Many organisations are talking about customer experience management (CEM) but few know what it takes to successfully implement it, according to Shaun Smith. He gives his tips on how to make CEM work in part one of a 10-step guide.
By Shaun Smith, smith+co
Researchers at Satmetrix Systems conducted a study in 2001 to empirically determine if there were any links between improved customer satisfaction and higher price-to-earnings ratios. What they discovered proved more startling than anticipated. The research revealed that the P/E ratios of companies with above average customer loyalty index scores were more than double those of their competitors. That spread translated into a $1 billion market valuation for even the smallest Fortune 1000 firm. A study by Montgomery and Accenture over that same period concluded that "superior relationship management is worth half your bottom line". No wonder then that compelling findings like these spawned the customer experience management movement and gave rise to numerous books on the topic.
