Customer experience management (CXM) strategy 101 (Updated 2024)

In today's fiercely competitive business landscape, the customer experience reigns supreme. The impact of a positive customer experience extends far beyond mere satisfaction—it's the cornerstone of customer loyalty, revenue growth, and brand reputation. According to Dimension Data, a staggering 84% of businesses report an increase in revenue with an improved CX.

Enter Customer Experience Management (CXM). Your CXM strategy is the compass guiding businesses through the maze of challenges towards delivering exceptional experiences at every touchpoint. It's the bridge connecting CX data with tangible results on the bottom line.

In this blog, we delve deep into the world of CXM. We'll explore what CXM is, the myriad benefits it offers, how to craft a successful strategy from scratch, the key metrics to measure success, and the best practices to ensure your CX efforts yield remarkable results. So buckle up, and get ready to revolutionize your approach to customer experience management and unlock the full potential of your service brand. 

What is a customer experience management strategy?

A Customer Experience Management (CXM) strategy serves as the blueprint for organizations to systematically enhance and deliver exceptional experiences to their customers across all touchpoints. It's not just a checklist of actions, but a comprehensive plan that aligns every aspect of the business towards creating memorable interactions.

When crafting a CXM strategy, various inputs must be considered. These include mapping customer touchpoints to identify critical moments of engagement, conducting thorough consumer research to understand evolving needs and preferences, leveraging customer feedback to continuously improve, aligning initiatives with the company's mission and vision to ensure coherence, and analyzing competitive insights to stay ahead in the market.

CX vs. customer service

While customer service is a vital component of the overall customer experience, there are key distinctions between the two. Customer service typically refers to the assistance and support provided to customers when they encounter issues or have inquiries about a product or service. It's reactive in nature, addressing specific problems as they arise. On the other hand, customer experience encompasses every interaction a customer has with a brand, from initial awareness to post-purchase engagement. It's holistic, focusing on shaping perceptions and emotions at every touchpoint, not just resolving issues.

CXM vs. CRM

Customer Relationship Management (CRM) and Customer Experience Management (CXM) are closely related but serve distinct purposes. CRM primarily focuses on managing and analyzing customer data to foster stronger relationships and drive sales. It's often associated with tracking interactions, managing leads, and automating marketing campaigns. In contrast, CXM takes a broader view, encompassing the entire customer journey and aiming to optimize every interaction to create positive experiences. While CRM provides valuable insights into individual customers, CXM seeks to understand the collective impact of these interactions on overall satisfaction and loyalty.

Benefits of implementing a customer experience management strategy

Implementing a Customer Experience Management (CXM) strategy yields a multitude of benefits for both customers and businesses alike.

• Improved customer loyalty: By consistently delivering exceptional experiences, customers are more likely to develop strong emotional connections with the brand, fostering loyalty and repeat business.

• Reduced customer churn: A well-executed CXM strategy addresses pain points and ensures customer needs are met, reducing the likelihood of customers switching to competitors.
  
  
• Improved brand reputation: Positive experiences lead to positive word-of-mouth, enhancing the brand's reputation and attracting new customers organically.
  
  
• Increased sales and revenue: Satisfied customers are more inclined to make repeat purchases and recommend the brand to others, ultimately driving sales growth and revenue. You can find out just how much impact you could drive by using AskNicely's customer experience ROI calculator.
  
  
• Reduced costs: Retaining existing customers is more cost-effective than acquiring new ones. A CXM strategy focused on retention helps minimize churn and acquisition costs.
  
  
• Improved employee engagement: Engaged employees play a crucial role in delivering exceptional customer experiences. A CXM strategy that prioritizes employee training and empowerment leads to higher levels of engagement and satisfaction.
  
  
• Smoother interactions: Streamlining processes and ensuring consistency across touchpoints result in smoother interactions, reducing friction and enhancing the overall customer experience.

• Personalized service: Leveraging customer data and insights enables businesses to tailor interactions and offerings to individual preferences, enhancing personalization and relevance.
  
  
• Increased trust and confidence: Consistently meeting or exceeding customer expectations builds trust and confidence in the brand, fostering long-term relationships.
  
  
• Improved product and service quality: Continuous feedback loops inherent in CXM strategies enable businesses to identify areas for improvement, leading to enhancements in product and service quality over time.

Learn more about the Benefits of Customer Experience Management.

How to build a successful customer experience management strategy

Building a successful Customer Experience Management (CXM) strategy requires a deep understanding of customers, alignment with business objectives, and a strategic approach to execution and measurement.

Understand your customers:

Genuine customer insights are an essential ingredient to a successful CXM strategy. Utilize tools like surveys and real-time feedback mechanisms to gather valuable data on customer preferences, pain points, and behaviors. Segmenting customers based on personas allows for targeted and personalized experiences tailored to their needs and expectations. 

Map the customer journey:

Mapping the customer journey across various touchpoints and channels provides a holistic view of the customer experience. Understanding omnichannel interactions and identifying critical touch points enables businesses to optimize each stage of the journey. Incorporating self-service options where applicable enhances convenience and empowers customers. Learn more about effective customer journey mapping here. 

Align your strategy with key business objectives:

A successful CXM strategy must be closely aligned with key business objectives. Whether it's improving customer retention, increasing sales, or enhancing brand reputation, every initiative should contribute to overarching business goals.

Define success:

Clearly defining success metrics is essential for measuring the effectiveness of a CXM strategy. Implementing tools that facilitate easy tracking and analysis of metrics, such as Net Promoter Score (NPS) or Customer Satisfaction Score (CSAT), provides actionable insights into customer sentiment and loyalty. 

Engage with employees:

Employee buy-in and continuous improvement are critical components of a successful CXM strategy. Engage employees at all levels of the organization, from frontline staff to leadership, in the development and execution of CX initiatives. Establishing goals and recognition programs fosters a culture of accountability and excellence, driving continuous improvement in customer experience delivery. 

How to measure the success of a customer experience management strategy

Measuring the success of a Customer Experience Management (CXM) strategy is essential for driving continuous improvement and ensuring alignment with business objectives. Data-driven insights provide valuable guidance for refining strategies and optimizing customer experiences.

Despite its importance, measuring CXM success comes with its own set of challenges. Teams often grapple with balancing subjective and objective feedback, navigating silos and fragmented data across departments, and attributing outcomes to specific initiatives accurately.

Choose the right metrics:

‍Selecting the appropriate metrics is crucial for evaluating CXM success. Whether it's Net Promoter Score (NPS), Customer Satisfaction Score (CSAT), or Customer Effort Score (CES), metrics should align with business goals and provide actionable insights into customer sentiment and loyalty.

Ask the right questions at the right time:

‍Timing is key when soliciting feedback from customers. Asking relevant questions at various touch points along the customer journey enables businesses to capture real-time insights and address issues promptly, enhancing the overall experience.

Analyze and segment data:

Analyzing and segmenting data allows for deeper insights into customer behavior and preferences. By dissecting data based on demographics, purchase history, or interaction channels, businesses can tailor strategies and offerings to different customer segments, maximizing relevance and effectiveness.

Benchmark against industry standards:

Benchmarking performance against industry standards provides context and helps gauge competitiveness. Check out the NPS benchmark study here.

Look at trends over time and in context:

‍Monitoring trends over time and in context allows businesses to identify patterns and anticipate shifts in customer behavior. Analyzing data longitudinally and considering external factors enables more informed decision-making and proactive strategy adjustments.

Best practice tips for building, executing, and improving your CXM strategy

For a Customer Experience Management (CXM) strategy to flourish, it requires input and support from all corners of the organization. Here are some best practice tips to ensure success at every stage of the CXM journey:

Building

Get leadership support and buy-in from employees early: Secure commitment from leadership to champion CX initiatives and allocate necessary resources. Additionally, involve employees across departments to ensure alignment and foster a culture of customer-centricity from the outset.

Set SMART goals: Establish specific, measurable, achievable, relevant, and time-bound (SMART) goals to guide CXM efforts. Clear objectives provide focus and direction, enabling teams to track progress and evaluate success effectively.

‍Integrate customer feedback systems: Implement robust feedback mechanisms, such as surveys and listening posts, to capture insights directly from customers. Integrating these systems into existing processes ensures a continuous flow of valuable feedback to inform decision-making and drive improvement initiatives.

Executing

Train, empower, and reward employees: Equip frontline staff with the necessary training and tools to deliver exceptional customer experiences. Empower employees to take ownership of customer interactions and reward exemplary service to reinforce desired behaviors.

Maintain consistency across channels: Ensure consistency in messaging, branding, and service quality across all customer touchpoints, whether online, offline, or hybrid. Consistency builds trust and familiarity, enhancing the overall customer experience and minimizing confusion or frustration.

Respond to feedback promptly: Actively listen to customer feedback and prioritize swift responses to address concerns and resolve issues. Timely and empathetic responses demonstrate commitment to customer satisfaction and foster trust and loyalty.

Improving

Continuously monitor and analyze data: Establish processes for ongoing data collection, analysis, and interpretation to identify trends, patterns, and areas for improvement. Regular monitoring enables agile decision-making and facilitates rapid adjustments to optimize the CXM strategy.

Embrace technology: Leverage technology solutions, such as CRM platforms, analytics tools, and automation software, to streamline processes and enhance CX delivery. Embracing technology enables scalability, efficiency, and innovation in CXM practices.

A/B test and experiment: Foster a culture of experimentation and innovation by testing different strategies, messaging, and experiences to identify what resonates most with customers. A/B testing allows for iterative improvements and insights into customer preferences, driving continuous innovation and refinement of the CXM strategy.

Check out the trends to watch for in 2024 here or explore more customer experience resources for tips and best practices.

How can AskNicely Help?

In the realm of Customer Experience Management (CXM), having the right tools at your disposal can make all the difference. That's where AskNicely comes in—a comprehensive customer experience platform designed to support and supercharge your CXM strategy from start to finish.

Customer Feedback: AskNicely empowers teams to collect valuable customer feedback effortlessly. With customizable email, web, or SMS surveys, you can engage with customers at the right time and gather insights that inform your strategy and measure impact over time. Prompt responses enable you to address concerns promptly and demonstrate your commitment to customer satisfaction.

Team Analytics: With AskNicely's Team Analytics feature, you gain mission control to measure and improve CX across your organization. Easily compare performance across locations and branches, spot trends that require action, and drive continuous improvement initiatives with actionable insights.

AskNicelyTV: Transform customer service and support for frontline teams with AskNicelyTV. This innovative tool gamifies the customer experience by providing real-time visibility into customer feedback. Empower your teams with tactical areas for improvement, motivating them to deliver exceptional service with every interaction.

Integrations: AskNicely seamlessly integrates with a range of essential tools to help you look at customer experience more holistically and streamline workflows for continuous improvement. Integrate with CRMs, Help Desk/Ticketing Systems, and Business Intelligence (BI) tools to gain deeper insights and drive strategic decision-making.

Unlock the full potential of your CXM strategy with AskNicely today – Book a Demo.