What is Customer Experience Management (CXM)?
In today’s competitive market, customer experience management (CXM) has become crucial for organizations aiming to stand out. CXM encompasses the strategies, people, processes and technologies used to manage and enhance customer interactions throughout their journey with a brand. By prioritizing customer experience, organizations can cultivate stronger relationships, boost satisfaction and drive growth.
The importance of customer experience management
Customer experience management holds immense significance due to its multifaceted impact on operational success. Here are some key benefits of effective CXM:
- Increased customer satisfaction and loyalty
Improving customer satisfaction is a primary benefit of CXM that can result in high levels of loyalty. No matter the industry, from healthcare to government, from banking to travel and hospitality, satisfied customers, clients, members and citizens are more likely to recommend the organization or brand to others, generating positive word-of-mouth. - Better brand reputation
A well-executed CXM strategy leads to a positive customer experience, which builds trust and strengthens a brand's image. When customers consistently have positive interactions with a brand, they develop a favorable perception, enhancing the overall reputation of the business or organization. - Enhanced customer lifetime value
Customer lifetime value (CLV) refers to the total revenue a business can expect from a customer throughout their relationship. CXM drives higher CLV by ensuring customers remain engaged and satisfied, leading to repeat purchases and long-term loyalty. - Data-driven decision making
CXM helps organizations gather valuable customer insights that can be used to personalize experiences and optimize services. By analyzing customer data, companies can make informed decisions that enhance customer satisfaction and lead to growth.
CXM vs. CRM: What’s the difference?
Customer Relationship Management (CRM) is a system used to manage a company’s interactions with current and potential customers. While both CXM and CRM focus on improving customer interactions, they differ in their approach and scope. Here are a few examples how CXM and CRM differ:
| Aspect | CXM | CRM |
| Focus | Overall customer experience | Managing customer relationships |
| Scope | End-to-end customer journey | Sales, marketing, and customer service |
| Objective | Enhancing satisfaction and loyalty | Streamlining processes and improving sales |
| Data utilization | Personalizing experiences using insights | Managing and analyzing customer data |
Ways to improve CXM
To enhance CXM, organizations should focus on key areas, such as:
- Employee experience
The experience of employees directly influences customer experience. Happy, empowered, well-trained employees are more likely to provide excellent customer service. Investing in employee training and well-being is essential for positive CXM. - Investing in customer experience technologies
CXM solutions and systems are designed to improve customer interactions and streamline processes. These technologies help organizations gather insights, automate tasks, and personalize customer experiences. - Implementing efficient processes
It’s not just the technology and employees that matter however. A key aspect of operational excellence is building the right processes to maximize associate performance and service delivery. The most effective contact centers are built on time-tested processes that not only mitigate mistakes but also support associate efficiency and continuous improvement practices. These processes streamline customer interactions and support the best resolution.
How to create a CXM strategy
A well-defined CXM strategy is crucial for delivering exceptional customer experiences. Here are a few best practices:
- Map out the customer journey
Only 38% of brands measure the entire customer journey across channels, which helps ensure positive experiences for associates and customers alike. Understanding the customer journey helps identify all touchpoints and ensures a consistent, seamless experience across all interactions. - Develop customer personas
43% - 46% of customers want simple "get to the point" experiences. Creating detailed customer personas helps organizations understand the needs, preferences and behaviors of their target customers. The CXM strategy should be tailored to meet these needs. - Utilize CXM technology
74% of customers expect to be able to do anything online they can do in-person or over the phone. Using technology like AI chatbots for customer service and personalized campaigns powered by AI and analytics can significantly enhance the customer experience.
The future of CXM
Several trends are shaping the future of CXM:
- The rise of artificial intelligence
AI has taken the center stage across industries, but AI isn’t new. Since the mid-2000s, Conduent has effectively utilized AI in over 25 solutions to streamline workflows, improve security, accelerate operations and create better outcomes for our clients across industries and government sectors. It is a powerful tool that can help automate processes, gain insights from data, enhance customer experiences and more. But AI is also evolving. New Generative AI models are emerging that introduce several new opportunities to personalize interactions, automate tasks and provide real-time customer support, enhancing the overall customer experience. You can learn about Conduent’s approach to AI and the latest trends in our recent blog. - The growing importance of data analytics
By leveraging data analytics, organizations can gain deeper insights into customer behavior and make data-driven decisions to improve CXM. Perhaps more interesting is that customers are aware of data collection and expect better experiences as a result. 80% say experiences should be better considering how much data companies collect. - The focus on customer emotions
40% of consumers still prefer human interaction for resolving issues, indicating empathy and understanding remain key components for effective customer service. Being able to positively influence customer emotions will become increasingly important for creating memorable experiences and fostering loyalty.
For more information on enhancing CXM for your organizations, visit our Customer Experience Management page.
Commonly asked CXM questions
What are the four P's of customer experience?
The four P's of customer experience are: product, price, place, and promotion. These elements collectively contribute to the overall customer experience.
What is the main goal of customer experience management?
The main goal of customer experience management is to improve and enhance the overall experience that a customer has with a company or brand. This involves understanding customer needs, creating positive interactions, and building long-term relationships.
What is CX vs UX?
CX (customer experience) refers to the overall experience a customer has with a company or brand, encompassing all interactions and touchpoints. UX (user experience) specifically focuses on the experience a user has with a digital product or service.