Customer Experience Management | Qualtrics

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Customer Experience Management

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Customer Experience Management (CEM) is the process and system of collecting customer feedback along the customer journey, identifying and prioritizing customer satisfaction drivers, and driving actions to continuously improve the customer experience.

Customer Experience Management programs generally follow three phases: collect, analyze, and act. Effective voice of the customer programs, also often called "CEM programs" allow you to:

  • Collect Collect omni-channel feedback using both direct and indirect channels and assess every interaction at every key touch point in the customer journey
  • Analyze Combine operational and customer data so you can easily analyze insights and identify key drivers of customer satisfaction. This type of analysis allows you to prioritize customer satisfaction improvement initiatives
  • Act Align the organization and provide visibility into customer metrics at all levels of the organization. Great programs also enable you to integrate satisfaction results into existing corporate infrastructure and automate actions to both positive and negative customer feedback
Collect, Analyze & Act

The ROI of customer experience management

Companies that prioritize customer experience outperform customer experience laggards in stock returns by an average of nearly 80%. Happy customers have significantly higher lifetime value and freely promote their favorite brands. In fact, promoters are 81% more likely to repurchase compared with passives (44%) and detractors (16%), according to Forbes.com. Unhappy customers, on the contrary, churn heavily and 95% of these unhappy customers will tell others about their bad experience, causing additional attrition.

With the rising popularity of social media, customers can easily publicly promote or detract from your business. Therefore, it is increasingly critical for companies to have a way to capture and respond to customer feedback in real-time.

Common customer metrics

As with any organizational initiative, measuring the success of a CEM program is crucial to developing a strong and scalable program. There are many methods for measuring customer satisfaction but selecting the right metric will depend on your program goals. Best-in-class customer experience management tools will offer the flexibility to use any metric that lines up best with your organization's customers, operational processes, and needs.

The most common customer metrics include:

  • CSAT
  • NPS
  • Customer Effort Score

Additionally, it's smart to sort customer satisfaction metrics into one of two categories: transactional or relational:

  • Transactional metrics are based on a specific customer experience and assess customer opinions about the unique characteristics of a singular interaction. Closing the loop on individual experiences or correcting common transactional issues are two common use cases for transactional metrics.
  • Relational metrics are applicable when assessing aggregate experience with a product or service. These metrics serve as an overall evaluation of a company or brand, measuring things like customer experience, loyalty, and advocacy.

Building an effective CEM program

The voice of the customer is best heard as an ongoing conversation. The key to creating an effective CEM program is to gather information across many interactions and drive improvement actions across an organization in real-time. Organizations often have multiple touch points with the customer that occur all across the organization, including sales, support, warranty, and accounting interactions.

CEM Program Maturity

Characteristics of the best CEM programs

  • Connect multiple types of feedback across data channels
  • Incorporate website experience metrics
  • Provide automatic collaboration across functional departments
  • Ties employee feedback and engagement to customer experience
  • Leverage dashboards and reports that integrate and display information from multiple customer voices regardless of source, survey or time
  • Integrate into existing processes and infrastructure and drive automated actions
  • Deliver clear ROI and business results
  • Allows for continuous improvement and experimentation at a rapid pace