Unknown: 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 lifecycle.
Sometimes Customer Experience Management is
referred to as CeM, and other times as CXM. In
this video, we'll refer to it as see 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 closer 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 stiffen 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 cost less than
acquiring a customer. Studies have shown that a 5%
increase in customer retention can result in a 25%
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 two 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 and help track
customer perceptions enable quality monitoring and
measuring 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 CSM 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. 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 omni channel
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 in
sales, marketing, customer support and senior
leadership can understand. The customer 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 touchpoints 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 emotions 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 touchpoints 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. Across 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 touchpoints 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 offers self service so
customers can solve their own problems. Through
chatbots, 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.