Customer experience management and customer relationship management are important models in driving business growth. This is because they both address customer and business expectations to enhance sales while maintaining customer satisfaction.
Nonetheless, there is a thin difference between the two that business owners need to understand, as articulated in this handy guide.
What is customer experience management (CEM)?
CEM is a customer-oriented model designated to cater to all customers’ concerns in a series of interactions. The main aim is to heighten the company’s brand and ensure customers are content with what a business offers.
Customer experience management stretches to cover all possible touchpoints to create personalised experiences in every business stage. It mainly involves collecting customer’s feedback, engaging customers, and evaluating their behaviours.
By doing so, CEM allows you to understand your customers and enhance customer experiences.
What is customer relationship management (CRM)?
CRM is a business-centric model that focuses on managing customer relations to increase sales while maintaining customer satisfaction. Customer relationship management utilises data and sales interactions to gather insights that will boost organisational goals.
These systems work using various software that collects customer information like contact details and purchase history. CRM then stores and analyses this data to enhance client retention, satisfaction, and sales boost.
Differences between CEM and CRM
CEM and CRM are proactive business tools that cater to customer experiences and organisational goals, respectively. Here is an overview of the key differences between the two:
- CEM is an entire customer’s journey model while CRM focuses on immediate results.
- CEM aligns with customer concerns and experiences. CRM is designated to achieving business goals.
- CEM is a comprehensive model as it integrates various tools compared to CRM.
- CRM maximises on customer data and insights while CEM operates using feedback and sentiments
Focus and scope
As stated earlier, CEM is a long term approach that focuses on the entire customer’s journey. Its main aim is to understand and address customer concerns to improve the company’s brand.
A successful customer experience management enhances customer satisfaction, loyalty, and positive experiences. On the other hand, CRM is relatively a short term business tool focusing on pushing business goals to a higher tier.
It operates by managing customer relationships and interactions to heighten sales growth. In addition, CRM creates personalised relationships on every client to boost retention and referrals.
Customer data
Both systems rely on customer data but have unique approaches on deriving results. This is because CEM collects customer data and utilises it to address their needs and expectations. However, CRM uses customer data to improve company to customer relationships.
Customer experience management dwells on the entire customer journey by tracking every purchase stage. Customer relationship management is aimed at immediate results by increasing sales conversions using current data and insights.
Different objectives
While both CRM and CEM cater to both business goals and customer concerns, there are certain notable distinct objectives worth noting. This is because CEM addresses all customer concerns ranging from pre purchase to post purchase.
On the other hand, CRM is an immediate business approach that works to ensure businesses meet their objectives.
How CEM and CRM work together
These systems present remarkable results to both business and customer goals and relationships. Combining CEM and CRM effectively enhances all-in-one business/customer development. Here are similarities between the two models:
- Both require customer data to excel.
- Customer interactions are essential in both CEM and CRM.
- They are aimed at improving business proceeds as well as customer experiences and relationships.
- CRM and CEM depend on feedback and analytics to enhance customer experiences.
Customer data integration
CEM deploys a wide array of customer data tools to achieve customer analytics, feedback, and experiences. A CRM manages customer data to boost sales and marketing results. Integrating these systems ensures a business maximises on collected data to drive sales growth and boost customer relationships.
Customer journey mapping
CEM is a comprehensive approach covering the entire customer experience journey by addressing all possible touchpoints. CRM tackles specific business to customer relationships to boost sales and improve interactions.
CRM automates the journey map of each customer achieved using CEM to present immediate results at every business stage. Customer relationship management data and insights combined with customer experience management enables businesses to understand individual customer’s expectations.
Customer feedback and sentiment analysis
Customer feedback is a key aspect in CEM systems as it helps businesses understand customer’s sentiments about an organisation’s brand. On the other hand, CRM interactions enlighten organisations on the customer’s perspective about their products and services.
Analysing results from both CEM and CRM ensures everyone receives personalised experiences and purchase options. Additionally, feedback analysis is imperative in client satisfaction, customer retention, and gaining referrals.
Conclusion
CEM and CRM are top-tier business tools that cater to both business goals and customer relationships. However, each tool has a distinct approach which is worth noting among business owners.
CEM is a customer-oriented tool designated to track the entire customer’s journey; before and after a purchase. On the other hand, CRM has a business-centric approach aimed at automating sales to enable business growth.
Customer relationship management utilises business to customer relations while customer experience management dwells on customer feedback and sentiment analysis in every step.