Saturday, April 13, 2024
CEOWORLD magazine - Latest - Tech and Innovation - From CRM to CEM, the evolution inside the company

Tech and Innovation

From CRM to CEM, the evolution inside the company

Employee Engagement

The link between customers and companies is constantly evolving, particularly with the advent and ongoing development of technology. There are so many interesting studies on this topic due to the fascination around it. The key factor is understanding the evolution of this link to remain or becoming a leader in an industry.

With this in mind, the concept of Customer Relationship Management (CRM) was born; a strategy that requires the use of technology to manage the relationship between company and customer and/or lead (the potential customer).

Thanks to this, the company is able to put the customer at the centre of its business, by processing a series of data, such as preferences, demographics, recurrent orders that allow it to have a complete view of the customer.

The axiom “that keeping a customer is less expensive than looking for a new one” always applies, a customer who is consistently satisfied with the service is more likely to order than one who is dissatisfied and therefore to bring more money and better visibility.

In recent years, most successful companies have moved from CRM to Customer Experience Management (CEM). CEM aims to put the buyer at the centre of the company, but with a strong focus on customer experience management. The company will implement strategies to build loyalty and improve the customer’s feeling towards the company at the level of impression, expectation, and memory.

CRM and CEM, what is the difference?

Although they might look similar, CRM and CEM have one important difference: the perspective.

CRM helps the company to get to know the consumer better by creating a unique view of them thanks to the interactions established with the customers. CEM focuses on how the company is perceived by the customer in order to build a trust relationship with customers and gain their loyalty. This is done “simply” by understanding customer’s preferences.

In the current highly competitive and super-connected global market, it is important to keep up with the consumer’s needs, give immediate and accurate feedback with different communication tools. This tailored engagement creates personalised suggestions and responses increasing interaction opportunities and creating an experience ad personam.

The goal must be to transform the customer journey into a personalised and satisfying experience, and the best way to do this is to integrate and make CRM and CEM work together.

In order to give a good buying experience to the contemporary customer, who is increasingly demanding and informed, you don’t just need to know him, you need to understand his point of view and know how to interpret it in order to put yourself in his shoes.

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CEOWORLD magazine - Latest - Tech and Innovation - From CRM to CEM, the evolution inside the company
Riccardo Pandini
Riccardo Pandini is an Academic Tutor at the University of Milano-Bicocca and a writer at the State of Mind, an online journal of psychology, psychotherapy, neuroscience, psychiatry, and various current affairs.

Riccardo Pandini is an opinion columnist for the CEOWORLD magazine. Connect with him through LinkedIn.