Customer Relationship Management Vs Customer Relationship Marketing

WalkMe Team
By WalkMe Team
Updated June 26, 2025

Customer relationship management vs customer relationship marketing is the best way to manage customer relationships. Scroll down to learn more.

The Difference Between Customer Relationship Management Vs. Customer Relationship Marketing

Customer relationship management is the process of identifying and understanding customer needs and then meeting those needs. 

On the other hand, customer relationship marketing (CRM) attracts new customers by making them aware of your products or services. 

But what are the differences? Here are the key differences between customer relationship management and customer relationship marketing:

Customer Relationship Management (CRM)

Customer relationship management identifies and understands customer needs and then meets those needs. CRM is a process that can help you make better customer decisions.  It can help you to learn more about your customers, such as their wants, needs, expectations, and problems.  With this knowledge, you can develop strategies to meet their needs and help them achieve their goals. Some of the aims of CRM include:

  • Attracting new customers
  • Improving existing relationships with customers
  • Increasing repeat business by retaining customers
  • Reducing customer churn by adapting products and services to customer needs
  • Improving the efficiency of sales and service processes by automating routine tasks
  • Managing resources more effectively by analyzing data on customers, products, and sales channels
  • Enhancing marketing efforts by segmenting customers according to demographics, psychographics, and buying behavior
  • Improving customer satisfaction by developing a closer relationship with customers
  • Improving competitiveness by observing competitors’ actions and anticipating their moves.

Customer Relationship Marketing

Customer relationship marketing attracts new customers by making them aware of your products or services.  It is a subset of marketing focusing on building relationships with potential customers. So, they will buy from you instead of from your competitors. Also known as inbound marketing, it includes activities that make potential customers aware of your products or services without requiring you to sell to them actively. 

The Similarities Between Customer Relationship Management Vs. Customer Relationship Marketing

Customer relationship management and customer relationship marketing are similar in the following aspects: Both terms are often used interchangeably and can be used to refer to the same thing. Both CRM and CRM marketing have the same goal of keeping a good relationship with customers.

The Value of Managing Customer Relationships

It’s easy to underestimate the importance of customer relationship management systems. 

But, if you want to succeed, you must understand that they can boost your business performance. CRM software is the best way to improve customer relationships. CRM software can improve sales, reduce costs, and increase customer loyalty. 

It can help you enhance your business’s profitability by offering more personalized products and services to the right customers. If you want to achieve better results with your business, you need to connect with your customers on a personal level. A good customer relationship management solution can help you do just that.

Final Thoughts 

Customer relationship management and customer relationship marketing are two terms that are often used interchangeably. 

But they refer to two different things. Customer relationship management is a process that aims to keep your customers happy by meeting their needs.  

On the other hand, customer relationship marketing is attracting new customers by making them aware of your products or services. ‘’

However, both CRM and CRM marketing have the same goal of keeping a good relationship with customers.

Frequently Asked Questions
How does customer relationship marketing complement CRM systems in enterprise strategies?

Customer relationship marketing (CRMktg) focuses on building long-term customer relationships through personalized marketing efforts. When integrated with CRM systems, which manage and analyze customer interactions, businesses can create cohesive strategies that enhance customer loyalty and drive growth.

Why is it important to distinguish between CRM and customer relationship marketing in digital transformation?

Understanding the distinction allows enterprises to allocate resources effectively: CRM systems streamline customer data management, while customer relationship marketing strategies focus on engaging customers. Recognizing their unique roles ensures a balanced approach to digital transformation.

What if an organization focuses solely on CRM without incorporating customer relationship marketing?

Relying only on CRM systems may lead to efficient data management but lack the personalized engagement that customer relationship marketing provides. This could result in missed opportunities for building deeper customer relationships and brand loyalty.

When should enterprises integrate customer relationship marketing strategies with their CRM systems?

Integration should occur when aiming to enhance customer engagement and retention. By combining CRM data with targeted marketing efforts, businesses can deliver personalized experiences that foster long-term customer relationships.

How do CRM and customer relationship marketing differ in their approach to customer engagement?

CRM focuses on managing customer data and interactions to improve service efficiency, while customer relationship marketing emphasizes building emotional connections through personalized marketing strategies. Together, they offer a comprehensive approach to customer engagement.

WalkMe Team
By WalkMe Team
WalkMe pioneered the Digital Adoption Platform (DAP) for organizations to utilize the full potential of their digital assets. Using artificial intelligence, machine learning and contextual guidance, WalkMe adds a dynamic user interface layer to raise the digital literacy of all users.