Customer Experience Management (CXM)

Customer experience management (CXM)

Customer experience management (CXM) proactively initiates contact, delivers content, preemptively solves problems and understands customer preferences, often before the customer requests it or knows they need it.

In addition, CXM seeks to address the experience customers have with companies over time, with the aim of making each interaction a positive one, so that there is a cumulative effect on satisfaction and on loyalty.

Benefits of CXM

Any organization that cares about delivering value to its customers should care about CXM. Organizations that will benefit most are those that operate in spaces where consumers have a lot of choices and where switching costs are low.

Similarly, enterprises that thrive on strong customer relationships and want to empower their business users to make the most of every customer touch point throughout each state of the customer life cycle will benefit by embracing CXM.

Considering it costs six to seven times more to gain a new customer than to keep an existing one … enterprises that deliver context-aware customer experiences in the preferred delivery channel, such as the Web, SMS, mobile apps and email, will find increased customer satisfaction and retention, improved response rates and higher revenues.

Improve Your Company's CXM

Improve Your Company's CXM - 1 - Customer Wheel
Improve Your Company's CXM - 2 - 8823b545db2a77dd2c020659a670d735
To improve CXM, organizations have to take into consideration the following strategies and best practices: - Click To Read More -
  • Define success. Make it clear how a successful CXM will be measured.
  • Start small and focus on specific goals. Focus on delivering bite-sized projects that deliver real customer benefits frequently, both to build improved experience and to maintain corporate attention.
  • CXM responsibility. Organizations interested in providing or improving and monitoring customer experience should hire someone experienced in CXM.
  • Make sure your CXM and IT are in synch. Whoever is accountable for the CXM and the results that it delivers, he/she needs to work hand-in-hand with the CIO. That way you deliver a solid front-end and back-end experience.
  • Continually strive to understand your customers from their perspective.
  • Firms should learn what customers really care about and remember that they demand the same experience regardless of what channel they use, call center, social media, chat, etc.
  • Learn what customer touch points (i.e., interactions) matter the most and harmonize them. Have someone own responsibility for the success or failure of each channel and work together as a team with other channel owners to create a seamless experience.
  • Make CXM an enterprise goal. Customer experience should be a total enterprise goal, not just the purview of the customer service team.
  • Be flexible. Build a customer experience strategy as a process that is organic and responsive to changing customer needs and expectations.
  • Measure results. Every use case should be developed and tested based on an improved customer experience.
  • Actively engage in customer experience measurement. Visit the call center and listen to calls. Attend focus groups. Build feedback loops into your interactive technology and act on the feedback you get.
  • Don’t forget the data. Focus on developing data hubs that are authoritative and that can be accessed by customer-facing applications.

Effect of Customer Experience on the bottom Line

Customers not only have more choices than ever before with whom they do business with, they also have a direct voice through social media and other channels. If the customers do not receive the level of service they expect from a business, not only will they potentially take their business elsewhere, but they will tell others.