According to our research, only 20% of companies understand how their customer experience (CX) efforts support their overall business growth.
However, with the right customer experience management framework—one that's truly connected to revenue—you can boost retention, lower customer acquisition costs, and drive business growth.
When you know:
👉 The value of each customer account
👉 The NPS score of each customer account (and why they left their score)
👉 Engagement signals across multiple touchpoints
You can tie them all together to understand exactly who is happy (or unhappy), why, and what to do about it.
To get CXM right in the B2B space, we need to get it clear that "churn" is a term borrowed from our friends in B2C.
It makes sense when you have 10,000+ small customers. But, when the deal size is large and customer count small—"churn" is better described as "customers we failed".
These 5 CXM frameworks should get you closer to building strong, value-driven relationships with customers. They'll make sure you're (1) actually aware when a customer is being failed and (2) have the opportunity to remedy it before they leave you.
Before we walk you through our proprietary model and several others, let's look at what makes a great CEM/CXM model:
What is a Customer Experience Management Framework?
Let’s start at the basics with some background on frameworks. A customer experience management framework is the model, strategy, or structure you use to measure, analyze, and improve your customer experience. It’s fundamental if you want to take your CX seriously.
The best CXM models will be inextricably interlinked with your revenue and operational metrics—the north star that actually matters to senior stakeholders who might block your CX improvement efforts.
For example, our customers use our software to collect NPS scores and feedback from all their customer accounts. Some of those accounts represent $1m in annual business, others represent $20k. Which account is most important? Which do we want to listen to more closely?
The higher value account of course!
By analyzing the drivers of ‘detraction’ or dissatisfaction and connecting them to account value, we can tell our customers clearly that one issue (e.g. the speed of customer service) is putting $5m in total annual business at risk whereas another issue is only an issue for one or two low value customers.
While all issues ultimately matter for customer loyalty, it’s much more important to work on the highest value issues first. Otherwise you might end up like SimpleWays who were blindsided when a customer worth $1m left them, despite working hard on their CX.
While a revenue and growth foundation might sound like a core feature of any CXM program, it is often forgotten.
Our research shows that 70% of companies aren’t using a CXM framework that links their CX data to their revenue.
By not making this link, businesses are failing to understand the true value of their customers and they’re dampening the potential impact of their CX efforts.
When done right, a CXM framework can do the following:
It will help you create satisfied customers through optimized CX. By turning your CX efforts into an organized framework, you’ll get deeper insight into what your customers want at every stage of the customer journey. And that means happier customers.
It will make CX data measurable and actionable. A CXM framework makes it easier to transform raw customer data into actionable insights—even in large B2B accounts with many customer touchpoints.
It should reveal the revenue impact of your CX efforts. You want your CXM model to link your CX actions to your revenue. 62% of companies aren’t calculating the ROI of their CX programs. Don’t be one of them. By making the link, you’ll make it easier to get internal buy-in for your CXM, you’ll also be able to prioritize projects with clarity—ranked by their impact on revenue.
Drive business growth. Studies from Bain show that businesses that commit to CXM can grow their revenue by 8% above the market. But if you’re not linking your CX to financial metrics, you might try to fix the wrong CX issues.
In reality, though, not every CXM framework will deliver the same results. So, when designing yours, you need to look for the following:
What Makes a Good CXM Framework?
In order to help you really drive business growth, your CXM framework needs to do 5 central things:
It should make CX data your priority. To deliver real results, your CX efforts need to be driven by hard numbers on customer sentiment. This is the ground on which later CX decisions are built.
Offer flexibility and autonomy. A framework, crucially, is not a plan. It shouldn’t be prescriptive, too rigid, or too cumbersome. Instead, all employees should enjoy some autonomy—at all levels of the business.
When you’re dealing with customers across different B2B accounts, you need the flexibility to respond to each in the way that’s right for them.
Deliver clarity on CX tools and software. CXM platforms like CustomerGauge can make staying on top of your customer experience much easier, by automating the whole process and delivering real-time insights into your customers.
Get internal buy-in from all levels of your business. Truly customer-focused organizations make CXM a job for everyone, not just for customer-facing teams.
Link up CX to revenue. We’ll say it again: your CXM framework won’t reach its full potential unless it’s connected to your bottom line.
So, is there a CXM framework that does all of these things? Here, we’re sharing 5 CXM models that can help.
5 Useful Customer Experience Management Models and Frameworks
The Account Experience Model
Let’s start with our Account Experience™ CXM model.
Account Experience is an evolution of Monetized NPS™—which is described in this image.
For the first time, Monetized NPS™ gave B2B companies a strategy to tie their NPS program to revenue—which allowed NPS programs to drive retention, referral and upsell programs.
Account Experience takes NPS and leverages other CX and vital growth metrics within the scope of B2B customer experiences and Revenue Lifecycle Management (read more on page 34).
This is a CXM framework we designed because the market was severely lacking in a CX model that actually accelerates revenue growth with customer feedback from B2B accounts (e.g. for our customers: Coca-Cola, Heineken, DHL, H&R Block).
And, crucially, does it deliver results? Thanks to CustomerGauge, the catering brand Alchemista went from losing its biggest client to boasting a 100% retention rate.
Let’s breakdown the steps:
Measurement is the bedrock of your CXM framework. Specifically, that means measuring Net Promoter Score, or NPS.
NPS is at the basis of many CX strategies. That’s because it’s a simple and scalable tool that helps you easily access your customers’ sentiments. But to get the most out of the metric for CXM, it needs a bit of an upgrade. These days, it’s monetizing NPS that delivers the results.
Measuring NPS is straightforward. Begin by ask your customers a simple question:
On a scale from 0 to 10, how likely is it that you would recommend our company/product/service to a friend or colleague?
Then, on that scale, categorize your customers into promoters (9-10), passive customers (7-8), and detractors (0-6). You want the numbers of promoters—those customers that would recommend your brand—to be high, while keeping your detractors to a minimum.
While conventional NPS ends there, Account Experience™ (AX) takes you a step further. AX™ listens to multiple stakeholders in all your customer accounts, as well as other engagement signals, and then links their feedback to operational data like annual revenue.
This, in turn, gives you insight to use in stage three ('grow'):
The value of individual customer sentiments. If your larger accounts are among your detractors, a lot of your revenue could be under threat. AX™ helps you understand which customers are currently at-risk of churn (we give some examples in this LinkedIn post).
The cost of each driver. For example, let's say your NPS survey tells you that customers are regularly unhappy with the onboarding process. Monetizing your NPS shows exactly how much that driver could cost your business.
Who you ask to fill in your NPS surveys is a critical part of the measure step. We recommend surveying multiple stakeholders in your customer’s organization—frontline to the C-suite.
We also recommend running NPS surveys through regular quarterly relationship surveys, as well as transactional surveys after each customer interaction. Our research found that companies see a 5.2% increase in retention if they survey their customers every quarter.
Based on your measured results, the next stage of your process is to act. There are two main tasks here: closing the loop and optimization.
- Close the loop. First, action means addressing the issues that bring your CX down. As we said above, this demands flexibility. Customers don’t all want the same thing—and different levels of your staff can’t respond in the same way. You’ll need everyone to act how they can:
Frontline staff tend to determine the root causes of NPS scores while directly encouraging referrals
Middle management’s role is to monitor performance and best practices
Executives are there to identify strategic problems, structural issues, and investment needs.
The faster you close the loop the better, our research shows that closing the loop in under 48 hours has the highest impact on customer retention (read more in our CX benchmarks report).
Optimize. Optimizing means setting targets and improving towards those goals. According to our research, companies that set NPS targets grow twice as fast as those that don’t.
Just ask the mobility provider, Alphabet. Thanks to CustomerGauge, they grew their NPS by 22 points—and were named Best Leasing Company in the Netherlands 2016.
Many companies stop here. But, they leave serious growth opportunities on the table. AX™ users continue to step three:
3. Monetize & Grow
Now it’s time to put your efforts toward growth. There are so many things you can do here. While that will depend on your individual customers and precise business needs, try the following:
Monetize: With monetized NPS, you’ll have the power to understand the value of your different accounts and their impact on your bottom line. When monetizing your CX, aim to be able to see how an increase of one NPS score impacts your revenue.
Identify which customers are at-risk: Knowing which customers are most likely to churn is the key task of your retention strategy. Close the loop with these customers quickly to drive retention—often customers just want to know they’re being listened to.
Identify opportunities for referral and upsale: A key part of the Net Promoter System is identifying your promoters. Customers that leave a score of 9 or 10 are ready to put their reputation on the line for you and refer new business to you—grow faster with a strong referral marketing plan.
Make smarter, targeted business decisions: Drive retention, repurchases, and referrals by recognizing the specific value of drivers. Studies show that 80% of profits come from 20% of customers—meaning focusing your efforts on the CX issues impact that 20% will have the largest impact on revenue growth.
With CustomerGauge, this becomes easy. By implementing CustomerGauge’s CX program, SmartBear brought in $6 million in referrals in just 18 months.
We can help you do the same.
4 More Customer Experience Management Models To Consider
CustomerGauge’s Account Experience™ framework is not the only CXM model out there. But in our focus on monetized NPS, we are the most committed to improving your bottom line.
Here are some other customer experience management models to consider:
1. 5 Category Framework.The 5 Category Framework is a customer experience management model based around 5 central focuses: senses, processes, communication, expertise, relationship.
Each of these categories have an impact on your customers’ experience—from the visual impact of your brand (senses), to the way that you nurture loyal customers (relationship). According to this model, your task is to optimize the impact of each of these categories on your customers.
It's an important, insightful model. But by not being explicit about revenue, it doesn’t have much to say about action toward growth.
2. CX Operating Model (Deloitte). Alternatively, Deloitte’s CX model identifies four strategic areas to improve your customer experience:
Structures and functions. For Deloitte, this means improving CX delivery and design, but also operational enablement—namely, the teams that support that delivery.
People and talent. The way your teams are organized and work together can make a big difference to your CX.
Governance and power. Instead of “command”, a preferable governance structure could be to “guide”. This way, Deloitte argues, the whole company can be engaged in CX.
Data and systems. Finally, Deloitte refers to the tools, methods, and software you need to optimize your CX.
It’s a really comprehensive framework—but it does demand a total restructuring of the way your organization operates. Instead, with CustomerGauge, you can get started immediately.
3. CX Value Driver Framework. CX Pilots have created the conceptual tools to help you design your own customer experience management framework. You’ll need to ask yourself questions based around your brand’s point of view, value sources, value drivers, segments, accountability, and capabilities.
While it gives you a thorough grounding in what to focus on, it doesn’t give a sense of how to link this up to your bottom line. And this remains the most important thing.
4. Customer Equity Framework. Finally, QuestionPro’s Customer Equity Model provides a compelling conceptual framework for understanding what drives customer attraction and retention—and how that can power business growth.
However, brands looking for CMX tools or targeted strategies to help grow revenues won’t find them here.
CustomerGauge’s CXM Model Can Help You Grow
At CustomerGauge, the power of our customer experience management framework comes from its focus on growth.
Find out how you can benefit. Book a demo today.
- A complete guide to customer experience management
- How to devise a CEM strategy
- What's the role of the chief customer officer?
- Buying guide for CEM software