The difference and the interaction between CRM and CEM are not truly understood
by firm owners and professional managers. However, before mentioning the differences in
detail we must state the interaction between CRM and CEM. Kiska, is the one who
explains this interaction between CRM and CEM by stating that “CEM is a critical
addition to CRM”(Kiska, 2002). What he means by “addition” is that CEM is a part of
CRM and what he means by “critical”, I believe Lee defined above. Lee expresses that
“the brand is the missing piece of CRM” and adds that ”"If the experience is not branded
than it wouldn’t differentiate” (Lee, 2006).
Seven main differences of CEM and CRM are mentioned in the literature:
1. Who is the learner, what is the material to learn
2. The thing that they examine in the customer
3. The concept they focus on,
4. The time period that they gather and use the data
5. How they gather and use data
6. How they are monitored
7. How they help the company to profit
The first difference between CRM and CEM is that; “CRM captures and distributes
what a company know about the customer while CEM captures and distributes what a
customer thinks about a company” (Meyer & Schwager, 2007). Gurney also frames the
difference from this point of view. He says that “CRM promises: “every time a company
and a customer interact, the company learns something about the customer”. CEM
promises: “every time a company and a customer interact, the customer learns something
about the company”(Gurney, 2002). Here what one should understand is that in CRM the
learner is the company and it learns about the customer, but in CEM the learner is the
customer and he learns about the company.
What CRM and CEM try to explain in customer is another difference mentioned in
the literature. Chisholm represents the difference as “CRM deals with customer behavior,
and tells what customer did while CEM deals with customer attitudes, and tell why he did
what he did”(Chisholm, 2006).
The third difference, the concept they focus on; is mentioned by Thompson and
Young. According to Thompson “CRM is about maximizing the revenue and value to the
company, while CEM is about “managing the value proposition as the customer perceives
it”(Thompson B., 2006). From Young’s perspective, in CRM the focus was on the
"management," rather than on the customer, while in CEM, the focus is on the customer.
(Hill & Greenberg) in(Young, 2006).
The time period that they focus on while they are gathering and using the data is
another aspect that CEM and CRM are different and this is mentioned in three different
articles. Chisholm states that CRM focuses on the past and present but CEM focuses on
present and the future (Chisholm, 2006). Kiska agrees with that statement: “Although, the
information gathered by CRM is useful, it only captures the historical view of customer
transactions. However, to help build and sustain customer relationships the integrated
approach that CEM provides is essential”(Kiska, 2002). The last article mentioning the
difference of the time period focused is “Customer Experience Creation: Determinants,
Dynamics and Management Strategies” authored by Verhoef et all. Their perspective is
also same with Kiska’s perspective and they state: “Customer experience management
differs from customer relationship management by focusing on the current experience of
the customer, rather than the recorded history of the customer”(Verhoef, Lemon,
Parasuraman, Roggeveen, Tsiros, & Schlesinger, 2009).
The method of gathering the data is also different in CRM and in CEM. Gurney is
one of the few mentioning this difference. In his article he explains the difference as
follows: “CRM uses profiling, micro segmentation and a predictive analyses to identify
each figurative genetic structure in order to gather data, while CEM gathers information
about the dynamics of interactions between companies and customers by looking at the
environment”(Gurney, 2002). Beside the variation in their methods of gathering the data,
CRM and CEM also vary in using the data they gathered: In CRM the information
gathered is used by groups that are facing the customer such as sales, marketing, field
service, customer service while in CEM the information is used by business or functional
leaders to create better experiences (Meyer & Schwager, 2007). To explain it another way
“CRM would be useful after the information is gathered while CEM can be applied at
points of customer interaction: “touch points””(Meyer & Schwager, 2007).
Meyer and Schwager have determined two more differences. How CRM and CEM
are monitored and how they help the company profit. They say that, “CRM can be
monitored by point-of-sales data, market research, web site click-through, automated
tracking of sales while CEM can be monitored by surveys, targeted studies, observational
studies, “voice of customer” research. CRM helps the company to profit via cross selling
opportunities, while CEM helps the company to add offerings in the gaps between
expectations and experience.”(Meyer & Schwager, 2007).
References:
Chisholm, J. (2006, June). What is Customer Experience Management. CEM White Paper ,
pp. 36-27.
Hill, G., & Greenberg, P.
Gurney, P. (2002, February). CRM, meet CEM. Retrieved March 10, 2010, from
CRM2day: http://www.crm2day.com/
Kiska, J. (2002, October). Customer Experience Management. CMA Management , 28-30.
Lee, S. (2006, June). Defining CEM. CEM White Paper , pp. 6-8.Meyer, C., & Schwager, A. (2007, February). Understading Customer Experience. Harvard Business Review , pp. 116-126.
Thompson, B. (2006, May). Customer Think. Retrieved from CRM guru:
http://www.customerthink.com/
Verhoef, P. C., Lemon, K. N., Parasuraman, A., Roggeveen, A., Tsiros, M., & Schlesinger,
L. A. (2009). Customer Experience Creation: Determinants, Dynamics and Management
Strategies. Journal of Retailing, 85, 31-41.
Young, G. (2006, June 26). What's the Difference Between CRM and CEM? A Heck of a
Lot, Some Say. Retrieved March 14, 2010, from Customer Think:
http://www.customerthink.com/article/difference_between_crm_and_cem_a_lot
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