Is Your CRM Enough to Keep Your Customers Buying from You?

  • UPDATED: 06 December 2022
  • 5 min read
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Reading Time: 5 minutes

Today’s customer journey is spread across multiple touchpoints and channels; it is almost as challenging as keeping track of the London tube system. While tackling this complex journey, customer expectations from brand experiences have increased. It isn’t news that we live in a customer-centric world, but brands haven’t fully embraced this reality yet. According to a study Futurum conducted with Microsoft, 85% of companies report their customers are significantly more digital than expected. And 90% of companies say their existing systems for analysing customer journeys need improvement.

The Gap Between Customer Expectation and Brand Reality

There’s a significant gap between what customers want and how companies provide it. As we move into a first-party, cookie-less world, the challenge is identifying a platform that’ll help you bridge this gap by providing a unified, effective way of creating a lasting engagement with your customers. 

In the previous edition of the “Mythbusters” series, we spoke about the intricacies of a CDP (Customer Data Platform) and a CEP (Customer Engagement Platform). We decided that these two work perfectly together. But what role does a CRM platform play in enriching the customer experience? Is your CRM enough to keep your customers buying from you?

The Trade-off Between Operational Efficiency and Customer-centricity

Imagine a scenario where a car insurance customer moves from Location A to Location B, and their car insurance increases by 50% without any explanation. Immediately after the move, an email is sent to the customer with a reminder to pay the bill instead of explaining why the premium was increased. This will surely result in the loss of a loyal customer.

Let’s see why this might’ve happened. The customer’s details and preferences (or other information) might have gotten lost in the many tools and platforms brands shuttle between. This complex combination of technologies often results in brands compromising customer centricity for operational efficiency.

 The images below show the reality that this combination of technologies has on building a seamless, relevant customer experience. Instead of building a unified customer profile driven by their interactions on different channels, you get 4 different siloed identities.

Customer Engagement Platform vs CRM- Siloed,disconnected customer profiles Customer Engagement Platform vs CRM- Unified Customer Profile

Many technologies have been carefully created to cater to marketers and help them mend this disconnect and unify customer journeys. Both CEPs (Customer Engagement Platforms) and CRM (Customer Relationship Management) platforms have been built to aid marketers in gaining a better understanding of the customer and sending out relevant communication at the relevant time. So an overlap is expected between the functionalities of both these platforms.

What Does a CRM System Do?

CRM platforms help manage the brand’s interactions with existing and future clients. Ultimately, it is a tool industry leaders use to automate their customer service efforts, collect customer data, and even examine trends.  

CRM platforms create a database that enables brands to gather critical information from customer interactions. Each customer profile includes information on the customer’s name, product preferences, previous payments, staff members they’ve interacted with in the past, and so on.  They collect data about how you interact with customers to optimise marketing, drive sales, and improve customer support.

CRM systems are suitable for capturing and managing customer sales and service data. CRM platforms also help service teams optimise customer success initiatives by enabling workflows, service level agreements (SLAs), and service tickets when issues arise. These departmental solutions are stitched together from operational silos to create a cohesive chain.

The Scope of CRM Platforms

CRM platforms have helped marketers come a long way in streamlining customer interations, however, brand marketers today expect a lot more when it comes to managing customer communication and building delightful experiencess. While a CRM platform can help you centralise customer data to better manage customer interactions, brands need a platform that enables:

  • A connected customer journey, from brand awareness to loyalty, that is easy to map.
  • Seamlessly connected interaction histories across multiple systems.
  • Personalised, and consistent omnichannel engagement campaigns
  • Accurate and compliant customer data.
  • Deeper insights into customer behaviour and motivations.

CEPs fulfill these expectations by helping you build a unified customer profile and understand your customer better. They connect to your tech stack and the individual elements or applications like a CDP to create continuous, hyper-personalised customer experiences.

CRMs and CEPs go hand-in-hand to help you send the proper communication at the right time to the right customer by facilitating a deeper understanding of these customers. Despite having similar goals, there are some differences between these two technologies.

So How Can a CEP Help?

With more brands emerging and swiftly scaling up to disrupt the status quo, it is imperative to invest in digital transformation that enables a coherent customer experience. What will help brands become truly customer-centric is an engagement tool that offers consistent and rewarding customer experiences. 

A Customer Engagement Platform allows brands to optimise the customer lifecycle by intelligently segmenting and personalising communication across channels like SMS, WhatsApp, Email, Push Notifications and much more. Armed with AI and ML capabilities, they also help marketers gain customer insights to analyse, and predict customer preferences, channels they prefer communicating through, and when they’re most likely to respond. CEPs connect to your tech stack and the individual elements or applications used to create comprehensive, relevant customer experiences.

 

Customer Engagement Platform vs CRM- How does a CEP works

The Six Layers of a Customer Engagement Platform (CEP)

The analyst firm Omdia (formerly Ovum) has identified six layers of a CEP, consisting of an Orchestration layer plus five supporting layers:

Customer Engagement Platform vs CRM- six layers of CEP

These capabilities combine to deliver superior customer experiences, profitable growth, operational efficiency, and reduced costs.

Are CRMs and CEPs Different?

Customer Relationship Management Platform (CRM)

Customer Engagement Platform (CEP)

CRM aids operational efficiency CEPs allow for coordinated orchestration
CRM is a front-office system of record, the focus is to keep a record of customer interactions CEPs are designed for engagement, supporting growth at rapid scale
CRM anticipates that data will begin and remain “clean” CEPs incorporate a data management layer to unify and cleanse data dynamically

Signs That You Need a CEP

Here are six signs that your current tech stack needs to be upgraded to have a Customer Engagement Platform (CEP).

Customer Engagement Platform vs CRM- 6 Signs you need a CEP

What to look for while choosing your CEP?

Here’s a checklist of what you need to look for when evaluating a Customer Engagement Platform (CEP).

To know more about how to pick the right Customer Engagement Platform for your brand you can read our Buyer’s Guide here.

Customers want to feel like brands know them, care about them and value them. Higher customer expectations and their omnichannel approach to interacting with a brand are driving factors for brands to relook at their comittment to customer-centricity and personalisation efforts. While CRM platforms help centralise customer communications and analyse trends that will help you streamline communication, CEPs help you gain a holistic understanding of customer behaviour to drive highly contextual, personalised engagement. CEPs and CRM platforms both empower you to create delightful customer experience, which is paramount to succeeding in today’s competitve market.

Talk to Us

If you have any more questions about CDPs or CEPs and how to integrate them to create a uniform customer data management and engagement system, you can contact us or schedule a demo at a time of your convenience.