Nothing in the world can turn a customer into a satisfied, loyal one other than a compelling experience. According to numerous researches, a customer who has a good experience from interacting with a company tends to either repeat the same interaction or have an even more excellent relationship with the same company.
But what is in a good customer experience for a business?
Without any doubt, a happy customer can drive remarkable revenue for your company. According to Bain & Company, companies committed to offering a better CX can experience an average growth of 8% above their market. This revenue can be driven via the customers themselves or the power of word of mouth. So, apart from any other fantastic benefits that it offers, a good customer experience can help your business grow. That is why literally every company is striving to enhance their CX right now.
Customer Experience Management, which is also known as both CXM and CEM, is considered as the next step in improving customer experience. It goes above and beyond putting a smile on the face of your customers by leveraging every interaction via every touchpoint. When utilizing Customer Experience Management, a company makes sure that the customer feels good about the service or product they are receiving. Also, if anything is preventing the customer experience from being less than expected, CXM makes sure the problem is being heard and the business acts upon it.
To be more exact, Customer Experience Management is a concept that helps a business improve its CX through continuous collecting, analyzing and acting based on customer data. This ongoing process will lead to a personalized, improved customer experience which is being monitored to be even more enhanced.
Why is Customer Experience Management Important?
Customer Experience Management ensures that the time, energy, resources and efforts a business puts in order to improve its customer experience are being spent wisely. With CXM, all touchpoints and channels are being carefully observed; the data would be gathered and processed according to the business goals, and actions also would be defined in harmony with priorities and resources. Customer Experience Management also keeps an eye on the business goals and strategies so that all these efforts will be aligned with them as well.
All these being told, having Customer Experience Management onboard adds a key component to the company. It will help not only improve the customers' overall experience when interacting with the business, but it also can result in optimizing the procedures, reducing sales and marketing costs, and even improving the employee experience. All in all, this concept is so beneficial that all companies, big and small, regardless of their sector or region nowadays, have either wholly implemented it or started to implement it.
CXM vs. CRM
Customer Experience Management is being sometimes confused with Customer Relationship Management. This is due to the fact that both concepts are very closely related and there is also some overlap between the two. However, it is very important not to look at CXM as a novel form of CRM as there are fundamental differences between these two concepts.
CRM is mainly concerned with optimizing business procedures to ensure the relationship with the customers is improved. On the other hand, CXM takes the next step and utilizes every single resource possible to ensure the customer is having a perfect experience when using a company's services and products. In this regard, CRM is more business-centric, while CXM is remarkably customer-centric.
CRM works with quantitative data, whereas CXM uses both quantitative and qualitative data. This is why Customer Experience Management also is more aligned with modern technologies and concepts to monitor and act upon data as data provide it with insights.
The Role of Customer Experience Management Software
Nowadays, as numerous companies are experiencing digital transformation, adaptation seems crucial for CXM. This is the reason why the next generation of CXM is being implemented using Customer Experience Management software.
These software facilitate all the procedures required to have a perfect customer experience through providing features and dashboards and utilizing novel concepts like sophisticated analysis, big data, data science and artificial intelligence. An experience manager can now simply manage the CXM with a few clicks and watch everything work smoothly.
A Customer Experience Management software can act in different roles. It can provide dashboards for a manager to monitor the CXM metrics and performances and notify him or her where needed. It also can ease the analysis of data in different forms and from various channels such as SMS, Emails or even social media channels. It also can offer significant help in the data collection and clean-up steps.
In this article from Pisano Academy, we discussed the most essential pillar of CX, Customer Experience Management. We discussed why this concept is considered important and why big names in every industry strive on this path. We also talked about the differences between CXM and CRM and also described Customer Experience Management Software.