CEM: Getting Acquainted With Your Customers
You’ve probably heard of CRM, right? CRM is old hat. An acronym standing for Customer Relationship Management, the goal of any CRM program is to manage a company’s interactions with prospects and customers, while reducing the costs and building customer lifetime value.
Now how about CRM’s twin sister, CEM? Probably not. Unknown to many, CEM is an acronym that stands for Customer Experience Management. As a side note, Customer Experience is sometimes also referred to as CX. Now if you’re a marketer, regardless of what you decide to call it, Customer Experience Management is a discipline you need to get acquainted with.
In general, CRM programs tend place a heavy emphasis on marketing and communications. After all, establishing touchpoints with customers or potential customers at crucial points in the customer journey is incredibly important to achieve desired behavioral outcomes. Fair enough.
In many ways, CRM programs tend to be one-dimensional in nature, focusing on how the firm makes decisions as regards place, product, price and promotion, with little emphasis on customer needs or desires. It shouldn’t be too surprising then to learn that many CRM programs fail because they use an approach that—while brilliant on paper—is misaligned to actual customer wants, needs or expectations.
This is where CEM steps in. You see, it turns out that to succeed in today’s challenging multichannel and mobile/social environment, firms need to expand their scope of their CRM initiatives to create a program that aims to focus like a laser on customer needs, both rational and emotional, and drive toward expected outcomes and KPIs.
At a baseline, the goal of any CEM program is ostensibly to move customers from satisfied to loyal and then from loyal to advocate by taking a holistic view of the totality of their experiences—regardless of place, time or channel.