What Is ServiceNow Customer Service Management?
Customer Service Management (CSM) is a set of workflows and tools for optimally overseeing and tracking all interactions with a business’s customers. The goal of CSM is to comprehensively manage the customer experience (CX), regardless of the engagement channel or type of interaction/transaction. CSM also is known as Customer Experience Management (abbreviated CEM or CXM). CSM focuses on:
Automating common tasks to make the customer experience feel effortless and seamless
Connecting departments, workflows, and systems to proactively resolve customer issues
Pinpointing and proactively resolving issues before customers make contact
Why businesses need CSM
Customer service operations have reached a tipping point, according to a 2018 Forrester Research report on the state of the customer service industry. Similarly, the consulting firm McKinsey declared in 2018 that customer service is at the beginning of a new era, which McKinsey has named customer success 2.0.
Analysts say the only viable way for companies to respond to fundamental changes in the customer service industry is to embrace CSM:
Customers now demand efficient, seamless service 24/7 across a wide range of channels. Because organizations cannot infinitely increase the size of their customer service teams, Forrester concluded in a 2018 analysis that companies will need to rely on CSM. CSM is a scalable, cost-effective solution, relying on automation and artificial intelligence—instead of more human capital—to meet modern customer service demands.
Four in five customers now attempt to resolve an issue themselves before reaching out to a live representative, according to a 2017 report in the Harvard Business Review. CSM provides businesses with ready-made frameworks and templates for building out robust self-service options. And when customers don’t find a resolution on their own, CSM efficiently routes these customers to a service representative who is optimally equipped to help them.
Because customers have so many buying options, customers will no longer put up with poor customer service. A 2016 study by New Voice Media found that 51% of customers would never buy from the company again after a negative customer service experience; in contrast, a positive customer service experience would lead 70% of customers to become more loyal to the company. Forrester estimated in 2015 that U.S. companies lost an estimated $62 billion in sales due to poor customer service.
Why businesses choose ServiceNow for CSM
Modern businesses recognize that investing in a cloud-based CSM platform is one of the most important, strategic ways to differentiate themselves in a competitive marketplace:
A 2017 study by the research firm Gartner found that CEOs rank customer strategy as the second most important overall priority on their strategic business priorities list, up from No. 4 the year prior.
Forrester Consulting reported in 2018 that organizations are turning to the CSM platform from cloud computing company ServiceNow to deliver a seamless, integrated customer experience. Forrester found that ServiceNow CSM is specifically designed to:
Drive down costs
Improve customer satisfaction
Serve as a highly scalable solution
Serve as a highly scalable solution
Connect teams across departments to quickly find and fix issues
Proactively prevent customer calls
Introduced in 2016, ServiceNow CSM already is attracting accolades. The research firm Gartner ranked ServiceNow CSM for the first time in its 2018 Customer Engagement Magic Quadrant. ServiceNow was the only vendor that earned a spot in the Visionaries category.
Gartner 2018 ITSM Magic Quadrant
Gartner’s 2018 Customer Engagement Magic Quadrant report noted the following strengths of ServiceNow CSM:
Strong case management
Strong incident management
Easy configuration and modification
Gartner reported that customers praise the following aspects of ServiceNow CSM:
Workflow and business rule automation
Out-of-the-box functionality for customer support
Quantified benefits of ServiceNow CSM
Studies have shown that ServiceNow’s CSM platform offers quantifiable benefits to the organization. A 2010 study from Forrester Research found that businesses that develop effective multichannel integration—a hallmark capability of CSM—on average achieved the following benefits:
A 48% increase in online sales
A 36% increase in customer satisfaction
A 28% reduction in operating costs
A 25% increase in profitability
Forrester Consulting published a 2017 case study quantifying the benefits of a large, $850 million software company’s decision to implement ServiceNow CSM. The report found:
Within the first 10 months of implementation, the company’s Net Promoter Score (NPS) customer service metric increased by 10+ percentage points.
The company realized $6.6 million in cost savings due to faster case resolution times, more informed and efficient customer interactions, and ability to easily track SLAs (Service Level Agreements), service-level targets, and KPIs (Key Performance Indicators).
The company earned $3.6 million in new revenue as a result of CSM identifying new upselling and cross-selling opportunities.
The company realized $1.3 million in organizational efficiencies, including improved productivity and faster business decision-making.
Where CSM and ServiceNow are headed
Using CSM to improve the customer experience is becoming increasingly essential:
At a Gartner global customer experience summit in 2018, Gartner estimated that 25% of customer service and support operations will integrate virtual customer assistant or chatbot technology into customer engagement channels—up from just 2% in 2017.
The overall size of the CSM industry is expected to grow significantly in the coming years:
ServiceNow CSM is poised to dramatically reshape the industry in the coming years.
The Wall Street analyst RBC Capital reported in 2018 that ServiceNow CSM appears to be reaching an inflection point, with ServiceNow CSM likely to become one of the company’s biggest market opportunities.