Imagine this scenario: you log into your bank app to transfer funds urgently, only to be met with confusing menus and unexpected downtime. Frustrated, you plan to switch banks. Later that day, you get a message from your car’s manufacturer with a proactive alert that a minor engine fault has been detected and you can schedule a free servicing. All this happened before you even realised there is a problem. One experience left you angry; the other left you feeling valued. This is the world of Customer Experience Management (CXM), where loyalty is won or lost at the speed of expectation.
From Customer Relationship Management (CRM) to Customer Experience Management (CXM): Why This Evolution Matters!
Not long ago, Customer Relationship Management (CRM) was the gold standard for businesses aiming to understand and serve their customers better. CRM systems focused heavily on data to track contacts, support sales, and help in trouble shooting. But today, the game has evolved to another level. CXM essentially shifts the focus from managing relationships to managing the entire customer journey. It's no longer just about what customers buy or when they contact you; it's about how every interaction feels. CXM demands a deeper, more emotional connection, turning data points into real-world insights that drive loyalty, advocacy, and long-term success. Gartner broadly defines aligning insights about consumers with coordinated strategies across the organisation, fostering a culture focused on the customer to drive ‘loyalty, advocacy, and long-term success’[1].
Another key dimension of this evolution, from a business standpoint, is the depth of customer interaction. Take, for example, a traditional banking KYC process — the executive collects data, and the interaction typically ends there. It’s a transactional exchange. In contrast, a CXM-driven approach goes far beyond. It calls for meaningful engagement to truly understand the customer’s needs, prioritise them, and tailor solutions accordingly. When this level of interaction is combined with the power of data analytics, real-time insights, and smart technology, it transforms the experience making it not just functional, but deeply personalised and impactful.
Take the example of one of the largest private sector banks in India. Till the pandemic, the bank was focusing on CRM, storing customer information, and managing interactions mainly through branches, phone banking, and email. Subsequently, they tied up with a leading cloud based apps and services provider to personalise customer journeys across web, mobile, and social platforms. Through AI driven insights, they were able to anticipate customer needs, enabling proactive engagement[2]. What the bank achieved was a 360-degree view of the customer across all digital and physical touchpoints, while increasing customer satisfaction and engagement.
Not every business gets CXM right. Those that do, thrive. Those that don’t, often find their mistakes magnified across social media and news headlines. One of India’s largest airlines has long struggled with customer experience — and the numbers show it. In one year, they have received over 3,000 customer complaints, twice as many as the previous year. On the global front, the scandal with a leading US based bank still stands as a textbook example of what can go wrong without proper CX oversight. To hit ambitious sales targets, employees opened more than 3.5 million unauthorised accounts, a move that severely damaged customer trust and the bank’s reputation, and cost the bank several billion dollars.
The CX Journey: 8 Touch Points Customer Experience is Key
When the COVID-19 pandemic struck, digital adoption accelerated overnight. Businesses across industries went back to the drawing board, aiming to craft digital-first customer experience (CX) strategies. A few years on, in the post-pandemic landscape, there is a more balanced blend of digital and physical experiences — the age of phygital. Yet, for brand marketers, the digital customer journey continues to take centre stage, shaping how connections are built and loyalty is earned. This new avatar of customer experience permeates every step of the customer journey. Here’s how it happens.
Think about your purchase journey and break it down. From becoming aware of a product or service to the actual purchase and then usage of the said service or product, we as consumers go through 8 different touch points. Let’s break down each of these touch points in detail:
#1: Discovery / Awareness
This is when potential customers first come across your brand or product or service – or to put it directly, the first impression. The first impression comes through a variety of channels - ads, social media, search engines, or word of mouth. A positive first impression can be delivered through an intuitive website experience, or helpful initial interaction which can spark curiosity and trust. Research suggests that 94% of first impressions relate to website design, thereby impacting trust and perception[3]. This implies that poor CX means customers might never return.
#2: Consideration
Here, customers evaluate options. They're reading reviews, comparing features, or asking questions. Businesses that offer timely responses, clear product information, and easy access to human support stand out. For an India based food delivery app, fastest time of delivery is a critical parameter for customer choice as well as satisfaction. The company uses an analytics based prediction model to determine several factors that are crucial to their customer’s consideration[4].
#3: Purchase / Transaction
This is the moment of truth. A frictionless checkout process, flexible payment options, transparent pricing, and fast loading times all contribute to a smooth buying experience. Even small glitches like unclear pricing or too many steps at checkout can lead to abandoned carts. Research indicates a 70% average cart abandonment rate due to unexpected fees or clunky design[5]. Some companies have mastered this by simplifying with one-click purchases and detailed delivery timelines.
#4: Customer Onboarding
Onboarding shapes the customer’s first real experience post-purchase. A guided tutorial, welcome message, or follow-up email helps customers understand how to use what they have bought. This stage often sets the tone for the entire relationship. The onboarding APIs and detailed guidelines of a major 'Payment Experience' company help onboard merchants seamlessly onto their payment gateway[6].
#5: Service Experience
Once customers start using your product, ease-of-use becomes vital. This is where the customer interacts with your product or service regularly. Is it easy to use? Does it deliver what was promised? Providing consistent quality, reliable performance, and helpful content (like user tips or updates) improves CX significantly at this stage. Another India based food delivery app uses location-based tracking and clear ETAs to reassure users during deliveries, thus enhancing the customer experience.
#6: Support & Issue Resolution
When something goes wrong, customers want fast, empathetic, and effective resolution. Whether it's through live chat, phone, or social media, the speed and tone of resolution can make the difference between losing a customer or gaining a loyal one. For instance, two of India’s largest private sector banks utilise AI powered apps or bots to resolve customer issues. Their AI-powered virtual assistants are designed to resolve customer queries in real time, while also offering a range of banking services, making everyday banking faster, smarter, and more accessible[7].
#7: Loyalty and Retention
For most companies, this is the end-game. A loyal customer means trust is established. However, once the trust is built, maintaining it is key. This stage is about showing continued value — through loyalty rewards, special offers, or simply remembering customer preferences. Research by Deloitte has indicated that customer focused companies are 60% more profitable than those that don’t have a customer focus[8].
#8: Advocacy & Referral
Happy customers often become brand ambassadors. Encouraging reviews, making it easy to refer friends, and showing appreciation (like thank-you notes or incentives) can amplify word-of-mouth marketing, which is often the most powerful kind. An Indian audio brand has leveraged several celebrities and influencers to promote their brand and increase awareness, especially among the young target audience[9].
How Technology has Transformed Customer Experience
Today, leveraging artificial intelligence (AI) and augmented reality (AR) has significantly improved customer experience across several industries like retail, telecom, automotive, and so on. Virtual chatbots are helping banking customers with their banking needs, while IoT enables car manufacturers with real time data, analysis, and predictive maintenance, thereby leading to optimised production, improved safety, and enhanced customer experiences. AI technologies such as facial recognition, biometric ID, chatbots, and digital assistants are being used to enhance satisfaction and streamline interactions.
While technology is undoubtedly an enabler, smaller businesses often face challenges in adopting these technologies due to the high costs of infrastructure, talent, and training. Data privacy concerns also remain a key hurdle, as breaches risk damaging customer trust and brand reputation. As an India based company, Writer Information works with organisations of all sizes with technology that can be easily accessed and deployed towards better customer experiences.
Customer Experience in the Future
Poor customer experience management (CXM) can lead to lost trust, negative reviews, and declining customer retention — all of which directly impact revenue. In today’s hyper-connected world, a single bad experience can go viral, damaging brand reputation overnight. Without a clear CXM strategy, businesses risk inconsistent service, unmet expectations, and revenue losses.
Customer experience management is set to grow rapidly in the coming years. Yet, true success in CXM goes beyond technology — it demands genuine empathy, operational precision, clear communication, and the ability to recover quickly when things go wrong. The years ahead will redefine customer experience even further, shaped by predictive technologies, heightened ethical standards, and shifting economic conditions.
[1] https://www.gartner.com/en/information-technology/glossary/customer-experience-management-cem
[2] https://mediabrief.com/hdfc-bank-partners-with-adobe/
[3] https://www.prnewswire.com/news-releases/first-impressions-are-94-design-related--infinityhr-upgrades-their-user-interface-to-match-todays-technological-beauty-standards-300617678.html
[4] https://blog.zomato.com/the-accurate-eta-to-customer-satisfaction-part-one
[5] https://baymard.com/lists/cart-abandonment-rate
[6] https://razorpay.com/blog/onboarding-apis-collect-payments-from-inside-your-product/
[7] https://cio.economictimes.indiatimes.com/news/artificial-intelligence/the-intersection-of-artificial-intelligence-ai-and-data-analytics-is-revolutionizing-the-indian-financial-services-industry/117324876
[8] https://www.deloittedigital.com/mt/en/insights/perspective/Personalising-The-Customer-Experience.html
[9] https://www.tring.co.in/influencer-marketing/boat-influencer-marketing
- Category: Telecom
- Date: 12-05-2025