Customer Experience (CX)

What does customer experience mean?

Customer experience (CX) is the sum of all interactions and points of contact between a customer and a company that influence their perception and behaviour. These experiences span the entire customer journey – from the initial perception of the company, through the purchasing process, to after-sales support. The aim of an outstanding customer experience is to offer customers positive and memorable experiences that increase their satisfaction and retain them in the long term.

Customer Experience vs. User Experience

A frequently discussed point is the difference between customer experience vs. user experience (UX). While both terms are often used interchangeably, there are crucial differences:

One example: When a customer uses an app, the user-friendliness of the app is part of the user experience. However, the overall impression that the customer gets from the purchase, the customer service and the brand forms the customer experience.

The customer experience is a decisive factor for the success of a company in order to retain customers in the long term and strengthen brand loyalty.

What is customer experience management?

Customer experience management (CXM) encompasses the strategic planning, management and optimisation of all aspects of the customer experience. The aim is to ensure that all of the customer’s points of contact with the company are positive and seamless. This includes, among other things:

• Data collection: gathering feedback and data about customer interactions.
• Analysis: evaluating the data to identify patterns and issues.
• Implementation: The development and implementation of measures to improve the customer experience.

Successful customer experience management aims to put customer needs at the centre and thus increase customer satisfaction in the long term.

What are the tasks of a customer experience manager?

A customer experience manager (CEM) is responsible for consistently improving and managing the customer experience. They have the following tasks:

1. Measuring customer satisfaction: The CEM regularly monitors customer satisfaction and analyses customer feedback to identify potential areas for improvement.
2. Internal communication: They ensure that all departments within a company share the same vision of the customer experience and act accordingly.
3. Developing optimisation measures: Based on the data collected and the feedback received, they design measures to optimise customer interactions.
4. Continuous improvement: The CEM ensures that the customer experience is constantly being developed and adapted to changing customer needs.

A good customer experience manager acts as an interface between customers and the company and ensures that the voice of the customer is incorporated into strategic decisions.

How to integrate and optimise customer experience

There are various approaches that companies can use to improve the customer experience:

1. Systematically collect customer feedback

Successful optimisation of the customer experience begins with collecting customer feedback. This can be done through surveys, ratings or direct interactions. Customer feedback helps to identify problems or friction points in the customer journey and provides valuable information on which areas need improvement.

2. Analyse the customer journey

An important part of optimising the customer experience is customer experience mapping. This involves visually depicting a customer’s journey. This journey encompasses all the points of contact a customer has with the company. The aim of mapping is to identify critical phases of the journey and to recognise possible problems or points of friction.

3. Personalise interactions

Today’s customers expect an individualised experience that is tailored to their needs. By using data analysis and artificial intelligence, companies can provide personalised content, offers and recommendations that specifically address the customer. This not only increases customer satisfaction, but also loyalty.

4. Implement an omnichannel strategy

To ensure a seamless customer experience, companies should pursue an omnichannel strategy. Customers must have a unified and consistent experience across all channels (website, app, email, physical stores). Integrating these channels ensures that customers can easily switch between different platforms without any loss of quality.

5. Continuous monitoring and adaptation

Customer experience is not a static concept. Customer needs and expectations are constantly changing. That is why it is important to continuously monitor the customer experience and to react flexibly to feedback and new trends. Regular adjustments and improvements are crucial to keeping the customer experience up to date and competitive.

Measuring customer experience

The measurability of customer satisfaction is a crucial factor in evaluating the success of optimisation measures and achieving continuous improvement. In addition to customer feedback via surveys, ratings or direct interaction, standardised metrics are also an important method for reliably measuring customer experiences. Here are the most important approaches for capturing and evaluating the customer experience:

Net Promoter Score (NPS)

The Net Promoter Score is a widely used metric for measuring customer satisfaction and loyalty. Customers rate how likely they are to recommend the company or product. On a scale of 0 to 10, the answers are divided into three categories:

• Promoters (9-10): Very satisfied customers who recommend the brand.
• Passives (7-8): Satisfied customers who do not actively recommend.
• Detractors (0-6): Dissatisfied customers who are more likely to make negative recommendations.

The NPS provides a quick overview of how customers perceive the company and how likely they are to become repeat customers.

Customer Satisfaction Score (CSAT)

The customer satisfaction score measures the immediate satisfaction of customers after an interaction or purchase. Customers are asked how satisfied they were with the experience immediately after a transaction or contact with customer service. The rating is usually on a scale of 1 to 5 or 1 to 10. The CSAT provides detailed insights into specific experiences and enables companies to react to weak points in a targeted manner.

Customer Effort Score (CES)

The customer effort score measures how much effort a customer has to expend to solve a problem or make a request. Customers rate how easy or difficult it was to complete a specific task, such as placing an order or contacting customer service. A low score indicates that the customer had to expend a lot of effort, which negatively impacts the overall experience.

Customer experience as a competitive advantage

Nowadays, an excellent customer experience is indispensable for standing out from the competition. Companies that analyse their customer journey using customer experience mapping and optimise it using targeted measures will reap the long-term benefits of loyal and satisfied customers. The customer experience manager plays a central role in this, ensuring that customer needs are consistently at the centre of attention.