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August 16, 2024

What is Customer Experience? Everything You Need to Know.

Do you want to learn what Customer Experience (CX) is, why it's important, and which practices will give your customer an excellent experience to strengthen your business and boost sales? Discover it all here.

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What is Customer Experience?

The term Customer Experience (CX) refers to the customer's experience and is a concept that is becoming increasingly important.


Initially, it was limited to post-purchase commitments and was viewed as a cost of doing business. However, it's now understood to be part of the customer journey.

It has moved from the back rooms of customer service to the forefront, originating from disparate sources such as call center technology and marketing analytics.

History of Customer Experience

The history of CX begins with a critical practice: market research, which emerged in the 1920s as a way to test and improve advertising.

Psychologists like Dan Starch and George Gallup advanced this emerging field by applying scientific principles. However, it was after the post-World War II consumerism boom that market research began to emerge as a distinct field truly.

With roots in advertising and marketing, the demand for market research expanded into almost every sector by the 1970s.

This was the "golden age" for traditional market research firms, focusing on customer satisfaction.

As a result, people like Bradley Gale, author of Managing Customer Value, and other contemporaries were shifting the discussion around value and customer satisfaction.

What is CVM?

CVM, or Customer Value Management, is a methodology for creating value by managing the customer base to minimize risk and ensure an adequate return from each segment.

Customer Value Management (CVM) expanded the field from merely examining post-purchase aspects to considering quality, pricing, communication, and other elements of the experience that drive customer value. In the early days, customer experience research was mainly conducted via telephone or direct mail. However, with the advent and evolution of the internet, research firms began transitioning to outbound email and created custom reporting portals.

As a result, clients quickly became interested in these web reporting sites, and research firms, which were used to handling ad hoc requests, gladly embraced them. This practice led to each client having their own highly personalized reporting website.

In 2001, Esteban Kolsky, then a Gartner analyst, began writing about customer feedback systems, which became known as Enterprise Feedback Management (EFM). A few years later, in the mid-2000s, several tech companies emerged in Silicon Valley, Salt Lake City, Vancouver, Toronto, and parts of Europe.

The Role of Call Centers in CX

Call centers were places where customer satisfaction feedback systems took root and flourished.

Companies like ResponseTek and others recognized this need and offered a platform that could handle the complexities of systems with many agents and constantly changing organizational hierarchies. It was only a matter of time before call center software companies designed their EFM platforms.

What is NPS?

The groundbreaking work of Fred Reichheld, Bain, and Satmetrix appeared in Harvard Business Review in 2003. This method, called NPS, or Net Promoter Score, was a simple way to address two major problems in the CX world at the time: complexity and ROI.

Today, the definition and scope of customer experience continue to grow, and many wonder if the "C" in CX truly captures an end-to-end experience. While there are many different types of organizations in the CX space, EFM companies have infused technology into the domain experience to form the backbone of the industry. Their growing footprint in the CX space has prepared them to continue redefining the industry. These companies vary significantly in the size of their business and the scope of their CX management solutions, but they have a broad global reach.

In Conclusion, In the past, the customer was one of the least attended aspects of companies. Products or services were designed, and customers had to adapt to them. But the truth is that products, like movies (which are also products), should be created for an audience.


And these products/services must be offered so that the audience chooses my product over all others. So, pay close attention because companies whose products or services are customer-focused, instead of making the customer work for the company, tend to be more successful.

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