Understand your customers better, fill needs more effectively, and reshape the way you conduct business.
The goal of CEM is to optimize interactions from the customer’s perspective and foster customer loyalty. To manage the customer experience, a company needs to create a strategy that encompasses all customer interactions.
By properly listening to your customer’s feedback, you can build stronger relationships, increase customer satisfaction and reduce churn.
A 2014 survey by McKinsey & Company revealed that effective customer journeys increase a customer’s overall satisfaction by 20%.
As the digital revolution sweeps across the globe and provides unprecedented information access to consumers throughout their buying cycles, Customer Experience Management (CEM or CXM) has once again shifted to the forefront of the business mindset.
Customer Experience in the Digital Age
I have never met someone who seriously asked this question out loud “Aaaaah, customer experience, that little thing… does it really matter?” However, I have met plenty of people and organizations who may as well have asked it outright. Their motto often seems to be “Profits first, just make something that works and ship it.”
Have you ever noticed some of the big companies that provide terrible customer experience but yet still grow tremendously year over year? Did it make you think to yourself *“How on earth is that possible?!?!” *Well, the truth is that while the “big fish eat first” mentality may have been true in previous decades, that notion is rapidly changing.
As according to a Walker study, by the year 2020 customer experience will overtake price and product as the key brand differentiator.
Customers are no longer happy with settling for whatever is fastest and cheapest. Now, more than ever, they are willing to pay extra for better service and they demand fast, effective and reliable support… especially from tech products.
As our ability to gather and process information has rapidly expanded, so too has our ability to make informed decisions as customers. Think about it, from Chinese food to sports equipment to electronics and services, chances are that you leverage information such as reviews and customer feedback daily to make better buying decisions.
This means that those companies who can turn customers into loyal promoters stand a chance to win big in the information market.
Customer loyalty is critical. Studies show that it costs five times more to attract a new customer, than it does to retain an existing one.
Why does all of this matter to you?
Simply put, low price and flashy features are no longer enough to attract and retain customers. Companies need to adapt… and they need to do so quickly.
The business which are able to provide an enjoyable customer journey combined with personalized experiences will thrive in the coming year. Those who are unable to create customers who are truly brand loyal… well… let’s just say that someone else is out there working hard to turn their customers into happy promoters who will gladly steal your business away.
In fact, Aberdeen Group Inc. claims that companies with the strongest omni-channel customer engagement strategies retain an average of 89% of their customers, as compared with 33% for companies with weak omni-channel strategies.
If you can ensure that customer interaction with your company is smooth, pleasant and constantly evolving, you will drive brand loyalty. If not, you’ll give your competitors the best gift of all— your customers.
For more info on why customer experience matters NOW, check out this clever infographic from Doorman: