The acronym “CRM” is shared by Customer Relationship Marketing and Customer Relationship Management.

The idea that you can manage your customers feels out of sync with being a customer centric organisation. Every piece of insight tells us that the customer is now in control and the idea that a company can ‘manage’ the relationship that a customer has with feels a little arrogant.

So why did the word ‘manage’ replace ‘marketing’ in CRM? Well, that was all down to technology. It was when CRM software first appeared, and the CRM agenda was hijacked by the ‘techies’. Now don’t get me wrong, CRM technology is a wonderful thing. It allowed CRM to move from theory to practice. But CRM like marketing itself is a mixture of art and science and keeping that balance is essential.

The technology providers were so focussed on the science and the functional benefits it delivered that they helped clients do the one thing that they should never do – lose sight of the customer. This atmosphere fostered the idea that customer could be ‘managed’. That is a business centric viewpoint and not a customer centric one.

This has led to many people trying to reinvent CRM, there are terms like Customer Engagement Marketing, Customer Journey Management and even Customer Managed Relationships. The truth is good old fashioned Customer Relationship Marketing is still fit for purpose.

The Difference Between Customer Relationship Management & Customer Relationship Marketing

Though the two terms are quite different, they complement each other and can be applied to sales and marketing processes.

Customer Relationship Marketing is a long-term strategy focused on the customer relationship, not on a single transaction. It focuses on ensuring customer satisfaction for the long-haul rather than simply for a quick sale.

Customer Relationship Management is the technology used to manage interactions with customers and potential customers. A CRM system helps organisations build customer relationships and streamline processes so they can increase sales, improve customer service, and increase profitability.

Customer Relationship Marketing is about a company or brand creating an emotional connection with its customers by providing them with communications, content and experiences that are relevant to their needs and interests.

Customer Relationship Management is just the enabler to make this happen. So, Customer Relationship Marketing is supported by Customer Relationship Management. Think of Customer Relationship Marketing as a strategy and Customer Relationship Management as an action. The latter can be used to carry out the former.

Further Reading

If you would like to read more about how to develop a customer relationship marketing program, then read this article that offers 10 tips on the do's and don'ts of customer relationship marketing.