Customer Experience Management (CXM or CEM) is the collection every interaction between a customer and the organization throughout the customer lifecycle. The goal of CXM is to optimize interactions from the customer's perspective and foster customer loyalty. Essentially you are collecting information on customers as they interact with you to ensure that you can provide the best experience. The following guide defines customer experience management and why it's essential to your business.
Why Your Business Should Be Utilizing CXM
Customer Retention Reduces Customer Defection
According to Forbes, boosting your customer retention will improve your bottom line. Customer retention focuses on keeping your customer following positive and letting them know they play a valuable role in shaping your business. A survey by Genesys suggests; 42 percent of all business proactively manage and invest in the customer experience to improve customer retention. Your business can't afford to devalue the necessity of customer retention since maintaining customers is always more affordable than getting new ones. Using customer experience management to improve customer retention will:
- help you implement an effective feedback system and identify flaws
- provide your customers with an the service they need, before they know they need it
- ensure that your customers promote your company, rather than detract from it
Expectation With Customer Satisfaction
When your business streamlines and reviews the customer journey through CXM, they improve customer satisfaction. To measure customer satisfaction in real-time, your business must manage and track customer expectations, initiate quality monitoring, and measure the success of the your customer experience strategy. This will help reinforce the relationship between your customers and your business while working to improve customer satisfaction.
The switch from CRM to CXM
According to Chuck Schaeffer, one of the influencers in the customer relationship space, CXM is quickly replacing CRM for one primary reason - there is a shift of power in the market. Sellers used to have all the power. They set prices, controlled supply chains and buyers had very little power over which products they could buy. But with the rise of ecommerce, rating systems, and social media, the buyers are starting to gain the majority of power. This shift calls for a need of more powerful systems that ensure buyers are having the best experience possible and advocate for brands.
What Is The Value Of CXM
CXM improves customer value
Each business will have a different outcome with customer experience management. It has proven to be an asset for all business models especially small businesses competing with larger brands. With the millions of dollars spent on CRM software, it's understandable businesses want to know what's the value of CXM. Here's the statistics:
- 86% more customers are willing to pay for a great customer experience
- 73% of buyers point to a great customer experience as their underlining purchasing decision
- 65% of buyers find a great customer experience to be more valuable than advertising
- customers are willing to pay 14-18 percent more on luxury items based on customer experience
CXM improves the topline
Customer experience management is a continuous and consistent method used to gather information in a systematic routine that's centered around what matters to the customer, but still what's best for your overall businesses bottom line. In fact, take a look at the following statistics from a Harvard Business Review:
- CX leaders are 58% more profitable
- CX leaders have 1.86x more of the market share
- CX leaders keep customers 2.7 times longer
CXM drives cross-selling and up-selling
A significant part of your business revenue comes from cross-selling and up-selling. In fact, online retail giant, Amazon says 35 percent of their revenue is attributed to cross-selling. The right customer experience management can significantly help your company build a sustainable business.
Up-selling encourages your customers to purchase higher priced products in the same product family. For example, buying a seat on a plane with more legroom. While cross-selling suggests buying additional products that compliment items already purchased, such as buying batteries for a new toy. Both can be successfully implemented through customer experience management.
Gartner Predicts Customer Experience is the new Business Battlefield
Gartner Predicts by 2019, 50 percent of businesses are redirecting their investment to CRM. If your business wants to stay competitive, they must consider making a shift to CXM instead of putting all of their resources into customer relationships. The customer experience is the new business battlefield. Customers highly regard the customer experience and will pay more to those who win this field.
In the end...
Managing customer experiences is a way to differentiate yourself from your peers and turn your customers into promoters of your business. Collecting, tracking, and acting on information collected can be difficult, but platforms like Augment CXM can ensure you keep your customers experience effortless.