Customer Experience Management

Customer Experience Management

Customer Experience Management: Use AI to Improve Customer Experience

Customer experience management, also known as CXM or CEM for short, is a term we hear a lot in the world of consumer facing business and marketing. But what exactly does it mean? In this article, we’ll cover what CXM is, how it works, and what it can do your business.

The customer experience management model is a system of marketing strategies and technologies that focus on customer experience, engagement and satisfaction. Companies use AI and customer experience management to track, oversee, and organize every interaction they have with a customer across the entire customer lifecycle. Think of it like this: customer experience or CX, refers to the collective and ongoing experience a customer has with a brand resulting from every interaction with that company; CXM is how the businesses understands and analyzes these experiences.

Why Do You Need Customer Experience Management?

Research shows that improving CX leads to growth and increases profits.

Improve customers experience

Customer experience begins when a consumer discovers your brand and remains important throughout the lifecycle. Every customer brings unique needs, issues, and context to brand interactions, and their expectations can also vary greatly. However, companies often struggle when it comes to personalizing the experience for each customer. Traditional methods of customization are resource-intensive and difficult, if not impossible, to scale. As a result, CX is often compromised.

Bringing it all together

Customer experience is impacted by a wide range of activities managed by multiple departments—including marketing, sales, and customer service—and is profoundly affected by everything from accounting rules to HR policy. But according to Gartner , over 70% of CX leaders struggle to design projects that increase customer loyalty and achieve results. To gain a competitive edge, you must develop marketing strategies that optimize customer interactions and drive business growth.

Driving loyalty and retention

Consistently providing what’s considered a “good” customer service experience not only helps companies build a strong customer base, it also helps you attract and acquire new customers. Providing a seamless CX and gaining trust paves the way for new connections. But one bad experience can send customers looking elsewhere. To put it simply, good CX breeds loyalty while poor CX can cost you business. If you’re not providing a good CX, you’re handing your competition a serious advantage.

How does Customer Experience Management work?

A number of factors influence a customer's journey towards buying a product or service as well as whether or not they decide to continue doing business with your brand. It’s important to understand the customer’s expectations and reactions. Things like demographics, background, and goals all play an important role in converting a browser into a buyer.

Once a customer is onboarded, CXM is all about keeping them satisfied. Brands need a strategy and solution to handle the entire CXM process. If done right, CXM can be a critical lever for boosting long-term business performance. CXM helps define what your brand looks like to your customers, putting them at the forefront of marketing, customer support, and sales efforts to drive brand loyalty and retention. Effective CXM requires a 360-degree view of customers that’s up to date, 24/7. Start by building a CX-focused team whose job is to understand customer needs and behaviors and create a unique customer journey map. The CX team can also create and fine tune the brand personality. The goal should be to build a connection with your customers and capture continuous customer feedback.

What is CXM?

Video: Learn More About CXM