customer experience management
  • Arun Chaudhary
  • Last Updated: 24 Nov 21
  • 10 min read

What is Customer Experience Management & Why Is It Important?

  • Arun Chaudhary
  • Last Updated: 24 Nov 21
  • 10 min read

Having the most modern products or the most in-demand services isn’t enough to build a firm that will thrive and succeed. It’s also not about being the first to market or having the most competitive rates.

The latest trends and high-quality products won’t matter if your customers don’t have a positive experience every day with your products or services.

Imagine the last time you had a truly exceptional customer experience, whether with a tiny local business or a large one.

Those positive encounters stick with you and motivate you to return to that business again and again.

You may have even told your friends, coworkers, and relatives about this fantastic experience, encouraging them to visit the business. Customer loyalty has that kind of power.

So, rather than hoping for these moments to happen on their own, how can your company create them regularly for your customers?

Customer experience management comes into play here. It assists you in optimizing and managing your customer relationship so that they stay loyal and share the word about how great your company is.

What is Customer Experience?

Customer experience is the way a company interacts with its customers at every stage of the purchasing process, from marketing to sales to customer support and everything in between. It’s largely the sum of all of a customer’s interactions with your brand.

The customer experience is much more than a set of actions, and it also highlights feelings. What are the opinions of your present and potential customers on your brand? At every touchpoint, you have the power to improve or degrade your customers’ perceptions of you.

There are three major elements to the customer experience:

Technology: Technology refers to the product’s functionality as well as its interactivity.

Custom Service: Customer service refers to the points when your customer interacts with your teams, such as Customer Assistance, Customer Success, and self-service support.

Design: The marketing, the design, and the sensations your brand evokes in your customers are all part of the brand touchpoint.

Why is Customer Experience Important?

When customers contact brands, they go via many touchpoints. There are a lot of them before, during, and after the transaction, and they’re all crucial.

A single negative experience at any touchpoint can ruin all of your efforts to provide a positive client experience (CX). While organizations strive to create a positive customer experience, they often overlook a few key touchpoints or must-dos.

Consider the following suggestions for delivering a positive customer experience:

1. Maintain a good frame of mind: This is the most crucial aspect of providing a great client experience. Make it appear as if you’re eager to help them with their problem. Consider the value of keeping a relationship with each consumer over the long run. Repeat business will result from such goodwill.

2. Communicate straightforwardly and honestly: Accept when your organization is to blame for the problem, and when necessary, convey disagreeable facts immediately, respectfully, and in a positive manner.

3. Find a niche in customer service: Your organization should highlight your areas of expertise and specify what you can and cannot perform right from the start. Focus on what you’re strong at, figure out what sets your company apart from the competition, and use it in your messaging to your benefit. You can’t please everyone, but you can make a difference for someone.

What is Customer Experience Management?

Customer experience management is a discipline that helps us understand customers and implement strategic tactics to increase satisfaction, loyalty, and advocacy by leveraging cross-functional efforts and fostering a customer-centric culture.

Customer experience management (CXM) is about much more than serving your online customers. It’s more than just knowing where your customers shop and which brands they prefer.

customer experience management

Source: itechsolutions-pk

It’s all about getting to know your consumers so well that you can build and provide tailored experiences that persuade them to stay loyal to you and spread the word about you to others, which is the most effective type of advertising there is.

The benefit of customer experience management are :

  • Customer retention is less inexpensive than gaining new consumers, and it contributes to a 5% increase in client retention, resulting in a 25% increase in earnings which occurs for various reasons, the most important of which is that maintaining a customer reduces acquisition expenses, and pleased consumers are more inclined to order more.
  • Customers are more likely to like a brand if their staff like it. There is a solid correlation between employee happiness and consumer satisfaction, according to studies.
  • Customers that are happy and loyal recommend a company’s brand to their peers. Customer recommendations are often more influential in purchasing decisions than advertising or marketing efforts.
  • Customer sentiment research reveals information about the competition. When making decisions and providing comments, customers compare brands. Knowing this information can assist a corporation in obtaining an advantage over a competitor.

What is Digital Customer Experience Management?

The sum of a customer’s digital interactions with a company and the impression they leave is referred to as digital customer experience.

Digital customer experience management entails more than just monitoring and maintaining certain digital channels, and it’s also not something that should limit marketing or sales.

Customers want seamless access and personalized interactions from you throughout the customer journey. It makes no difference whether it’s on a digital or non-digital network.

The goal of digital customer experience management is to be aware of the digital touchpoints you share with your customers across platforms and to continuously improve the experience they enjoy within and between those touchpoints.

Also Read: Customer Service Management Tips To Ensure Happy Customers

Why is Customer Experience Management Important?

Although the concept of customer experience may appear ideal or emotional, anyone who dismisses it is terribly out of touch. In today’s hyper-competitive, hyper-connected global marketplace, customer experience has become a vital distinction.

Effective customer experience management has a measurable business value, and customer experience management can help you:

  • Differentiated experiences can help to strengthen brand preference.
  • Increase revenue by increasing existing customer sales and generating new sales through word of mouth.
  • Can improve client loyalty by providing valuable and memorable customer interactions.
  • It makes it easier to make better informed, customer-focused business decisions.
  • Gathers and evaluates significantly bigger amounts of data, giving you a more accurate picture of how well your engagement efforts are working.
  • Enhances operational performance, which increases customer satisfaction and decreases customer turnover.

How to Improve Customer Experience Management?

Let’s look at some strategies to boost customer satisfaction, reduce customer churn, and increase revenue by developing an excellent customer experience strategy.

1. Make a clear vision for the customer experience

The first step in creating a customer experience plan is developing a clear customer-centric vision that you can share with your team. Making a list of statements that serve as guiding principles is an easy way to define the vision.

2. Recognize your targeted audience

The next stage in implementing these customer experience standards is to illustrate the various customer groups interacting with your customer service representatives. If your company wants to truly satisfy various requirements and desires, it must connect with and empathize with the conditions they encounter.

3. Be creative

Customers look for items and services that will simplify their lives. Improve your customers’ experience by continually thinking of innovative ways to improve your present products and services, as well as developing new ones. To come up with ideas, use customer feedback management.

4. Establish an emotional bond with your customers

The best customer experiences occur when a member of your staff establishes an emotional bond with a client. Customers become loyal because they are emotionally attached to a product or service and recall how they feel after using it.

5. Pose Questions to Your Customers

Customers might be surveyed via email, direct mail, or your website. Customers should be asked how they learned about your product or service, how often they buy it, and where.

Customer Experience Management Software & Tools

Businesses trying to uncover user issues and improve the customer experience would benefit from the following tools.

1. Zendesk

You may use Zendesk to set up a self-help center for your customers and use a ticket system to handle problems more quickly. It is one of the industry’s favorites due to its numerous integrations, customization possibilities, and reporting.

2. Tealeaf’s

Tealeaf’s replay feature (a page-by-page, browser-level recording of the actual client experience) enables you to swiftly detect and resolve issues that lead to poor online experiences.

3. Kana

You may directly affect your clients’ experiences with Kana’s Web Experience platform by assisting them via live chat, co-browsing, or self-help. Despite increased traffic, this allows firms to deliver personalized customer service.

4. SAS

SAS Adaptive Customer Experience is an excellent option for digital marketers who want to use big data intelligence to improve the customer experience while increasing conversions.SAS enables marketers to respond in real-time by recommending the best deals for customers based on enterprise business logic.

5. Hubspot

Inbound marketers have historically relied on Hubspot. You can track every action your clients take on the website with the enterprise edition, enabling you to tailor their experience based on their interactions.

Customer Experience Management Vs.CRM

Customer Relationship Management (CRM ) Customer Experience Management (CXM)
A holistic experience management strategy with internal and external focused activities. Concerned with the customer primarily and delivering what the customer desires during all the
touchpoints between the customer and the company
It focuses more on serving the customer by delivering what they want ( high profits, more customers, etc.) Utilizes CEM to meet the customers’ needs, desires, and expectations throughout the interaction to achieve many
of the company’s centric goals.
Establishing and managing a customer management platform. Designing the broad pictures for customer experience.
Installing and configuring hardware, software systems. Designing integrated programs to support the CE.
Accessing, consolidating, and organizing data. Coordinating campaigns, programs, and CE.
Enabling centralized metrics and analytics capabilities. Establishing a customer-centric touch management strategy.
Enabling use of customer management, response tools. Defining company-wide, customer-centric, cascading metrics.
Operationally connecting and synchronizing channels. Addresses emerging market needs directly while circumventing current perceptual biases of CRM.


The customer experience encompasses more than just customer service. And it’s not just about a department when it comes to customer service. Everyone’s job is to serve customers and strive for improved end-to-end customer experiences.

However, customer service departments and call centers are more important in the customer experience equation than many other departments or activities increasingly claiming ownership of the customer experience.

Customer happiness is something that no business should take lightly. Making clients happy and delighted is not difficult with a clear plan and precise protocols; the only thing to remember is to give it the importance it deserves. The success or failure of any business depends on how satisfied and happy its customers are.


What can be done to improve the client experience?

A pleasant customer experience is crucial to your business’s success because satisfied customers become loyal customers who help you grow revenue. While it may appear that focusing solely on customer experience is more work, it is well worth it.

Here are some suggestions for improving your customer experience:

– Make certain that your services are of the highest quality.
– To deliver a better consumer experience, develop an omnichannel strategy.
– Train your customer-facing personnel effectively.
– To improve customer experience, you should take customer input and feedback seriously.
– If you want to increase client happiness, pay attention to social proof.
– Maintain a concise and appealing message for your brand.

What factors go into developing a customer experience strategy?

Brands must meet specific expectations from customers from various areas of life. These are the six important areas to offer an excellent customer experience based on their expectations :
– Availability
– Stability
– Security
– Anticipation
– Simplicity
– Accountability

Arun Chaudhary
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