CEM vs CRM and CEM vs Customer Service

Interview between Stefania Viscusi (TMCnet.com Editor) and Randy Saunders (Marketing Director, Customer Experience Management products, Cincom Systems).

SV: How is CEM different from CRM?

RS: Traditionally, CRM systems have been internally or operationally centric--they are about profiling and collecting customer data for marketing and cross selling purposes. Too often the emphasis has been on the company's goals, and not necessarily what the customer wants. CEM is the opposite of that. It is highly customer-centric focused and utilizes systems, technologies, and simplified processes to improve the customers experience with the company.

When it comes to CRM versus CEM, Shaun Smith points out in his book, "Managing the Customer Experience: Turning Customers into Advocates," more than $46 billion was spent on CRM systems to help institutions get closer to their customers. Yet,Gartner ( News - Alert) Research estimates that 55 percent of all these CRM programs actually drive customers away and dilute earnings--bringing forth this emphasis on customer experience.

SV: How is customer experience different from customer service?

RS: Even though people seem to think they are the same thing, customer service is really just a component of the customer experience. According to Jeff Bezos, CEO of Amazon, "Customer experience is bigger than customer service in that it is the full, and end experience. It starts when you first hear about Amazon from a friend and ends when you get the package in the mail and open it."

Therefore, customer experience encompasses every customer touch point with your brand, whereas the service is just a component of it.

Source: http://www.tmcnet.com/channels/hosted-contact-center/articles/4515-understanding-customer-experience-management-talk-with-cincoms-randy.htm