Customer experience management

In short

Customer experience management describes the processes a company uses to track, oversee and organize every interaction between a customer and the organization itself - throughout the customer lifecycle.

Definitions

According to Bernd Schmitt, "the term 'Customer Experience Management' represents the discipline, methodology and/or process used to comprehensively manage a customer's cross-channel exposure, interaction and transaction with a company, product, brand or service."

Harvard Business Review blogger Adam Richardson says that a company must define and understand all dimensions of the customer experience in order to have long-term success.

Why customer experience management is important

The concept of customer experience is sometimes hard to understand. Companies need to know what it is about exactly. Customer experience has become a critical differentiator in today’s hyper-competitive, hyper-connected global marketplace. It can create added value to effective customer experience management. Here’s what good customer experience management does:

  • Strengthen brand preference through differentiated experiences.
  • Boost revenue with incremental sales from existing customers and new sales from word of mouth.
  • Improve customer loyalty through valued and memorable customer interactions.
  • Lower costs by reducing customer churn.

Benefits

When your company invests in nurturing and managing the customer experience, it benefits your business externally and internally. Of course, your external benefits come in the form of the positive word-of-mouth that generates customer loyalty and turnover.

And because your customer experience strategy spans every department and team in your organization, using a customer experience management platform encourages companywide collaboration, alignment on company objectives, and provides your business with standard metrics you can use to benchmark your progress.

How to improve customer experience management

  • Manage your brand identity and brand image with surveys.
  • Always ask customer for feedback about your products.
  • Make sure your customer service team works effectively.