What’s the difference between CRM and CXM?
CXM is often confused with customer relationship management, or CRM, due to the similarity that they have in some basic functionality. While there is some overlap, CXM isn’t a mere renaming of traditional CRM. CXM takes the next step in managing customer relationships. Where CRM mostly deals with optimising the internal processes of a business, CXM offers an even more customer-centric approach in several ways—with new technologies, as well as processes, strategies, and customer-centric design.
CXM differs from traditional CRM in the technology itself—with added benefits and capabilities for building customer relationships. While CRMs gather data through manual or batch entry, a true CXM will enable a real-time flow of data to offer deeper insights into customer preferences and behaviour.
The CXM mindset also goes beyond a traditional CRM in its strategy and processes. A company who wants to become more customer-centric uses CXM to put processes in place to track, oversee, and orchestrate interactions and engagements with customers.
Because CXM is both a set of technologies and a set of processes, and data doesn’t get siloed, CXM allows you to deliver a true cross-channel customer experience.
Provides quantitative insights, relying on relatively impersonal data analysis and looking at customers in terms of statistics, data, and trends.
Focuses on operational business improvements to drive profitability.
Improves customer service via different integrations across channels.
Provides qualitative insights, unifying relationship data across the full customer lifecycle and prioritising customer experiences.
Focuses on customer engagement to drive profitability.
Anticipates and responds faster to customer needs and uses AI and applied CRM data for real-time impact on customer experience.