Personalization Glossary
A/B testing? Recommendation models? The personalization engine space uses several acronyms that may seem daunting, so we're here to help. You can find definitions to the most common e-commerce customer experience optimization terms here!
Customer Experience Management
Customer Experience Management (CXM) is when the retailer at all touchpoints, can follow and track the experience the customer shares with them through their journey. The data is meant to plan the roadmap of future experiences in hopes of better meeting individual customer needs.
Note: It is important for retailers to understand customers in order to deliver superior, personalized experiences necessary to match their expectations.
How to get started with customer experience management?
With the evolution of unified platforms that can onboard data, the ability to activate this data and deliver contextually relevant interactions has become possible. First, data must be consolidated across all channels, screens, and experiences into a single view of the customer. This would enable the possibility for both customer experience management, and omnichannel retailing, for businesses wanting to make a big splash in their bottom line revenue. Once you have one point of reference for all of your customer data, you can begin to better understand who your customer is and how to tailor relevant experiences to them at a faster rate of exchange.
Customer Experience Management
What is customer experience (CEM or CXM)?
Customer experience management (CEM or CXM) is the collection of processes that a corporation uses during the customer lifecycle to monitor, supervise and coordinate any interaction between a customer and the company.
Although CXM may look similar to Customer Relationship Management (CRM) strategy and software, there are key differences when comparing CRM vs. CXM, one being perspective: CRM explains what the organisation looks like to a customer, and CEM describes what the customer looks like to a corporation. CEM is a strategy that places business customers at the heart of marketing, sales and customer service in order to drive brand loyalty and repeat customers.
CEM systems rely heavily on the voice of client programmes that evaluate the opinions of customers about the experiences of an organisation. A CX management software may change elements of the customer experience that generate negative feedback overtime to correct those assumptions. However, in order to capture more revenue, the CRM strategy focuses on distribution and outreach to consumers from the organization’s perspective. Usually, this sales-oriented framework needs significant digital change to sustain an overall CEM program—which often combines with customer care and support.
Why does CXM matter?
A brand’s consumer experience leads to client expectations and sales. If any elements of CXM are left unattended, it can be both positive when done well and negative.
Implementing a CXM strategy has a number of advantages:
The retention of clients costs less than acquisition: Studies show that an improvement in customer satisfaction of 5 per cent will result in a profit increase of 25 per cent. For many factors, this occurs, but mainly because a retained client saves the cost of hiring a new client, and happy clients prefer to order more.
Client Enhancement Forces reviews: Voice of customer information offers a blueprint to improve customer interactions and draw clients in the form of online surveys and mobile app feedback, as well as phone and text conversations.
Happy employees give customers a good experience with the company: Studies suggest that there is a clear correlation between the experience of staff and the experience of customers. Organizations with the strongest customer service focus on measuring the voice of employee data with a view to maximising their experience and retention.
Contented, faithful customers actively endorse peers with a company’s name: Customer endorsement may often weigh more heavily than advertising or marketing campaigns in purchasing decisions.
Measuring consumer sentiment yields insights from rivals: Clients compare brands when making their decisions and offering feedback. Knowing this information will help a company position itself against a competitor favourably.