Customer Experience Management
What it is and why it matters
Customer
experience is defined as your customers’ perceptions – both
conscious and subconscious – of their relationship with your brand
resulting from all their interactions with your brand during the
customer life cycle.
As
for customer experience management, Gartner sums it up pretty well in
its definition: “the practice of designing and reacting to customer
interactions to meet or exceed customer expectations and, thus,
increase customer satisfaction, loyalty and advocacy.”
Customer
experience management is about more than serving your online
customers. It’s about more than knowing where customers shop and
what brand of dog food they buy. It's about knowing your customers so
completely that you can create and deliver personalized experiences
that will entice them to not only remain loyal to you, but also to
evangelize to others about you – and that’s the most valuable
form of advertising there is.
Gaining
this depth of knowledge about customers isn't something that just
happens. It comes from extracting insight from all customer touch
points and channels across your entire organization. It's about
harnessing mountains of customer data from online channels and
beyond, and extracting valuable insight from that data with speed and
precision.
Why customer experience management is important
The
concept of customer experience may sound idealistic or touchy-feely,
but anyone who dismisses it as such is woefully out of touch. In
fact, customer experience has become a critical differentiator in
today’s hyper-competitive, hyper-connected global marketplace.
There’s tangible business value in managing the customer experience
effectively. Good customer experience management can:
- Strengthen brand preference through differentiated experiences.
- Boost revenue with incremental sales from existing customers and new sales from word of mouth.
- Improve customer loyalty (and create advocates) through valued and memorable customer interactions.
- Lower costs by reducing customer churn.
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