Customer Experience Management

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Description of Customer Experience Management. Explanation.

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Definition Customer Experience Management. Description.


The concept of Customer Experience Management (CEM), which was developed by Bernd Schmitt (2003), describes the process of strategically managing a customer’s entire experience with a product or company. The term 'Customer Experience Management' represents the discipline, methodology and/or process used to comprehensively manage a customer's cross-channel exposure, interaction and transaction with a company, product, brand or service.


The CEM framework consists out of following five key areas:

  1. The Customer - Analyzing the experiential world of the customer in order to gain insights into the socio-cultural context of consumers (Compare: Multitasking Consumer).

  2. The Environment - Building the experiential platform and developing a strategy that includes the Positioning for the kind of experience the brand stands for, the Value Proposition of what relevant experience to deliver and the overall implementation theme that will be communicated.

  3. The Brand - Designing the Brand Experience and implementing the experiential platform.

  4. The Platform - Structuring the customer interface by implementing the operational infrastructure in stores, during sales visits, in e-commerce engines of website or similar.

  5. The Interface - Engaging in continuous innovation and fine-tuning the experience at every point of contact. This area of CEM analysis focuses on the interaction between consumers and the brand, from a human-to-technology, human-to-human, and human-to-environment perspective. Simply defined, this area focuses on refining and optimizing the customer interaction within any channel to produce desired and pleasing outcomes.

 

Client Expectations

 

Pope (2010) writes about the expectations of clients in client-organization relationships. Companies rely too often on the TECHNICAL ELEMENTS of the goods and services they produce. Of course, clients do expect a high level of technical ability to produce the desired results and these technical capabilities are an important part of clients’ demands and expectations. However, it is not the only aspect that need to be taken into account when serving clients’ needs.

The other element that needs to be considered is the EMOTIONAL CONNECTION that will develop when working together in a partnership. This is the more affective part that clients seek for. The emotional connection is about the “feel good” factor and refers to repeat experiences that positively influence the emotional level of clients. This more affective part of clients’ expectations are just as important as their technical demands.

 

Creating an Ultimate Client Experience (UCE)

 

It is important to mention that the whole organization (rather than just one person) is responsible for delivering the Ultimate Client Experience (UCE). There need to be certain “touch points” between clients and people within various company departments throughout the entire client relationship process. These touch points encourage the creation of a strong relationship and an unforgettable client experience.

 

Keeping the above in mind, there are 5 critical factors to create an Ultimate Client Experience (besides the technical aspects):

  1. Culture: Culture is an important ingredient in any business relationship. Only when there is a client-focused organizational culture, UCE can be realized. Clients should believe it is easy to communicate with the organization.
  2. People: Because of the fact that people have the ability to differentiate an organization from others and to outcompete them, they are a very important part of organizations. The best results arise from matching the right people with the right tasks.
  3. Relationship: Because good relationships contribute to better client experiences, an important part of realizing the UCE is to continuously invest in the relationships with clients.
  4. Understanding the Client: In order to fulfill the expectations of clients, it is of course important to firstly understand what these expectations are. It is not only about the technical qualities, but also about the emotional connections with clients. Only if both aspects are considered, the UCE can be created.
  5. Uncommon: According to the article, doing common things in a different way provides a company with uniqueness and will create outstanding client experiences. Therefore, such uncommon ways are of great value; thinking out of the box is therefore a great contribution to the UCE of clients.

Source: M. Pope (2010) “The Ultimate Client Experience: Recipe for Success in a Down (or any) Economy “ Business Strategy Series Vol. 11 Iss. 4 pp. 219-222

Customer Experience Management Forum
  Capturing Client Sentiments
In order to ensure that customer experiences are always improved, the service delivery model MUST as a necessity capture client sentiments. Beyond a questionnaire or poll, the system should also capture satisfaction rates (indicated by referrals, rep...
     
 
  How to Integrate Customer Experiences in your Business Model?
Since products and services are increasingly becoming commoditized and similar, many companies are trying to differentiate themselves by creating a unique "customer experience".
     
 
  Customer Journey Model
The Customer Journey (CJ) Model describes and captures the CJ and customer experience.
The CJ describes the experiences of a customer during the virtual 'journey' that a (potential) customer is making, and consists of 3 phases:
Phase 1: Or...
     
 
  Is CEM a New Marketing Mantra for the Success and Retention of Customer?
A decade before we were taking 'customer satisfaction' after a refined term called 'customer astonishment' after some marketing gurus recoined the term 'customer delight'. I am of the opinion CEM is the combination of all.
Can I have readers' cr...
     
 
  Customer Experience Management is a New Dimension to Customer Retention
CEM is the process of analyzing products utilities, attributes, and offerings as well as expectations of consumers to adapt the respective product. Developing a unique CEM strategy could develop the customer relationship and improves customer retenti...
     
 
  What Kind of Customer Experiences Influence Customer Satisfaction?
I want to know more about customer satisfaction due to customer experiences in the hotel and restaurant industry. We know the customer satisfaction and employee satisfaction, but those are changed by customer experiences.
Specifically I am look...
     
 
  Customer Experience Management Vs. Customer Relationship Management
I saw this comparison of CEM vs. CRM:
CRM: left brain, focuses on customer's value to enterprise, systems and interactions, functional value.
CEM: right brain, focuses on enterprise's value to customer, people and interactions and emotional...
     
 

Customer Experience Management Special Interest Group


Special Interest Group

 

Best Practices - Customer Experience Management Premium

Expert Tips - Customer Experience Management Premium
 

A Closer Look Into Customer Value

It is often argued that customer value is required for staying competitive and successful as organization. But in what ways can customer value be a cr...
Usage (application): Customer Value Analysis, Strategic Marketing, Innovation Strategy
 
 
 

Four Ways in Which People Experience Any Organization

The reputation of an organization depends mainly from the way that the organization’s constit...
Usage (application): Corporate Reputation, Customer Perception, Customer Experience Management, Online Reputation
 
 
 

Customer Relationship TYPES

Next time you're using the term "CRM", remember there's an R in it... The R of "Relationship".
Actually, customers (want to) have many different ...
Usage (application): CRM, Relation Marketing, Branding
 
 
 

Extreme Customer Trust as a Source of Competitive Advantage

Many companies are already highlighting the importance of trustworthiness by setting and sustaining honest prices and providing reasonable services. A...
Usage (application): Competitive Advantage, CRM, Customer Loyalty, Customer Intimacy
 
 
 

The Importance of Customer Differences in Markets with Network Effects: the Limits of Scale

The network effect (Metcalfe's Law) is the phenomenon that the value of a product or serv...
Usage (application): Network Effect, Network Strategy, First Mover Advantage, Second-mover Strategy, Customer Intimacy, Market Segmentation
 
 

Resources - Customer Experience Management Premium

Service Quality Models

This presentation elaborates on service quality, especially focusing on perceptions and expectations of consumers and the ways in which efficiently ca...
Usage (application): SERVQUAL, Service Quality Management, CRM, CEM, Customer Loyalty, Customer Satisfaction
 

Introduction to Customer/Consumer Satisfaction

1. What is satisfaction?
2. Satisfaction focuses on fulfillment in varieties
3. What is dissatisfaction?
4. Managerial concern with sat...
Usage (application): Consumer Satisfaction, Customer Satisfaction
 

How to Deliver Exceptional Customer Service and Client Satisfaction

This presentation elaborates briefly on customer service delivery for customer experience management. The presentation includes the following sections...
Usage (application): Customer Experience Management, Customer Satisfaction, Customer Service, CRM
 

The Expectations Consumers have of Services

This presentation elaborates on customer expectations on services. The presentation includes the following sections:
1. Consumer expectations
...
Usage (application): Customer Experience Management, Customer Satisfaction, Customer Quality, Quality Management, SERVQUAL
 

The Internet / Social Media Revolution

Video shows how fast social media is growing. And gives a clear status of the position of social media by 2014.
Great starter for a discussion, p...
Usage (application): Social Media, Internet Strategy, Internet Impact, Digital Revolution
 

Customer Value Management

Preesentation about Customer Value Management (CVM) by J. Blanc. It includes the following sections:
1. Definition of Customer Value
2. Stag...
Usage (application): Organizational Management, Value Creation
 
 

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Compare with: Positioning  |  Customer Relationship Management  |  Marketing Mix  |  Extended Marketing Mix (7-Ps)  |  Framing  |  Brand Personality Dimensions  |  Brand Asset Valuator  |  Reputation Quotient  |  Multi Channel Marketing  |  Analytical CRM  |  Focus Group  |  Online Corporate Reputation  |  Hospitality Management

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