CX Industry Glossary

Make sense of the Customer Experience industry with our handy glossary of the terms, acronyms, jargon and buzz words in common use.

A

AI (Artificial Intelligence):  Advanced computer systems capable of performing tasks that usually require human intelligence, enabling automation and decision-making processes.

Action Planning: A structured approach to defining steps required to achieve specific outcomes, such as customer satisfaction targets, including timelines and responsible parties.

A/B Testing: A method comparing two versions of a webpage, app, or service to identify which one performs better in terms of customer engagement and conversion rates.

Actionable Insights: Data-driven conclusions that can be directly applied to improve processes, products, or customer interactions, often derived from customer feedback and analytics.

Awareness Stage: The initial phase of the customer journey where potential customers first become aware of a brand, product, or service.

B

B2B (Business-to-Business): Businesses that provide products or services directly to other businesses rather than consumers.

B2C (Business-to-Consumer): Businesses that sell products or services directly to consumers.

Big Data: Large volumes of data analysed to uncover trends and customer behaviours.

Brand Experience: The totality of interactions through which customers form emotional connections with a brand, influenced by various marketing conditions set by the company.

Brand Loyalty: The tendency of customers to consistently choose a brand over competitors, influenced by positive customer experiences.

C

Closing the Loop: A set of processes to gather customer feedback, analyse the data, implement improvements, and communicate back to customers about the changes made.

Customer Centricity: The degree to which an organisation focuses on understanding and meeting the needs of its customers.

Customer Experience (CX): The entirety of customer interactions and the resulting outcome from those engagements with an organisation, measurable through various methods across channels.

Customer Experience Management (CXM): An organisation’s efforts to enhance customer experience through strategic actions and changes, often evaluated using a maturity model.

Customer Satisfaction (CSAT or C-Sat): A widely used metric reflecting how a company’s products or services meet customer expectations, typically measured through surveys.

Customer Journey: The complete path customers take through various interactions with a brand, from initial awareness to post-purchase evaluations.

Customer Journey Map (CJM): A visual representation detailing customer touchpoints while interacting or purchasing, aimed at identifying and resolving areas of frustration.

Chat Bot: An automated chat system allowing customers to interact with an organisation without the need for human involvement.

CRM (Customer Relationship Management): Systems that record and manage customer information and interactions to enhance relationships, exemplified by platforms like Salesforce.

Customer Analytics: The practice of analysing customer feedback, often from Voice of Customer surveys, to derive insights aimed at improving experiences.

Customer Loyalty: The degree of a customer's commitment to continue doing business with a particular company, often influenced by their overall experience.

Customer Service: Refers to the assistance or support provided to customers during their interactions with a company, traditionally focused on direct service but evolving into broader customer experience management.

Claimed Wait Time: The amount of time a customer believes they waited for a service, synonymous with perceived wait time.

D

Data-Driven Insights: Conclusions based on analysing customer data that inform improvements to customer experience.

Digital Experience: All customer interactions with a brand through digital channels, such as websites, social media, and mobile apps.

Delightful Experience: A customer experience that far exceeds expectations and fosters emotional bonds, leading to stronger customer loyalty.

E

Employee Experience: The overall feelings and perceptions of employees towards their workplace, which can impact customer experience. Often assessed through surveys similar to Voice of Customer programmes.

Ease: A measure of how easy customers find it to engage with an organisation, often evaluated through survey questions.

Effort: A metric assessing how difficult or smooth a customer interaction is with an organisation.

Experience Management (XM): The systematic management of customer experiences to enhance satisfaction, typically evaluated through maturity models.

F

Feedback: Responses customers provide following their experiences, often collected through Voice of Customer surveys to inform improvements.

FinTech: Companies that offer financial services, leveraging advanced technology, websites, or apps.

First Contact Resolution (FCR): A metric measuring the percentage of customer issues resolved on the first point of contact.

G

Gatekeeping: The process restricting access to information or services, especially relevant in customer service contexts.

H

Holistic Customer Experience: An approach considering the full customer journey and all brand touchpoints to ensure seamless and integrated experiences.

I

Inner Loop: The space in which improvements are made at the store or operational level, often focusing on immediate changes and enhancements.

Insight: Understanding gained from data analysis that reveals trends, behaviours, and customer preferences.

IVR (Interactive Voice Response): An automated phone system allowing customers to navigate through voice prompts and select options for assistance.

J

Journey: A timeline marking all touchpoints a customer experiences with an organisation while purchasing a product or service.

Journey Mapping: The process of creating a visual representation of the customer experience, detailing all interactions with a brand.

K

KPI (Key Performance Indicator): A measurable value used to gauge the success of an organisation or department in achieving its objectives.

L

Lifecycle: The stages a customer goes through while engaging with a brand, including pre-purchase research and post-purchase evaluation.

Lasting Impressions: Long-term perceptions formed by customers based on their interactions, critical for brand loyalty.

M

Machine Learning: A subset of AI that enables systems to learn and improve their performance based on data without human intervention.

Metrics: Measurements derived from customer feedback or performance data, often referred to as KPIs in customer experience contexts.

Moment of Truth: Key touchpoints in a customer’s journey where critical interactions can significantly influence their perception of the brand.

Maturity Model: A framework that assesses an organisation’s capability and maturity in managing customer experience.

N

Net Promoter Score (NPS): A key metric gauging customer loyalty and likelihood to recommend a brand, calculated based on customer responses to survey questions.

Needs Assessment: Understanding customer expectations to tailor products, services, and experiences effectively.

O

Omni-Channel: A strategy where multiple channels and touchpoints are integrated to deliver a consistent and seamless customer experience.

Onboarding: The process of integrating new customers into a product or service, aimed at enhancing adoption and satisfaction.

Outer Loop: The area where longer-term, company-wide improvements are developed and implemented across an organisation.

P

Personalisation: Customising products, services, or interactions to meet individual customer needs and preferences.

Perceived Wait Time: The amount of time customers believe they waited for a service, also referred to as claimed wait time.

Predictive Analytics: Analysing data to forecast future customer behaviours or trends.

Q

Qualitative Research: Research methods focusing on understanding customer sentiments and motivations through non-numerical data.

Quantitative Research: Research methods aimed at gathering numerical data to evaluate trends and measure satisfaction levels.

R

Retention: The act of keeping existing customers engaged and satisfied with a brand, contributing to long-term loyalty.

Retention Rate: A metric that measures the percentage of customers retained over a specified period.

Responsive Design: A design approach ensuring that digital content is accessible and user-friendly on various devices and screen sizes.

S

Segmentation: The process of categorising a customer base into distinct groups to enable more targeted marketing and customer engagement strategies.

Sentiment Polarity: A metric derived from analysing customer feedback, indicating overall customer sentiment towards a brand.

Service Recovery: Processes aimed at resolving service failures to restore customer satisfaction and loyalty.

Social Listening: Monitoring online conversations and mentions of a brand to understand public perception and customer sentiments.

Social Proof: The influence that customer behaviour and reviews have on potential customers’ purchasing decisions.

Satisfaction Survey: A collection of questions aimed at gauging customer satisfaction with products, services, or overall experience.

T

Text Analysis: A method of analysing customer-generated text data to uncover insights, sentiments, and trends.

Top Box: A method of scoring customer responses based on the highest rating selected in a survey (e.g., 5 in a scale of 1-5).

Touchpoint: Any point where a customer interacts with an organisation, whether online, in-app, via phone, or in person.

Trust Factor: The level of confidence and credibility that customers associate with a brand.

U

User Experience (UX): The overall set of interactions and experiences users have with a product or service, including usability and accessibility aspects.

User Interface (UI): The visual and interactive elements of a product through which users engage.

V

Value Proposition: A statement that clearly outlines the unique benefits and advantages of a product or service to the customer.

Voice Analytics: Systems that analyse live or recorded human speech to derive metrics such as sentiment and engagement levels.

Voice of Customer (VoC): A feedback mechanism where customers provide insights about their experiences and interactions with a brand, often via surveys.

W

Wait Time: The actual amount of time a customer perceives they waited for a service; often referred to as perceived wait time.

Wait Time Acceptability: On a sliding scale, the level to which the waiting time experienced by a customer is considered acceptable.

Winning Moment: A significant interaction that greatly enhances the customer’s impression of a brand, leading to potential loyalty.

Z

Zero Moment of Truth (ZMOT): The point in the customer journey where potential customers research and gather information about a product or service before making a decision.