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Rio Longacre

Who's Your Data?

By Rio Longacre

About Rio

Who’s Your Data? is a blog that aims to disseminate thought-provoking tips and techniques involving the use of data and database marketing to direct marketing professionals. Why should you care? Because implementing data best practices has been shown to lift response rates, improve analytics and enhance overall customer experience. Reader participation is encouraged!

Rio Longacre is a Sales & Marketing Professional with more than 10 years of experience in the direct marketing trenches. He has worked closely with businesses across many different vertical markets, helping them effectively leverage the use of data, personalization technologies and tracking platforms. Longacre is currently employed as a Managing Consultant, Marketing, Sales & Service Consulting at Capgemini Consulting, a premier management consulting firm. He is based in the company's New York City office, which is located in Midtown Manhattan. He has also previously worked as an online media buyer and digital marketing strategist.

Email Longacre below, or you can follow him on Twitter at @RioLongacre. Any opinions expressed are his own.

 

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CEM: Getting Acquainted With Your Customers

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You've probably heard of CRM, right? CRM is old hat. An acronym standing for Customer Relationship Management, the goal of any CRM program is to manage a company's interactions with prospects and customers, while reducing the costs and building customer lifetime value.

Now how about CRM's twin sister, CEM? Probably not. Unknown to many, CEM is an acronym that stands for Customer Experience Management. As a side note, Customer Experience is sometimes also referred to as CX. Now if you're a marketer, regardless of what you decide to call it, Customer Experience Management is a discipline you need to get acquainted with.

In general, CRM programs tend place a heavy emphasis on marketing and communications. After all, establishing touchpoints with customers or potential customers at crucial points in the customer journey is incredibly important to achieve desired behavioral outcomes. Fair enough.

In many ways, CRM programs tend to be one-dimensional in nature, focusing on how the firm makes decisions as regards place, product, price and promotion, with little emphasis on customer needs or desires. It shouldn't be too surprising then to learn that many CRM programs fail because they use an approach that—while brilliant on paper—is misaligned to actual customer wants, needs or expectations.

This is where CEM steps in. You see, it turns out that to succeed in today's challenging multichannel and mobile/social environment, firms need to expand their scope of their CRM initiatives to create a program that aims to focus like a laser on customer needs, both rational and emotional, and drive toward expected outcomes and KPIs.

At a baseline, the goal of any CEM program is ostensibly to move customers from satisfied to loyal and then from loyal to advocate by taking a holistic view of the totality of their experiences—regardless of place, time or channel.

This is important because, let's face it, at the end of the day customer perception is built through interactions across multiple events—most usually through multiple channels. As such, successful CEM programs all feature the capability to manage and track engagement where they actually take place—on the Web, on a mobile device, when a customer speaks with a customer service rep or deals with an automated switchboard on an IVR. It all adds up.

Depending on the type of business, customer engagement channels might include contact the Web (main website), mobile (mobile website or app), brick-and-mortar stores and call centers, while touchpoints may include phone (call center, IVR or in-house customer service team), Social Media, email, self-service Website (traditional or mobile) or in-person. Lifecycle engagement includes ordering, fulfillment, billing and support.

But that's not all—CEM programs also take into account when engagements take place in relation to the customer's (or buyer's) journey. An initial conversation between a sales rep and a new customer would be tracked and discerned, for example, from an inquiry on the Web. And this has real-world repercussions. A customer service inquiry by a high-value customer, for example, would be handled differently than in initial inquiry by a prospect on a Web form.

As is the case with most disciplines, CEM programs have evolved over time. This is a good thing. If you look at the chart, you'll observe that I've broken down CEM into its three dimensions: Engagement Channels, Engagement Touchpoints and Engagement Lifecycle.

You'll notice that I've bolded four of them in red. I've done so because these are recent additions to the CEM value system.

Okay, I know I could go on more, but I'm running out of room for this post. Got any questions or feedback? Please let me know in your comments.

Thanks,

Rio

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