a customer experience newsletter
(this week’s newsletter is a 5.5-minute read)
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Journey is a weekly newsletter from Y Meadows that curates the best thought leadership at the intersection of technology and customer service.
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In This Week’s Newsletter
Many brands are revisiting their customer experience initiatives, and are looking into investing in either a customer data platform (CDP) or customer relationship management (CRM) platform. In a piece from CMS Wire, Scott Clark addresses the basic functions of CDPs and CRMs, which would serve a brand better for improving the customer experience, and why?
A Customer Data Platform is a software package that is used to unify transactional, demographic, and behavioral data from all of a brand’s channels, all of which are used to create a persistent, single-person view of each customer. It then makes the customer data available to other systems so it can be used for marketing, personalization, customer service, sales, and customer experience initiatives.
CRMs were created with the intention of simplifying the process of customer relationship management. They enable sales and customer service professionals to store customer and prospect contact info, identify leads, store service tickets, manage marketing campaigns, and facilitate the ability to provide information about each and every interaction between a customer and a brand to anyone at a business that requires access to it.
Customer service professionals and sales professionals typically use CRMs, as they are customer-facing positions.
CDPs, on the other hand, are typically used by marketing professionals, as well as product managers, customer experience professionals, and sales campaign managers, as their roles are non-customer facing positions.
CRMs are able to provide data about the interactions between customers and a brand, and the data is typically used by customer-facing employees who are going to communicate or interact with a customer.
CDPs typically use Application Programming Interfaces (APIs) and code to integrate with other software in order to gather data from locations where it may be siloed or otherwise difficult to obtain, and it is usually an automated process.
First, they can be very effective tools for enhancing relationships between brands and customers.
Second, CRMs provide customer service support staff with instant access to every interaction that the customer has had with a brand.
Third, many CRMs use AI and process automation to identify customer sentiment through analytics and facilitate faster responses to customer service inquiries and social media posts.
Finally, CRMs enable a finer degree of customer segmentation, which enables brands to understand how to approach each customer.
Both CDPs and CRMs are useful for enhancing and improving the customer experience.
“Customers aren’t looking for reps to anticipate, or “discover,” needs they already know they have, but rather to teach them about opportunities to make or save money that they didn’t even know were possible.”