Customer experience management (CXM) is an area in eCommerce that aims to understand customers and implement strategies that can improve customer engagement, satisfaction, and loyalty. CXM can also pertain to the activities that monitor shopper interactions throughout their lifetime as a customer.
At its core, customer experience management is more than just the tools and strategies. It is also about delivering a service that is highly personalized and seamless, making a customer experience that’s worth recommending to other shoppers. Brands and retailers gather data across all touchpoints and gain actionable data. These are then translated into strategies that are applied with precision and efficiency.
Why It Matters
Effective CXM has both parties—businesses and customers—benefit from their existing relationship. This manifests as increased conversions, customer loyalty, and lead generation for brands and retailers. Meanwhile, users enjoy personalized shopping, more satisfaction, and a long-lasting connection with their preferred business.
Customer experience management lets companies gain a deeper understanding of their target market and shopping behaviors. It can just be what makes all the difference when considering the competition, as well as improving customer retention rates and reducing churn. The feedback gained from shoppers can be the basis for enhancing the experience and making customers feel seen and understood.
CXM vs CRM
CXM is related to customer relationship management (CRM), but they are not to be used interchangeably. CRM is about improving business processes for revenue, while CXM focuses on customer engagement for profit. The two can also be differentiated in terms of perspective. CRM puts the business at the center, while CXM is customer-centric.
Customer experience management is also based on the real-time data flow, incorporating data gained from the customer lifecycle and giving more weight to experiences from customers. It uses data from artificial intelligence and CRM to apply to customer experience. Meanwhile, consumer relationship management looks at the clientele in a qualitative way, which covers statistics and trends.
Ensuring a Good Customer Experience
Effective customer experience management is made possible through the following steps:
- Understanding your customer. This means knowing their needs and analyzing their behaviors. Brands can organize markets based on demographics and buyer personas.
- Creating customer journey maps. With maps, brands and retailers can predict how customers will respond to certain touchpoints and receive products.
- Crafting a brand personality customers can connect to. This makes it possible for shoppers to harbor an attachment to your brand.
- Seeking customer feedback. Measuring customer satisfaction allows you to determine the success of your marketing strategy.