Lately many analysts and other thought leaders have dramatically increased their attention to “Customer Experience Management (CEM).” As interest grows, countless consulting firms are claiming expertise and developing offerings and even dedicated practices focused on CEM.
Since many of these experts also have a Customer Relationship Management (CRM) background, often the terms CEM and CRM are confused and used interchangeably. But there are fundamental differences.
Traditionally many CRM systems have been internally or operationally centric, collecting and profiling customer data for marketing and cross-selling purposes. Too often the emphasis has been on the company’s goals and not necessarily on what the customer really wants.
CEM on the other hand is outwardly or highly customer-centric and utilizes systems, technologies and simplified processes to improve the customer’s experience with the company.
According to Shaun Smith, co-author of the book “Managing the Customer Experience: Turning Customers Into Advocates:”
- More than $46 billion was spent on CRM systems to help institutions get closer to customers.
- Yet, Gartner (News - Alert) Research estimates 55% of CRM programs drive customers away and dilute earnings.
- Brand loyalty has declined overall by 25%, but good brand experiences can increase customer loyalty by 33%.
Why are satisfied customers leaving?
80% of customers who switch suppliers express “satisfaction” with their previous supplier. Why? Because “customer satisfaction” is just not enough.
However, companies that are able to create a customer experience that is consistent, intentional, differentiated, and valuable have truly loyal customers that can’t imagine doing business with anyone else. In fact, these “advocates” can’t stop telling their friends and colleagues about you.
Great customer experiences are no accident
If your CRM system is not helping you deliver this type of experience to your customers, you’re not alone. Gartner is one of many analysts firms stressing the importance of the customer experience and becoming more “customer-centric.” In their 2006 CRM study, they state that four of the top ten priorities are:
- Building and managing customer loyalty
- Creating a single view of the customer
- Creating a customer-centric enterprise
- Managing/improving the customer experience
Looking for an unbeatable competitive advantage?
Savvy organizations are proving the answer lies in optimizing the entire experience for customers across all points of interaction and in all activities. Front-end or customer-facing applications, contact centers, branches and every employee must provide that consistent and desired experience across every touch point.
Turning Customers Into Advocates
Your brand is on trial each and every time the customer interacts with your company. Like it or not, how you choose to direct and manage that experience determines whether you have legions of loyal customers or a loose collection of transients just waiting for an alternative.
When you create an experience so positively powerful that it burns a memory of your company’s brand into your customer’s mind, they can’t wait to return for more. And they’ll bring their friends and colleagues along.
How do you create the perfect customer experience? For breakthrough ideas and real-world examples, download the free white paper or view the energetic on-demand webcast at:
http://www.cincom.com/shaunsmith.
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Randy Saunders is the marketing director for Cincom’s Customer Experience Management products. He can be contacted at [email protected].
Cincom Systems delivers innovative software and services to simplify complex business processes. For nearly 40 years, we have empoweredthousands of clients worldwide to outperform their competition by providing ways to increase revenue,control cost, minimize risk and achieve rapid ROI. For more information about Cincom, call 1-800-2CINCOM (USA only), send an e-mail to [email protected], or visit the company’s website at www.cincom.com.
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