CRM vs CLM - What's the difference?
CRM vs CLM
2 very similar acronyms, they’re related to each other, but in terms of functionality and definition, are quite different.
Many businesses will categorize Customer relationship management (CRM) and Customer Lifecycle Management (CLM) together but they are not the same.
First, we’ll define what is a CRM and CLM and then explain the differences between them.
What’s a CRM?
CRM stands for Customer Relationship Management.
When people talk about CRMs they are usually referring to the CRM software or solution.
CRMs help your business to collect, manage, search, update and report on customer data. At its core, a CRM collects customer information and allows you to use it in several different ways.
For example, a modern CRM would be able to collect all of your customer’s contact information, purchase history, email history, chat history and more in a unified dashboard. This way, you’ll have access to critical customer information at your reach whenever it is needed.
Technically speaking, a notebook with all your customer data written in it COULD be considered a CRM solution, but it would not be the most efficient or useful one.
Now let’s explain what is a CLM
What is CLM?
CLM stands for Customer Lifecycle Management.
CLM focuses more on the outcomes of certain business processes and stages. It shows different measurable metrics at different stages of the customer lifecycle.
CLM software usually involves metrics at these 5 stages:
- Discovery: helps Identify your target audience, creates content that is relevant to each group. Research and comparison is done at this stage
- Education: If a customer has any questions about the product or service, this is the stage where the brand answers any questions and makes any suggestions.
- Purchase: Once the customer has come to a decision about which company will best fit their needs, they will make a purchase.
- Post-Purchase: Once the purchase is done, the company can make sure they are satisfied by gathering feedback from them.
- Advocacy: Similar to customer loyalty, they will share your brand and influence their friends and family through social media posts and online reviews.
The main idea for a CLM is to manage and monitor the customer lifecycle, customer retention and increase conversion rate.
Each company will have their plan for each stage to improve the success of its business. When your able to see the areas you can implement into the customer lifecycle, you can improve your new and recurring revenue.
Now that we know what CRM and CLM are, let’s define the difference is between the two tools.
What is the difference between CRM and CLM?
Both Customer Relationship management (CRM) and Customer lifecycle management (CLM) are important tools to implement in your business as both will help increase:
- Customer retention
- Customer relationships
- Customer satisfaction
- Recurring revenue
CRM will focus more on managing, monitoring and developing relationships with their customers. CLM focuses more on the different lifecycle stages of the customer and looks for opportunities to optimize the business-customer relationships.
Most CRM and CLM software can be integrated to improve the sales process. For example, A CRM tool will gather the contact information of your customers. You can use this information for the post-purchase stage to gather customer feedback on their experience.
Another example, some CRM tools come with a live chat to help you interact with your customers. A CLM can help you track the performance/ metrics during the discovery, education, or post-purchase stages.
Closing thoughts
While both CRMs and CLMs have different main functions, they both serve the same purpose of increasing the customer experience. Both should be used together as they complement each other and both provide valuable information which can be used for improvement.
Which CRM is the best?
The answer, it all depends on what you need.
There are many CRM tools available, but we think you’ll enjoy Moment. It’s free to register and get started. No need for a method of payment. It comes with a live chat and lives session recordings to help understand and interact with your customers right away!
Register to Moment for free today.
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