The Complete Guide to SAP CX: Mastering the Art of Customer Experience with SAP CX

In today’s high-stakes digital landscape, the secret sauce to standing out and ensuring growth is delivering an outstanding customer experience. Customer experiences can now make or break a business, and this calls for a powerful tool to optimize your customer experience.

SAP CX, standing for SAP Customer Experience, has risen to this opportunity and emerged as an unrivaled powerhouse in the landscape of customer engagement solutions. Its comprehensive and versatile nature makes it a reliable partner for nurturing customer relationships. 

In fact, SAP CX is the flagship customer relationship management (CRM) solution of Systems Applications and Products in Data Processing (SAP), which is the largest software company in Europe by revenue and also holds the second highest CRM market share at 5.4%. Keep reading to learn how you can leverage this powerful suite to impress and retain your customers.

What is SAP CX?

SAP Customer Experience is a comprehensive CRM suite crafted to make the customer journey smoother, more efficient, and truly engaging. With SAP CX, businesses are armed with the right tools to deliver top-tier customer experiences and elevate their standing in the market. 

A closer look at the tool reveals its foundation, which is formed by five key cloud-based platforms that comprehend every phase of the customer journey. Each of these five platforms caters to different aspects of customer engagement:

• SAP Customer Data Cloud- SAP Customer Data Cloud is a tool designed meticulously to handle and safeguard your customer profiles and preferences. It stands guard over your valued customers’ data, ensuring that their trust in your brand is never compromised.

• SAP Marketing Cloud- This equips your business with an AI-driven advisor to fuel engaging and successful marketing campaigns. SAP Marketing Cloud is like an intelligent advisor that helps chart out dynamic marketing campaigns, engaging your audience effectively.

• SAP Commerce Cloud- With the SAP Commerce Cloud, which is also called SAP CX Commerce Cloud, businesses can offer a seamless online shopping experience right from product discovery to checkout. It’s like having an invisible butler, who ensures that your customers have the most delightful shopping experience, every time.

• SAP Sales Cloud- This is aimed at optimizing sales cycle and performance through data-driven insights. SAP Sales Cloud helps businesses fine-tune all their sales activities and boost profits.

• SAP Service Cloud- This omnichannel customer service platform houses a dedicated SAP ticketing system and case management feature, assuring efficient issue resolution. The SAP cloud for service features in SAP Service Cloud are focused on addressing grievances and quickly resolving customer issues.

The genius of the SAP CX CRM suite lies in how seamlessly these systems work together in synergy to create an all-in-one SAP CRM suite. These five systems integrate seamlessly with the powerful SAP S/4HANA platform, resulting in an accessible “single source of truth” for customer information. This efficient integration enriches the quality of customer interactions and paves the way for seamlessly executing end-to-end business processes. 

The Road to Success

Now SAP had started off mainly as an Enterprise Resource Planning (ERP) system and was often called SAP ERP. But it eventually ventured into the CRM sphere to eventually form the SAP customer experience suite. So, how did it get here? Let’s check out some key points to understand the growth of SAP’s CRM initiative-

• SAP Customer Experience evolved from the strategic acquisition and integration of several third-party CRM software. The major acquisitions between 2013 and 2018 include Hybris, Coresystems, CallidusCloud, and Gigya. 

• SAP also focused on continuous innovation and comprehensiveness of features. And the effectiveness of these acquisitions and innovative features was reflected in the fast growth of the SAP CRM initiative.

• The original name of SAP’s CRM tool was SAP Hybris as a result of acquiring Hybris. In 2018, SAP announced the SAP C/4HANA solution as its flagship CX CRM offering, consisting of five cloud-based pillars: commerce, marketing, revenue, sales, and service. 

• SAP then made another key acquisition for a stellar $8 billion in 2019 by acquiring Qualtrics, an experience management company that provides feedback and insights from customers and other stakeholders. 

• In 2020, SAP rebranded SAP C/4HANA as SAP Customer Experience (SAP CX), aligning it with its other cloud solutions and emphasizing its focus on putting the customer at the center of decision-making rather than focusing primarily on revenue. And this led to the pillar of revenue turning to customer data, leading to the five cloud platforms of SAP Customer Experience we discussed.

• SAP now continues to enhance its features with a focus on incorporating the latest technologies like advanced analytics, AI, and machine learning to maintain its market leadership. 

As a result of these proactive feature enhancements and strategic acquisitions, the SAP CX CRM tool serves thousands of customers across the globe with continued growth.

Features and Advantages of SAP CX

What makes SAP Customer Experience so impactful? In short; its versatility, innovative features, and far-reaching advantages have made it a top choice for businesses across industries. Let’s understand what has earned SAP Customer Experience its popularity in more detail:

• A comprehensive suite of solutions- SAP Customer Experience is not just software; it’s a complete toolbox for your customer experience journey. It offers Deep Customer Insights, Loyalty Programs, Online Retail Management, Asset Management & Data Storage, and more! Whether large or small, complex or simple, SAP CX simplifies your customer experience journey, keeping them happy and loyal.

• Connected customer data across all touchpoints- At the core of a fabulous customer experience is a holistic understanding of the customer journey, and SAP Customer Experience is all about that! It streamlines and connects every interaction your customer has with your brand, creating a customer journey map that’s comprehensive and insightful.

• Insights and recommendations driven by AI, machine learning, and analytics- Imagine having a system that not only collects and organizes data but makes insightful recommendations! SAP CX is powered with AI and machine learning that sifts through collected data and presents you with actionable insights. The end result? A higher level of customer satisfaction, loyalty, and yep, a lot more smiling customers!

• Supports industry-specific scenarios and best practices- Unlike a one-size-fits-all solution, SAP CX is tailor-made for not just your business but your industry too. Retail? Manufacturing? Utilities? Insurance? Public sector? SAP Customer Experience understands the nuances of these verticals and provides scenario-linked, tried-and-tested best practices to sail you smoothly in your industry waters.

• Runs on the robust SAP S/4HANA platform with seamless integrations- SAP CX operates on SAP’s S/4HANA platform, known for its robustness and capabilities. Plus, it effortlessly integrates with other SAP solutions and third-party applications via open APIs, giving you an interconnected ecosystem for seamless business operation.

• Cloud-based and Real-time- With SAP CX operating from the cloud, say hello to anywhere, anytime access, coupled with real-time updates and fixes. This cloud-based functionality ensures seamless integration with your existing systems and offers scalability to grow with your business. The real-time aspect means immediate insights and responsiveness, allowing you to adapt quickly to customer needs and market trends.

• Personalized Customer Interactions- SAP Customer Experience solutions allow businesses to not just serve customers but to serve them in a manner that is meaningful and personalized, enhancing those customer relationships at every touchpoint. Through intelligent data analysis and predictive algorithms, SAP CX crafts unique customer experiences tailored to individual preferences and behaviors. This personalization fosters deeper connections, builds trust, and elevates satisfaction, turning ordinary interactions into memorable experiences.

Industry Applications of SAP CX

Businesses across industry segments have harnessed the power of SAP Customer Experience, thanks to its amazing versatility and feature-richness. Let’s check out examples of its use in six important industries-

• Retail- Retailers can use SAP CX to create seamless omnichannel shopping experiences for their customers, offering them personalized offers and recommendations based on their preferences and behavior. With SAP Customer Experience, they can manage their inventory and supply chain efficiently, ensuring product availability and delivery across all channels. They can also improve their products and services by applying SAP Customer Experience to gain customer feedback.

• Consumer Products- Consumer products companies can use SAP CX to build direct relationships with their end consumers, bypassing intermediaries and increasing their brand loyalty. 

Moreover, they can use SAP Customer Experience to launch new products faster and more effectively, leveraging data-driven insights and agile marketing campaigns. Further, these companies can apply the SAP CX solutions to optimize their pricing strategies and promotions based on customer demand and market conditions.

• Manufacturing- Manufacturers can use SAP CX to transform their business models from product-centric to service-centric, offering value-added services such as maintenance contracts, spare parts delivery, remote monitoring, etc. 

They can also use SAP CX to enhance their sales productivity and efficiency by providing their sales teams with tools such as CPQ (configure-price-quote), CLM (contract lifecycle management), etc. Moreover, SAP Customer Experience can help them to improve their customer service quality by providing their service agents with tools such as C4C (cloud for customer), FSM (field service management), etc.

• Automotive- SAP CX can help automotive companies create seamless omnichannel shopping experiences for their customers, offering them personalized offers and recommendations based on their preferences and behavior. 

It also helps them manage their inventory and supply chain efficiently, ensuring product availability and delivery across all channels. And that’s not all! SAP Customer Experience can collect feedback from customers via Qualtrics surveys and the companies can use it to improve their products and services.

• Medical- SAP CX can help medical companies build direct relationships with their end consumers, bypassing intermediaries and increasing their brand loyalty. These companies may use SAP Customer Experience to launch new products faster and more effectively, leveraging data-driven insights and agile marketing campaigns. They can also apply SAP Customer Experience to optimize their pricing strategies and promotions based on customer demand and market conditions.

• Chemical- SAP CX can help chemical companies transform their business models from product-centric to service-centric, offering value-added services such as maintenance contracts, spare parts delivery, remote monitoring, etc.

Further, SAP CX can be used to enhance the company’s sales productivity and efficiency by providing their sales teams with tools such as CPQ (configure-price-quote), CLM (contract lifecycle management), etc. SAP Customer Experience also helps chemical and other companies improve their customer service quality by providing their service agents with tools such as C4C (cloud for customer), FSM (field service management), etc.

• Insurance- SAP CX can help insurance companies create seamless omnichannel experiences for their customers, offering them personalized offers and recommendations based on their preferences and behavior. They can also manage their claims process efficiently, ensuring customer satisfaction and loyalty. 

Again, the companies can collect feedback from customers via Qualtrics surveys through SAP Customer Experience and use it to improve their products and services. SAP Customer Experience also leverages artificial intelligence, machine learning, and analytics to provide insights and recommendations that help insurance and other companies understand their customers better, predict their needs and preferences, optimize their interactions and outcomes, and increase their revenue and market share.

SAP CX Pricing

The pricing of SAP Customer Experience is hinged on many factors such as users, orders, merchandise value, contacts, interactions, and the chosen edition out of standard, professional, or enterprise editions. 

Various add-ons to enhance the suite’s capabilities will also affect the cost. So, the exact pricing is very subjective and you must request the updated pricing information from SAP or its partners by explaining your requirements and budget.

SAP CX Implementation

Implementing an SAP CX solution is a process that may vary depending on the scope and complexity of the project. However, it generally follows a standard methodology that consists of five phases:

Project Preparation- Define the objectives, scope, team, timeline, and budget. Set up infrastructure, including hardware and software, and conduct initial workshops and training.

Business Blueprint- Analyze current business processes and design future state solutions using SAP Customer Experience best practices.  This involves documenting the functional and technical specifications, the document specifications, integration scenarios, data migration, and testing strategies.

Realization- Configure and customize SAP CX solutions. Develop custom code if needed, migrate data from legacy systems, and conduct unit and integration testing for quality assurance.

Final Preparation- Perform end-to-end testing with real or simulated data, resolve defects, conduct user acceptance testing, and prepare for cutover activities like data synchronization and system switch-over.

Go Live and Support- Execute cutover activities, launch SAP CX in production, provide post-go-live support, monitor system performance, and collect user feedback.

These five phases provide a structured approach to implementing SAP Customer Experience, ensuring alignment with business needs and a smooth transition to the new system. 

Why Use an Implementation Service Like Spadoom?

The implementation of SAP Customer Experience is a major business investment in terms of time and money. Moreover, this complex and multifaceted process can become tedious and wasteful unless you have expertise and experience in the field.

If you don’t have the required expertise and resources to surmount these challenges, don’t worry! You can always take the help of a trusted implementation service like Spadoom- the team of your SAP customer experience heroes! 

As an SAP Gold partner and leader in digital strategy, cloud consulting, and operations excellence, Spadoom ensures smooth SAP CX implementation. From the initial stages of project preparation to post-launch support, Spadoom’s team leverages their diverse experience and battle-tested expertise to help you harness the power of SAP Customer Experience effectively.

Wrapping Up

SAP CX is a powerful solution, aiming to revolutionize the customer experience. With its comprehensive capabilities and industry-specific offerings, it is transforming businesses across the globe. If you’re planning to implement it, make sure to start with detailed and inclusive planning and get all affected parties on board. 

Moreover, don’t hesitate to leverage the power of a trusted implementation service. Adopting SAP Customer Experience correctly can work wonders, but cutting corners during implementation might cause a horde of problems later!