What is a Customer Experience Management (CXM) Platform?
Customer Experience Managemt Platform
Customer Experience Management Software
By now, you’ve probably heard of Customer Experience Management (CXM) through the many businesses that have adopted it into their sales strategies.
But how familiar are you with CXM and the benefits it provides?
Customer Experience Management (Cannabis CXM)
Customer Experience is the sum of all interactions a customer has with an organization over the life of the relationship. It’s the feelings, emotions and perceptions a customer has towards those interactions.
Customer Experience Management is the implementation of planning and responding to customer feedback based on interactions they’ve had with your business. It is a systematic approach to collect feedback, engage with customers, analyze feedback, and act on it to make operational improvements. It helps companies create repeat and ongoing positive interactions to build meaningful relationships. The idea is to measure the success of the interaction based on their level of satisfaction and the ability of your business to meet or exceed their expectations.
Why is Customer Experience Important?
Customer Experience is critical for the growth of a business. Ensuring a positive customer experience is important so customers can build brand loyalty and affinity. It also helps convert feelings about your product/service leading to positive reviews that can help your business retain revenue and earn new customers via referrals. By actively engaging, listening and responding to customers, you gain their trust, loyalty, and enthusiasm.
What is the Benefit of Customer Experience?
Gathering valuable and actionable feedback from customers can eliminate the guesswork of how they feel about your product/service. By knowing how they feel, improvements can be made to create more consistent and meaningful experiences. By taking into account their feedback and behaviors, you’re able to make more intelligent decisions that feed bottom-line results.
How Does Customer Experience Help My Business?
Consider These Statistics:
Brands with superior CX bring in 5.7X more revenue than those lagging in CX
Loyal customers are 5X more likely to purchase again and 4X more likely to refer a friend
73% of consumers say a good experience is key in influencing their brand loyalties
Turn Negative Feedback Into Positive Reviews
According to research conducted by BrightLocal, 88% of customers trust online reviews made by other consumers as much as they trust recommendations from personal contacts.
Of course, the best way to assure your business gains positive reviews is to meet and exceed customer expectations. But the reality is, you can’t satisfy everyone.
It’s impossible to provide an exceptional experience 100% of the time. Some customers will have negative experiences as everyone has different perceptions and expectations of service. In order to maintain a positive online reputation, the goal should be to prevent bad experiences from going unnoticed and turning into negative reviews online.
CXM software can provide instant negative alerts. This enables you to view feedback from customers who just had unfavorable experiences and reach out in a proactive manner. By contacting them immediately you’re able to help rectify the situation, amend the relationship, and prevent a bad review from materializing. Negative reviews online can be problematic, as they can’t be easily deleted. Now, with CXM, you can counteract that effect by making things right, before it’s too late.
How Do You Measure Customer Experience?
Knowing how your customers feel about your product and service is important.
So how do you gather that feedback?
One way Customer Experience is measured is via a specific rating called a Net Promoter Score (NPS).
The Net Promoter Score is an index ranging from -100 to 100 that measures the willingness of customers to recommend a company’s products or services to others.
It’s used as a metric for gauging the customer’s overall satisfaction with a company’s product or service and the customer’s loyalty to the brand.
Each customer has the option to rate your service from a scale of 0-10.
Any score rated below a 6 is considered a detractor. These are individuals that are not satisfied with your service and would not hesitate to shop somewhere else or try a different product.
7’s and 8’s are passive. They’re people who are on the fence, one good or bad experience could push them either way. They may or may not be satisfied with your service and can potentially be swayed one way or the other.
Any score rated 9 or 10 is considered a promoter. It satisfies these customers with your service and are likely to recommend your product to others.
So how do you calculate your Net Promoter Score?
The Net Promoter Score is calculated as the difference between the percentage of Promoters and Detractors. The NPS is not expressed as a percentage but as an absolute number lying between -100 and +100. For example, if you have 70% Promoters, 20% Passives and 10% Detractors, the NPS will be 60.
How to leverage your NPS
Knowing who your detractors, passives, and promoters are is vital to your success. The goal should be to identify where a customer is on the scale and move them up the value ladder. Decorators up to passives, passives up to promoters and promoters into advocates and referral generating opportunities.
High percentages in detractors may indicate problem areas for customer retention. High percentages in passives are a sign that your customer base may be swayed to move to a competitor which can also affect your customer retention.
The percentage of promoters can play a role in customer acquisition because they will promote your product/service to those around them.
Understanding the importance of each one and the role they play in your business is crucial. By influencing each one, you can provide your business an advantage. Knowing where you stand amongst Detractors, Passives, and Promoters can allow you to target specific areas and create game plans for improvement.
Low NPS score? Focus on improving and highlight your ascendancy.
High NPS score? Put an emphasis on your company’s prestige and emphasize your influence.
Things to consider before you begin
If you’re facing numerous challenges, you need to evaluate your position from a different perspective. The following questions can help you figure out what you need to know in order to determine if Customer Experience Management software is beneficial to your business.
What are your company’s goals and how would customer insight help reach them?
If you are providing a product or service, what customer insights would you need to make an impact? In this case, retention and satisfaction may be useful aspects of your customer insight strategy. A feedback focus may be necessary when planning around improvements.
If you were to reach out, how long do you think it would take to gather valid feedback?
Suggestions are helpful for improving services and products. However, asking for that can take time and energy to get it. How much time do you think it will take to gather relevant feedback and does that fit into your timeline?
How will you analyze the data and will you require software tools to help analyze it?
Gathering feedback takes time and breaking down that information is even more time consuming. How would you document that information and what is the best way to make this information accessible for future reference? If this information needs to be presented to your team would you use a tool or would your team manually document and create a report?
How will you communicate with your customer’s to notify them of any changes made?
Gathering and analyzing data will help gain insight into customer sentiment and will assist with making adjustments to your products and services. So how do you announce these changes to your customers to let them know you’ve listened and made improvements?
Does your company’s current position have any limitations?
Product and service improvements are typically held back by three things: Budgeting, Timing, and Scoping. How do these impact your plans?
Customer Experience Management can provide value in delivering good experiences for customers and presenting positive outlooks for prospects.
Meanwhile, bad execution can harm your brand’s bottom line. No matter the outlook, try to always put the customer first by delivering a consistent customer experience across all channels.
If you’re interested in learning more about how RipeMetrics can help your cannabis business make better informed decisions, increase customer satisfaction, and improve loyalty. Sign up for a demo today!
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