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Many CRM software vendors highlight the benefits of implementing a CRM system on their websites with impressive statistics: claims like a “4.9% increase in sales through automation,” “12% boost in customer loyalty,” or a “10% increase in post-sale revenue through better service.” But can these figures really be trusted? This article explores the question, “Why doesn’t a CRM system improve your customer experience?” and clarifies the distinction between a CRM system and customer experience.
In this post, you’ll discover what software technology is and how it differs from strategic business orientation. You’ll also learn how to critically assess such bold claims. Even if you think you understand CRM systems and customer experience, start by reading the last chapter and then work your way through the rest, because here’s the truth: many believe they know, but very few actually do.
It’s helpful to ask new tools for a precise definition. ChatGPT answers the question, “What is a CRM system?” as follows:
A Customer Relationship Management (CRM) system is a software solution that helps companies manage customer relationships effectively. It collects, organizes, and analyzes customer data to provide a comprehensive view of interactions. By using CRM systems, businesses can optimize marketing, sales, and customer service processes to offer personalized and efficient support.
The term “software solution” is key here, as it highlights that a CRM system is built to facilitate customer-centric processes within your company. Now, let’s dispel a common misconception:
A CRM system is not just a sales software solution.
Many businesses think a CRM system is solely meant for managing sales processes. This is as inaccurate as saying every software provider only offers one CRM system. Major providers like SAP, Microsoft, and Salesforce offer CRM solutions not only for sales, but also for marketing, service, and e-commerce. Each is an independent system, but can be easily integrated with the others. So, if you need CRM for both sales and marketing, you’re actually looking at two systems.
So, how does ChatGPT define customer experience? When asked to explain it in three sentences, here’s the answer:
Customer experience refers to the full range of interactions a customer has with a company, from initial contact to post-purchase and beyond. It includes all touchpoints, whether digital, physical, or through customer support. A positive customer experience aims to boost satisfaction, loyalty, and long-term relationships.
In short, customer experience is a broad and complex field. It’s about meeting a customer’s expectations throughout their entire journey with your company. This complexity becomes apparent when you consider the many touchpoints customers might have – through social media, your website, emails, or even tangible experiences like unpacking a product or reading a user manual. Here are some examples of companies excelling at these customer experience touchpoints:
To manage this complexity and truly understand customer needs, the concept of Customer Experience Management (CXM) was born. This is essentially a strategy that companies use to align their business processes with customer expectations, which brings us to customer-centricity – a buzzword you’ve likely heard. CX can be broken down into four key areas:
To answer this, consider the question: what does a carpenter’s hammer have to do with building a house? The answer is – nothing by itself! The hammer helps the carpenter build, but it doesn’t guarantee a good house. Similarly, a CRM system is a tool for your company, but it won’t create a great customer experience on its own. Even with the best CRM systems, your customers can be unhappy if, for instance, your shipping processes are poorly managed and orders arrive late.
CRM systems are there to support your employees in their day-to-day work, but the overall customer experience could still be lacking. The real question is: why should most companies still invest in a CRM system?
Here’s how to approach it: first, identify what your customers expect from your company. Examples include:
The goal of customer experience is to meet – or even exceed – these expectations. The good news? There are already tools, like CRM systems, that can help you achieve this. So, why wait? Get started today!
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