ServiceNow Redefines CRM with Unified Platform

Posted on February 5, 2025 Garima Saxena

The customer relationship management (CRM) landscape, a domain long dominated by established giants, is witnessing a significant shift. ServiceNow, a company renowned for its prowess in IT Service Management (ITSM) and Workflow automation, has now officially declared its entry into the CRM market.

This move has sent ripples throughout the industry, wondering about ServiceNow’s strategy, potential impact, and the implications for businesses seeking robust CRM solutions.

Well, in this write-up, we will explain ServiceNow’s latest invention, its CRM, which they called Customer Service Management (CSM), exploring its strengths, potential challenges, and the types of businesses that benefit most.

Journey of ServiceNow From ITSM to CRM

ServiceNow’s journey isn’t a sudden leap. The company’s foundation lies in streamlining workflow and automating processes, core functionalities that are intrinsically linked to effective customer management.

Though ServiceNow’s existing platforms already boast robust capabilities in areas like case management, workflow automation, and customer service, providing a solid springboard for a dedicated CRM offering.

ServiceNow’s key differentiator lies in its unified platform. Unlike other traditional CRMs, which often operate in silos, the ServiceNow platform integrates various business functions, from IT and HR to customer service and now, sales.

This interconnectedness offers a holistic view of customers, breaking down the big data and enabling it into a more seamless and personalized customer experience.

You can easily understand the use of ServiceNow CRM by considering the following example. Just imagine a scenario where a customer has some issue related to its product or service. It is initially reported to the IT and seamlessly transitions to the appropriate sales team based on the customer’s profile and needs.

This level of integration, powered by ServiceNow’s platform, is a compelling proposition for businesses seeking a unified approach to customer management.

What You Can Expect from ServiceNow’s CSM

Customers’ expectations are at their peak. Therefore, to provide them with high-quality services, businesses strive to leverage talent and state-of-the-art technology to ensure that each encounter cultivates customer loyalty.

It is still difficult to strike a balance between enterprise-wide cost reduction mandates and investments in improving experiences. However, the challenge of balancing the investment without compromising the customer quality persists.

So considering this aspect as its priority, ServiceNow decided to deliver a great customer service experience at a reduced cost for businesses. ServiceNow Customer Service Management (CSM) enhances the customer lifecycle by improving self-service resolution capabilities, allowing customers to resolve issues quickly through their preferred channels.

It automates operations across the organization, fostering seamless collaboration among teams to provide timely and tailored support. Additionally, CSM empowers agents with real-time intelligence and productivity tools to deliver personalized service at scale. The overall result is increased customer satisfaction paired with reduced operational costs.

Benefits of ServiceNow’s Customer Service Management

ServiceNow enters the market with its latest product and its enthralled features. The list of a few is detailed below.

1. Optimize AI-driven problem-solving and omnichannel self-service.

ServiceNow’s customer self-service capabilities are aimed at optimizing issue resolution through an omnichannel approach. Key components include:

• Virtual Agent: A conversational chatbot powered by generative AI to provide detailed resolutions.
• Messaging Service: Engages customers via their preferred messaging channels.
• Service Catalog: Automates routes of requests to the appropriate teams using forms and workflows.
• Knowledge Management: Offers instant access to step-by-step guidance and solutions for both customers and agents.
• Engagement Messenger: Embeds self-service options across web pages with minimal coding.
• Communities: Connects customers and employees to share ideas and experiences while managing unanswered questions.
• Service Portal: ServiceNow, a newly launched CRM, provides a personalized self-service portal that integrates various resources for customers.

2. Automate departmental customer operations procedures

ServiceNow enhances organizational workflow by streamlining service delivery and reducing resolution times. It offers AI-driven process optimization to identify and eliminate bottlenecks in business transactions. Key features include:

• Process Optimization: Visualize and improve process efficiencies.
• Proactive Customer Service: Monitor products and services to preemptively address issues.
• Performance Analytics: Gain insights to anticipate trends and improve services.
• Continual Improvement Management: Teams can track and manage improvements throughout the projects’ lifecycle.
• Playbooks for Customer Service: Digitize and automate service processes to manage case flows.
• Case Types: Customize and set up various customer service cases as needed.

3. Provide agents with tools for productivity and real-time intelligence

ServiceNow empowers customer service agents to resolve cases quickly and empathetically through a single, configurable workspace that features built-in contextual guidance.

Managers have the option to optimize agents’ performance and efficiently allocate resources. While overseeing cases that impact multiple customers by grouping similar issues. Key features include:

• Case & Chat Summarization to improve agent understanding.
• Guided Decisions to provide contextual next-best action recommendations.
• Advanced Work Assignment for optimal routing of work to agents.
• Configurable workspace to increase productivity and case resolution speed.
• Predictive intelligence for sentiment analysis, issue routing, solution recommendations, and trend identification.

How does ServiceNow Customer Service Management work?

Let us understand ServiceNow CSM functionality by picturing an example. Suppose that you have lost your bank debit or credit card.

This CSM starts working by gathering user information, then routing the case to the related department, and then assigning it to the authorized agents. By doing so, businesses can create a systematic plan to provide a smooth and favorable resolution.

Picture this with the assistance of the following steps.

• Initiate the Case: A customer reports their card missing or stolen. This action initiates a “case” within ServiceNow CSM. The system gathers pertinent details from the customer (or a bank representative), such as the approximate time of loss, last known transactions, and other relevant information.
• Tracking: ServiceNow CSM automatically routes this case to the appropriate team, in this example, the fraud department. The system then assigns the case to an available agent specializing in fraud. The agent accesses all gathered information via ServiceNow and meticulously tracks every interaction and update related to the case. This includes agent notes, system updates, and all communication with the customer, creating a comprehensive audit trail essential for compliance and reporting.
• Automatic Freezing of the Account: While ServiceNow doesn’t directly freeze the account, it integrates with the bank’s core systems to initiate this action. The agent documents within ServiceNow that the account freezing request has been submitted and records the confirmation received from the core banking system.
• Verifying Transactions and Customer Card Information: Similarly, transaction verification and customer card information checks occur within the bank’s systems. The results of these checks are subsequently recorded within the ServiceNow case. If suspicious transactions are identified, the agent uses ServiceNow to initiate a separate workflow for disputed transactions, routing it to the appropriate department.
• Sort and Settle (Case Management): Throughout the process, ServiceNow aids in managing tasks and ensuring their completion. For example, the system can remind the agent to follow up with the customer or to check on the status of a disputed transaction. This ensures all necessary steps are taken for resolution.
• Case Closing: Once the issue is resolved (e.g., a new card is issued), the agent closes the case within ServiceNow. The system can then automatically send a customer satisfaction survey to gather feedback.
• Provide an audit trail: As mentioned in point 2, ServiceNow meticulously tracks every interaction and update, creating a comprehensive audit trail essential for compliance and reporting. This detailed record facilitates auditing and reporting needs.

In summary, ServiceNow CSM serves as the central platform for managing the entire lost/stolen card process. It integrates with other systems to trigger actions (like account freezing), meticulously tracks all interactions and updates, and helps ensure timely resolution of the customer’s issue. It’s not the system that directly performs banking functions, but rather the platform that orchestrates the process and provides a single, unified view of the customer’s journey.

ServiceNow CRM’s Market Position: Gartner’s Recognition

ServiceNow’s strategic push into the CRM market is backed by significant recognition in the industry.

In fact, ServiceNow was recently named a leader in the Gartner Magic Quadrant for CRM due to its strength in delivering unified solutions across IT, customer service, and operations.

According to Gartner, ServiceNow has marked its presence in the market by offering its tool more than just a traditional CRM.

Its Service Management Solution connects with the customer workflows across the enterprise.

This recognition highlights how ServiceNow is uniquely positioned to help businesses not only manage customer relationships but also streamline and automate service delivery across all functions.

Challenges May ServiceNow CSM Face in the CRM Market

ServiceNow CSM offers unremarkable features, but still, it can face several challenges in the well-established CRM market. These include:

• Data Migration: Transitioning existing customer data into a new CRM can be a complex and time-consuming task.
• System Integration: Ensuring that ServiceNow CRM works seamlessly with other internal tools and databases requires careful planning and execution.
• User Adoption: Training teams to effectively use the new system is important to maximizing its potential.
• Customization: Tailoring the CRM to meet the unique needs of each organization demands expertise in both business processes and the technical aspects of ServiceNow.

Without the right guidance, these challenges can hinder the full potential of ServiceNow CRM, causing delays and missed opportunities.

Conclusion

ServiceNow entry into the CRM market is undoubtedly going to shake the existing CRM market. However, to avoid conflict, it has changed its name (Customer Service Management), but still, because it is new in the market, it has to compete with so many giant players like Salesforce. Though it can leverage its existing market for its brand promotion and can provide its tool at reasonable prices. Many tech giants, including Virtuxient Technologies, are using ServiceNow to pace their processes and provide the best solution to their clients or users.

 

Frequently Asked Questions (FAQs)

1. How does ServiceNow enhance CRM capabilities?

ServiceNow enhances CRM by integrating customer service, IT support, and workflow automation into a single unified platform, improving efficiency and customer satisfaction.

2. What makes ServiceNow different from traditional CRM solutions?

Unlike traditional CRM platforms, ServiceNow offers end-to-end process automation, AI-driven insights, and seamless integration across various enterprise systems.

3. Can ServiceNow integrate with existing CRM software?

Yes, ServiceNow can integrate with popular CRM tools like Salesforce and Microsoft Dynamics to enhance functionality and streamline operations.

4. How does AI contribute to ServiceNow’s CRM approach?

AI-powered features in ServiceNow, such as predictive intelligence and automated workflows, help businesses proactively resolve customer issues and improve service delivery.

5. Is ServiceNow’s CRM solution suitable for all industries?

Yes, ServiceNow’s CRM capabilities are adaptable across industries, including healthcare, finance, retail, and IT, ensuring tailored customer service solutions.