CEM & CRM

Some scenario
• The company whose software you use to organize your photo does a
major relaunch of its site with no warning, and suddenly you can’t
find all your photos. You visit their community to find that many users
having the same issue, but no one seems to have a definitive answer
on how the new system works.

• You buy a product from the manufacturer, only to have one of its
retailers offer you the same product at a discount a week later. You
email customer support; they are unaware of the promotion and
unwilling to offer a refund.
Contd…
• You reach out for customer support on Twitter, go through the process of mutual
‘following’ so that you can direct-message and then explain the issue, only to get
redirected to another channel where you have to start all over again.

• You research product online and find some great reviews, but you have also
spotted some dismal ones, and the company has not responded to the concerns.
You reach out on social media to hear from the company, but they don’t respond.

• You visit an online clothing retailer and browse its entire sweater catalog. The
company follows up with a series of emails containing offers, but none are for
sweaters. You then pass by one of the company’s retail stores on your way to work
and discover that there was a store wise sale over he weekend.
Contd…

• You call one of your phone service provider’s retail locations to ask if it
does handset exchanges in-store. The representative says ‘yes’ and
tells you to come over, but when you arrive you discover there’s an
hour wait for service. The clerk asks for your number but then tells you
that you have to stay in the store in order to keep your appointment.
When your turn finally comes up, the clerk informs you that in-store
exchanges are subject to a restocking fee that does not apply to online
exchanges.
What is CRM and CX Implementation?

• CRM and CX Implementation projects have goals of improving

customer satisfaction, acquiring new customers, retaining customers,
creating a single view of the customer, cross-selling/upselling to
customers, improving campaign response rates, transacting
commerce, increasing customer advocacy/referrals and/or improving
margins via improved pricing.
CEM

• Through 2019, the total market for consulting and implementation

.
services for CRM and customer experience (CX) will be 1.4 times the
market for CRM software, with the ratio of service to software
growing over that time.
• By 2018, more than half of organizations have implemented
significant business model changes in their efforts to improve CX

Gartner.com
The Transition
Economy Agrarian Industrial Service Experience
Function Extract Make Deliver Stage
Nature Fungible Tangible Intangible Memorable
Attribute Natural Standardized Customized Personal
Method of Stored in Inventoried Delivered Revealed
supply bulk on demand over time

Seller Trader Manufacturer Provider Stager

Buyer Market User Client Guest

 Correlation between CX and Customer Behaviour
Customer
Attitude Purchase intention
Impressions
TV Ads .51 .77 .59

Stores .75 .74 .84

Web sites .81 .45 .76

CEM By Bernd H Schmitt

• “A brand is no longer what we tell the customer it is – it is what
consumers tell each other it is”. Scott Cook…….Intuit Founder
What is customer experience?
• CX is the internal and subjective response customers have to any
direct or indirect contact with a company.

• DC would be purchase, use, and service mostly initiated by

customer. IDC are unplanned encounters with sales rep, product,
services and brands like recommendations, news report, advtg,
reviews etc.

• CX is high quality end to end, order to delivery ….Amazon

• Customers experience companies through end-to-end experiences,

not touchpoints.
Why are we talking about CX now? Is CS
not enough?
• Customers are 100 times more impatient online than in physical reality.
• 63% will defect if they find the content irrelevant.
• 41% end brand relationships.
• 71% receive inconsistent experience across channel messaging.
Negativity affects CX
• 1in10 customers says inconsistency from device to device.
• 86% will buy where CX is better.
• CX projects not meeting customer needs deemed to fail.
What is CEM
• Is a process of strategically managing a customer’s entire experience
with a product or a company.
Bernd H Schmitt ….. CEM
 CJM is the steps followed while engaging with product, online store, physical store, or a service
https://servicedesigntools.org/
http://files.thisisservicedesignthinking.com/tisdt_cujoca.pdf
CDJ across Pre Purchase, Purchase and Post
Purchase
CEM
Gartner defines customer experience management as "the practice of designing and reacting to
customer interactions to meet or exceed customer expectations and, thus, increase customer
satisfaction, loyalty, and advocacy. It is a strategy that requires process change and many
technologies to accomplish."
Touchpoints
• CX is the delivery of brand promise. It happens in touch points.
Intersection of customer and enterprise.
• Salespeople
• Call centre
• Advertising event
• Debt collectors
• Reception
• Websites
Key issues

Should CX be left to the matter of chance or

managed?

Experience may/not tie with products.

Branded experiences
Some concepts

Touchpoint

MOT

Engagement
How to measure

Mystery shopping

Experience mapping
Key differences between CRM and CX

• The permanence of CX operational capability differs from the

transience of a CRM project.
• More time is needed to demonstrate the benefits of a superior CX.
• The association with technology is greater in CRM.
• The focus for CRM is on actions taken; in CX, it is the customer's
perception of the actions.
• A rational approach is more important in CRM; in CX, the customer
emotions matter more.
• A CX initiative typically coordinates several projects, while a CRM
project stands alone
CRM and customer experience (CX)
implementation service project
• Customer satisfaction,
• acquiring new customers,
• retaining customers,
• creating a single view of the customer,
• cross-selling/upselling to customers,
• improving campaign response rates,
• transacting commerce,
• increasing customer advocacy/referrals and/or improving margins via
improved pricing.
How does a Gartner Magic Quadrant
work?
• A Magic Quadrant provides a graphical competitive positioning of four
types of technology providers, in markets where growth is high and
provider differentiation is distinct:
• Leaders execute well against their current vision and are well positioned
for tomorrow.

• Visionaries understand where the market is going or have a vision for

changing market rules, but do not yet execute well.

• Niche Players focus successfully on a small segment, or are unfocused

and do not out-innovate or outperform others.

• Challengers execute well today or may dominate a large segment, but do

not demonstrate an understanding of market direction.
leader-for-crm-customer-experience.webp