Customer Experience Management: A Revolutionary Approach to Connecting with Your Customers by Bernd H. Schmitt

Introduction

Bernd H. Schmitt’s Customer Experience Management (CEM) revolutionizes how businesses connect with their customers by emphasizing a holistic and sensory-rich experience that goes beyond conventional marketing. Schmitt presents a comprehensive framework designed to help companies integrate and manage customer experiences systematically. Through real-world examples and actionable steps, Schmitt demonstrates how firms can achieve a competitive edge by focusing on customer experiences.

1. Understanding the CEM Framework

Key Point: The Five-Step Process

Schmitt introduces a five-step process for CEM: Analyze, Innovate, Design, Implement, and Monitor.

Action Step: To apply the Analyze phase in a retail setting, conduct customer journey mapping workshops with cross-functional teams to identify pain points and opportunities.

Example: Schmitt describes how Starbucks utilized customer feedback to improve the in-store experience, leading to innovations like comfortable seating and free Wi-Fi.

2. Customer Touchpoints: A Multisensory Experience

Key Point: Engagement Across Senses

Schmitt emphasizes that a successful customer experience engages all five senses: sight, sound, smell, taste, and touch. Businesses should create environments that appeal to these senses.

Action Step: Restaurants can enhance the ambiance by playing carefully selected music that complements the dining experience and using high-quality tableware for a tactile experience.

Example: The Disney theme parks use sensory details meticulously, such as specific scents in different areas (e.g., cookie smells on Main Street) to create an immersive experience.

3. Experiential Marketing

Key Point: Move Beyond Traditional Marketing

Traditional marketing focuses on product features and benefits, while experiential marketing aims to create memorable and emotional connections with customers.

Action Step: Organize interactive events where customers can engage with the brand directly, such as Apple’s hands-on demonstrations of new products in their stores.

Example: Nike’s “Run Clubs” and “Training Clubs” are live events that engage customers in physical activities while promoting the brand’s products.

4. Brand Experience and Identity

Key Point: Consistent Brand Messaging

Schmitt advocates that a company’s brand experience should be coherent and consistent across all touchpoints, reinforcing the brand’s identity and values.

Action Step: Develop a brand style guide that includes visual, linguistic, and behavioral guidelines to ensure a unified brand message across campaigns.

Example: Coca-Cola’s consistent use of red and its signature logo combined with campaign messages about happiness and sharing showcases strong and coherent brand experience management.

5. Internal Alignment for CEM

Key Point: Employee Engagement

A great customer experience begins with motivated and well-trained employees. Schmitt suggests that internal operations should be aligned to support the customer experience strategy.

Action Step: Implement employee training programs focused on customer-centric values and behaviors and create internal incentives for excellent customer service.

Example: Zappos is highlighted for its company culture that empowers employees to go above and beyond for customers, such as offering extended phone support to solve customer issues authentically.

6. The Role of Technology in CEM

Key Point: Leveraging Data and Digital Tools

Technology, especially data analytics, is crucial in understanding and enhancing customer experiences. Schmitt stresses the integration of technology to capture, analyze, and act on customer insights.

Action Step: Implement Customer Relationship Management (CRM) software to track customer interactions, preferences, and feedback.

Example: Amazon’s use of sophisticated algorithms to recommend products based on customer behavior exemplifies how data-driven personalization can enhance customer satisfaction.

7. Measuring Customer Experience

Key Point: Metrics and Feedback Loops

Establishing metrics to evaluate the effectiveness of customer experience initiatives is essential. Schmitt recommends using various tools and methods to gather customer feedback and measure satisfaction.

Action Step: Regularly deploy Net Promoter Score (NPS) surveys to gauge customer loyalty and identify areas for improvement.

Example: Ritz-Carlton utilizes a comprehensive guest feedback system to promptly address concerns and improve service quality continually.

8. Transformative Customer Experiences

Key Point: Enabling Customer Transformation

Schmitt believes that the ultimate customer experience is transformative, changing customers’ perceptions or behaviors in a meaningful way.

Action Step: Create programs or products that help customers achieve personal goals or desires, leading to a deeper emotional connection with the brand.

Example: Weight Watchers provides tools and community support that help users achieve their weight loss goals, fundamentally changing their lifestyle and building brand loyalty.

Conclusion

Bernd H. Schmitt’s Customer Experience Management offers a detailed and structured approach to revolutionizing customer relations through managed experiences. By systematically analyzing, innovating, designing, implementing, and monitoring customer experiences, businesses can forge lasting emotional connections with their customers. Examples from successful brands emphasize practical applications of Schmitt’s principles, from sensory engagement and experiential marketing to harnessing technology and internal alignment. The actionable steps provided can serve as a guide for companies striving to enhance their customer experience management initiatives and ultimately achieve greater market success.