What is (CEM) Customer Experience Management?
Generating, maintaining and increasing customer base is the prime contributor in continuous positive revenue generation. The power of customer marketing and brand promotion through word of mouth is being now advocated by industry giants. However, to actually convert an incoming customer into a brand ambassador requires deliberate and diligent efforts. Customer Experience Management provides the framework for interacting with customers to fulfill, rather exceed, their expectations, satisfaction, loyalty and thus advocacy.
Customer Experience Management initiates a step wise organization wide process change leading to a ‘Customer Centered’ approach. Customer Experience (CX) is everything that a customer feels while interacting with the organization. It involves every step of the way from starting to know the brand till becoming an actual brand promoting loyal customer. Customer Experience Management aims to better this complete experience and ensure that the brand delivers on its promise. It is all about understanding what customer wants, what can be done to deliver it and how to continuously improve the ‘customer journey’.
How it works?
CEM is where organization strives to understand what is the brand’s value and how customers perceive it. It helps in understanding and aligning company’s working methodology with customers’ expectations. Unsatisfied customers not only lead to lost business but also to negative marketing thus further causing troubles. CEM prepares a strategy to understand the root causes of such dissatisfaction and their remedial measures. It helps an organization operate and interact with its customer base throughout the product life cycle. Customer life cycle involves four stages that CEM targets (1) Inquiry, (2) Comparison, (3) Purchase and (4) Installation.
Understanding the Customer.
Customer dissatisfaction can arise from three things (1) Misuse of product, (2) company actions and (3) failure to follow SOPs by employees. CEM prepares a strategy by addressing all these causes. It starts with realizing what are needs of the targeted customers and then how best can they be met. It also ensures that even the customer knows the ‘what, why and how’ of the product/service so that they are well educated/equipped to use the product. CEM also places customers at the center of all organizational operations through various electronic and managerial tools like house of quality etc. This streamlines the organization tactically to always work towards satisfaction of customer expectations / experience.
Studies show that customers are even willing to pay more for a premium service that will not only deliver according to their requirements but also exceed their expectations. Statistically 80% of business for any organization comes from ~20% of their customers and it costs around 6-7 times more to get a new customer in contrast to maintaining an old one. CEM capitalizes on this. It ensures that not only customers are ‘returning customers’ but are also active brand promoters leading to positive recurring revenue.
Integrated organizations and CEM.
Although different departments within the organization have separate functions and may or may not be separate from each other; the customer will always view a brand as a whole. Technological tools i.e. CEM tools and software’s like customer data analytics, mobile marketing, location based services, emotional analytics, Knowledge management, CRM, ERP etc. integrate all the different organizational departments and enables everyone to contribute towards resolving customer’s complaints, queries and issues. Active listening and proactive outreach can preempt customer issues and solve problems they didn’t realize they had. An organization integrated by CEM will focus on four key areas namely Measurement, Analysis, Action and Transformation to:-
- Understand the customer better
- Have a customer-centered vision
- Emotionally bond with the customer
- Change according to customer feedback