3.01 CRM & CEM

Customer experience management (CEM) is a relatively new business concept that is gaining widespread acceptance in many organizations. Some businesses view CEM as a replacement for customer relationship management, while others view it as part of an overall CRM plan. Customer experience management includes the strategies, processes, and policies a business uses to meet or exceed customer expectations and to provide customers with outstanding experiences at every touch point. Another main goal of CEM is creating customer advocacy—word-of-mouth promotion and referrals to other potential customers.

As you can see, the goals of CEM and CRM are similar. The main difference between CEM and traditional CRM, then, is in perspective. CRM tends to look inward. Its focus is on the business itself—its goals, its strategies, its internal processes, etc. CRM asks, “How can we track and organize customer information and use it to our best advantage?” CEM, on the other hand, looks outward. Its focus is on customer needs and wants (also known as a customer-centric focus), asking, “How can we create the best possible experience for customers when they interact with our business?” At each touch point, an interaction takes place. CRM uses touch points to learn something valuable about the customer; CEM uses touch points to allow the customer to learn something valuable about the company. (You can find further insight into the similarities and differences between CRM and CEM in Natasha Cloete’s article “CRM vs. CEM: Two Sides of One Coin Links to an external site..”