Customer Experience Management (the acronym for which is CXM or confusingly also CEM) is relatively young, and really has only recently been fully embraced by organisations.
So what is CXM?
CXM seeks to refocus an organisation towards customer service, and provide each customer with a tailored experience. It manages an organisation’s relationships with their customers, and monitors what the customer or client expects to experience in terms of service and/or a product, and sets this against what they actually experience, which are often two very different things in reality, CXM then seeks to rectify any difference between the two.
So what in tangible terms is CXM?
At the centre of all CXM systems is the critical component which is closed loop feedback. This involves gathering data from all existing customer touchpoints, but often also involves being more pro-active with Voice of the Customer (VoC) solutions such as Incentivised Feedback Surveys.
With a closed loop feedback scheme in place, taking feedback from surveys and indeed all customer touchpoints, negative feedback then triggers intervention where necessary, sometimes referred to as ‘customer rescue’, which is then followed by obtaining further feedback and intervention where necessary throughout the customer lifecycle.
CXM should ideally be seen as a pro-active approach to customer service and sales, marrying the two, initiating anticipatory contact with customer when appropriate to do so, and then reacting to feedback often on an individual basis.
Why do organisations need CXM?
According to various studies, it costs over five times as much to gain a new customer as retain an existing one, and this is why CXM has become the main focus for many organisations. The ultimate goal for CXM being avoidance of customer churn and maximising the customer life cycle, maintaining greater loyalty to a product or service. CXM also seeks to make advocates of their existing customers, gaining new business by increasing word of mouth after providing customers with an exceptional experience.