ServiceNow has officially made the leap from CSM to CRM – an expansion of focus the workflow solutions provider insists is much more significant than the minor difference between the two acronyms might indicate.
One letter different: Until now, ServiceNow has refrained from labeling its offerings as customer relationship management solutions. However, its Customer Service Management platform has progressively incorporated features characteristic of traditional CRM systems. These enhancements include omnichannel support, case management, self-service options, knowledge management, proactive outreach, conversational intelligence, and a comprehensive 360-degree customer view.
Customer workflow focus: Under the leadership of CEO Bill McDermott, who has led the company for the past five years, ServiceNow has experienced notable growth in the CSM space. One sign of its growing maturity is this sector was its recognition as a leader in the 2024 Gartner Magic Quadrant for CRM Customer Engagement Centers.
Doing CRM differently: ServiceNow is not competing directly with conventional out-of-the-box CRM providers, however. Its strength lies in managing intricate service deliveries by integrating data from Enterprise Resource Planning (ERP) and other back-end systems. By overlaying AI on customer service workflows that access this data, ServiceNow aims to offer a more data-rich CRM experience.
The sales pitch: There are challenges associated with this approach: unlike competitors that offer more affordable, plug-and-play solutions, ServiceNow's platform requires significant integration efforts to connect various service and engagement points across an enterprise. This complexity means ServiceNow needs to pitch its solution beyond IT departments to service and customer experience leaders, demonstrating the value of integrating contact centers into the broader enterprise ecosystem.
