Customer experience management (CXM or CEM) refers to how organizations track or oversee and organize customer interactions throughout the customer life cycle. Every employee in an organization and every decision made affects customer experience (CX) in one way or another.
In short, decision-making in an organization affects the organization's relationship with customers. As a result, organizations that do a better job at customer experience management often perform better in the market.
Why Is CXM Important?
Customer experience (CX) contributes to a customer's brand perception. As a result, it has a direct impact on sales. Coming up with a CXM strategy can help an organization improve CX. Here's why organizations need CXM:
- Customer Retention Is Cheaper Than Acquisition
- Feedback from Customers Helps Organizations Improve CX
- Happy Employees Often Lead to Happy Customers
- Contented Customers Refer Brand to Peers
- Measuring Customer Sentiment Uncovers Competitor Information
Studies show a 5 percent increase in customer retention in an organization results in a 25 percent increase in profits. After all, a retained customer costs way less than acquiring a new one. Also, satisfied customers tend to spend more.
By analyzing CX across all channels, organizations can collect CX feedback from customers. As a result, leaders can create a blueprint for improving CX and customer retention.
There's a direct connection between employee experience and CX. Companies use CXM to measure employee experience to improve CX and customer retention.
A happy customer's endorsement is often more valuable than advertising.
Customers usually compare brands when making a purchase design or giving feedback. Monitoring customer sentiment can help an organization position itself favorably against the competition.