CRM Systems Don’t Capture Customer Experience: Just Ask Oracle

If CRM is your company’s “solution” for improving customer experience, you’re making a big (and shockingly common) mistake. Why? Because CRM systems look at the world from the inside-out, capturing the ways and places you touch and interact with your customers.

CRM Systems Don’t Capture Customer Experience: Just Ask Oracle image inside outWhat CRMs can’t do is help you understand what your customers think and feel when those interactions occur. And these feelings and emotions–that can only be captured by looking at your company from the outside-in–are at the heart of customer experience.

But that doesn’t mean CRM can’t help to improve experience. In fact, a recent article on Oracle’s customer experience management practices sheds light on its proper role in customer experience management. Here’s a hint: If a “Top 3” CRM vendor doesn’t have a CRM-centric view of customer experience, maybe you shouldn’t either.

Guess What? The “R” in CRM stands for Relationship. Oops.

The advent of CRM—with the promise of smarter, more flexible, and more automated customer databases—was supposed to be a game changer. And in many ways it has been.

Recommended for YouWebcast: The Art of Growth Hacking: Gaining Early Traction by Doing Things that Don't Scale

But it hasn’t improved customer experience much at all. Why? Despite having “relationship” in their name, CRM systems don’t actually track relationships or experiences. They track transactions and profile data as a proxy for deeper customer relationships and experiences.

In the end, this means CRMs don’t take into account your customers’ views of your company. They also don’t capture how interactions make customers feel, much less help you identify what they want or need. And even though a wealth of related customer data continues to be fed into CRMs (like support desk and social listening through SalesForce), the customer feedback that’s central to customer experience is still missing.

Instead, CRMs inside-out perspective means the conclusions reached by companies about customer relationships are skewed. They’re based on the interactions that occurred rather than the customer perceptions that resulted.

A CRM system can tell the company that two customers have the same set of interactions, but it can’t tell which customer is delighted vs. which feels trapped, upset, and may be actively bad-mouthing the company online. To get that sort of insight, you have to engage directly with, and listen to, your customers.

How Oracle Bridges CRM and Customer Experience

Oracle leverages CRM for improving customer experience in two main ways: First, by using CRM data to segment the customer feedback they gather and second, to take action based on customer feedback. What the CRM can’t and doesn’t do is actually gather that feedback. This highlights both how important CRM can be to customer experience, and why CRM alone is incapable of improving it.

The ability to use CRM data to segment responses to customer feedback is important on several fronts. Of course, it adds dimensions to and drives new insights from the data. But, just as important, it helps you look at responses through the lens of customer value. This lets you maximize experience improvement investments for your most valuable customers, while also allowing you to make cost-effective improvements for less lucrative segments.

Meanwhile, Oracle’s ability to take action based on customer feedback by using their CRM infrastructure is the mark of a good customer experience improvement strategy. According to the article, responses “requiring follow-up are automatically distributed to … employees empowered to take ownership, coordinate resources and outreach to the customer and corrective action steps are tracked in Oracle CRM.”

The thing is, the advancement of CRM technologies gives companies the ability to remember everything about customers and interactions. But just because a company has the ability to remember “everything” by collecting more data doesn’t mean they bother to use it.

Which is why Oracle’s integration of CRM into their customer experience program is where we see those companies that really want to better serve customers going. Using customer experience management as a way to actually leverage customer data as a signal for personalized issue resolution is something all companies should aspire to.

Discuss This Article

Comments: 1

  • oscar says:

    This is an interesting way of looking at CRM systems Michael. I always believed CRM system to be successful in building strong relationships between firms and theirs clients and your article definitely breaks down that relationship and examines every aspect. You stated that even though CRM systems do help that relationship, it does not fully capture or track the experiences and feelings of the clients. It is interesting how CRM systems were designed to manage the relationship between the firms and their clients, but are not able to get a full grasp on the relationship because only the interactions that occur are recorded and not the feelings that come with those interactions. Even though you are totally correct in that CRM systems may not be able to capture how the interactions make clients feel towards the firms and their product, I believe that CRM platforms are still an essential part of the customer experience. One of the CRM platforms that I have found to be useful in strengthening the firm’s relationship with their clients is GreenRope; they have integrated many channels of communication into their platform to make the customer experience an essential part of the operation. As you stated, Oracle has the ability to retrieve customer feedback in order to properly asses the relationship that a firm has with their clients, but I believe that this is something that other CRM systems can take a look at and integrate into their existing platforms.

Add a New Comment

Thank you for adding to the conversation!

Our comments are moderated. Your comment may not appear immediately.