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.
Table of contents:
- What is an experience management framework?
- What makes a good framework?
- The Account Experience framework
- 4 more experience management frameworks
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 (AX) was developed to adapt the Net Promoter System for non-B2C organizations.
In those organizations, every customer is different—needs, use cases, revenue contribution.
In B2B and B2B2C:
- You can't collect feedback from a sample of customers and extrapolate—read why here.
- There's more than one stakeholder involved in the buying process. One survey response won't suggset loyalty.
- Your largest accounts matter most—a B2C NPS program doesn't segment based the financial value of the individual customer.
Here's the AX framework in a nutshell:
It all started with Monetized NPS. There are three areas to work on: measure, act, and grow.
You'll have come across measure and act before. But, grow is the secret sauce behind Monetized NPS.
For the first time, Monetized NPS™ gave B2B companies a strategy to tie their NPS program to revenue.
By allowing NPS practitioners to let revenue guide them, and easily show the ROI of their work, Monetized NPS put the work of CX on the map.
Account Experience evolved from Monetized NPS. It leverages Monetized NPS alongside other CX and vital experience metrics to improve B2B CX and Revenue Lifecycle Management (read more on page 34).
AX is a comprehensive CXM framework designed to help enterprises with account management teams of more than 30 drive Earned Growth by leveraging voice of the customer data.
Learn how: Account Experience drives market share growth in this one sheeter.
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 measure, act, grow AX framework:
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.
Account Experience has clear guidelines for the Measure stage. There are three fundamental measurement tips to get in place for a successful AX-led experience management program:
- Response rates: Low response rates = hardly any feedback. I talked to a VOC leader last week and he told me before they started using AX, they only did 30 in-person interviews per year. Now they have 1000s of customers giving feedback each quarter. (Learn how to improve your response rates here).
- Multiple stakeholders: B2B buying processes are long and complex. You need to make sure you're measuring feedback from frontline users, middle management AND C-suite to adequately ensure your revenue is safe.
- Account coverage: Due to large deal sizes in B2B and B2B2C channel management, every customer counts. Sample sizes are not enough. To quickly identify churn risks and ensure your revenue base is healthy, you need to aim for 100% account coverage—which means collecting feedback from every customer.
If you get those three fundamentals right, you'll have the insights you need to grow revenue and tackle churn in your accounts.
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.
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.
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