Experience Management

The term Experience Management – otherwise known as XM for short – refers to the collection and measurement of human, subjective experiences. The goal of Experience Management is to use the data that is collected in order to improve a product or a service or to experience a situation.

Fields of Experience Management

Common areas in which Experience Management is used can be described as follows.

  • Customer Experience, for example, poses the question of the customer’s experience in the context of a service
  • Employee Experience attempts to determine the experience of an employee within a team and within a company
  • Brand Experience examines this question in terms of the brand perception of a company
  • Product Experience addresses the experiences of customers with a specific product

Of course, these examples can be extended almost arbitrarily. However, the focus is always on the experience of a person in the context of a situation.

Experience Management – practical cases of use

The big question that now arises is how to manage experience. Once the empirical data has been collected, it should, of course, be possible to derive an advantage from it. What do you imagine Experience Management to be like in practice?

Common practical examples include, for instance, the measurement of customer satisfaction in the B2C sector. Everyone knows it to be true from personal experience: These days, the majority of transactions take place online, and regardless of what goods or services were purchased the transaction is followed by the question – as asked by the retailer to the customer – of the extent to which they were satisfied with the shopping experience in the online shop, with the shipping service, and ultimately with the product that they purchased. A rating scale is then presented to the customer for their evaluation. The customer can assign between one and five stars, for instance. The result then flows back into a collection container for all of the ratings, which is displayed in both the operator’s online shop and external marketplaces. Depending on the method used, an evaluation of a product or an evaluation of the online shop can be obtained in this way. If the latter is the case, the operator can also deduce the “brand experience” of his or her online shop from this data. At the same time, this helps potential customers to assess the trustworthiness, etc. of a service provider previously unknown to them. And so the Experience Management begins. The big US companies in particular, such as Amazon or Apple, see themselves as being Experience companies. Experience Management has been used in the USA for quite some time.

The next step: Experience Management combines X/O-data

The B2B sector is now going one step further. In this respect, Experience Data (X-data) is now being linked with operational data (O-data). The latter include, for instance, production costs, accounting and turnover data, etc. – and could be supplemented by any other operational data. The objective is to gain as complete a picture as possible of the customer journey and to find out what the customer thinks of the experience layered with company data. Formulated a little more clearly, perhaps: What does a company have, when, under what conditions and with which resources it produces (O-data), and how did this product reach the customers (X-data). These data are then put in context and one hopes to gain valuable insights. The goal is to become more agile in the market and to exploit competitive advantages in this way.


Read also the Newsoom article “The future of digitization lies in Experience Management” by CEO Dieter Weißhaar.

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