Abstract
PurposeCustomer experience management (CXM) and Innovation are two important capabilities on which businesses compete today. However, research to date has not empirically investigated their potential symbiotic relationship. Specifically, does better CXM improve innovation; similarly, does better innovation improve CXM? As a starting point, our research focuses on the former: how does effective CXM correlate with innovation success?Design/methodology/approachData was collected by querying marketing managers from 251 goods and services firms involved in CX design and implementation. Managers answered questions related to their innovation efforts, customer experience management initiatives, and innovation outcomes. Cluster analysis was used to identify a taxonomy of CXM approaches contingent upon environmental factors (market turbulence, competitive intensity, and technological turbulence).FindingsOur research found that higher levels of CXM engagement result in greater innovation success – i.e. higher success rates, revenues, and profits from new products or services. In addition, we find that there are three distinct approaches to CXM: (1) Extensive CXM approach (43% of firms in our sample); (2) Moderate CXM approach (39%); and (3) Limited CXM approach (18%). Firms with an extensive CXM approach operate in intensely competitive environments that are characterized by very high technological turbulence. Firms that employ a limited CXM approach operate in environments with the lowest levels of competitive intensity and technological change. Market turbulence did not factor into the choice of CXM approach.Originality/valueTo our knowledge, our study is the first to provide empirical evidence that firms adopt different CXM approaches. Further, we identify factors external to the firm that are considered when selecting these CXM approaches; namely, market turbulence, competitive intensity, and technological turbulence. Finally, our findings related to CXM approaches and innovation success indicate that managers should make investments in CXM to help improve innovation.