BusinessHABCustomer management experience: Customer experience management, often abbreviated as CEM or CXM, is the practice of analyzing and understanding your customers’ experiences in order to increase customer satisfaction, loyalty and advocacy. It is a common concept in the tech industry, but it can apply to any business that has customers. In this article, we explain what customer experience management is, the difference between CXM and customer relationship management, why it’s important and what to look for in CXM software.
Customer management experience
What is customer experience management?
Customer experience management considers customers’ needs and wants in order to encourage repeat business and growth. Managing the customer experience is about understanding your customers so well that you can create and deliver personalized interactions that will encourage them to share their positive experiences with your company with others.
Brands accomplish CXM programs through a combination of software, analytics, research and data-management systems. Four critical steps in a successful CXM strategy include:
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Understanding customer needs
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Creating a customer vision
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Developing an emotional connection
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Capturing customer feedback
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What’s the difference between CXM and CRM?
| Customer experience management (CXM) | Customer relationship management (CRM) |
|---|---|
| Method of keeping track of customer experiences, reacting to issues and providing relevant marketing or services | An in-depth strategic goal to give customers consistently positive interactions that will drive brand loyalty |
| Focuses on operational business improvements to drive profitability | Focuses on personalized experiences and customer engagement to drive for profitability |
| Improves customer service via different integrations across channels | Uses AI and CRM data to show the real-time impact on customer experience |
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CXM management is similar in some ways to customer relationship management (CRM), but the focus in CXM is on the customer’s feelings and opinions, and not as much on your organizational knowledge of your customers. CXM puts the customer’s experience as the focal point, and a company using customer experience management works to make that experience positive.
A customer relationship management system is a tool that companies use to track and optimize important customer data that helps them build relationships and improve sales. Common types include on-premise and cloud CRM programs.
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Why is customer experience management important?
Customer experience management is important because happy customers return to your business later, refer their friends to your business and publicly say positive things about your company. It usually costs less time and effort to maintain existing customer relationships than it does to create new ones.
Prioritizing CXM creates win-win scenarios for businesses and consumers alike. Customer experience management helps to:
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Gather and interpret much larger volumes of data with advanced marketing automation software
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Help to more informed, customer-centric business decisions
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Lower costs by reducing customer churn
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Boost revenue with sales from existing customers and new sales from word of mouth
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How CXM software helps
Effective CXM software programs help businesses constantly manage and analyze huge quantities of customer information and quickly turn these interactions into profitable actions like intelligent service, product recommendations and loyalty incentives. CXM software often incorporates CRM data, customer feedback, web content management systems, personalization engines and web analytics.
Here’s what to look for when choosing a CXM platform:
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Multichannel data collection: The software should be able to gather customer feedback through various methods from web and text surveys to live chats and interactive voice response systems.
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Centralized data storage: The platform stores all customer information in one place, with real-time updates that are easy to share with various teams.
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Customizable dashboards: These helpful dashboards quickly show relevant metrics to people in different roles.
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Analysis tools: Analytics capabilities to look for include statistical, text and key driver analysis.
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Automated actions: Ticketing, alerts and other automated actions enable businesses to respond to customers directly from within the system.
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Ability to integrate with current ecosystem: Many CXM software programs have application programming interfaces (APIs) that allow businesses to send and gather data to and from other systems.
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