Customer Experience Management: Overview & 5 Best Practices for 2024

Customer Experience Management: Overview & 5 Best Practices for 2024

June 9, 2024
Author: Hamza

The customer dynamics have changed significantly over the past few years. Today, attracting, impressing, and retaining customers has become a high-stakes game. Customers now care about the complete experience, which includes all the touchpoints and interactions, whether physical or digital. Many businesses that have achieved success in today's competitive era are the ones offering seamless services and experiences to customers. That's where Customer Experience Management (CXM) comes into action.

In this guide, we will uncover all about customer experience management (CXM). Here, we will clarify concepts around it, evaluate its importance, and then discuss the best strategies. So, let's get started!

  1. What is Customer Experience Management (CXM)?
  2. Customer Experience Management vs Customer Relationship Management: What's the Difference?
  3. Why is Customer Experience Management Important?
  4. 8 Key Components of Customer Experience Management Strategy
  5. 5 Best Practices for Customer Experience Management
  6. Wrapping Up

What is Customer Experience Management (CXM)?

Customer Experience Management (CXM) is a system of understanding customers and setting up strategic plans that lead to a customer-centric culture to drive loyalty, satisfaction, and advocacy.

In simple words, it is the management of customer interactions across all the digital and physical touchpoints to offer personalized experiences. It emphasizes building a customer-centric approach and making the customer experience delightful and seamless. However, businesses can use different sets of approaches to carry out CXM, including research, analytics, software, and data-management systems.

Overall, the goal of CXM is to increase customer engagement and satisfaction, which will lead to improved customer loyalty and revenue growth.

Customer Experience Management vs Customer Relationship Management: What's the Difference?

Before we get further into customer experience management, it's important to clarify the difference between customer experience management and customer relationship management. These two terms are often used interchangeably.

Customer experience management (CXM) and customer relationship management (CRM) are both related to improving business-customer relationships by managing customer interactions, but they are different in terms of the value they offer.

Customer relationship management (CRM) focuses on managing interactions and relationships with customers over a wide range of touchpoints, like social media, email, phone, or in-person. Its primary focus is to enhance marketing, sales, and processes. So, the CRM software may offer features like customer segmentation, contact management, marketing/sales automation, etc. In short, it is mostly about enhancing internal processes.

In contrast, customer experience management (CXM) offers a more enhanced customer-centric approach in many ways. It involves all the customer interactions with the business, which include their feelings, thoughts, perceptions, and other aspects of the brand. It focuses on developing consistent and positive experiences for customers at all touchpoints with the primary goal of building long-term customer loyalty.





Manages the entire customer journey and experience across all touchpoints and channels.

Manages customer data, interactions, and relationships primarily to boost sales and retention.


Enhancing the overall customer experience and satisfaction.

Streamlining sales processes and improving customer relationship efficiency.

Main Users

Customer support, product teams, customer success, and operations.

Sales, marketing, and customer service teams.

Data Type

Collects qualitative data (feedback, surveys) and uses sentiment analysis to improve CX.

Collects quantitative data (purchase history, interaction logs) for sales and marketing.

Customer View

Provides a holistic view of the customer journey and experience.

Provides a detailed view of customer transactions and interactions.


Customer-centric, focusing on engagement and emotional connection.

Sales-centric, focusing on transactional relationships and revenue generation.

Use Application

Integrates with various systems to offer a seamless customer experience across all platforms.

Integrates primarily with sales and marketing tools to track and optimize customer interactions.


Improve customer satisfaction, loyalty, and advocacy.

Increase sales, improve customer retention, and streamline customer interactions.


Uses customer feedback and sentiment analysis to refine experiences.

Uses data analytics to forecast sales, identify trends, and optimize marketing efforts.


Aims to create a consistent and positive customer experience to build long-term relationships.

Aims to drive sales growth and improve customer retention through efficient relationship management.

Why is Customer Experience Management Important?

Customer experience now holds the role of a differentiator for all types of businesses in the current competitive era. That's why customer experience management has a significant influence on businesses.

The below points will help clarify the importance of customer experience management:

1. Better Customer Understanding

Customer experience management is a way to get a deeper view of the preferences and behaviors of customers over all touchpoints. It leads to a more detailed segment, which further leads to more personalized experiences for different types of customers. This eventually drives increased conversions.

2. Higher Customer Satisfaction

A well-executed customer experience management implies that customers will have a satisfactory journey with your business. This is because you will have a better understanding of their needs and can exceed their expectations with top-notch services.

3. Increase Customer Retention and Loyalty

Customer experience management has a direct link to increased customer retention and loyalty. It creates seamless customer journeys and delivers personalized experiences. This leads to long-lasting relationships with customers, which drive customer retention and loyalty. In fact, 73% of consumers have an opinion that excellent experience is what influences their brand loyalties.

4. Economic Benefits

Customer experience management also brings economic benefits. According to research, excellent customer service makes 93% of customers do more purchases with the brand. So, you will be able to get more sales from the existing customers, while they will also market the brand to others. In fact, 72% of customers will share a positive experience with six or more people.

5. Competitive Edge

Customer experience management also helps you attain a competitive edge. Today the top preference of customers is a personalized and satisfactory experience. CXM enables you to tailor your offerings and interactions to meet customer expectations. Once this happens, it attracts loyal customers and makes you stand out from the competition.

6. Learn from Customers

Customer experience management enables you to extract useful insights from customer interactions. When you understand their behaviors and listen to their feedback, you are able to learn and improve your services accordingly.

8 Key Components of Customer Experience Management Strategy

Customer experience management strategy involves different actions and processes to deliver exceptional customer experience at all touchpoints. In this perspective, the following are the 8 key components of CXM strategy:

  1. Customer Understanding: It involves understanding the customer's needs, expectations, and other aspects. It can be done through surveys, feedback, etc.
  2. Customer Journey Mapping: It involves mapping the complete customer journey from initial interaction to post-purchase support.
  3. Personalization: It involves offering personalized interactions to customers to meet their unique preferences.
  4. Consistent Omnichannel Experience: It involves providing a consistent and seamless omnichannel experience across all channels, including website, social media, email, etc.
  5. Employee Engagement: It involves engaging employees to ensure they offer great customer experiences.
  6. Continuous Improvement: It involves analyzing customer feedback and behavior and improving the processes accordingly to enhance customer experience.
  7. Leveraging Technology: It involves deploying the latest technologies and tools for effective customer experience management.
  8. Fast Issue Resolution: It involves empowering the support team with the tools and resources to offer customers fast issue resolution.

In short, a customer experience management strategy incorporates all the components that have a role in defining the customer experience.

5 Best Practices for Customer Experience Management

Now that we have cleared the basics and importance of customer experience management, the next crucial thing to look at is the best practices related to CXM.

Here are the five best practices to optimize customer experience management:

1. Develop Customer Profiles

Effective customer experience management is possible if you have proper insights into customers' preferences and behaviors. For that, developing customer profiles is very essential. It helps you understand each customer and categorize them into different groups. Afterward, you can offer them personalized interactions and uplift their experiences.

2. Personalized Services

Personalization holds significant importance for customers today. They want brands to offer them personalized experiences at all their touchpoints. That's why you have to work on offering personalized services. This will then lead to more brand loyalty.

3. Deploy AI Chatbot

Optimize customer service with AI chatbot. As the name implies, an AI chatbot can respond to customer queries autonomously based on pre-trained data. For example, VOC AI Agent allows you to build and train an AI chatbot with your company's knowledge base. Afterward, you can let it answer FAQs, assist in order processing, send discounts, and much more. Moreover, it offers 24/7, instant responses, which increases customer experience and satisfaction.

4. Smart Marketing Campaigns

Since customers like personalization, they also appreciate receiving timely discounts or marketing campaigns. For example, if you send them discount coupons right before their birthday, this will significantly enhance their perception of your brand. Therefore, utilizing customer data to time your campaigns effectively ensures that your marketing efforts are relevant and appreciated. Eventually, this will lead to increased engagement and sales.

5. Collect and Act on Customer Feedback

To optimize customer experience management, it is important to hear what customers have to say about their existing experience with your brand and then optimize their experience further, So, try to collect customer feedback regularly through surveys, forms, or other ways. Analyze the feedback and then try to improve their experience further.

Wrapping Up

Customer experience management is a crucial component of long-term success in today's competitive era. You have to understand customer behaviors and preferences to enhance their journey and all touchpoints. Once you start working on CXM, you will begin noticing more satisfaction, loyalty, and advocacy. Therefore, give customer experience management a central stage and drive your business growth with a customer-centric approach.

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