Customer Experience Management (the acronym for which is CXM or confusingly also CEM) is a relatively young practice, which really has only recently been fully embraced by organisations.
So what is CXM?
CXM seeks to refocus an organisation’s customer service, and how organisations manage relationships with their customers, onto what the customer or client expects to experience in terms of service and/or a product, and monitors 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, both in terms of the individual, and often more broadly for future customers also should a real issue be identified.
So what in tangible terms is CXM?
At the centre of all CXM systems is the critical component which is a closed loop feedback system. 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 system in place, feedback from surveys and indeed all customer touchpoints then triggers intervention where necessary, sometimes referred to as ‘customer rescue’, this 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, 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 achieving longevity in terms of the customer life cycle, specifically maintaining loyalty to a product or service.