Customer Experience

Definition Customer Experience Management

Customer Experience Management (CEM) is one of the most common buzzwords in CRM or customer service today. Although the term sounds easy and understandable, it is often used and interpreted in different ways in companies. Thus, the question is quite legitimate to ask: What does Customer Experience mean and what is the exact definition of this buzzword?

Customer Experience includes all touchpoints and impressions a customer receives during a purchase process including user experience and maintenance of the product or service.

The target of the Customer Experience is to create positive experiences with the product or the brand in order to strengthen the emotional relationship. Ideally each company generates satisfied and enthusiastic customers through Customer Experience.

„If you do build a great experience, customers will tell each other about that. You need to be consistently awesome.” Jeff Bezos, CEO at Amazon

The customer in the focus

Customer Experience Management requires, that the customer is in a central position. All activities and actions of the company should focus on customer needs and desires, regardless of how the customer gets in contact with the company. The customer should be able to receive the requested information, services or offers at any time. This keymessage is not new.

However, in the digital world, the touchpoints, the customer uses to contact the company, increased significantly. In the past, the contact was mainly limited over phone or  retail store. Today the customer has many different opportunities to contact the company.

Thus, companies face big challenges. Through so many new touchpoints in the digital world, there are numerous communication channels that companies must use to satisfy their customers. These include internal platforms, such as websites, blogs or online shops, as well as external platforms such as social media channels, communities, review portals, online forums, etc.

As many as different digital touchpoints exist, customer needs must be satisfied, if not outperformed, that companies can compete with the competition in the long term.

„The Customer experience is the next competitive battleground.” Jerry Gregoire, CIO at Dell

Recognize customer needs

First of all, it should be identified, which needs and interests customers have and which digital platforms, such as websites, blogs or social media channels, customers are using. Who knows what his customer wants and where he is looking for information, can through selected channels optimally respond on the customer needs. The difficulty is that in many cases a purchase decision does not happen "ad hoc". Ahead the final decision, there are many stages the customer is evaluating the buying decision. This process, until the customer decides to buy a product, is called a "customer journey".

The customer journey is divided into five stages:

  • Stage 1: The customer hears about a product
  • Stage 2: The customer's interest about a product increases
  • Stage 3: The customer considers buying the product
  • Stage 4: The purchase intention of the customer gets concrete
  • Stage 5: The customer buys the product

This means for companies that in addition to the needs of their customers, they also need to find out in which stage of the customer journey the customer currently is. According to this, the customer must be provided with relevant information that helps him to solve his problem, that in the end he decides buying the product.

Meet customer needs

Once customer needs have been identified and defined, the key is to meet customer needs. For example, relevant content should be communicated to customers through different channels. Customers will receive tailor-made, individual offers or a call from a sales person according their preferences. Customer Experience Management includes all activities that contribute to increase customer satisfaction. Here are some practice examples:

  • Personal communication with the customer
  • Personalized (possibly automated) e-mail marketing
  • Interacting with customers through social media marketing, live chat or a comment function

The needs and expectations of customers have continuously increased. Companies need to invest more time and resources to meet customer expectations. For example, in the past, in e-commerce a simple product image was sufficient. Today customers expect product videos or 360-degree images for a satisfied shopping adventure.


Meanwhile, there are numerous mobile applications for companies to meet customer needs.

Also, Fellow Consulting offers mobile apps that support companies in this matter, e.g. Live bots. There are two types of live bots, both with artificial intelligence behind. On the one hand the order bot, which supports delivery services to receive orders via a hotline. No service employee is needed to receive orders on the phone.

On the other hand, the service bot, which in the first step answers general customer inquiries and, if necessary, forwards them to the support team in the second step.

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