CEM Vs CRM : Striving for Brand's Online Success in 2024

Editor’s Note: This post was originally published in Jan 2023 and was updated in Jan 2024 for accuracy and comprehensiveness.

Customer Experience Management vs Customer Relationship Management differs by customer-focused approach, buying behaviour insights, comprehensive tools and platforms to help companies manage customer relationships.

Customer experience management (CEM) is the process of managing and improving the customer experience at every touchpoint in the customer journey and creating a positive and seamless customer experience that builds customer loyalty and satisfaction.

Customer relationship management (CRM) is a business strategy that focuses on building and maintaining strong relationships with customers. The goal of CRM is to improve customer satisfaction and loyalty, leading to increased business and profits.

A CEM system includes gathering and analysing customer feedback, identifying areas for improvement, and implementing changes to the customer experience. Whereas, a CRM system is used to manage customer interactions and data throughout the customer lifecycle, with the purpose of improving business relationships with customers, assisting in customer retention and driving sales growth. This article talks about customer relationship management vs customer experience management and how CEM is beneficial to the business.
 

A CEM vs CRM Comparison: What Are CEM and CRM Solutions?

A CEM (customer experience management) solution is a software system that helps businesses manage and improve the customer experience at every touchpoint in the customer journey. The goal of a CEM solution is to create a positive and seamless customer experience that builds customer loyalty and satisfaction.

A CEM solution typically includes tools for gathering and analysing customer feedback, identifying areas for improvement in the customer experience, and implementing changes to the customer experience. It can be used by businesses of all sizes and in a variety of industries.

A CRM (customer relationship management) solution is a software system that helps businesses manage customer interactions and data throughout the customer lifecycle. The goal of a CRM solution is to improve business relationships with customers, assist in customer retention, and drive sales growth.

A CRM solution typically includes a database of customer information and interactions, tools for managing and analysing customer interactions and data, and various applications to support customer-facing activities such as sales, marketing, and customer service. It can be used by businesses of all sizes and in a variety of industries.
 

Customer Experience Management Vs Customer Relationship Management : What Are the Key Differences

The main difference between CEM (customer experience management) and CRM (customer relationship management) is the focus of each strategy. CRM is focused on managing and improving business relationships with customers, while CEM is focused on managing and improving the customer experience.

While CRM and CEM are related, they have some key differences:

- Focus

As mentioned, the main difference is the focus of each strategy. CRM is focused on managing customer interactions and data to improve business relationships, while CEM is focused on managing the customer experience to improve customer satisfaction and loyalty.

- Scope

CRM is typically concerned with managing customer interactions and data throughout the customer lifecycle, from initial contact through purchase and post-sales support. CEM, on the other hand, is focused specifically on the customer experience and covers all touchpoints in the customer journey.

- Tools and Techniques

CRM typically involves the use of a CRM system and may include tools such as contact management, lead management, and sales forecasting. CEM involves the use of tools such as customer feedback tools, customer analytics, journey mapping, and personalization.

Despite these differences, CRM and CEM often overlap and work together to improve customer relationships and the customer experience. A business that effectively manages both CRM and CEM is likely to have strong, loyal customer relationships and a positive reputation.

Customer Experience Management Vs Customer Relationship Management : Key Objectives

When it comes to understanding customer interactions, it's important to distinguish between CRM vs CEM. CRM, or Customer Relationship Management, and CEM, or Customer Experience Management, are two related but distinct concepts. CRM primarily deals with managing customer data and improving business processes, while CEM focuses on creating positive experiences for customers and building long-term loyalty.

Some common objectives of CEM vs CRM include:

1. Increase Customer Satisfaction

One of the main goals of CEM and CRM is to improve customer satisfaction by delivering high-quality products and services that meet or exceed customer expectations.

2. Enhance Customer Loyalty

Both CEM and CRM aim to increase customer loyalty by building long-term relationships with customers and providing them with a consistently positive experience.

3. Improve Customer Retention

Another key objective of CEM and CRM is to reduce customer churn and improve customer retention by ensuring that customers are satisfied with their experience and feel valued by the company.

4. Increase Customer Advocacy

CEM and CRM can also help businesses increase customer advocacy, or the willingness of customers to recommend the business to others, by providing a positive and memorable experience.

5. Increase Revenue

Ultimately, CEM and CRM are designed to help businesses increase revenue by improving customer satisfaction, loyalty, and retention, which can lead to increased sales and customer lifetime value.

6. Improve Efficiency

CRM can also help businesses improve their internal processes and efficiency by providing a centralised system for storing and organising customer data and interactions.

Customer Experience Management Vs Customer Relationship Management : Examples for Better Understanding

Examples of CEM

1. Customer Feedback Tools

Surveys, ratings and reviews, and other methods for gathering customer feedback

2. Customer Analytics

Tools for analysing customer data and identifying trends and areas for improvement

3. Journey Mapping

Tools for visualising and analysing the customer journey, including touchpoints and pain points

4. Personalization

Tools for personalised experiences, such as personalised emails or recommendations

5. Omnichannel Support

Tools for providing a seamless experience across multiple channels, such as web, mobile, and in-store

6. Customer Engagement

Tools for engaging with customers and building relationships, such as social media integration and chatbots

Examples of CRM

1. Contact Management

A database of customer and prospect contact information

2. Lead Management

Tools for tracking and managing leads

3. Sales Forecasting

Tools for forecasting and tracking sales

4. Marketing Automation

Tools for automating marketing tasks such as email campaigns and social media posts

5. Customer Service and Support

Tools for managing customer service inquiries and complaints

6. Mobile Access

Mobile apps or responsive web design for accessing the CRM system on the go

Customer Experience Management vs Customer Relationship Management are two closely related approaches to managing customer expectations and driving improved business performance. At its core, CRM involves shifting the focus from product- and transaction-oriented interactions to a more holistic view of the customer’s experience with your organisation during all phases of their engagement.

Integrating CEM and CRM

Now that we are aware of the goals and functions of CEM and CRM separately, let's look at how to logically integrate the two in order to maximise the use of your customer data and excel at customer experience. The combination of CRM vs CEM is essential for creating amazing experiences. Both CEM and CRM have the same goals of providing a better understanding of behaviour by using precise data, bolstering and expanding existing customer ties, promoting customer loyalty to increase sales and development, and making consumer and vendor contact as easy and pleasant as possible.

To reiterate, CEM and CRM both have the following goals:

– By using precise data, provide a better understanding of behaviour.

– Bolster and expand existing customer ties

– Promote customer loyalty to increase sales and development

In essence, both customer relationship management vs customer experience management want the consumer and vendor contact to be as effective and efficient as possible. A CEM system manages the customer's side, while a CRM system concentrates on managing the process from the standpoint of the employee. The combination of customer relationship management vs customer experience management is essential for creating amazing experiences. An integrated picture of a company's strengths and performance is produced by integrating the brand perspective of customer view of brand (CEM) and customers (CRM).

How Is CEM Beneficial for Your Business

Customer experience management (CEM) is a powerful strategy beneficial to businesses looking to create an exceptional customer journey.

By utilising CEM vs CRM, businesses can gain valuable insights from their customers' actions and behaviours. With these insights, companies can refine their products and services according to customer preferences, implement cross-channel strategies that drive customer loyalty, and develop personalised offers designed around individual needs.  

Additionally, CEM helps identify areas of improvement and allows for enhanced segmentation; helping businesses better understand their target markets.

When used properly, CEM should be considered an invaluable tool in any business's arsenal as it provides the data needed to create more meaningful relationships with customers while improving operational efficiency and increasing ROI.

Lastly, when it comes to customer engagement, the debate of Customer Relationship Management vs Customer Experience Management is often put to an end with the conclusion that CEM is more beneficial than CRM vs CEM allows organisations to approach customer engagement from a holistic point of view and monitor every touchpoint customers have with the business.
 

What Are the Benefits of a Good Customer Experience for Your Business

Happy customers are the result of excellent customer service. More recurring business and consumer advocates result from contented customers, which boosts sales for your business. 

While customer experience and customer relationship goals are different, there are certain commonalities between the two that help your customers be delighted.

You must :

 – Utilise cloud technology to streamline your workflow.
 – Create a customer journey map.
 – Support client relationships. 
 – The staff should be included while creating customer experience.

If you have in mind these five points, your business will undoubtedly be a client favourite!
 

Frequently Asked Questions (FAQs)

1. How are customer experience management and customer relationship management similar?

Customer experience management (CEM) and customer relationship management (CRM) are similar as they both focus on improving the customer experience. However, while CRM focuses specifically on managing and analysing customer interactions and data to improve customer relationships, CEM is a broader approach that encompasses all aspects of the customer experience, including interactions with the brand, product or service quality, and emotional connections.

2. What is the difference between customer experience and customer relationship?

Customer relationship management vs customer experience management are two different approaches to managing interactions with customers.

Customer experience (CX) refers to the overall experience a customer has with a company, brand, or product. It encompasses all touchpoints and interactions, including the quality of the product or service, customer service interactions and emotional connections with the brand. 

On the other hand, customer relationship (CR) refers to the ongoing relationship between a customer and a company, and focuses on managing and improving interactions between the customer and the company, with the goal of fostering loyalty and retention.

3. What are the two types of customer relationship management?

The two types of customer relationship management (CRM) are operational CRM and analytical CRM.

Operational CRM involves managing customer interactions and automating processes, such as sales automation, marketing automation, and customer service automation.

Analytical CRM involves analysing customer data to gain insights and improve customer relationships, such as by segmenting customers based on their needs and preferences or predicting customer behaviour.

4. What are the key differences between today's CRM and the early generation of CRMs?

Today's CRM systems have evolved to be more comprehensive and integrated than early-generation CRMs. Additionally, today's CRMs are often cloud-based and more flexible, allowing for easier customization and scalability. Early-generation CRMs were often standalone applications that only focused on one aspect of customer relationship management, such as sales automation.
 

Conclusion

In the above article we mentioned the differences of customer experience management vs customer relationship management. When it comes to choosing between CEM and CRM, the ideal solution is one that depends on a company’s needs. CEM offers a customer-focused approach that can provide insights into customers’ buying behaviour, enabling businesses to design effective market strategies. CRM solutions, however, provide comprehensive tools and platforms to help companies manage customer relationships and generate leads over time. As such, businesses need to evaluate which system best meets their individualised needs in order to determine which is the better option for them.
 

Take Advantage of Sekel Tech’s Customer Experience Management Services

If you are comparing CEM vs CRM, Sekel Tech's services can be a valuable resource for enterprises looking to gain insights into their customers' behaviour and enhance their user experience. With analytics-based insights and intuitive dashboards, organisations can easily evaluate key performance indicators in real time and develop strategies for further improving customer engagement. Additionally, Sekel Tech offers best practices for quickly integrating and automating software, making it a valuable resource for businesses seeking to optimise their interactions and boost their marketing ROI. Take advantage of Sekel's comprehensive range of services to improve your customer experience today!