customer experience management (CEM or CXM)

This definition is part of our Essential Guide: Guide to customer experience management best practices, technologies

Customer experience management (CEM or CXM)is the collection of processes a company uses to track, oversee and organize every interaction between a customer and the organization throughout the customer lifecycle. The goal of CEM is to optimize interactions from the customer's perspective and foster customer loyalty. To manage the customer experience, a company needs to create a strategy that encompasses all customer interactions.

CEM requires companies have a 360-degree view of customers, with integrated, up-to-date data on their accounts. Increasingly, customer experiences include interactions through traditional channels, such as website purchases, phone calls and live chat as well as social media, text and other emerging communication mediums. With new communication channels and touch points comes greater complexity.

There is more data to process from more sources, and this data needs to be integrated with existing customer account data. The ability to combine customer relationship management (CRM) system data with financials, ERP and inventory management, as well as real-time data on social platforms, can be challenging.

CRM platforms from vendors, such as Salesforce, Microsoft, SAP and Oracle, attempt to bridge the gaps between communication channels and make database integration easier. These providers are working on integrating sales, marketing and service data as well, so customer information doesn't reside in data silos. 

The importance of mapping the customer journey

Companies are also enlisting business intelligence and customer data analytics to learn more about how to market and sell to customers in a more personalized, one-to-one fashion. Personalization strategies include new technologies, such as mobile marketing, location-based services and beacons, which help companies identify where customers are and market to them in real time. In some cases, the data can help companies give consumers pointed information that may or may not be related to a discrete purchase. For example, a stadium might use location-based services to inform consumers about which concession stand is proximal and less busy.

Companies also use emerging technologies such as emotional analytics to gauge whether customers benefit from their interactions with companies. Emotional analytics software can help analyze the success of a variety of operations that are related -- but potentially tangential to -- customer service, such as inventory management or supply chain management.

Knowledge management systems are also important tools in an effort to provide seamless customer service. Agents can use these tools to look up product information and customer interaction with previous products. Agents can also combine this information with customer data and inventory information to provide customers with information on their account, product education and inventory.

This was last updated in August 2016

Next Steps

How to use CRM as part of your customer engagement strategy

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Brands are increasingly turning to technology platforms as a way to improve customer experience across channels. We look at how to navigate through the vendor technologies available
What tools does your organization use to engage in customer experience management?

first of all, thank you for  the amazing article. I am starting to give my first steps into CEM. And I would like to ask you some more information. For example, what kind of documentation, a CEM, needs to prepare and do. What are the daily tasks.

Thank you so much!!!



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