Customer Experience Management CheatSheet


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The definition of the customer experience
Which technologies address customer experience management
Related terms and their respective definitions (customer centricity, customer journey, customer lifecycle, etc.)
Business drivers and metrics for measuring the customer experience
Online resources to help identify relevant technologies that can support your customer experience initiative

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Customer Experience Management CheatSheet

  1. 1. Entire content © 2014 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction prohibited. Note: This document is intended for individual use. Electronic distribution via email or by posting on a personal website is in violation of the terms of use. Concept Cheat Sheet What’s a CheatSheet? Gleanster Research produces two types of CheatSheats: ÆÆ Concept CheatSheats: Explaining the nuances of a key concept. ÆÆ Technology CheatSheats: A comprehensive guide to a technology. CheatSheats offer a quick and consumable overview of a key concept or technology. Our analysts develop these with one goal in mind; explain the concept or technology as if you were talking to your grandmother. It’s the quickest way to get acclimated to emerging business terms and impress your colleagues and your boss with your practical insights at your next meeting. Inside a Concept CheatSheet The Concept, Defined Related Definitions Related Business Outcomes Relevant Technologies Compliments of: This CheatSheet is made available compliments of: Gleanster is a new breed of market research and advisory services firm. Its analyst reports highlight the experiences of Top Performing organizations; why they invest in technology, how they overcome challenges, and how they maximize the value of their investments. Customer Experience Management (CEM) The Concept, Defined CEM (also commonly referred to as CXM) is not a technology or even a business tactic. It’s a discipline (some call it a methodology) that focuses operations and processes within your business on the needs of individual customers. The customer experience isn’t about what you want to tell customers about your products and services. It’s about engaging them in just the right way based on what the customer wants or needs during each stage of the customer journey – from awareness to purchase and ongoing service. CEM must embody every cross-channel interaction with the brand, product, and service. Done correctly, CEM should transform the culture of your firm and unite all departments and functions under a common goal: to make decisions based on the optimal end-to-end customer experience. Doing this requires a deeper level of understanding about individual customers, which leads to more granular segmentation and targeting strategies in marketing. Ultimately, it’s about making customer engagement feel intimate and personalized for individual customers – which means data and customer intelligence is critical to informing exactly how to tweak and optimize the customer experience. You will run into solutions that call themselves Customer Experience Management, and many of them are optimization platforms for the web experience. In the broader definition, there are no one-size-fits-all solutions for CEM, although suite providers like Adobe, IBM, Oracle, and Microsoft are starting to move down this path. In general, any solution that is capable of dynamically personalizing and contextualizing a customer experience could be classified as a CEM platform. At the same time there are CEM monitoring tools that are designed to monitor and benchmark online interactions and alert users of issues or provide analysis. Today the biggest impediment to streamlining processes and identifying best practices that can be replicated for CEM is customer data. Nine out of ten organizations struggle with the quality of their customer data, according to Gleanster – it’s fragmented, outdated, or generally incomplete. Related Definitions Customer Experience: The customer experience is the sum total of all interactions with prospects and customers as they encounter and engage with a company. This may include direct interactions with the brand through marketing, sales, and service or indirect interactions via word-of-mouth, partners, value-added resellers or competitors. Customer Centricity: Customer centricity places customer needs, wants, and expectations at the core of every business decision across every business function in an organization. It’s about creating a positive engagement before and after a sale by understanding what customers need and want. Customer Lifecycle: The customer lifecycle is a structured way to describe the steps a customer engages in when making a purchase decision and hopefully becoming a loyal lifelong customer. The lifecycle approach encompasses engagement with any domain or department of an organization, but commonly involves interactions with marketing, sales, and service. The customer lifecycle is often described through the various stages a customer
  2. 2. Entire content © 2014 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction prohibited. Note: This document is intended for individual use. Electronic distribution via email or by posting on a personal website is in violation of the terms of use. Concept CheatSheet: Customer Experience Management (CEM) 2 COMPLIMENTS OF:   engages in prior to and after a purchase, including awareness, consideration, selection, action (purchase), retention, and advocacy. Optimizing customer engagement to maximize revenue across the customer lifecycle involves multiple internal functions and stakeholders – a shift that can be difficult for organizations that have long operated in departmental silos. Sound familiar? Customer Journey: The customer journey describes the collective series of interactions a particular segment or target audience might engage in at different stages of the customer lifecycle: an email, an encounter with a salesperson, subscribing to a loyalty program, etc. Customer journeys are typically contextualized around a buyer persona, segment, or target audience to define how to engage, when to engage, and across what channels to engage. Customer Journey Mapping: This is a framework or methodology that helps document the various stages and interactions within the customer journey. This exercise helps define specific areas of optimization for continuous improvement and in many cases helps brands isolate key areas of competitive differentiation. A customer journey map is used to anticipate how a customer persona might interact with the brand across online and offline channels. Journey maps typically cover everything from the initial introduction to the brand to how customers deal with support issues. Related Business Outcomes The ultimate goal is customer experience optimization, which speaks to the ability to deliver consistent, cross-channel customer experiences in ways that yield the best possible results in terms of the performance metrics that matter most to the company. These metrics can range from customer satisfaction and brand advocacy to cross-sell/up-sell revenue. Every business offers a customer experience, but the more aware you are of your goals with respect the customer experience, the more likely you will create a positive customer experience. Metrics that may be effected from CEM include: • Customer satisfaction • Customer loyalty • Brand integrity • Brand reputation • Share of wallet • Market share • Revenue objectives • Operational efficiency • Word of mouth • Response • Customer lifetime value • Average order value CEM also forces leaders to uncover answer to some of the tougher questions in business. • Which customers are most profitable? • What steps can we take to improve our customers propensity to recommend? • Who are our target buyers, what do they need or want from us? • What is the ideal process for onboarding customers, is this different from our current process? • Why are my conversion metrics x? • What steps can we take to improve overall profitability? • Why are we missing our realistic revenue targets? Relevant Technologies What technologies support this concept? Check out the links below to view the landscape of vendors (and related Gleanster Research content). Remember that Gleansights contain analyst commentary and vendor rankings (based on end-user feedback) on all the relevant Solution Providers in a given Topic Area. Customer Experience Management Web Content Management Mobile Marketing Campaign Management Marketing Automation Social Media Monitoring