What is it and how does it work?

Customer Intelligence, sometimes referred to as Customer Experience Management (CEM), focuses on the customer’s experience in two ways: across channels (e.g., store location, ecommerce, and call center),  and across specific touchpoints within a store location. The latter focuses on the entire in-store experience—from finding parking to the sales person’s interaction to the checkout experience. Many companies also track experience based on the customer’s purpose. What is the customer’s experience when they came into the store to browse? To return an item? To seek help for a complicated purchase, like HDTV?

• NOTE: Sometimes, CEM can be grouped in the same category as CRM—customer relationship management—which tends to focus on marketing and advertising. CRM relies heavily on cutting-edge database technology and analytics with the goal to create relevant 1:1 marketing campaigns that incent customers to buy.

Most companies invest in five programs as part of CEM. These programs provide both brand-level insights and store-level insights—and both views are extremely important.

• The first is to measure customer experience using satisfaction surveys—across all channels of the business. For example, when customers call Marriott to make a reservation, they are asked whether they want to participate in a survey about their phone reservation experience. They will also be asked to participate in a survey after their stay. And of course, customers may also contact call centers when problems arise. All three programs measure customers’ perceptions of their experience
• Many companies also use mystery shopping data to assess the in-store experience. Mystery shoppers collect information about what stores actually DO: What are the in-store behaviors and operations that create those customer perceptions? For example, at a wireless retailer, mystery shoppers might assess whether the sales associate really understood the wireless carrier’s coverage and how to demonstrate smart phones, whether certain smartphone models are available for demos, and how long the checkout process took. All of these metrics will relate to what a brand WANTS their stores to do—but is difficult to manage. Mystery shoppers may also audit the site, obtaining pricing information, what’s on the shelf—and what’s not, etc. All of this gives store-level information critical to a brand.
• Call centers collect vast amounts of information about customer perceptions, desires and wants. This includes everything from problem experience and resolution to ideas for new products. Best Buy has implemented a fantastic program called “Fast Track” to identify trends in customer calls. For example, during a recent holiday season, Best Buy shipped a new video game for Christmas. Early in the shipping period, Best Buy had calls from customers saying the package had arrived with no wrapper—so kids could clearly see what they were getting for Christmas. Best Buy quickly implemented a solution and “saved Christmas.”
• Social media provides brand level insights. By establishing listening posts, companies can track what’s going around the Internet. With the availability of social media, any consumer can express their opinion about their experience. And with blogs, online reviews, ratings schemes—it’s just critical to monitor what people are saying. For example, in research conducted in May 2010, Market Force found that 48% of customers read an online review or blog before going to a restaurant, and 13% had posted information about their restaurant experience. And all companies want to avoid the PR disasters like United experienced when they refused to replace a customer’s broken guitar.
• Finally, many corporations closely study their Internet sites to understand everything from navigation to abandonment to key interest areas. This datastream requires technology that can monitor and make sense of the detailed information provided by clicks on every page. Some corporations invest in research to understand the differences between their web experience and a competitor’s.

Is Customer Experience Management (CEM) a real trend or just another fad?

CEM is very real—the concept has been a business practice for more than ten years. In the recent economic tsunami, corporations focused intensely on CEM practices because they had to retain customers. When consumers literally stopped shopping, making the most of every customer experience became the defensive strategy to stay in business. Corporations asked: How do I maximize the spend of this customer at this moment in time by providing a great experience? The increased attention to CEM is clearly illustrated by the American Customer Satisfaction Index (http://www.theacsi.org/). The ACSI has tracked consumer satisfaction for over 25 years in various industries; across every industry, scores have increased sharply over the past two years as big name brands fought to retain their customers. Virtually every corporation of size has some form of CEM in place, whether in the form of customer satisfaction surveys, monitoring call centers, or tracking the use of e-commerce sites.