Customer experience management is usually understood as a business strategy based on managing the overall customer experience of your company. It includes the customer’s experience, conscious and unconscious perception of the connection with your brand, acquired throughout the life cycle.
What is customer experience
It represents the sum of the customer’s perspective about a company. It includes even those buyers who may not shop from you but have a positive or negative attitude towards the business. Almost all companies need to receive these kinds of feedback throughout their life, even in the absence of the brand on the market.
However, a customer’s experience can not be just calculated based on impressions and thoughts. Nowadays, modern marketing has allowed businesses to use it as a methodology in developing close and long-term relations with the target audience in three basic steps:
Step 1. Act. Firstly, marketers start launching special advertising campaigns for selling the company’s goods and services.
Step # 2. Observation. The next step is to observe potential customers’ reactions, especially those who performed the conversion action.
Step # 3. Reaction. The result obtained from the data allows an organization to make changes, not in the marketing campaigns and strategy, but also objectively improve their relationship with the targeted customers.
What is the benefit of using this method? The most significant advantage is considering the opinions of potential clients in real-time. If your ad campaign is unsuccessful, you can improve your marketing strategy based on the collected customer experience data. Contrarily, if your clients are 100% satisfied, no one can stop your business from exceeding the target audience’s expectations.
It is a fact that high customer satisfaction is the key to high demand for the company’s products, and it will also make sure that one satisfied customer will recommend you to ten others.
According to a recent market survey:
- 77% of customers return to a shop or brand due to previous positive experience;
- 47% of customers do not want to make any purchase from online and offline stores after reading negative reviews about a brand;
- 87% of people will not make a second purchase from any brand with which they have negative memories;
- 4+ positive ratings is the minimum required to compensate for the negative experience of the consumer.
According to the above statistics, anyone can understand that customer experience is not an influenceable phenomenon. On the contrary, it needs to be controlled. This is how a new trend in marketing was born – Customer Experience Management (CEM).
Customer experience management in modern businesses
According to CEM, it is not enough to know what goods and services a customer likes and provide them with quality services to an offline or online customer.
To effectively manage customer service experience, it is necessary for any organization to subtly understand the customer’s motive and interests to maintain good relations with them. Nowadays, the concept of a portrait of a consumer is getting more and more attention. It includes the study of a set of characteristics of customers that can influence their purchasing habits. Some of the most important criteria include gender, age, income level, profession, education.
Unfortunately, most businesses wake up when there is an urgent need to maintain wholesale customers when they’ve suffered from a heavy dose of negative feedback. Usually, it happens in the form of customer churn.
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Customer service management can be expensive. Organizations can’t just buy and find out all the personal data about a particular person’s customer experience. It requires an effective system that can collect and analyze data from subsequent implementation in advertising strategies. However, even with the investment of time and effort, customer experience management has many advantages:
It helps in strengthening the support of present consumers. Whenever a shopper gets a positive shopping experience, they will be more than happy to visit that store again and recommend it to their family and friends.
Help spread awareness about the brand. Online reviews can work magic for any brand, and interpersonal conversations will help them reach new heights in market recognition. It is essential to work on online and offline recognition simultaneously.
Possession of new customers. Recommendations and online reviews can attract many new customers, counting on a positive experience.
Increase in new customers base. The result of the method will be based on many factors, including the type of industry, the preferred content strategy, the quality of SEO texts, etc. However, an organization will definitely get a noticeable overall increase in site traffic and conversion.
Company’s income growth. It is very simple, the more customers a business has, with a high satisfaction ratio in their product and service, the more actively they can expect economic flows in their account.
Reduced direct marketing budgets. With good customer experience management, a company can expect a reduced bounce rate on their site and the actual churn of customers. In addition, it will also help them save their budget from advertising their products and services. Marketing optimization can help an organization free up budgets for other areas to grow your business.
With a high-quality CEM service, a company receives the most valuable form of advertising – word of mouth. It can make a customer so happy that he wants to share his own experience with all acquaintances and family. Also, he can recommend your company personally, write testimonials and positive reviews, increasing the businesses’ reputation and awareness,
Key features of CEM
The customer service experience can be a fickle phenomenon. It can be both positive and negative, and it is very hard for companies to change a customer’s experience from one type to another. If a company successfully transforms the negative attitude of the customers into a positive one, it is wonderful for the company. However, it will only bring a decline in reputation and financial loss for an organization if the reverse happens.
Therefore, it is a must for any organization to implement CEM practices in the content strategy of your business prospect and not just observe the behaviour of customers from the side. The best method is to start by exploring the key features of a customer experience management system.
About the company: Knowmax is a service of end-to-end analytics and knowledge management platform. This team brought together ideological people dedicated to their work and working for the result. The company is dedicated to creating softwares for marketers that can help them optimize advertising costs and understand where customers are coming from. Their services include solutions for decision trees, visual guides, chatbot knowledge, knowledge base and learning management.