customer trends and preferences. On the other hand, given its unique brand and market positioning, Coca-Cola gives priority to training activities that complement its beverage-focused approach (Bai, 2023). Each sector is complex, which makes it necessary for employees to possess a certain set of abilities in order to provide outstanding customer service. PepsiCo’s focus on customer insights and trends highlights how crucial it is to match People strategies to the particular needs of the food and beverage industry.
Measurement in Comparative Context: Measurement, as a CSF, is pivotal across all industries, however the specific metrics and tools used can differ significantly. PepsiCo uses a combination of data analytics, social media monitoring, and surveys to assess consumer satisfaction and improve CX tactics (Dai, 2021). On the other hand, Coca-Cola prioritises distinct indicators, potentially concentrating more on conventional market research and brand sentiment monitoring.
Conclusion
The findings of the thorough research suggest a strategically solid approach to evaluating the efficacy of Coca-Cola’s Sprite CX approach. A commitment to providing an efficient and personalised experience is demonstrated by the integration of crucial success elements such a customer-centric organisational structure, customised consumer personas, mapped customer journeys, omnichannel marketing, and pertinent CX metrics. Coca-Cola is positioned to sustain brand loyalty and relevance by placing a strong emphasis on Structure, People, and Measurement in addition to having an in-depth grasp of Generation Z’s preferences.
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