Customer experience management (CEM or CXM) has many definitions. For us at Lumoa it means tracking and understanding your customers’ experience, acting on that understanding and closing the loop with the customer. In this blog post I’m going to give a quick overview of these steps. There will later be a more detailed blog post about each of these topics.
How do you track the customer experience? Customer experience is partially a subjective matter. It is not fully in your control as it involves the emotions your customer has when interacting with you either directly or indirectly. Therefore, you need to ask. You need to listen to what the customer says. There are many ways to collect customer feedback and several possible metrics to use, but I believe that the NPS (or Net Promoter Score*) is one of the most powerful methodologies. With the two questions the NPS method includes, you get both a quantitative metric to follow and good quality text feedback to draw insights from.
After collecting feedback, you need to also understand it. If you have 30 customers, you can just read the feedback through and get a good idea on what your customers think. If you have 3000 customers, it will get somewhat tricky. But if you have 30,000 or 300,000 customers, you’ll need advanced tools to aggregate the feedback and analyze the text. If you are not able to see the wood from the trees, you too easily end up listening to only those who shout the loudest. (Or only those whose opinions you happen to agree with.) Make sure you focus on the analysis phase properly. Collecting feedback and not doing anything with it, is worse than doing nothing at all.
After understanding what drives your customer experience positively and negatively, it’s key to close the loop. This means acting on the feedback, e.g. fixing the issues customers have pointed out. It also means getting back to your customers in one way or another to let them know that you have heard them, and made decisions based on what they say.
Customer experience management is not rocket science. Yet, surprisingly many companies fail in some of these steps. How is your company managing your customers’ experience?
*) Net Promoter, Net Promoter System and Net Promoter Score are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.