Customer Experience Management (CXM) allows you to track and improve how customers interact with your products or services. It helps you to better understand what your customers like, what they don’t, and how to make their experience better.
Gone are the days when customers used to get satisfied with high quality products at affordable prices! Today, customers expect businesses to provide quick and personalised experiences across different platforms.
If you fail to satisfy their expectations, they can easily switch to a competitor. This led to the development of Customer Experience Management (CXM). It helps businesses meet these high expectations by improving interactions with customers at every stage.
A recent study projects that the worldwide market for CXM will witness a strong compound annual growth rate (CAGR) of 15.4% between 2023 and 2030. This clearly shows how seriously businesses are improving client experience.
Want to join them and know more about CXM? In this article, let’s understand its meaning and see how it differs from CRM (Customer Relationship Management). Also, we will learn some popular CXM techniques and strategies.
What is Customer Experience Management (CXM)?
Customer experience management allows you to improve every interaction a customer has with your business. It focuses on making customers feel valued and ensures they have a smooth journey from start to finish.
Be aware that when customers have a great experience, they are more likely to return and recommend your business to others. This builds loyalty and increases sales. Now, let’s see how you can practice CXM:
- Understand your customers: Learn what they like and dislike to improve their experience.
- Personalise their journey: Offer special deals, recommendations, and services based on their preferences.
- Stay consistent: Make sure customers have the same great experience every time they interact with your brand.
- Collect feedback: Ask customers what they think and use their suggestions to improve.
- Use technology: Track data and automate tasks to make customer interactions smoother.
- Build loyalty: Happy customers will promote your business and bring in more customers.
In this way, through client experience management, you can grow your business by keeping customers engaged, satisfied, and loyal. Now, you might be wondering: How is CXM different from CRM (Customer Relationship Management)? Let’s understand in the next section!
How does CXM differ from CRM?
The terms Customer Experience Management (CXM) and Customer Relationship Management (CRM) sound similar and some business owners even use them interchangeably. However, they both focus on different things. While now you are aware of CXM, let’s see what CRM means and then differentiate both through a comparative table.
What is CRM?
CRM is all about managing your customer relationships. It allows you to track:
- Customer data
- Monitor sales
- Organise communication
You can think of CRM as a way of keeping records of customers, their purchases, and interactions. It is mainly focused on increasing sales.
In contrast, customer experience management focuses on improving the entire customer journey. Instead of just increasing sales, it ensures that every interaction with your brand is smooth and enjoyable. Particularly, CXM looks at what customers like and dislike.
CXM vs. CRM
| Aspects | Customer Experience Management (CXM) | Customer Relationship Management (CRM) |
| Main Focus | Managing customer relationships and sales | Enhancing the entire customer journey and client experience |
| Perspective | Business-centered (focuses on company goals) | Customer-centered (focuses on customer needs) |
| Purpose | To track customer data and manage sales | To create personalised and consistent customer experiences (CX) |
| Data Usage | Stores customer details like contact information and purchase history | Uses real-time data from various interactions to understand customer behaviour |
| Approach | Short-term (focused on immediate sales and support) | Long-term (focused on overall satisfaction and loyalty) |
| Key Metrics |
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Hence, if you want to improve sales and manage customer information, go for CRM. If you want to make your customers happier and build long-term loyalty, CXM is the way to go!
How Can You Practice CXM? Popular Techniques and Strategies
To improve CX, you can develop your customer experience management strategy in the following ways:
1. Create a Customer Journey Map
A customer journey map is a visual representation of how a customer interacts with your business, from the first time they hear about you to after they make a purchase.
- To create a journey map, start with buyer personas (fictional profiles of your ideal customers).
- To build these personas, use real data like:
- Purchase history
- Web analytics
- Customer surveys
- Ratings and reviews
- Social media interactions.
- Your goal here is to predict how new customers will interact with your brand.
- The better you analyse customer data, the more accurately you can create personas.
2. Understand Customer Touchpoints
A touchpoint is any interaction a customer has with your business. Some common examples are:
- Visiting your website
- Calling customer service
- Reading reviews on social media and making a purchase
- Receiving post-sale support
By understanding these touchpoints, you can make each interaction smoother and more satisfying for your customers.
3. Collect and Analyse Customer Feedback
Gather customer feedback through:
- Surveys (Ask customers about their experience)
- Ratings and Reviews (Check what customers are saying online)
- Social Media (Monitor customer conversations about your brand)
This information builds the Voice of the Customer (VoC). For the unaware, it is a collection of feedback that allows businesses to understand customer pain points and areas for improvement.
4. Measure Customer Satisfaction
To check if your client experience management strategy is working, track customer experience metrics like:
- Net Promoter Score (NPS): Measures how likely a customer is to recommend your business (you collect this through surveys).
- Customer Satisfaction (CSAT): A rating customers give after interacting with your business.
- Customer Retention Rate: The percentage of customers who return to your business.
By analysing these numbers, you can further find areas that need improvement.
5. Use Technology and Associate with Leading Service Providers
You can choose customer experience management platforms. Through them, you can easily manage customer experiences by:
- Automating responses in customer service (chatbots, FAQs)
- Improving communication across departments (better coordination)
- Personalising customer interactions (targeted offers, recommendations)
- Tracking omnichannel engagement (website, social media, calls, emails)
Boost CXM = Boost Profits. Let Atidiv Help You!
A recent study shows that companies that prioritise customer experience management experience 1.7 to 2.1 times higher annual growth in key areas like:
- Revenue: They earn more because satisfied customers make repeat purchases and recommend the brand.
- Customer Retention: They keep more customers because of better service and personalised experiences.
- Customer Lifetime Value (CLV): Each customer spends more over time. This increases overall profitability.
Thus, CXM is highly important for every business. It goes beyond just selling products and ensures customers have enjoyable interactions with your brand at every stage. You can implement CXM by:
- Using Customer journey maps
- Tracking touchpoints
- Collecting feedback
- Measuring satisfaction through metrics like NPS and CSAT,
Additionally, you can also partner with Atidiv. We are a company specialising in customer experience management. Our expert team maintains a 98% Quality Assurance score and a 4.8/5 customer satisfaction rating. Want to improve customer experiences through a data-driven approach? Choose Atidiv today and better understand your customers’ real needs!
FAQs On Customer Experience Management (CXM)
1. Why is CXM important for my small business?
Customer experience management increases:
- Customer satisfaction
- Loyalty
- Sales
- Profits
When customers have a smooth and personalised experience, they are more likely to return and recommend your business.
2. How can I measure if my CXM strategy is working?
You can track key metrics like
- Net Promoter Score (NPS) to see if customers will recommend you
- Customer Satisfaction Score (CSAT) to measure happiness
- Customer Retention Rate to check if customers will keep coming back
These numbers show whether your efforts are improving client experience.
3. How can I improve customer experience without a big budget?
If you don’t want to invest much in customer experience management, you can:
- Start by collecting customer feedback through surveys and reviews
- Try to improve customer interactions by responding quickly
- Offer personalised support to your long-term customers
- Train employees to provide better services.
Even simple actions, like remembering customer preferences, can create a more positive experience without costly investments.
4. How is CXM different from CRM, and do I need both?
CRM tracks customer data and allows you to manage sales. On the other hand, customer experience management focuses on the overall customer journey.
If you want to boost sales, CRM is useful. Whereas, if you want to improve customer satisfaction and loyalty, CXM should be your choice. Many businesses even use both for the best results!
