CXM vs. CRM: Which One is Better?


Companies need to track customer information to analyse customer behaviour, market trends, needs & preferences, etc. In the business world, customer happiness is more important than the customer. A customer is a one-time buyer, but a happy and satisfied customer can be your word-of-mouth marketing manager. Two essential terms often pop up in maintaining the customer’s needs: CXM and CRM. They help businesses succeed and connect with customers. But what are they, and which one suits your business best? Let’s explore them in simple terms.

CXM (Customer Experience Management):

CXM is a system of marketing strategies and technologies focusing on customer engagement, satisfaction, and experience.

To do this, companies need to focus on customers and understand them well. They can use customer segmentation to organise consumers based on their interests and then create a customer journey map to predict future interactions with the brand.

In CXM, shorter sentences are better. Why? Because clear and straightforward communication is critical. Your customers should easily understand your brand’s promise.

You can’t miss this: Questions to Ask While Choosing CXM Software

CRM (Customer Relationship Management):

On the flip side, there’s CRM or Customer Relationship Management. It’s like a trusty tool for sales and marketing teams. CRM helps them understand customers better, track interactions, manage leads, and build relationships.

Even in CRM, keep your communication direct. People like simple terms when solving problems or making decisions.

Difference Between CXM & CRM

AspectCXM (Customer Experience Management)CRM (Customer Relationship Management)
FocusHow customers perceive the brand and their experiencesManaging customer relationships, sales, and interactions
Primary GoalEnhancing the overall customer experience and satisfactionImproving customer interactions, lead management, and sales processes
Key ComponentsManaging leads, automating sales processes, providing personalized customer supportLead tracking, contact management, sales forecasting
Data UtilizationAnalyses customer feedback, sentiment, and interactionsStores and manages customer data, including contact information and purchase history
Communication StyleEmphasis on creating memorable experiences, often using concise and engaging messagingFocus on clear and effective communication, especially in sales and customer service
Key BenefitsImproved customer loyalty, brand perception, and advocacyEnhanced sales efficiency, lead conversion, and customer retention
Industry ApplicationRetail, hospitality, e-commerce, and service industriesSales-driven businesses across various sectors
Examples of UseImproving website user experience, gathering feedback through surveys, optimising touchpointsImproving website user experience, gathering feedback through surveys, optimizing touchpoints
Metrics TrackedNet Promoter Score (NPS), Customer Satisfaction Score (CSAT), Customer Effort Score (CES)Sales revenue, conversion rates, customer acquisition costs
Communication ChannelsFocuses on all customer touchpoints, including digital and physical interactionsPrimarily concentrates on sales and customer service interactions

Choosing the Right One for Your Business:

So, which one suits your business? It’s not one-size-fits-all. It depends on your goals.

  • For memorable experiences, Choose CXM. It helps you know how customers see your brand, find pain points, and create significant interactions. Use short and engaging messages to leave a lasting impression.
  • For sales and customer relationships: Go with CRM. It helps manage leads, offers personalized experiences, and nurtures long-term relationships. Remember, clear and short communication builds trust.

In conclusion, CXM and CRM are vital for happy customers. They have their strengths. But remember, keep it simple and clear whether you pick CXM or CRM. Your goal is to make customers’ journeys smooth and delightful.

Checker is a professional platform for managing customer experiences. Want to see how it can help grow your business?