The D3HDRS approach: a novel clustering framework for customer experience management with a case study in the telecom sector of an emergent market

Abstract

In modern competitive business environments, mastering and improving customer experience is crucial for organizations to distinguish themselves and secure market advantage. Thus, this article introduces the D³HDRS framework, an innovative seven-stage hierarchical clustering approach designed to quantitatively analyze customer experience feedback arranged in multiple dimensions, such as emotions and brand interactions, to build detailed persona profiles for strategic customer experience management (CXM). The D³HDRS framework systematically progresses through the stages of data processing, descriptive statistical analysis, dimensional analysis, hierarchical clustering, dendrogram review, radar chart visualization, and segment profiling with customer generalization to dissect and classify customer experiences for CXM operations. This research presents an exemplary application of the method within a telecom service provider in Colombia, an emerging market; by leveraging data from 106 customers, we ultimately denote six unique customer segment profiles with their specific features and attributes. The study showcases the D³HDRS framework's effectiveness in delivering nuanced customer insights that facilitate the development of marketing strategies targeted to each customer profile. By detailing the case study in an emerging market context, our findings underscore the framework’s versatility and potential for broader industry implementation, providing a strategic tool for organizations aiming to refine CXM strategies.