Many people think that CRM and CEM are the same thing. However, they do not have the same meaning. In this article, we'll talk about what distinguishes them from one another and how to use each effectively in marketing campaigns.
CEM is a technology-focused service that allows you to manage customer interactions and automate business processes across channels such as email, phone calls, chatbots, SMS messaging apps like Whatsapp or Facebook Messenger.
CRM stands for 'customer relationship management', which means it's an application used by marketers to help them maintain relationships with their customers (or prospects).
This could be through things like email newsletters or social media updates - any way of staying top of mind with your audience.
Finding the right mix of CRM and CEM is an important piece of the puzzle for keeping your customers happy, but it’s also crucial to understand the difference between the two concepts.
Here’s what you need to know about CRM and CEM and how to leverage your business growth by providing an exemplary customer experience.
What is CRM?
Customer Relationship Management (CRM) refers to a business strategy designed to improve revenues, increase profits, reduce costs, and enhance customer loyalty.
CRM is not just about applying technology but an approach to understanding the customers' needs to increase responsiveness towards their needs.
Though initially started as a relationship management strategy, over the years, CRM has become more popular in pipeline management for foreseeing and directing sales in the future at various stages.
CRM managers now use the platform to accurately predict future revenues, analyse the sales process, and be alert about forthcoming sales growth or slump.
Main Objectives of CRM:
A CRM system provides businesses and professionals with a scope to improve their marketing with segmentation tools, campaign management, tracking response and intuitive analytics.
This ultimately results in lead generation and an increased pipeline, which is a great help to the sales representatives. In addition, with a CRM solution, you can work on strategies and rethink your tactics of what works best for your business.
Win More Sales Deals
CRM solutions nowadays help build a consumer history that eventually increases productivity in sales. In a single platform, deal information is updated, competitors are tracked, and quotes are created.
This makes it easier for the sales team to forecast and plan activities like upselling, renewal of contracts, etc. In addition, by automating workflow and removing the tedious administration works, CRM is more focused on closing relevant deals as fast as possible.
Better Customer Support
A CRM system empowers businesses by streamlining the workflow, enhancing knowledge sharing and thus improving account management.
These advantages help improve the quality of your services without exceeding the budget for expenses.
In addition, when customers see that sales representatives are equipped with all the necessary information (customer history) to resolve their issues, they would be happy with the service, and businesses can achieve lifetime customers.
In the end, the focus of CRM is generating sales and more revenue, with 90% of organizations using it for the same.
What is CEM?
Customer Experience Management (CEM) is a strategy devised by businesses to keep track of their interaction with all customers.
Every business has different departments that interact with customers in their way. CEM is about overseeing all of these interactions and making improvements accordingly to strengthen the brand-customer relationship.
The main focus of this system lies in bridging the gap between the customer experience you intend to give and the actual customer experience you provide.
Be it through direct feedback, reviews, surveys and other forms of communication, CEM is about gathering all of this experiential data to understand customer viewpoints, optimize their journey and encourage brand loyalty.
Main Objectives of CEM:
Understanding User Behaviour
To provide a better experience, businesses must first understand what customers want and then decide how to provide the same. Next, monitor customer behaviour to see how they interact with your application, observe if they have any problems and then take a proactive approach to provide a solution. Understanding user behaviour is very important for engagement, retention, conversion, lifetime value, and good experience.
A CEM platform uses analytics to collect and decode the data gathered from customers. Merging it with operational data provides a deeper understanding of customer behaviour and what needs to be done to improve.
Interacting With Every Customer
In a Customer Experience Management system, interaction is for every customer and not only those who have a complaint or negative feedback.
Along with that, you can automate responses in specific situations by setting triggers based on user behaviour. For example, the system can alert you to a regular user not using your application for the last 10-12 days or a user not using a particular feature of your app.
You can then take the appropriate engagement actions for each of these users.
CEM platforms can also add a touch of personalization in their engagement process based on their location, activity, visits and other behaviour patterns.
For example, you can send a push notification to a new user with tips about using the application better, inform them about special discounts in case of shopping apps, or give incentives to get referrals.
Listening, Analyzing & Acting On Feedback
Until now, getting feedback remains one of the most integral components of measuring and improving CX management.
Businesses that use tools or platforms that help get feedback from their customers in the real-time stand a better chance to get proper responses.
Moreover, in the digital era, where the millennial population is highly dependent on social media and apps, having a digital presence and gaining feedback from these channels.
What Is The Perfect Customer Experience?
Today’s massive focus on customer experience management has put customer experience in the spotlight as perhaps the most important factor governing customer satisfaction, surpassing other brand-enhancing qualities like low pricing. So how does one create a customer experience? Such is the product of collections of interactions throughout the customer relationship lifecycle.
Contrary to popular belief, customer experience is not limited to customer perception or is anchored on user experience and customer service.
Despite the fact that these things play significant roles in customer experience, they do not make up the whole idea. Customer experience is the sum of all customer engagements with a business or brand, including times before the sale, which directly affect customer relationship outcomes. So what is the perfect customer experience?
To answer such a question would be a difficult undertaking. However, we can provide you with tips on how to come up with the ideal customer experience by following a customer experience management strategy. Here they are:
Set You Customer Experience Standards
To avoid inconsistencies in customer experiences, you must first decide how to define your customer experience.
You can do this by setting your standards. Remember, the experiences and messages you give your clients must be uniform from the pre-purchase phase. This can help you avoid friction with your customers, which may arise from mismanaged expectations.
Analyze Your Clients’ Needs
Not all customers have the same set of needs. Businesses who recognize this fact are known to succeed by acknowledging the fact and personalising customer experience using such needs as the basis.
This is why customer feedback is a very useful tool in shaping the customer experience. Checking on customers also makes them feel relevant and reminds them of their value to your business.
Identify Customer Problems
Let’s say you are already aware of the unique needs of your customers and that you take great care in meeting such needs. This is where you can shift emphasis to problem areas, which can negatively affect customer experience.
You can do this by identifying major paths that your clients take through a customer journey map. Key touch points such as reasons for underperformance, areas of improvement and recurrent issues can also be identified.
Focus On Improving Customer Experience
Being able to provide an excellent customer experience is one thing, maintaining such is another.
Once you are done identifying problem areas, you may now want to focus on the larger concerns. You can identify recurring issues and find ways to address them. Areas of potential improvements can also be determined. All these can be accomplished using customer data.
Implement Measurable Changes
Having identified potential problem areas and gleaned valuable materials, you are now in a position to make changes to your business. However tempting this may be, doing so could do you more harm than good. You are better off planning improvements that are measurable over time.
For example, measuring bounce rates and case deflection rates could lead to an optimized customer knowledge base, which can help make self-service content accessible. Such information could affect improvements in customer experience.
In a nutshell, both CRM and CEM help strengthen customer relationships. However, CRM handles the relationship-building process, whereas CEM’s emphasis is on customer experience monitoring and optimization.
Both platforms have something and everything to do with customer journeys and interactions. Despite their differences, the two systems essentially complement each other, laying the foundation for the other.
Steps For A Successful CRM Implementation
Organize Your Sales Process
Begin by ensuring your business has a well-organized, measurable sales process. That includes having defined steps and key performance indicators for your sales team.
You should know how many times each task needs to be executed to hit your goals. For example, you may need 45 contacts or emails to hit your goal of three sales per month. You should have a good foundation before you even go to CRM.
Also, think about what kind of reporting would be most useful to support your sales efforts. For example, you may want to know the number of new sales by region, conversion rates by-product or the number of contacts made by each salesperson.
Appoint A Project Manager
CRM implementations often fail because no one is in charge. Therefore, it’s important to appoint an organized, digitally savvy person responsible for the system’s configuration, staff training and rollout.
They should be given plenty of time to manage a gradual transition to the new system. “In every portion of the implementation, it’s important to go slow.
Configure the CRM to Match Your Business
Now you’re ready to set up your CRM system. You should configure it to match your sales process, performance indicators and reporting needs. Make sure the system uses the same terminology as your business.
Clean Up Your Data
Don’t upload outdated contact lists full of duplicate information. “We have an expression for that: garbage in, garbage out,” Mason says. “You get out of it what you put into it.” To avoid wasting time, later on, go through your contact lists to make sure information is accurate and complete (including name, contact information, last interaction, etc.)
Test the System on Sample Data
Upload a test sample of 10 contacts to check the system’s functionality and reporting. It’s easier to make adjustments with a small sample of data than your entire contact list.
Train Your Team
You can’t just install CRM and expect salespeople to adopt it without any support. They’ll likely need the training to make the switch from their existing system and get the benefits. It’s not enough to put on a short video. Employees may need a detailed explanation of the system’s advantages, hands-on training and ongoing support as they work out hiccups.
If you don’t spend time and energy on supporting your staff, the reporting will be inaccurate, and the implementation will likely be a fail,.
Launch and Improve
Once your initial testing on the sample data, you’re ready to input your entire contact list. Your CRM implementation manager should then watch how the system is being used and get employee feedback to make any needed tweaks.