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CRM Is Not Effective Anymore: Time to Transition to CXM!

By Monica Tan
16 / 10 / 2020

CRM and CEM / CXM are essential tools for maintaining business flow with customers. Both are there to optimize customer relationships. But, they are not the same. Similar, but different. To choose the right one, the organization must go beyond the alphabet soup of this tech business application.

What's the difference between CRM and CXM?

Customer relationship management (CRM) software tracks sales leads and customer interactions. CRM facilitates the development of relationships for organizations. CRM systems have many advantages, but not all businesses need them.

Customer Experience Management (CEM or CXM) is a broader information gathering process for tracking, monitoring, and managing all interactions between customers and organizations throughout the customer life cycle. Focus on unique perspective insights by digging deeper into the customer experience, listening to the customer, analyzing feedback, understanding the customer's perspective, and optimizing the customer experience.

In short, both tools optimize customer relationships. How they do this makes all the difference. CRM helps build relationships with your organization. CXM focuses on monitoring and improving the customer experience.

Customer experience management (or CXM) is the practice of the experience of every customer across all touchpoints and departments. A better CXM helps businesses have a better brand impression, retain more customers, and even convert them into brand advocates.

A CRM system, or Customer Relationship Management, is an application that focuses on your sales team. Starting with databases for maintaining prospect and contact information, and over the years, CRM capabilities have evolved to acquire business leads, develop them through automation, and enhance your customer relationships. Meanwhile, Customer Experience Management is an extension of the CRM system that can be extended for the entire organization. The CXM platform can map your entire customer journey to your business across sales, marketing, support, social media, and operations.

It can be used to integrate all departments by facilitating smooth and collaborative data flow across multiple communication channels. This provides a complete picture of the customer and seamlessly switches relevant customer information from one channel to another, enabling customer-facing employees to respond quickly to their needs.

Why does CRM no longer effective?

According to Thryv Vice President, Ryan Cantor, collecting customer preferences can be "amazingly fun" using data and technology. To pursue this superior customer experience, companies have spent millions of dollars adopting their own CRM platform. This ended pretty quickly.

Adopting CRM alone does not improve the customer experience. They tend to overdesign, complicate issues, get excited about technology, and forget their original purpose. Without a human touch in the middle, it was just cold, emotionless data.

Even worse, in this digital era, CRM does not have what it takes to store all the important data needed for modern business: activity on websites and mobile apps, emails, push notifications, support tickets, payment systems, and more.

What is lacking is customer interaction. Customers need to be the focus of solutions aimed at improving the experience. That's why it's time to turn into CXM: Customer Experience Management.

Very few traditional CRMs include a portal that connects to customers. It relies on bespoke messages, reminders, and notifications to maintain a certain level of customer engagement, but there is no centralized command center.

Important Note: Concentrating all the tools and services that impact customers into one system can significantly improve business efficiency. However, the difference between CRM and CXM is that it allows customers to experience the same experience in real time.

Can do more than simply talk to you and your company through a website, it can actually improve the customer experience.

Your data will be more accurate and timely if your customers can interact directly with you using the same technology that your business uses. Customer inquiries instantly reflect real-time behavior and status. This allows employees to provide more accurate and useful assistance.

Another bonus, this will also help your sales reps land more deals, and it will generate the positive reputation it needs to grow. If you're using multiple systems, or if you're only storing customer data but can't make it viable, throw away your current strategy and try CXM.

One of the tools that can improve the CXM is using an omnichannel messaging platform, such as OneTalk by TapTalk.io. With OneTalk, as a trusted omnichannel messaging platform, you can have a lot of features to make your customer’s experience delightful and amazingly fun. OneTalk's omnichannel feature allows your agent to handle multiple customer cases at one time. You can also keep an eye on your agents’ work and drive your sales and marketing up at the same time.

This kind of tool will improve your sales, marketing, and support. And, not to mention, all of the other tools that actually will improve your customer service experience. 

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