Customer Experience vs Customer Relationship Management

Customer experience vs customer relationship management is a hot topic in the business world. This article looks at the pros and cons of each approach.

When it comes to customer service, two approaches are vying for attention: customer experience vs customer Relationship Management. But which is more important? In this article, we’ll compare customer experience vs customer Relationship Management and also look at the pros and cons of each approach so that you can make an informed decision about what is best for your company.

Customer Experience vs Customer Relationship Management 

What is CRM?

Customer Relationship Management (CRM), is a business strategy that is designed to increase revenues, reduce costs, and enhance customer loyalty. CRM is more than technology. It’s about understanding customers and being responsive to their needs.

customer experience vs customer relationship management

Although CRM was initially intended to be a Relationship Management strategy but has grown to include pipeline management and foreseeing and directing future sales at various stages. CRM managers use the platform to accurately predict future revenues, analyze the sales process, and be alerted about any sales slumps or sales growth.

1. Maximize marketing

businesses and professionals can use CRM systems to improve their marketing. CRM systems provide segmentation tools, campaign management, tracking responses, and intuitive analytics. This leads to increased lead generation and a better pipeline which is a huge help to sales reps.

CRM solutions allow you to create strategies and rethink your business tactics.

2. Win more sales deals

CRM solutions allow you to build a customer history, which in turn increases sales productivity. a single platform allows for the creation of quotes, competitor tracking, and deal information. This makes it easier to plan and forecast activities such as upselling, renewals of contracts, etc. CRM can be automated to make it easier for salespeople to focus on closing deals quickly and efficiently.

3. Better customer support

CRM systems give businesses the ability to streamline their workflow, increase knowledge sharing, and improve account management. These benefits can improve the quality of your services without affecting your budget.

Customers will be satisfied with the service if they see that sales reps have all the information (customer history), to resolve their problems. Businesses can also achieve lifetime customers.

CRM’s primary purpose is to generate sales and revenue. 90% of CRM users use it for this purpose.

What is CEM?

Businesses use customer experience management \(CEM), a strategy to track all interactions with customers. Each business has its own departments that interact with customers. CEM is about managing all these interactions and making improvements to improve the brand-customer relationships.

This system aims to bridge the gap between what you want to offer customers and what they actually experience. CEM collects all the experiential data necessary to understand customer experiences, optimize their journey, and encourage loyalty.

1. Understanding user behavior

Businesses must first understand their customers and then determine the best way to deliver that experience. You can Monitor customer behavior to determine how they interact with your app, and then take a proactive approach in providing a solution. Understanding user behavior is crucial for engagement, retention, conversion and lifetime value.

CEM platforms use analytics to collect and decode data from customers. By combining it with operational data, it provides a deeper understanding about customer behavior and what can be done to improve it.

2. Interacting with each customer

Interaction is available for all customers In a customer experience management system. This includes those who have a complaint, or those who have negative feedback. You can also automate responses in certain situations by creating triggers based upon user behavior.

The system can alert you if a user has stopped using your app for the past 10-12 days, or if a specific feature is not being used by a user. The system will alert you to the appropriate engagement actions for each user.

CEM platforms can personalize their engagement process by using their location, activity and visits. you can send a push notification with tips and information about how to use the app better, inform about special discounts for shopping apps, or offer incentives to refer others.

3. Listening, analyzing and acting upon feedback

Feedback is an integral part of CX management. Businesses that use tools and platforms that allow customers to give feedback in real time have a greater chance of getting the right responses. It is crucial to have a digital presence in today’s digital age, where millennials are highly dependent on apps and social media.

customer experience vs customer relationship management

To improve customer satisfaction, we use the insights from surveys and emails.


Amazon has set the standard for all ecommerce retailers in terms of experience management. Amazon’s app allows you to browse the deals and offers that are available. It allows users to set up a reminder to be notified when the product becomes available. This allows a large percentage of customers to return to the app.

The response rate on social media is above expectations. They monitor their twitter handle @AmazonHelp 24 hours a day, seven days a semaine in seven languages.

Their search algorithm is very similar to Google. It can search for multiple parameters, making it easier for users to find exactly what they are looking for.


Spotify has revolutionized the online music industry. Spotify has made streaming music a more accessible and transparent option for users who were previously dependent on piracy. Its algorithm is able to curate music and radio stations for listeners based on their preferences.

Customers who interact with their brand receive special gifts. They reward customers by creating playlists that answer their questions on Twitter.

Spotify sets the standard for customer experience management by using best-in-class streaming technology, and introducing fun and games to their customer interactions.

Taylor & Hart

This is the jewel retailer company that made customer experience management a big deal in its niche. They wanted to convert casual customers into lifetime purchasers, and their purchasers into lifetime advocates.

To improve their Net Promoter Score \(NPS), they focused on it only. they decided to measure this metric at two occasions: when a customer places an order and when he receives it.

The dashboard was accessible to all members of the team and displayed the live NPS. The team immediately took steps to improve every aspect of the business, from manufacturing to shipping, in order to provide a great user experience. they were able to increase their NPS score to 80 thanks to their customer feedback management efforts.

This was the highest in the industry. Their revenues increased to 4.5 million euros.


Customer experience vs customer relationship management is a very important subject in the business world. Customers are an integral part of any business. Understanding their behavior and keeping them happy is key to your business’s growth. Click To Tweet

For your business to grow, it is a smart decision to invest in customer experience management and Customer Relations Management. 

Experience is multi-touchpoint and multidimensional. To succeed, you need multiple engagement options such as feedback, notifications, gamification, and proper incentives. You can consider using apps and social media because they are greatly used in the world today.


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