WTF is CXM and How to Get Started
A version of this article was published on Purple, Rock, Scissors.
In case you haven’t heard, Customer Experience Management (CXM) is the next evolution of Customer Relationship Management (CRM). What’s the difference? There are many definitions and interpretations that exist, but what it ultimately boils down to is the following:
CRM — the strategy directed to understand, anticipate, and respond to the needs of your current and potential clients. More often than not, people hear “CRM” and think of a CRM system, which is a tactical way to manage customer relationships (e.g. Salesforce).
CXM — a more holistic approach to CRM that considers not only single transactions and experiences, but also the sum of all experiences across all touchpoints and channels between a customer and a supplier over the duration of their relationship. Sounds a bit more robust, right?
Note: Keep in mind that the actual customer experience is the perception that customers have of their interactions with your organization, and perception is in the eye of the beholder.
Now before you run off and buy new CXM software to replace your CRM software, I want to make it very clear that this is not a silver-bullet software solution discussion. The solution to improving your business’ customer experience won’t be solved by implementing tactics alone. CXM is a strategic initiative that is not just a consideration for Sales, Business Development, and Customer Service departments, but for every employee in the organization. Every. Single. One. If the consideration for the customer experience remains consistent throughout the organization, then you’re much more likely to see gains throughout the entire company. Not only will you see higher percentages of customer retention and increased revenue, but also more collaboration between cross-functional teams and higher employee engagement.
This may appear overwhelming, but businesses who invest in CXM strategies tend to be more successful over time (check out this study from Harvard Business Review). So, where to start? Below, I’ve outlined some initial considerations for you to leverage as you build your CXM strategy.
Research all customer touchpoints
Outline the current points of interaction with your customer and use the current status of your customer touchpoints as a baseline for future improvement. If you don’t understand where you started, then you can’t measure the success or failure of specific initiatives that are aimed at improving the customer experience. Remember that the customer experience is not controlled in a vacuum by the external-facing employees, and that it permeates throughout the entire company. Research every department and component of your organization’s process.
Example: Upon further examination of why customers are not converting on the website, Company XYZ realizes that the checkout flow on the website takes the user an average of 15 minutes to complete due to poor instructions and technical issues with required fields.
Talk to your customers and understand their needs
Even if you’re a proponent of telling customers what they want when they don’t even know it existed (e.g. Apple’s strategy) and not necessarily asking what they want, you should still understand where you are before you can figure out where you’re trying to go. Consider this:
Are you helping them achieve what they want to do? Are you making it simple, or requiring them to put forth unnecessary effort? Are you stirring up any unpleasant emotions throughout all of these interactions?
Ultimately, you should be working to understand what is missing, what is working, and what is not working. A Net Promoter Score (NPS) is a great tactic for measuring customer satisfaction, and it can help you understand customers and clients who are loyal and enthusiastic, passive and not particularly loyal, or just plain unhappy.
Example: By sending a customer satisfaction survey and measuring the NPS, Company XYZ realizes that 65% of its customers are in the “passive” zone. Company XYZ reengages these customers to better understand why they are passive customers, and it becomes clear that many customers are having repeated issues that never seem to be fully resolved.
Work with cross-functional teams to actively meet your customers’ needs
As previously mentioned, the customer experience is not contained within a vacuum. Whatever is happening internally at your organization will be reflected externally to the customer, so it’s important to value your entire team when developing your CXM strategy and encouraging collaboration. By leveraging the talent of your entire organization and key external partners (hey, like us!), you can proactively meet the needs of your customers and clients by providing solutions of true value. This could be leveraging technology (e.g. automation, personalization, etc.), designing for specific needs, or even improving internal processes (e.g. sourcing and delivery) that ultimately impact the customer’s experience.
Example: The marketing department at Company XYZ wants their e-commerce website to recommend products to the user, because their recent survey study suggested customers enjoy personalized content. They work with design and technology to implement the feature.
Craft meaningful relationships
Never disregard the emotional component of the customer experience and managing the relationship that you have with the customer. If an issue arises, don’t simply put a stop gap in place and move on without a plan to resolve the root of the issue. Your CXM strategy should include proper tactics to resolve issues or points of friction, as well as opportunities to proactively anticipate the customer’s needs. This could be as robust as creating a new product or solution that dramatically improves their life, or as simple as finding new ways to “delight” them (i.e. a thoughtful message, a birthday card, etc.).
Example: Company XYZ records its customers birthdays and uses an email marketing platform to send a celebratory email with a discount code.
Work in phases
Release solutions, get feedback, and improve. Just as with any product, solution, or program, you won’t get it right the first time. Plan and prepare to iterate on your CXM strategy, and don’t forget to log customer feedback appropriately (maybe through a CRM!) and create action plans.
Example: Company XYZ manages relevant feedback and time-based action plans in the CRM system.
Don’t be afraid to get started!
Developing your CXM strategy is no easy task. It requires a great deal of research, analysis and planning, and you may need a partner throughout the process to stay accountable and focused. Remember that your customers keep the business alive, and it’s more expensive to earn new customers than it is to retain customers. Make the investment in a CXM strategy, and your customers will make the investment in you.
Comment below if you have any questions, stories, or particular pain points with implementing CXM into your business!
