Uncovering the evolution, benefits, challenges, and future of customer experience management - will it ever rule the world?

It's no secret that great Customer Experience Management (CXM) is essential for any organisation. CXM is the collection of processes an organisation uses to track, oversee and organise every interaction between a customer and the organisation throughout the customer lifecycle. It is a concept that capitalises on customer information to create personalised customer experiences.

While the history of CXM is relatively short, its importance is growing rapidly. A study has found that happy customers are worth up to 10 times as much as unhappy ones. Despite its benefits, implementing CXM can be challenging. It requires a change in focus and data-driven analysis. CXM will become increasingly important in the future as organisations compete for customers.

History of CXM

The term customer experience was first coined in the early 1990s.Gartner introduced the concept of customer experience index in 2010, and Forrester's Customer Experience Index was released in 2012.The early 1990s saw the rise of Customer Relationship Management (CRM), which put the focus on managing customer data and interactions. It was followed by a shift in the late 1990s and early 2000s towards managing the customer journey. It led to developing customer experience management (CXM) as a discipline in its own right.

CXM is concerned with managing all aspects of the customer experience, from initial contact through to post-purchase follow-up. It encompasses everything from product design and development to marketing and customer service.

Benefits of CXM

Creating a customer experience that meets or exceeds expectations is essential to developing loyalty among customers. Companies who invest in great CXM can expect higher levels of satisfaction, resulting in enhanced sales and improved profitability. Additionally, effective CXM offers valuable insights into customer behaviour which help organisations innovate and deliver superior products and services going forward.

Challenges of CXM

CXM can present some challenges, but this is overcome with the right strategy and implementation. CXM is a tricky endeavour due to the subjective nature of customer satisfaction and the multitude of touch-points within each journey. Organisations must look for ways to make sure that customers have cohesive experiences at every stage. To effectively manage customer experience, organisations must invest in sophisticated analytics technologies and enlist the help of experienced analysts. Organisations must be careful when making changes to the customer experience, as they can lead to short-term dips in satisfaction levels.

Future of CXM

As the world of business shifts, successful organisations will need to invest in CXM to keep up. To be successful in a competitive market, organisations must take a customer focused approach to make sure their customers' needs and expectations are met. Organisations must adopt cutting-edge technologies such as AI and big data analytics to remain competitive. The future of CXM is data-driven, with a greater emphasis on customer loyalty and engagement. To succeed, organisations will need to adopt new technologies and focus on providing a personalised experience for their customers. Comment and share your organisations' CXM journey.