Customer Experience Management – CXM
In previous blogs, we covered an overview of CRM and CXM as well as an in-depth review of CRM Customer Experience Management. In this post, we will take a more detailed look at customer experience management, available CXM tools, and metrics associated with CXM. Remember, CXM is a full end-to-end personalized experience aimed to drive customer loyalty and a deeper sense of connectedness between your brand and the customer.
CXM vs. CRM
Customer experience management differs from customer relationship management in a number of ways. How data is collected and analyzed is the big difference between the two. CRM is more focused on datamining to understand trends and behaviors. On the other hand, CXM is about developing a personalized journey for your customers. This is an important distinction in understanding how to invest in CXM. Utilizing customer experience management requires you to map out your customer’s journey. This includes detailing the customer lifecycle, identifying touchpoints between you and the customers, and identifying gaps in expectations and realities.
Much like CRM, customer experience management can be managed in a single point software platform. However, unlike CRM, the qualitative approach of CXM requires you to get a better understanding of how your customers view your business and experience their time with you. One of the leading tools for this is the use of voice of customer feedback. This process is critical to understanding how your customer experiences your business including interactions and touchpoints. The VoC process helps build and maintain a complete customer profile and personalize customer interactions through recognition of their needs, wants, and expectations of and from your business. This seems intrinsic, but research suggest that only 20% of business focus on the customer journey.
Not all CXM data is qualitative. Customer experience management involves analyzing some of the following scoring metrics, among others:
- Net Promoter Score (NPS): NPS is calculated via survey of your promoters and detractors. To calculate, subtract the percentage of detractors from the percentage of promoters. So, if 60% of survey respondents are promoters and 15% are detractors, your NPS is 45%.
- Customer Satisfaction (CSAT): Based on your survey, take the number of satisfied customers, and divide by the total number of respondents. If 70 of 100 respondents rated you a favorable score, your CSAT would be 70%.
- Customer Effort Score (CES): Customer effort score is used to measure the ease of experience with your business. Typical CES surveys ask your customers to rank the ease of use with your products or services on a scale of “very difficult” to “very easy”. To calculate, total your CES scores and divide by the number of respondents. Therefore, if you get 100 respondents and the total of your score is 800, that means your CES score is 8.