Ultimate Guide to Customer Experience Management (CXM) for Businesses

customer experience management is the
set of processes a company uses to track
oversee and organize every interaction
between it and a customer throughout the
customer life cycle
sometimes customer experience management
is referred to as cem and other times as
cxm in this video we'll refer to it as
cxm first of all it's important to clear
up any confusion between cxm customer
experience management and what's
commonly known as CRM customer
relationship management
when it comes to strategy and software
they may appear similar but there are
key differences in their perspective and
goals CRM shows what a customer looks
like to the company while cxm defines
what a company looks like to the
customer more specifically CRM strategy
focuses on sales and Outreach to
customers from the company's perspective
of capturing more Revenue this sales
oriented system sometimes integrates
with customer service and support but
major digital transformation is required
to support a broader cxm program
cxm strategy puts customers at the
center of Marketing sales and customer
support to drive brand loyalty and
repeat business cxm programs rely on
voice of the customer initiatives to
measure how customers feel about their
experiences with a company a cxm program
will then adjust the areas that generate
negative feedback to correct those
perceptions
now let's take a close look at the
customer experience itself and how it
contributes to customer perceptions
sales revenue and the company's bottom
line good customer experiences are more
critical today than ever before partly
because of the covid-19 pandemic it
upended sales and marketing strategies
and stiffened competition
as a result new strategies tools and
techniques geared to increasing brand
awareness product differentiation and
customer-centric programs are keys to
business survival customers today are
savvier about technology demand more
satisfying experiences and want to
engage with a company on the channel of
their choice
customer experiences can be positive
when cxm has done well or negative when
some elements of it are left unattended
let's focus on the positives when
customer experiences are good because of
effective cxm various business benefits
will follow higher sales and profits
retaining a customer costs less than
acquiring a customer
Studies have shown that a five percent
increase in customer retention can
result in a 25 percent increase in
profit also satisfied customers tend to
purchase more often improved business
processes voice of the customer data
comes in the form of web surveys mobile
app feedback and phone and chat
conversations it provides a blueprint
for improving customer experiences and
retaining customers better employee
experience too studies show there's a
strong link between customer experience
and employee experience companies that
provide the best customer experiences
also focus on measuring voice of the
employee data with an eye toward
improving employee experience and
retention
Word of Mouth marketing satisfied loyal
customers voluntarily endorse a
company's brand to their peers customer
endorsements can often weigh more
heavily in buying decisions than
advertising or marketing campaigns and a
Competitive Edge measuring customer
sentiment yields information about
competitors customers compare Brands
when making their buying decisions and
offering feedback knowing this
information can help a company position
itself favorably against rivals customer
experience management requires that
companies have a 360 degree view of
their customers through integrated
up-to-date data on customer accounts
there are four critical steps in
creating a sound cxm strategy
first understand customer needs and
behaviors cxm teams can develop customer
profiles to better understand how to
Market to targeted customers then they
can segment customers into different
groups based on factors such as age
interests and spending habits second
create a customer Journey map this helps
identify customer touch points and
anticipate how customers will interact
with products or services that info can
often help cxm teams boost long-term
customer retention
third develop an emotional connection by
creating a brand personality that
establishes a relationship between the
customer and the company and fourth
capture feedback to measure customer
satisfaction in real time customer
feedback can help track customer
perceptions enable quality monitoring
and measure the success of the cxm
strategy
companies must assemble a customer
experience team to execute these steps
this team could include a number of
leadership roles such as Chief customer
officer Chief experience officer VP of
customer experience and multiple
customer experience managers with
different responsibilities
customer analysts often report to the
customer experience managers or
Executives to manage the data projects
involved they also can act as a liaison
between the cxm team and other
departments like marketing customer
service sales and it
again the best way to understand
customers and their interactions
throughout all of their experiences with
the company is to compose a customer
Journey map
let's look more closely at that process
five stages along the journey tell a lot
about customer interactions
first is customer research the customer
discovers the company often on the web
through ads or through third parties
such as consultants colleagues or social
media acquaintances second is comparison
shopping customers also learn about a
Brand's competitors they compare
capabilities user perceptions products
and costs third is when the customer
makes a purchase this part of the
journey is the big business win but it's
just the beginning of customer retention
and loyalty building fourth is customer
support after a sale customer service
and support teams are where customer
loyalty and repeat sales begin or end
depending on the competence of these
teams they can make or break the
customer experience and fifth if all
goes well customers make another
purchase or share their positive
experiences
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four main obstacles can derail a
customer's experience
the first obstacle is when the voice of
the customer data is ignored or given
short shrift
a company can't solve customer
experience problems that it's unaware of
second is the lack of omnichannel
support customers who don't feel like
they're being listened to on the channel
of their choice are more likely to move
on to a competitor
third is ignoring qualitative data
companies should Harvest and analyze
individual comments in survey free text
Fields these comments can yield a much
deeper understanding of customer
experience issues than numbered ratings
can and the fourth obstacle is poor
internal Communications customer
experience initiatives will only work if
all the information generated by
analyzing the customer journey and voice
of the customer data is distributed in a
way that business stakeholders and sales
marketing customer support and Senior
leadership can understand
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Journey can be long and difficult to
manage effectively to ensure a
successful customer Journey with good
experiences customer experience teams
must do all of the following
generate content
evaluate customer sentiment create
customer personas and marketing segments
invest in customer loyalty programs
evaluate customer touch points and
analyze customer data let's look at each
of these actions more closely
content generation comes in two forms
one set of content for internal use and
another for external use internally
marketing and sales teams can benefit
from studying up on supporting research
marketing pieces and sales enablement
literature
externally for engagements with
customers sales and service will use
personalized emails text messages web
content and mobile apps simply
collecting voice of the customer data
isn't enough Enterprises also need to
apply customer sentiment analysis tools
and techniques to that data to get an
in-depth understanding of customer
motions and opinions customer personas
and marketing segments are based on the
assumption that different groups of
customers have different needs that
means building a consistent engaging
experience by addressing and
anticipating the specific needs of
customers to do so different customer
personas based on Behavior patterns
should be plugged into a customer
Journey map to provide a blueprint for
designing a customer experience that
caters to each persona customer loyalty
programs tell frequent customers that
they're special and their business is
appreciated well-executed loyalty
programs use savings offers and perks to
help Drive repeat sales and upsells
customer touch points must be evaluated
so the company knows where and perhaps
why customers make their purchasing
decisions or flee to its competitors
these touch points show what prompts
customers to take action like
traditional media advertising social
media and Word of Mouth finally customer
data and feedback should be analyzed to
continuously improve the customer
Journey long term customer analytics can
also help influence the direction of a
company's marketing and product
development strategies
a customer experience management
strategy can only succeed with the right
Technologies to support it whether on
premises or in the cloud
many Cloud software vendors have
platforms to manage customer experience
from end to end these platforms are
built on four major components CRM
marketing automation e-commerce and
customer service
a CRM system enables sales reps and
marketing agents to easily access and
manage customer information it generally
pulls data in from a variety of channels
and touch points and Spares customers
the aggravation of repeating their
information during each engagement
marketing automation tools include lead
management customer segmentation and
campaign management capabilities to
increase marketing efficiency then
eliminate repetitive tasks with an
e-commerce platform companies can build
an online storefront with capabilities
such as checkout product catalogs and
integration with Payment Processing
customer service teams use cxm platforms
to communicate with customers on
different channels based on the
customer's Choice some platforms also
offer self-service so customers can
solve their own problems through chat
Bots product documentation and other
options
in addition there are several other
important customer experience tools that
should be included in a sound cxm
strategy personalization engines
automation tools such as artificial
intelligence technology contact center
software collaboration tools voice of
the customer software a motion analytics
tools and Knowledge Management Systems
companies need to keep Pace with today's
demanding complex and Savvy customers
these tools and more must be considered
as part of a comprehensive
all-encompassing well-executed customer
experience management strategy
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