Sunday, February 25, 2007

CEM versus CRM

there's an interesting article in the Feb'07 Harvard Business Review (HBR) that talks about Understanding Customer Experience by Christopher Meyer and Andre Schwager.

the article explains that customer experience management (CEM) and customer relationship management (CRM) differ in their subject matter, timing, monitoring, audience and purpose.

CEM captures and distribute what a customer thinks about a firm.
CRM captures and distribute what a firm knows about a customer.

CEM captures info at point of customer interaction "Touch Point".
CRM captures info after the customer interaction.

CEM monitors using surveys, targeted studies, observation studies, "voice of customer" research.
CRM monitors using point-of-sales, market research, website click-thru, automated tracking of sales.

CEM - biz leaders use these info to create fulfillable expectations and better experiences with products & services.
CRM - customer-facing grps such as sales, marketing, field services and cust service use these info to drive more efficient and effective execution.

CEM - more leading. locate places to add offerings in gaps betw expectations and experiences.
CRM - more lagging. drive cross selling by bundling of products in demand with ones that arent.

3 types of patterns to track customer experiences:
1. Past - Persistent in data collection. focused short cycle timed data collection. feedback via online forum. e.g. post-installation or customer service follow up.

2. Present - Periodic. quarterly reviews. relationship studies. user-group polling. e.g. biannual account reviews."follow them home" user studies.

3. Potential - Pulsed. one-time special purpose drive. e.g. Ethnographic design studies, special purpose market studies, focus groups.

In a nutshell, CEM and CRM are tools that serve different purposes. Businesses will need both CEM and CRM tools for growth and break-thru innovative products and services development. While CRM helps to tune the existing processes & products/services, CEM adds value in enhancing customer experiences in various "touch points" as well as looking ahead in new experiences to deliver.

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