CEM software stands for Customer Experience Management software. CEM is also sometimes referred to as CXM, but they both stand for Customer Experience Management.
CEM software is a tool used by companies to understand their customer’s experience with their company. CEM software harness the customer’s perspective to gain insights into how a company can better serve their customers, and in-turn retain them through customer loyalty tactics.
What is CEM Software?
Quantifying the customer experience is essential for companies to conceptualize how their actions impact their customers, and in turn, their retention and profits. The “management” in “customer experience management” signifies that this is not only a tool to measure experience, but to inform the management of it.
CEM software does this by measuring the interactions between the customer and the company, and organizing this information to provide an accurate picture of the customer lifecycle. However, CEM software can also do much more than this: it can act as an insight engine, a closed loop tool and a profit-generating machine.
CEM software can be integrated with CRM (customer relationship management) softwares such as Salesforce, SAP and Oracle, to get a 360º view of the behaviors of the customer to correlate customer historical and transactional data with experience metrics. Companies can utilize all of these sources to create a better customer experience by getting the full picture of how they can best serve their customers.
The Goal of CEM Software
Customer experience is the arena that companies are increasingly competing in in order for their business to garner the loyalty of their customers. If you have unhappy customers, your prospects are going to hear about it! In short, companies want to provide a customer experience that rivals their competitors and makes their customers want to stay.
But, how do they know if their efforts to provide a superior customer experience are working? The first step to increasing loyalty is understanding why customers are churning and answering all of the other questions that go into getting into the mind of the customer. CEM software gives companies the tools to do this and get the best customer experience possible by:
- Providing an easy way to listen to and analyze the Voice of the Customer
- Giving insight into customer feedback at both the granular and big picture level
- Offering suggestions to coach employees on how to best respond to customer feedback
- Identifying action steps to close the loop quickly with customers
- Putting experience metrics next to customer historical data
CEM Software Metrics
There are numerous types of metrics employed in CEM software. Below are a few of the most common metrics used.
Net Promoter Score® and Net Promoter System® (both referred to as NPS®) are a metric and tool used to measure and monetize a customer’s experience with a business. It is widely used in the business world, and provides the basis for many CEM softwares.
The Net Promoter System® is used by companies to assess brand loyalty. It does this by asking 2-3 questions in a survey, including the standard NPS question: “On a scale from 0 to 10, how likely are you to recommend our company to a friend or colleague?”.
The Net Promoter System is a solid backbone for a CEM software because it’s a growth and loyalty indicator, and provides actionable insights companies can act on to improve their customer experience. The Net Promoter System also has the ability to be matched with other insights across the customer journey. This data combined gives companies the full picture of their customer experience.
Customer Satisfaction (CSAT)
CSAT stands for Customer Satisfaction, and is another metric that can be utilized by CEM softwares. CSAT’s goal is to measure a customer’s satisfaction with a business. In the age of the internet, the way that companies are mainly gauging their customer satisfaction is through surveying. The standard CSAT question is: “How would you rate your experience with your … (e.g. recent support requirement)?” with the scale of Very unsatisfied / Unsatisfied / Neutral / Satisfied / Very satisfied.
Customer satisfaction surveys are most useful when used to measure short-term happiness. This is where they differ from Net Promoter surveys, which is used to predict long-term happiness, and conversely, customer churn.
Customer Effort Score (CES)
CES survey stands for Customer Effort Score. The simplest of the three, it relies on one key question. And instead of measuring customer satisfaction, it measures how much effort a customer put into an interaction with a company. The philosophy behind this is that the less effort a customer has to put into an interaction with a company, the happier that they will be.
There are two ways to frame this CES question, either: “How much effort did you personally have to put forth to handle your request?” or “The organization made it easy for me to handle my issue”. CES also has the capability to work with either CSAT or NPS, as discussed in an interview with James Borderick of HPE Software.
CustomerGauge CEM Software
CEM software is at the heart of the CustomerGauge platform. However, simply acting on customer feedback isn’t enough with our Monetized Net Promoter CEM software, we enable companies to monetize their customer experience program and find sustainable growth within their existing customer base. You can learn more about our Customer Experience Management solution here.