According to Gartner customer experience management is a “practice of designing and reacting to customer interactions to meet or exceed customer expectations and, thus, increase customer satisfaction, loyalty and advocacy is known as customer experience management. This strategy demand process change and many tactics for its accomplishment. Before going into the detail of Customer Experience Management, talk about the important concepts, which are important to discuss.
Customer Experience Management Concepts
Need is the specification of human requirements. Need is the basic biological force that is present inside the human being and is natural. For example, people have need f thirst that is satisfied by water or someone had need of hunger which is fulfilled by food or shelter need. Besides these needs, people in recent age have need of education, entertainment, recreation & many other things to continue their lives.
When need is directed towards particular object, it is converted into want for that product. For example if someone is hungry then he needs food but the required type or form of food is exhibited by want like burger. Want is not universally consistent, rather it alter from people to people & from place to place. For example a person in Pakistan country needs “Nan” to satisfy his need of huger while any other person in USA wants burger for same need of hunger. Want differ in various times & at various income levels.
When a want is backed by purchasing power, it is converted into demand. For example a person is hungry & wants burger then has he possesses the required money to buy that burger or is there a burger provided to him?
The marketer has not duty to produce need in the individuals. In fact need already exists in the people. But the marketer’s duty is to point out that need & offer particular product that has capacity to fulfill the relevant need when it is placed at proper location & offered at suitable price. If the marketer perform its function well then he can sell his product which otherwise will not be sold.
Customer Lifetime Value (CLV)
The main function of marketer is to develop long term linkage with the customer & his need. It is natural that the need reoccurs, so marketer should focus on the long term value of the customer for his organization. So the marketer tries to develop a long term relationship with the customer that continues for a longer period of time. When the need reoccur inside that customer, he immediately considers the demand of that previous product of the organization & purchases it to satisfy that recurring need. For example when the customer feels hunger, he reverts to particular burger brand that he used previously. In case he tries other brands of the burger, he still consider the previous brand more potential & reverts back to that one again which reflects his strong loyalty.
Customer Experience Management
The entire experience of the customer with the product & organization is strategically managed in customer experience management (CEM).
It is proved from market research that 70 to 80% products are considered as commodities. All the competing commodities / Products have almost similar features. For example the product burger is commodity for satisfaction of hunger need. It has many brands & all brands have almost same features that make it burger. But the function of marker is to provide its organization some competitive edge in the market. For this purpose the marketer use some useful techniques like product differentiation, branding, segmentation and Relationship Marketing. The main purpose of Relationship Marketing is to develop & maintain long term relationship between the customer & organization. It is also called loyalty marketing.
Customers are considered as the most valuable asset in Customer Experience Management (CEM). When customer uses particular product, it not only consider the obtaining utility aspect but also evaluate some other things of that product like promptness & services, price hygiene cordiality etc.
Customer Experience Management Techniques & Steps
The marketers need to apply the Customer Experience Management (CEM) in a systematic manner. Following are the important steps of CEM.
The experiential world of customers is analyzed. For this purpose the needs, wants and lifestyles of customers should be considered.
The experiential platform is developed. For this purpose customer expectations are specified and proper strategy is implemented.
Certain brand is designed.
Customer interface is structured in which ordering, attitude behavior & delivery is highlighted.
The experiential innovation is continued in which the view points of customers about the products are improved.
The purpose of CEM is to improve the services of the organization through application of reliable procedures & processes for interaction with the customers.
General Principles of Customer Experience Management
The marketing results are improved by the application of the following principles of Customer Experience Management (CEM).
- Provision of information about product to the customers
- Assistance in highlighting of potential problems before occurrence
- Possessing of prompt complaint handling system
- Provision of user friendly customer complaint registration
- Provide prompt correcting service
- Assist quick back up service
- Maintain neat, clean & fair environment
- On customer point of interaction, provide close mechanism
Hello everyone! This is Richard Daniels, a full-time passionate researcher & blogger. He holds a Ph.D. degree in Economics. He loves to write about economics, e-commerce, and business-related topics for students to assist them in their studies. That's the sole purpose of Business Study Notes.
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