In this blog, you will get an insight into CXM vs CRM and features of customer experience management.
CXM & CRM
Why the new CXM lustre?
CXM vs CRM
CXM vs CRM – Traditionally, CRM has been around for more than 2 decades and has been concerned with making strategy, systems, and processes of a business aligned towards better customer satisfaction. The focus has been from outside to inwards. It has essentially been a system that has enabled software to gather customer data, store and manage it transparently and unambiguously across software tools that augment sales, marketing, customer support, and e-commerce.
CRM brings in all systems and processes of an organization to provide a framework for a strong and robust customer recording system. However, it does fall short when it comes to leveraging a bigger and better approach that engages multi-channel strategy for customer engagement. CRM focuses primarily on technology, data alignment and policy.
Of late, there has been a paradigm shift in thinking. Business models are now working inside out, with a customer-centric approach that focuses on building systems and processes within the organization, keeping in mind the end satisfaction of customers. This takes the ball out of the court of the seller and places it firmly in the buyer’s court. Here is where CXM comes into play.
Features of customer experience management, as the name suggests, is about a holistic combination of user experiences across single as well as multiple transactions via all the possible channels between a customer and a supplier for the entire duration of their engagement and relationship. In this way, it has evolved from the traditional CRM experience. In fact, CXM delivers capabilities such as actual customer analysis across a spectrum of options. It has the ability to formulate, execute, and enhance marketability, target -campaigns, strategies, and planning activities of a business to improve customer engagements.
The value-adds of CXM
The CXM definition is evolving and is yet nascent. However, a few key ingredients stay on the platter, as the building blocks of the whole concept. While the world is talking about moving to CXM, businesses must understand these well before taking a decision for transition to CXM:
- CXM shifts the centre of focus from technology-enabled software tools to handle customers to actually enabling technology to stand behind a holistic customer-centric strategy. The aim is, of course, to render personalized and superlative experiences and engagements across all touch points of a customer and the business.
- CXM is not only about capturing but also about applying the customer information at the right time and place, for an enhanced customer experience consistently.
- Features of customer experience management is more qualitative than quantitative. It aims at delighting the customer and is thus more subjective. Having said that, CXM does entail measurable actions towards specific business goals.
- Since features of customer experience management leverages multiple methods to reach out to customers such as via live chats, email or voice, mobile, virtual agents, SMS alerts and the like, it has a bigger playing field than CRM.
- CXM is often the hand that completes the customer’s journey path, armed with the blend of customer knowledge across all possible service delivery channels and devices for a seamless experience.
CXM ad CRM : From the same seed
CXM vs CRM
While CXM vs CRM are two different terms, in reality, they bring out the same outcomes. They align business’ product and services to cater to the expectations and ask of the customers. All the functions within the business can interact seamlessly and information can flow across all systems via smooth transition interfaces. In CRM, it is done by encouraging transparency and consistency in customer interactions, capturing data from the customers in the form of feedback, for example, and centralizing this information.
In CXM, the same is achieved by mapping every possible customer touch points, examining in detail the associated interaction and finally, by ensuring that these are aligned with customer expectations. This results in increased value to the end user.
Make way for the new?
Both work in tandem and it is really not fair to claim that one can replace the other. CXM definitely has a bigger kitty in its ambit as it leaves no stones unturned to proactively reach out to the concerns of the customer. Thus, it deals with customer relationships in more depth. Although features of customer experience management seems to be driving the customer-centric approach for business, yet CRM cannot be made to simply vanish. CRM seems to be the carrier of the CXM strategy in today’s times. It is CRM that has been giving a personal touch and a sound ear to address the concerns and problems of customers till now.
Thus, the hand-in-glove combination of CXM and CRM is the one that is the best association. Some experts even argue as to why there is a need to demarcate one from the other. CX custom apps for instance are like an extra arm of CRM for better collaboration, communication, and interactive customer relationship sessions. As long as one can ensure that all aspects of CXM are being leveraged for a competitive advantage, the end objective of a differentiated CX has been met.