Customer Experience Management is often confused with Customer Relationship Management as they share some basic functions. Though there is an overlap, CXM is not a simple rebranding of traditional CRM. It is the next step in customer relationship management. While CRM is majorly concerned with how to optimize an organization’s inward processes, CXM is an approach that focuses on customer-centric processes, strategies, and designs. Therefore, it can be considered more client-oriented as compared to CRM.
CX refers to how a brand is designed to engage and delight customers, hence developing an emotional connection with them. With the help of HS Brands Asia’s best Customer Experience Management services, you can do better business and deliver customer satisfaction as you understand the customer’s digital journey.
What is CRM?
CRM stands for Customer Relationship Management. It is a system that manages every interaction your company has with current and potential customers. The idea is simple: improve relationships to grow your business.
CRM tools benefit large enterprises that need to easily track customer activity in one place and share that information across departments, small businesses that often need to do more with less, and startups that want to be nimble and efficient. No matter what industry you’re in, or even a nonprofit, if you interact with customers (and your employees rely on information about those customers), a CRM system can help.
What is CXM?
Customer Experience Management (CXM) is an approach to customer relationships that goes beyond marketing tools and software alone. It aims to achieve true digital transformation that puts the customer at the heart of the business. CXM prioritizes the orchestration and personalization of the end-to-end customer experience. Moreover, CXM enables it at scale, across all channels, and in real-time.
Effective customer experience management is more than good looks or PR. By focusing on the CX and by humanizing technology, you create scenarios that benefit both you and your customers.
Customer experience has become a critical differentiator for businesses of all types in today’s highly competitive and interconnected global marketplace. While the result for a business may be lead generation, conversions, or long-term brand loyalty, customers also benefit from rich, personalized experiences, increased satisfaction, and a rewarding relationship with the brand.
Customer Experience Management Enables You To:
Understand your customers better.
- A more holistic view of customer behavior and preferences across every touchpoint.
- More granular segmentation to deliver the highly relevant, personalized experiences customers demand and drive increased conversions.
Maintain a competitive edge.
- Improve operational performance to enhance customer satisfaction and reduce churn.
- Assist the success of bids and reduce the costs of services.
Measure the success of initiatives.
- Collect and interpret much larger volumes of data, enabling a more accurate view of the success of your engagement efforts.
- Help make more informed, customer-centric business decisions.
Key Differences Between CXM and CRM
| Feature | CXM | CRM |
| Focus | Customer experience and journey | Customer data and relationships |
| Approach | Proactive and real-time | Reactive and data-centric |
| Tools | Journey mapping, sentiment analysis | Contact management, sales tracking |
| Outcome | Enhanced customer satisfaction and loyalty | Improved customer retention and sales |
Why CXM is Becoming More Critical
Customer Experience Management or CXM becomes increasingly important today as it might be able to help businesses better increase customer loyalty through the way a business always meets and consistently exceeds the needs and expectations of customers.
There is also increasing customer lifetime value or CLV, which is the total amount that a customer will eventually spend on all products and services from a given company during an association with them.
- Increase revenue: The more satisfied your customers are, the more money they will spend, and be willing to pay premium prices for better service.
- Reduce costs: It may cost five times as much to attract a new customer as to retain an existing one.
- Improve employee engagement: When employees are more engaged, they are more likely to deliver better service.
- Build a stronger brand reputation: Good experiences help build a positive image for your business.
It creates repeat business and positive word-of-mouth referrals through a seamless and memorable customer experience.
How CXM and CRM Work Together
Customer experience management (CXM) and customer relationship management (CRM) are complementary strategies that can help businesses build strong customer relationships and improve customer satisfaction:
CRM Data
CRM systems track customer information, such as past purchases, interactions, and other details. This data can help businesses understand their customers and predict their needs and behaviors.
CXM Insights
CXM platforms can map a customer’s journey with a business across sales, marketing, support, social media, and operations. The use of CXM insights helps businesses understand how customers perceive their brand or what experience they went through during each interaction.
Integrated usage of CRM and CXM
Used together, CRM and CXM can help a business to integrate the customer journey. The example uses CRM, which establishes key points in customer interactions to acquire data that can be used by CXM to provide personalized experiences.
Some ways in which CRM and CXM can work together include:
Voice of the customer
CXM may involve survey reviews while CRM will automatically track the feedback.
Customer retention
CRM will be able to track changes in customer behavior, while CXM can use the information to sharpen retention strategies.
Personalization
- CRM can categorize customers according to their behavior and purchasing patterns, while CXM can further personalize the service beyond the pre-purchase phase.
- Technology solutions can help organizations sort and access customer data. Some software solutions can help organizations integrate their CXM and CRM efforts.
HS Brands Asia’s Expertise in CXM
To provide customers with more delightful experiences is an excellent way of driving business growth. HS Brands Asia offers world-class, end-to-end customer experience management solutions and helps businesses form long-term relationships.
HS Brands Asia is one of India’s leading CX companies, helping to improve products and services for its clients. Areas of specialty for our leadership team in the CX space are food and beverages, retail, hospitality, automobile, healthcare, and other industries.
Mystery shopping enables us to gauge the consumer’s perspective by assessing customer satisfaction following business transactions. Businesses can therefore expand their operations, enhance the service offering, and enhance the satisfaction of their customers.
Why is CXM important in the current business scenario?
- Happy loyal customers:
Happy customers will become loyal and promote you to other customers.
- Good reputation:
Good experiences establish a positive reputation for your company.
- Higher sales and profits
Happy customers will spend more and return for more.
Our top-of-the-line customer experience management services
- Mystery shopping
Gauge real-life customer interactions by sending people out to pretend as real customers to check how your business is performing.
- Customer surveys
Get actionable feedback to perfect your strategy by soliciting customers’ opinions as a way of understanding what they like and what they do not like.
- Customer journey mapping
Identify pain points and optimize touchpoints by analyzing the steps customers take to interact with your business and finding ways to improve it.
- Brand compliance audits
Ensure consistent brand expression and ensure your business looks and operates as usual.
- Employee Training Program
Equip your team to deliver exceptional customer experiences by teaching your employees how to provide outstanding customer service.
Steps to Transition from CRM to CXM
Moving into a new CRM transition will be achievable when you’ve taken the chance to assess data, define objectives, and map a plan by giving customer satisfaction its priority.
Assess the data
- Decide what should be transferred: Figure out whether what is found has to migrate into the other system or which is archived to avoid being useless shortly.
- Data cleansing and mapping: Ensure proper and accurate information in this other system.
- Engage stakeholders: Involve key stakeholders in the process to ensure all critical data points are captured.
Define your goals
- Set clear goals: Define what you want to achieve with your CRM strategy.
- Understand your customers: Gather data to understand your target customer’s needs, preferences, and behaviors.
Implement a plan
- Establish processes and workflows: Analyze your data to segment your processes and workflows.
- Use automation and AI: Automate repetitive tasks like data entry, and use AI to refine customer segments.
- Train your employees: Proper training is provided to equip your team and familiarize them with the newly implemented system.
- Customer-first: Analyzing customer needs from data and implementing technology in its proper manner.
Conclusion
The technology in CXM is different from traditional CRM, along with the benefits of building customer relationships. In contrast to CRM, which only collects data through manual or batch input, CXM will allow for real-time data flow that can provide deeper insights into customer preferences and behaviors.
Ready to reach new heights through expert CXM solutions? Contact HS Brands Asia now!
