Defining Customer Experience Management

Updated: October 13, 2010

Customer experience management is sometimes confused with the following concepts. Indeed, CEM encompasses all of these practices, and more. They can be categorized by Customer Profitability, Customer Knowledge, and Customer Well-Being.

Customer Profitability (efforts to increase revenue and profit from customers)

  • Customer relationship management — use of a database of customer transactions and facts that enable customized communications (1-to-1 marketing), upselling, cross-selling, and data-mining
  • Experiential marketing — events and campaigns that build customer advocacy
  • Customer advocacy — word-of-mouth promotion (buzz marketing) of a brand by enamored customers
  • Branding — creating and communicating a distinctive identity
  • Customer lifetime value — profitability of customers' cumulative purchases
  • Customer loyalty — efforts to expand customers' share of wallet
  • Customer community — opportunities for customers to engage with one another
  • Customer references — testimonials from customers
  • Co-innovation — joint product development efforts with customers
  • Customer retention — efforts to extend a customer's duration of ongoing purchases

Customer Knowledge (ways of understanding customers)

  • Voice of the customer — monitoring customer sentiment
  • Customer intelligence — integration, mining, and analysis of customer data
  • Internal branding — internal understanding by each employee, supplier, and alliance partner of their specific impact on external customer experience
  • Internal customer satisfaction — attention to quality and timeliness of handoffs between internal departments

Customer Well-Being (efforts to translate customer knowledge into organizational attitudes and behaviors)

  • Customer care — organization's conscience in favor of customers' welfare, and outreach to customers accordingly
  • Service excellence — delivery of purchased services or remedial services, or post-sale assistance to customers
  • Customer-centricity — degree that customers' welfare is at the center of the solution provider's decision-making and actions
  • Customer experience improvement — process-wide problem resolution and prevention
  • Customer complaint resolution — solving issues and communicating solution to complaint originators
  • User experience — intuitive and inviting environment for customers' use of the product or service, or for exploration and purchase of the product or service, e.g. retail store or website
  • Customer touch points — opportunities for customers to interact with the solution provider or its messages or products/services
  • Customer experience innovation — designing and implementing novel methods to enhance customer experience
  • Customer experience management strategy — overall objectives and approach for the enterprise
Featured Research
  • 8 CRM Tools You Need for a Winning Lead Nurture Strategy

    Does your business have an effective lead nurturing strategy? Before you answer that, keep in mind that a good strategy is different than having a few good sequences in place. This is not an area you want to overlook. The more you develop and test your lead nurturing strategy, the more sales you will enjoy - there is a direct correlation between the two. It should be no surprise that CRM tools are one of the secrets to doing this. more

  • 8 Reasons SMBs Should Invest in a CRM

    Adopting a CRM platform early offers many advantages, including the fact that it increases the odds of long-term success. While the cost of CRM software used to be prohibitive for most small businesses, this is no longer true. Cloud-based solutions have made the pricing much more competitive, and as many as 87% of companies now rely on them for their CRM software. more

  • 7 Ways Your CRM Helps Convert Leads

    Failure to convert interested leads can impact your bottom line drastically and simultaneously increase your operational costs and decrease your profits. The most common reason for this failure is lack of follow through from a sales team. Did you know that 74% of CRM users said that their CRM gave them improved access to customer data? And that by properly implementing a CRM, a business could shorten the sales cycle by 8 to 14%? more

  • Is Your CRM a Liability

    Is your CRM a liability? Before you answer too quickly with a no, just think about all the advancements that have taken place over the years regarding this technical solution. In fact, just in over the past decade there has been a dramatic shift away from on-premise systems to cloud based solutions. more

  • 12 Must-Have CRM Features

    Having a CRM is absolutely essential to any modern day business's success. In fact, 91% of companies with 11+ employees now utilize a CRM solution in their business. When making the decision to purchase or upgrade your CRM solution, it can be quite overwhelming determining which features are essential to your success versus those that pack more fluff than punch. more