CXM, or Customer Experience Management has become key for brands looking to drive traffic, generate customer loyalty, and boost sales. Though CMOs recognize the importance of CXM in today’s ‘experience economy’, many struggles to optimize it. This is often because of many common myths and misunderstandings, so let’s break these down:
Many consider CXM to be a straightforward rebranding of CRM, or Customer Relationship Management. In fact, CRM is only a single cog in the CXM machine. CRM refers to a strategy that meets the needs of a brand’s existing and future customers, to drive value through communication. CXM, on the other hand, refers to the holistic approach to a complete customer experience, across channels and in real-time. Crucially, CRM gathers interaction data often via manual or batch entry, whilst CXM relies on a continuous stream of customer data insights from multiple sources to generate a real-time experience. CXM places the user at the heart of the design and execution of every interaction.
A common misconception around CXM is that AI is the ultimate solution to customer experience challenges. “AI won’t do the work for us,” says Cognizant’s Senior Vice President, Mark Taylor. “Although it seems counter-intuitive, the deeper customer engagement enabled by AI also requires brands to first take time to better understand customers and anticipate their needs”. In fact, only 10% of organizations that have adopted AI solutions report that they have seen business returns on their investment. Unlocking the full power of CXM relies on creativity and empathy. Switched-on brands will therefore use AI as a tool rather than the answer.
Of course, you need a digital solution to integrate customer profiles, generate intelligence, and enable personalization. However, CXM is more than an investment in a tech stack: making exceptional CXM a reality involves a culture-shift too. To succeed, organizations need to implement a methodology to track, visualize, and manage interactions with their users. Equally important, is the need to cultivate a customer-centric culture, with the goal of optimizing CXM. Only when the customer is central to each business decision, can optimum CXM be activated.
The incentives for brands to invest in and take a holistic approach to CXM are vast. Not only does it enable boosted revenue streams, but those that identify as ‘advanced’ in their CXM are far more likely to have achieved their business goals by a significant margin. Data-driven insights are now considered vital for powering an improved customer journey. Retail spaces at London’s Heathrow Airport, for example, were able to increase the average spend per customer by 60% by optimizing customer journey management (CJM) with targeted marketing campaigns.
Keeping a laser-focus on the customer and an eye on the tech horizon for new tools whilst maintaining oversight on internal operations can divide your operating power and productivity. Enlisting the support of a skilled digital partner to realize your digital vision can help your brand innovate quickly, without compromising your digital experience. Get in touch with Netcentric today to discover how your business could unlock next-generation CXM to drive sales, customer loyalty, and personalization at scale.