What’s the difference between CRM and CPM?

Separated by the letter Q, CRM and CPM are two of the most popular acronyms in the worlds of software-enabled marketing and Internet advertising.

Customer Relationship Management defines the interactions between a company and their customer base through a CRM software solution. The practice of CRM may include database marketing efforts, sales force automation, account management, order processing, supply chain management, and similar operations.

One of the earliest and most popular Internet advertising models, CPM bases advertising fees upon the Cost Per Thousand impressions on a specific website. (M=1,000, for the Latin mille.) The online CPM advertising model is based upon methods used in conventional media. When a publisher states a CPM rate of $50, each ad banner view costs the advertiser 5 cents.

A customer may find a company’s offer via an advertisement placed on a CPM basis. Upon the customer’s arrival at the company’s website, their visit may be tracked through website analysis software. If the customer places an inquiry via a form on the website or through a call to the company’s call center, that information can be captured by the company’s CRM software.

[tags]crm, cpm, customer relationship management, internet advertising[/tags]