Customer Experience (CX a.k.a CEM) is the sum of all experiences a customer has with a supplier of goods or services, over the lifecycle of their relationship. This covers several phases including awareness, discovery, attraction, interaction, transaction, use, service, cultivation and advocacy.
These are not simply sequential, but rather a continuum of phases existing within the context of CX.CX is not something you just bolt on to your existing enterprise architecture.
So why does CEM/CX matter? The simple answer is for retention of your existing business customers. Your competition is a click away and studies show people are 3 times more likely to tell others about a bad experience than a good one.  People declaring a bad experience with you are ripe for your competition to steal.

With social media, bad CX stories can escalate virally and ruin the reputation of a business in weeks or even days.  People notice BAD experiences and get emotional!  They want a good customer experience.

 

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Original article at http://technoracle.blogspot.com/2011/04/what-is-customer-experience-management.html.