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Customer Experience (CX) Customer Experience July 1, 2024

What Is Customer Experience Management & Why It Matters

Customer experience management
Build a thriving customer journey with customer experience management (CXM). Discover the benefits of CXM and strategies to put it into practice.
Chris Reaburn
Author

Chris Reaburn

Customer experience management

The quality of your customer experience can make or break your business. Customers demand excellence from every brand. Can you keep up?

As competition intensifies, you must take a proactive approach to defining your team’s playbook to boost customer satisfaction and retention.

That’s where successful customer experience management (CXM) comes into play. It acts as a map, guiding business owners through every detail of their customers’ journeys.

Customer interactions — be they on social media, in physical stores, or on a support center call — must have positive customer sentiment, ultimately serving as a building block for a lasting customer relationship.

Is your CX falling short?

Assess and elevate your strategy with the Gartner® CX Maturity Model report.

In this guide, we’ll explore the benefits of CXM, discover strategies to refine your ‌customer lifecycle and learn about CXM software that can help you chart a course for exceptional service.

What Is Customer Experience Management?

Customer Experience Management (CXM) is a set of strategies and processes to track, organize, and optimize every customer interaction for a company.

From their first visit to your website to their post-purchase survey, customer experience management is a complete map of their journey with you. It provides a chance to get to know your customers inside and out, predict their needs, and tailor their experiences to meet or exceed their expectations. 

Think of customer experience management as an orchestra; you, the business owner, are the conductor. Each part of the orchestra represents a different department: marketing, sales, product development, or customer support. You must make these elements work in harmony to deliver a great experience.

With each interaction, you’ll note an insight, notice a pattern, or receive feedback Voice of the Customer (VoC). Use this information to make changes, such as adjusting your marketing or enhancing your customer advocacy, to continuously improve your customer’s experience.

Business owners will be happy to hear that 70% of consumers spend more with companies that offer great customer experiences, according to a 2023 report by Zendesk.

This report reflects the success of the consulting firm McKinsey. Their customer experience strategy has led them to impressive results over the past decade, including increases in sales by up to 20%, decreases in service costs of up to 50%, and increases in customer satisfaction of up to 20% for over 900 of their clients.

A customer experience management strategy isn’t a month-long initiative. Ongoing, integrated tactics will help your business tap into the greatest benefits of CXM. Read on to learn more. 

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Related: Building a Customer Experience Program: Guide to Getting Started

Benefits of Customer Experience Management

1. Achieve a stronger product–market fit

An effective customer experience management strategy is like a compass that guides you through the needs of your existing and new customers. By staying in constant contact with them, you gain more opportunities to promote greater customer advocacy.

This helps you anticipate and exceed expectations, crafting offerings perfectly suited to each customer profile.

2. Improve your employee experience

Customers aren’t the only ones benefitting from effective CXM — employees do too. Having more positive customer experiences means dealing with fewer angry ones, resulting in more enjoyable employee interactions.

A happier workforce leads to more trust, engagement, and productivity at work.

3. Reduce churn

By cultivating deeper links and unlocking customer loyalty, effective

management reduces customer churn.

A business that consistently meets or exceeds customer expectations knows how to foster trust with customers and deliver satisfaction, making it much less likely that customers will turn to your competitors.

These days, the stakes are high.

A single negative customer experience can have significant consequences on brand loyalty: 32% of customers would consider switching companies after only one poor experience, reports PwC and 16% would even pay more for higher quality service.

At the heart of reducing churn lies empathy.

Customer experience best practices, personalized experiences, simple onboarding, and proactive problem-solving create caring connections with your existing customers and help ease their pain points.

Good customer experience management stabilizes your customer base and ensures long-term profitability.

Effective strategies to lower customer churn (via Gartner)
Effective strategies to lower customer churn (via Gartner)

Effective strategies to lower customer churn (via Gartner)

4. Create more profitable customer segments

Focusing on customer experience management initiatives can help you identify and cultivate more profitable customer segments.

By studying these segments, identifying patterns, reviewing customer interactions, and analyzing feedback, companies can establish which segments are more engaged and assign these a higher lifetime value.

With the right customer experience management platform, companies can tailor their offerings based on qualitative customer data, ultimately boosting their bottom line.

By knowing and providing your customers with exactly what they need, they’ll become brand advocates, sharing word-of-mouth reviews and driving further business growth on your behalf.

5. Increase operational efficiency

The impact of CXM on operations is often overlooked.

Key customer insights can identify redundant processes and help you shape more efficient customer operations. This measure is about cutting costs and creating an agile company that responds well to customer needs.

Above all, customer experience management helps your entire team meaningfully increase customer loyalty as a routine business function — not merely a one-off effort to grow NPS survey responses.

New Data: 2024 State of CX: Insights & Strategies for Success

Helpful Strategies for a Unified Customer Experience

🌐 Optimize omnichannel experiences

Objective: Deliver a consistent experience across all channels

Modern customers often switch between devices, platforms, channels, and physical stores, making it important to deliver consistent service. This ensures customers receive the same level of attention no matter how they choose to engage with your business. It also creates a rare atmosphere of consistent customer support.

Unfortunately, ensuring this consistency is often easier said than done.

By integrating your communication channels and your customer data into a central system, you’ll be able to deliver and manage seamless service across all touchpoints.

Related: Digital Experience Management: What It Is and Why You Need It

📌 Proactively address at-risk customers

Objective: Identify early indications of churn

The familiar saying holds, confirms Gartner: It’s far more cost-effective and profitable to retain and sell to an existing customer than to acquire a new one.

That’s why proactively identifying and engaging with at-risk customers is a strong strategy for minimizing churn. To minimize churn, you need to monitor customer behavior and feedback to identify early signs of dissatisfaction. 

Then, you can take preemptive action by reaching out with personalized digital experiences or solutions, automating the deployment of special offers, or simply reminding them that you value their business.

Related: How to Build the Best Digital Customer Experience Strategy in 2024

📝 Streamline onboarding steps 

Objective: Provide numerous check-ins and opportunities for feedback

Customers appreciate simple processes, and if your onboarding demands too much of them, you’re off to a bad start. Simplifying the onboarding process is key for maintaining customer interest and lays a strong foundation for a long-term relationship. 

This could look like:

It’s also best practice to check in often during this process, allowing customers to provide feedback. It’s rarely too early to ask them what they think.

❌ Don’t box knowledge in 

Objective: Share insights openly with team members

Encourage the sharing of insights within and across teams for the most cohesive customer-centric experience. Cloud-based, self-service CXM software can help companies avoid detrimental data silos.

You never know how other colleagues or teams may benefit from customer data, and collaborating enhances the customer experience.

According to Treasure Data, access to customer experience data remains a challenging factor for 54% of organizations.

High-quality customer service starts with well-informed, unified teams that frequently share insights. 

Nurture a culture of knowledge sharing with regular data training sessions and team meetings and make centralized pools of customer feedback and insights easy for everyone on the team to access, not just data ops individuals.

Related: How to Create a Unified Customer Experience (CX) at Scale in Four Steps

Top Features in Customer Experience Management Software 

1) CRM integration

A customer relationship management (CRM) platform stores customer information, tracks interactions, and helps businesses create stronger connections.

It plays a large part in CXM, and having a CRM integrated with your systems makes it easier for your teams to work together, deliver excellent support experiences, and put the customer first.

Key benefits of CRM integration:

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Nextiva’s Salesforce integration, for example, bridges the information gap between your CRM and phone system. This handy integration helps your team access additional features, such as real-time call logging within Salesforce to store notes on a call and automatically log activity in Salesforce. 

A feature like this further enriches your customer data and the potential CXM insights drawn during analysis. 

2) Customer journey mapping

Customers pass through multiple stages as they interact with your brand. A customer journey map visualizes this path from start to finish.

Each map is made of touchpoints that include interactions such as discovering your product on Instagram or reaching out for technical support. Each interaction serves as an opportunity for you to delight customers while collecting valuable data.

customer sentiment journey

A clear map of your customers’ journeys allows you to identify and track key touchpoints, such as trial signups or predicted outcomes.

It’s a vital component of managing the customer experience, and Gartner outlines it as a key factor for customer success. Of marketers polled, 47% said journey maps positively impact the success of their CXM efforts.

Key benefits of customer journey mapping:

Here’s an example that begins with a visit to your website:

Your customer visits a landing page, signs up for your newsletter, and begins a chat with your support agent. Several days later, the customer receives your newsletter, which leads to a demo booking and, eventually, a purchase.

B2B Customer Journey Diagram

3) Omnichannel customer engagement

Opting for a platform that embraces omnichannel customer engagement results in a unified experience across all platforms. This seamless experience thrills customers, who often interact with brands across three to five communication channels.

Benefits of omnichannel customer engagement:

Effective omnichannel engagement strategies in action include consistent messaging, omnichannel staff training, and proactive support quality across all channels.

For a retail brand with a website and mobile app, effective omnichannel engagement could mean syncing a customer’s shopping cart across devices or ensuring that a contact center agent is already informed about an issue a customer raised on social media.

For modern customers, it’s all about providing a seamless experience where the customer picks up exactly where they left off.

Nextiva omnichannel engagement

Related: Omnichannel Customer Experience: The Complete Guide

4) Enterprise analytics

Enterprise analytics go beyond traditional data analysis by incorporating elements such as AI. Thanks to advanced features, businesses can forecast customer behavior and build more accurate customer journey maps.

Benefits of enterprise analytics:

A fast-food franchise, for example, can leverage predictive enterprise analytics for CXM by forecasting regional ordering trends. This helps teams create tailored menus, efficient supply chains, and strategic outlet placements. 

The result? Customer needs and preferences are proactively being met.

Real-time call center analytics dashboard

Related: Customer Experience Analytics: How to Track and Improve CX

5) Call Pop

Call Pop, also known as a screen pop, is a handy feature for customer service operations. The service experience is significantly improved when agents have comprehensive customer information during calls. 

Benefits of Call Pop:

Call Pop enables call center agents to answer every call with valuable customer context. Useful features include displaying the account value, a last interaction indicator (i.e., positive or negative), and an experience score. 

These data points help call agents deliver remarkable customer service experiences with personalized conversations. Save time, build trust, and gain deeper insights with each call.

Nextiva screen pop

Related: 7 Best Customer Experience Software in 2024: What It Is, Examples, and Pricing

Elevate Your Customer Experience With Nextiva 

Effective customer experience management is a pivotal element of business that small business owners cannot ignore. 

Knowing your customers’ needs and having a deeper understanding of their pain points leads to loyal customers. 

Customer experience management provides business owners with a roadmap to delivering an unforgettable experience that makes customers feel understood and keeps them returning for more.

In recent years, AI has transformed the customer service experience, introducing smarter chatbots and more personalized service than ever.

Yes, this technology still has a way to go, but it’s anticipated that AI will dominate this arena sooner than we think —  70% of leaders say that expanding AI across the customer experience is a priority for 2024.

You can expect more AI-driven digital transformations to improve the effectiveness of customer touchpoints and personalize services to meet individual customer needs.

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The importance of actionable customer data will only amplify as customer expectations grow.

The key to success with your customers and CXM lies in choosing the right tools that provide omnichannel experiences, accurate customer journey mapping, and insightful analytics.

Nextiva’s unified CXM platform empowers leaders to do just that. By offering unified customer data in an omnichannel environment, your customer experience will be unmatched in the marketplace. 

Discover how to create the ultimate customer journey with Nextiva today. 

Related: How to Build a Customer Experience Dashboard (+ Best Practices)

FAQs

What communication software is best for startups?

Given the dynamic nature of startups, communication tools that are cost-effective, scalable, and easy to use are best suited for these types of companies. Many startups choose software that streamlines communication (phone, video conferencing, team chat, file sharing, etc.) and reduces costs. 

Tools such as Slack, Zoom, and Nextiva are popular choices for startups. When choosing the best communication tool for your business, consider your industry, the size of your team, your communication needs, and the flexibility of the platform.

Which communication platform is best for enterprises?

Enterprises require robust communication providers that prioritize their extensive security and privacy needs. Ideally, these tools should easily integrate into their existing IT infrastructure and support a large number of users. Microsoft Teams, Cisco Webex, Nextiva, and Slack are popular options for enterprises. 

Choosing the best communication platform for an enterprise requires a thorough assessment of its security and privacy needs, communication channels, IT infrastructure, and budget.

How do businesses simplify workplace communication?

Businesses can simplify their internal and external communications by adopting tools that consolidate their communication channels into a single system. A unified communication platform such as Nextiva combines phone, video conferencing, team messaging, call center, and social media management into a secure, easy-to-use, cloud-based tool. 

With the rise of remote work models, businesses should adopt clear communication policies, provide training, and utilize asynchronous strategies to maximize the effectiveness of their teams.