The Difference between Customer Experience Management (CEM or CXM) and Customer Relationship Management (CRM)…Is There One?

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Perceptions about Customer Experience Management (CEM or CXM) are similar to that of Customer Relationship Management (CRM) mainly because CRM was created to enhance the customer experience. And really, do we need to add another acronym to the software mix? Since the market insists and CEM or CXM solutions are starting to pop up, here’s a quick look into the differences and similarities of CEM/CXM compared to CRM.

  • CRM Takes a Technical, Yet Effective Approach: CRM ultimately addresses and improves the customer experience, but through technical and operational means. For example, if you take a look at what CRM does, it focuses on managing a customer platform or enabling response tools to help do so. It’s technical to improve the effectiveness of customer service, sales, and marketing teams so they gain the insight they need.
  • The New Kid in Town: CEM or CXM relates to the overall customer experience. It’s slightly different from CRM, but not by much. It takes a broad analytical approach versus looking at detailed opportunities and activities. The functionality is beneficial for management positions so they can create a complete strategy, but CRM has more functionality at the operational level for sales and marketing teams. And with new intuitive dashboard and KPI views in Microsoft Dynamics® CRM, CRM also covers the analytical approach that helps create effective strategies.

It’s important to compare these options in relation to your business, but keep in mind that CRM has been around longer and the solutions, such as Microsoft Dynamics CRM have gone through a number of evolutions helping companies manage their customer relationships and improve their bottom lines. For more information about Microsoft Dynamics CRM, please contact us at Sikich.

 By Jim Drumm with Sikich, Microsoft Dynamics CRM partner serving IL and MO


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