Customer experience management (CEM or CXM) is the collection of processes a company uses to track, oversee and organize every interaction between a customer and the organization throughout the customer lifecycle. Show
CRM vs. CXMWhile CXM may look similar to customer relationship management (CRM) strategy and software, there are key differences when comparing CRM vs. CXM, one being perspective: CRM shows what a customer looks like to the company, and CEM defines what a company looks like to the customer. CEM is a strategy that puts business customers at the center of marketing, sales and customer support in order to drive brand loyalty and repeat business. CEM programs heavily rely on voice of the customer programs that quantify customer sentiment about their experiences with a company. Over time, a CX management program will adjust elements of the customer experience that generate negative feedback to correct those perceptions. CRM strategy, however, focuses on sales and outreach to customers from the company's perspective of capturing more revenue. Typically, this sales-oriented system -- which sometimes integrates with customer service and support -- requires major digital transformation to support an overall CEM program. Why is CXM important?Customer experience with a brand contributes to customer perceptions and sales. It can be both positive when done well and negative when some elements of CXM are left unattended. There are a variety of benefits to implementing a CXM strategy:
How to create a good customer experienceCEM requires companies have a 360-degree view of customers, with integrated, up-to-date data on customer accounts. There are four critical steps to creating a successful customer experience strategy:
Brands must assemble a CX team to execute those steps. CX teams include a number of roles, many of which are new to many companies. These roles may include a chief customer officer, a chief experience officer and several CX managers. Analysts often report to the CX managers or executives to manage the data projects involved and act as a liaison between the CEM team and other departments -- such as marketing, customer service, sales and IT. Together, this team should monitor and develop a consistent, continually improving customer experience. Successful customer experience management requires constantly harvesting voice of the customer data.The customer experience journeyChief experience officers are accountable for customer experience at every customer touchpoint with a company. To understand where those touchpoints are, it's imperative to draw a customer journey map, which reveals the many interactions customers have with a brand. At minimum, the map will have four sections:
A key component of building effective customer journey maps is the development of customer personas. Once a company knows the main archetypes of its customer base from developing smart market segments, it can plug the typical personas into the journey map to show how to build a customer experience that caters to each one. Customer experience management strategies must include visualizing the phases of a customer journey.CXM challengesFour main obstacles get in the way of good customer experience:
Management techniques and strategiesManaging customer experience along the entire customer journey requires the following:
CXM softwareA customer experience management strategy isn't complete without the appropriate technologies to support it. Here are the major technologies involved with customer experience management. Customer experience management platforms. Many cloud software vendors, such as Salesforce, Microsoft, Oracle and SAP, have platforms to manage customer experience from end to end. These platforms center around four major components:
Other customer experience management platforms -- from vendors such as Adobe, Pegasystems, Episerver and Acquia -- offer integrated parts of the customer experience stack. These vendors are often adept in one or a few parts of the digital experience -- Adobe for marketing, customer analytics and e-commerce; Pegasystems for process management, customer service and more -- but weak or incomplete in other areas. Adobe, for example, doesn't offer a CRM component. Using these platforms often requires a mixed-vendor environment to complete the customer experience technology stack. Incidentally, that's a more common configuration than the single-vendor shop. Some companies may benefit from building their customer experience technologies from a foundation of software they're already using. For example, a manufacturing company that tracks its international supply chain and distributors with an SAP ERP system may find that integrating SAP customer experience tools will be more straightforward than starting from scratch with another vendor. Other important customer experience tools include the following:
This was last updated in July 2020 Continue Reading About What is customer experience management (CEM or CXM)?
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