What is the purpose of customer experience management?

customer experience management

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Contents

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Contents

Customer experience is one of the most important factors defining the future growth of every company and organization – after all, no marketing strategy works better than positive word-of-mouth of those who have already used the business’ services and are happy about their experience. This is why customer experience management, meaning a process of tracking customer expectations and undertaking relevant actions, has become one of the focus points of businesses across different industries. Why should you think about implementing customer experience management measures, and how can you track all the data needed to develop practices that will improve the journey of your customers?

1. What's the meaning of customer experience management (CEM)?

Customer experience management (CEM) stands for efforts organizations takes to make the customer experience and customer journey as seamless and resolute as possible. CEM takes data from all customer interactions and analyzes it in order to design the perfect customer service system that will not only meet, but also exceed their customer expectations, thus increasing customer satisfaction, brand loyalty, and overall business performance. It is worth noting that as many as 86% of customers are willing to pay more for services providing customer experience of the highest value.

 

There are various metrics that help assess the efficacy and success of a company’s customer experience management systems, each of them looking at different CEM aspects:

 

  • Customer Satisfaction Score – CSAT measures the levels of customer satisfaction with the company’s products and services
  • Customer Effort Score – CES looks into how much time and effort customers have to put into purchasing the goods and services of a company, with a lower score indicating a better customer experience
  • Net Promoter Score – NPS determines how strong is the customer loyalty towards a brand
  • Average Handle Time – AHT stands for the time it takes to resolve a customer inquiry, the quicker resolution meaning better customer experience management
  • Customer Acquisition Rate – defines how easy it is for a company to acquire new customers, the lower rate meaning the better CEM performance
  • Conversion Rate – demonstrates those prospects who eventually convert into long-term customers
  • Customer Churn Rate – indicates how many of your customers opt-out of recurring purchases

2. Why track customer experience analytics?

In such a highly competitive, fast-paced market reality, it is essential to strive for a strong customer base— a catalog of customers willing to stay with you for a long time and bring those around them on board. New businesses emerge every day, each of them built upon the current market standards and trends, hence customers do not have to settle for anything less than a company that can perfectly match their needs and preferences.

 

Simply put, if you fail to impress your potential customers, they’ll choose your competitors. Archiving and tracking customer experience analytics within a secure ticketing system can therefore help you get a full picture of where your business stands, improve customer experiences and define how you can act to further excel in going above and beyond their expectations towards your company. What’s more, nowadays more than 65% of companies compete solely on the basis of how well they manage customer experience itself.

 

Here are the main benefits which establishing a strong customer experience management strategy through deep customer insight can bring you and your organization:

 

  • CEM motivates organizations to see each and every one of their customers, together with their views, needs, and desires, uniquely. After all, they are the biggest driving force that can help define how to pursue business growth the most effectively.

  • CEM provides an opportunity for the customer service team to develop more personalized customer-agent relationships tailored to their usual behaviors, unique preferences and particular needs. This shows the company’s commitment to understanding customers, engaging with them and prioritizing those important one-to-one interactions in real time. Following recorded customer feedback, nearly 50% of buyers have actually previously made impulse purchases after receiving a personalized experience based on their unique customer profiles.

  • CEM helps organizations with creating and maintaining long-lasting client relationships not just with the company’s products and services, but to the brand as a whole.

  • CEM can sustainably turn your customers into brand ambassadors. It’s great if your customers are happy with the customer experience you provide, however, loyal customers take things to a completely different level. Their positivity and excitement towards your brand is the best and most seamless tool for bringing new customers on board.

  • CEM helps organizations with analyzing customer experience analytics and align with the perfect growth strategy prioritizing higher customer conversion rates, reduced churn rates, and strong brand presence.

  • Through careful customer data analytics, CEM can define current preferences of their customers, as well as spot upcoming trends, new customer behavior patterns, and predicts outcomes of following business actions.

3. How does customer assistance impact CEM?

Creating the perfect CEM strategy and choosing the right customer experience management software is one thing, however, implementing it and maintaining it on a very high standard is a whole another topic. Continuous customer service strategy improvement is as important as the development of customer experience management practices itself.

This is where customer support services and customer experience management platforms come in. Different forms of customer service, whether remote or onsite, act as the best tools for gathering customer data that can then be stored and used for future practices. Through monitoring customer experiences in call centers and contact centers, as well as during engagement through social media accounts, you can get a wider perspective on how your business performs on all levels of customer-business interaction and understand how to build a more long-lasting relationship. Take notes of both positive and negative feedback you get from your customers – this way you’ll know in which areas your company is already strong and where you should seek improvement.

4. Conclusion

Ultimately, customer experience management is what defines the level of your customer satisfaction and allows for long-lasting customer loyalty and successful, sustainable customer retention. Through customer experience management, your sales and service teams are able to unite in understanding customers on a deeper level and connect with them to develop better relationships, consequently securing a more effective business growth and long-term success. Essentially, a strong CEM strategy can give you a valuable advantage on the industry arena and make you stand out from the competitive crowd.

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