Customer Experience Management (CEM)-The New Necessity?

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Customer Experience Management

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From the time mankind started bartering stone implements, the art of exchange has been an integral part of human behavior. It’s in our DNA. Up until the 20th-century era of commoditization of goods and services, face-to-face contact with product and buyer-seller has been the business model. However, with the advent of the internet and its rapid evolution and adoption, buying and selling have moved to a less subjective event and has become digitized. Once this transformation has been taken place, the ability to mathematically model behavior. Now, with the exponential richness of data that Big Data can provide, consumers will profoundly define what they want, when they want it and how they want it. Moreover, the story will be told in the data and its proper interpretation.

To help meet this promise, Customer Experience Management (CEM) is getting a lot of attention in the technology market. CEM is a solution through which an organization can interact with their customers to help analyze customer behavior, purchasing patterns, levels of satisfaction, complaints, insights and their overall experience. For the past decade or so, there have been important software solutions to help businesses increase communication and increase the gathering of customer information. This Customer Resource Management (CRM) solutions have become ubiquitous across the range of industries and size of enterprises. In fact, CRM programs may have become the reason most people spend more time scanning and deleting their spam folders than their legitimate email. Or even worse, so many people are saturated that they develop a grouping of prioritized email addresses to filter out the commercial noise completely. Up However, CRM programs are still and important customer database as well as survey vehicle.

CEM solutions and Big Data are taking the gathering of customer data to a new level. Sales history may reside in customer relationship management systems while purchase history resides in accounting systems or enterprise resource planning (ERP) applications. However, there is a need for more behavioral information that can be collected from newly connected devices and information such as parking lots, credit card use, purchasing patterns, social media keyword searches, videos, GPS data and just about any information device that can be connected to a network.   The goal is to collect as much information on every customer as is possible to ensure a better customer experience and to predict needs before the customer makes the buying decision.

As with most statistics, data is historical in nature. However, in today’s world of the information traveling at the speed of light dispersal of information and global competition, data needs to be as current to now as possible. Indeed, information must be contemporaneous, valid and actionable. It’s easy to say those things, but another thing to have enough confidence in the information to make costly decisions. This concern requires confidence in the information and what it is telling decision makers. Big data is all about sample size, validity and confidence levels. But relax, we are not going to revisit Statistics 101. Indeed, a well-designed CEM solution presents managers and decision makers with easy to understand Dashboards that provide an instantaneous understanding of the data. How to strategize with the information is another thing specific to the industry, company, and management decision makers. So, although CEM provides objective data, it still requires the input from that most marvelous of computers, the human mind.

This approach helps organizations to analyze customer insights and also helps the growth of the organization by improving the customer experience and customer loyalty. All organizations rely on satisfied customers for their growth since unhappy customers spread negativity about the organization thus destroying the brand name. With CEM, an organization collects the voice of customers which consists of the customer experience data that is invaluable for any organization to analyze customer insights. The customer experience management and voice of customer market can be segmented into the following categories: by analytic types, by customer touch point usage and by applications. Market trends and customer touch points are elaborated in this market.

The customer experience management market has registered growth of USD 2.59 billion in 2012 and is expected to reach USD 6.54 billion in 2017. North America is the leading market in CEM with the largest share of 48% of the overall market. It has registered market size of USD 2 billion in 2012 and is estimated to reach USD 3 billion by the year 2017. The customer experience management market is driven by factors such as increasing competition among market players, rising customer needs, and demands. Some of the factors inhibiting the growth of this market are the emerging competitive landscape and increasing number of substitutes to analyze customer insights.

Customer Experience Management (CEM or CX) can seem a bit futuristic; indeed it was portrayed in the forward-looking, sci-fi movie, Minority Report. But in reality, CEM is as old as retail. The only thing that is new about CEM is that companies have renewed interest in the individuality of customers and have embraced new technologies to gauge Individualism on a grand scale. This new-found interest in customers as individuals was born from necessity.

Sales history may reside in customer relationship management systems while purchase history resides in accounting systems or enterprise resource planning (ERP) applications. Still, more is behavioral information that can be collected from parking lots, credit card use, or even paper or plastic bag choices. The goal is to collect as much information on every customer as is possible to ensure a better customer experience and to predict needs before the customer makes the buying decision. “It requires the incorporation of real-time decision technologies that optimize outcomes for both the customer and the company during live customer interactions –across all channels: contact centers, the web, social media, – See more at http://crmsearch.com/customer-experience-management.php#sthash.KfdfBhNw.dpuf

It requires technology that monitors customer behavior 24×7 to detect changes …because these behavioral triggers often signal changes in a customer’s needs. Customer Experience Management goes far beyond simple customer satisfaction measurements. After all, such measurements alone are the equivalent of looking in the rear view mirror – you know what happened before, but you have no idea what lies ahead. By comparison, CEM helps you track changes in a customer’s lifecycle and react appropriately – and profitably.

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