Customer experience is the product of an interaction between an organization and a customer over the duration of their relationship. This interaction includes a customer's attraction, awareness, discovery, cultivation, advocacy and purchase and use of a service. It is measured by the individual's experience during all points of contact against the individual's expectations.
Why customer experience is important?
* Higher customer referral rates and customer satisfaction were reported by a study of 860 corporate executives who increased their investment in customer experience (Strativity Group, 2009)
* It eases customer acquisition, drives customer loyalty and improves customer retention (Beyond Philosophy, 2013).
* Increases customer satisfaction. When a customer is WOW’d by the experience and has their expectations exceeded, it increases customer satisfaction.
* Reduces customer churn. People want to buy from places that make them feel good. Creating an experience that is memorable and enjoyable for the customer will help to keep them coming back for more and not churning away.
Feel overwhelmed by constantly changing buyer needs? Customer engagement management (CEM) can help. Bob Peterson of SiriusDecisions discusses why CEM is so popular and how it can boost your business. Read more
Customer experience management (CEM) is the collection of processes a company uses to track, oversee and organize every interaction between a customer and the organization throughout the customer lifecycle. The goal of CEM is to optimize interactions from the customer's perspective and, as a result, foster customer loyalty.
So what exactly is CEM, and how does it relate to CRM? Though definitions vary, here are some basic guidelines:
- CRM refers to the database-type solutions companies use to manage interactions with customers and prospects. CRM provides a centralized system of record where you can collect information on customer transactions and interactions, enabling you to organize, automate, and synchronize data from sales, marketing, and (sometimes) areas like customer service and technical support.[ii] While CRM is most commonly used to support sales-related activities and goals, it can also be a valuable resource in improving customer service and satisfaction.
- CEM has a broader focus than CRM, encompassing non-selling ways of engaging that affect customer experience (i.e., the perception of value customers get from exposure to your brand). Gartner defines CEM as “the practice of designing and reacting to customer interactions to meet or exceed customer expectations and, thus, increase customer satisfaction, loyalty, and advocacy.”[iii] SiriusDecisions describes it as the ability of a B2B organization to connect with its customers over the various stages of the customer lifecycle in ways that are meaningful to the customer—and tied to their specific goals. “This could include how customers are using your products and services, how they interact with your company, and even how they’re connecting with other customers or prospects; it also brings in the emotional connection the customer has with your brand,” Bob says. And of course, the way you implement CEM directly impacts customer advocacy: the case studies, sales references, press or social media commentary, community participation, and other activities through which customers share their opinions about your business.
Think CEM sounds great, but not sure how to make it happen? Take heart: Even the smallest seller can implement CEM, and it doesn’t have to break the bank. Bob shares straightforward strategies that let you start simply and grow as you go.
In “Part 1: What CEM Can Do for You,” we shared highlights from our conversation with SiriusDecisions research director Bob Peterson on what customer engagement management (CEM) is and the benefits it delivers. After reading the article, you’ll doubtless agree that the promise of CEM sounds wonderful—at least in the abstract. But how can you turn it into reality, especially if you’re a smaller seller? Read more
Do you need additional sources?
- The Transition From CRM to Customer Experience Management by CRM Search
- What’s the Difference Between CRM and CEM? by Business2Community