CX, does it only need CEM?
Customer experience, or CX, is becoming more important than before. In fact, research shows that when given low-effort service experience, 94% of the customers are unwilling to buy from the same company again (1). But why has CX become this important?
Nowadays it has become easier for the customer to gain information about the market; this phenomenon is known as the age of the customer. This phenomenon is only going to grow, meaning that in a couple of years, the customer will be in charge of the demanded experience. The reason they expect an experience, is because it will no longer be about advertising. Due to the growth of information, customers stop trusting advertisement, because they now know better. Focus can no longer be on a brand’s message, but should be about interactions with the customer. In today’s market, and even more so in the future, customers can relatively easy find a substitute for whatever product they wish to attain. Switching costs have thereby been lowered dramatically. The focus should therefore not be on an ad or the basic product, but the experience of the customer.
Research has shown that customers that experience positive social customer care are almost 3 times more likely to recommend a brand (2), whereas 95% of customers that are not satisfied create negative Word-of-Mouth (3). And Word-of-Mouth advertisement as we all know has quite the impact.
It is clear that the new practice of Customer-Experience Management (CEM) is needed. But there are experts that say looking beyond CRM (4) is necessary subsequently suggesting CRM is of lesser importance.
However, with the shifting expectations of customers, and the current age, leveraging big data has become more important. Only through big data can an enterprise assure that customer intelligence is fully accessible within their walls. This is where Customer Relationship Management comes in. For decades there have been ways to keep track of customer data, from the Rolodex to the current CRM tools. Unlike CEM, which does not focus on technology, CRM focusses on technologies necessary to get up-to-date insights needed for customer care. The adoption of CRM is the only way personalized customer support will become possible to a greater extent, improving CX and making customer retention easier.
Although the new practice of CEM is growing, CRM will still be a necessity to retain a positive CE.