Advancements in technology over the last five years has brought to market a variety of tools to connect with customers. The ease with which business owners can connect with their customers before, during, and after the sales process has never been easier or more convenient. Along with that advancement in technology has come an expectation that business owners understand and respond to their customers. Creating connections with customers involves two important ideas: Customer Relationship Management (CRM) and Customer Experience Management (CXM). In this three-part series we will cover the difference between CRM and CXM and how you can use each to your advantage to deepen your customer connection, increase customer retention, and reduce customer churn.
Customer Relationship Management is an intentional effort to understand your customers across multiple areas and variables, as well as manage customer interactions. CRM relies heavily on data analysis and impacts all segments of your business operations. Whether you sell widgets or software as a service, utilizing CRM can help you develop a deeper sense of your customer base and how you can reach future customers. Skillfully executing CRM takes powerful tools than can centralize interactions and various segments of the business have with customers. There are several industry leading providers of CRM software that can centralize your work. Your efforts with CRM will focus on quantitative data and provide a 360-view of your customers and where you connect with them.
Customer Experience Management is an engaging effort to make working with your business a personal experience for your customers. This personal experience is achieved through a deeper connection to your customers through understanding their experiences with your business. To make CXM effective, your business needs to be aware of customer touch points, pain points, and the customer journey. An important aspect of CXM is a qualitative analysis of what your customers experience while engaging with your organization. The challenge of CXM is to gain a perspective from the position of your customer, not what you think your customers are experiencing. Like CRM, there are powerful industry tools that help you gain this knowledge quickly and efficiently.
The major differences between CRM and CXM is their use of data methodology and customer focus. CRM is heavily focused on quantitative data that can be compiled and segmented giving a snapshot of the customer base. This is a 360-degree view of your customers any time. On the other hand, CXM uses a qualitative approach that seeks to understand your customers experiences with your organization’s products, services, and people. This personalized approach can help you build a stronger and long-lasting relationship with customers.