The Manufacturing CRM Revolution
Why ServiceNow is the Only Platform Built for Tomorrow’s Manufacturers
Facing a perfect customer service storm from declining product margins due to tariffs, increasing demand for value-added services, and softening customer retention rates, manufacturing executives are doubling down on growing services revenue and looking to software technology for relief.
For more than a decade, the growing role of services in manufacturing — servitization — has pushed manufacturers to go beyond being a vendor to becoming a partner who helps customers manage business outcomes. These services deepen customer relationships and can increase recurring revenue, typically at higher margins than product sales.
However, the benefits of servitization will only be realized by manufacturers who can resolve longstanding issues that harm the customer experience.
The Burning Platform
Against this backdrop, Endeavor Business Intelligence, on behalf of ServiceNow, conducted an August 2025 study of more than 200 manufacturing executives.
With tariffs driving up costs, executives are doubling down on services revenue to offset shrinking product margins.
Face 15% cost increases from tariffs
Product margins are shrinking industry-wide
Services Revenue is the Answer
Against this backdrop, Endeavor Business Intelligence, on behalf of ServiceNow, conducted an August 2025 study of more than 200 manufacturing executives.
With tariffs driving up costs, executives are doubling down on services revenue to offset shrinking product margins.
Face 15% cost increases from tarrifs
Product margins are shrinking industry-wide
Services Revenue is the Answer
The Integration Imperative
Software in Use at Organizations
Respondents report using an average of nearly six software products to manage the customer lifecycle. CRM, ERP, and project management software were the most frequently used.
Manufacturers may benefit from adopting an integration strategy to manage customer lifecycle processes with fewer software applications.
- Customer Relationship Management (CRM) 100%
- Enterprise Resource Planning (ERP) 88%
- Project Management 76%
- Compliance Management 57%
- Demand, Supply, and Production Plans 54%
Most Desired CRM Integrations
Understandably, respondents expressed interest in an enterprise software tech stack built around service and the customer experience, and 55% wanted more of their ERP functionality embedded in a broader, customer-experience-oriented CRM platform.
On this platform, respondents would like to access processes from other solutions, most notably project management, quality management, demand and production planning, and supply chain management software.
- Enterprise resource planning (ERP) 55%
- Project management 30%
- Quality Management 29%
- Demand, supply and production plans 26%
- Supply chain management 25%
- Configure price quote 23%
Respondents were allowed to pick up to 3 preferences.
Most attractive benefits of a service-capable CRM
It may be counterintuitive to think of multiple types of software functionality as part of a platform approach to CRM until you consider the role each of these business processes plays in achieving customer-focused metrics such as retention rate, revenue from existing customers, and growth in after-sales services.
While respondents believe there are many attractive benefits of a service-capable CRM, the top benefit was, by far, to improve the customer experience. Respondents also expressed interest in improving process efficiency by eliminating duplicate work and data entry, increasing revenue without increasing headcount, and reducing errors and waste, in a three-way dead heat for second place.
- Improving the customer experience 34%
- Eliminating duplicate work and data entry 14%
- Increasing revenue without increasing headcount 14%
- Reducing errors and waste 14%
- Eliminating cost to maintain integrations 9%
- Reducing errors and waste 8%
- Reducing software subscription costs 7%
Implicitly, a CRM platform would expose and extend data and processes across a manufacturer’s software portfolio. This streamlines or automates customer-centric processes and delivers robust interfaces with cascading levels of detail.
The Services Revenue Explosion
Driven by downward pressure on product margins, 75% of respondents said they plan significant growth in services revenue.
Services Revenue Fuels the Future
From Product-Centric
to Service-Driven
75% moving to services
The 90% Mandate
Over 90% of survey respondents cited customer retention, revenue growth from existing customers, and improved customer experience as top initiatives.
Over 90% of survey respondents cited customer retention, revenue growth from existing customers, and improved customer experience as top initiatives.
+90%
Prioritize customer experience
+90%
Prioritize customer retention
+90%
Prioritize revenue from existing customers
Customer Experience Isn’t Optional — It’s Everything
AI: The Secret Weapon for Quality Control in Manufacturing!
Quality control has risen to the top of AI use cases, highlighting interest in mitigating recall costs and risks through automated, timely actions.
Manufacturing business Interest in a more robust, service-focused CRM supports applying AI automation to workflows.
Why ServiceNow
Three key themes for manufacturers emerged from this research, each with implications for executive teams as they technologically repower their customer support and service needs in the future:
Consolidation Is Imperative
Ditch fragmented systems and unify every customer interaction into a single platform that combines customer touchpoints with other critical parts of the business for total lifecycle management.
Fewer handoffs, faster time to resolution.
Services Revenue Fuels the Future
As product margins tighten, shifting toward service-driven growth is both strategic and essential. Manufacturers must become outcome-based partners rather than replaceable product vendors.
More captured revenue. Less leakage.
Integration Sets You Apart
CRM systems cannot exist in a silo anymore. Manufacturers who master seamless customer support and sales-and-service model integration solve persistent customer experience problems, gain a competitive edge, and set new industry benchmarks for excellence.
No duplicate entry. Less order and invoice exceptions.
Don’t just manage relationships — transform them.
The future belongs to those who harness the full potential of CRM — not merely to manage relationships, but to reinvent them across their business.
ServiceNow Offers
Unified Platform
Unified Platform
A unified platform built for total lifecycle management.
Integrated Service
Integrated Service
Seamless integration of customer support, sales, and service.
Purpose-Built
Purpose-Built
A purpose-built platform for the services-driven manufacturing future.
Industry Excellence
Industry Excellence
A way for manufacturers to set new industry benchmarks for excellence.
Additional Resources
Manufacturing CRM Revolution on the Horizon
Manufacturers face a shift toward service-led growth. A unified CRM can help to improve customer experience and operational visibility. Read this research report to learn more.
Manufacturing CRM, Rebuilt: From System Chaos to Mission Control
The research shows CX breaks under system sprawl, now see how a mission-control CRM and in-flow AI can cut claim delays and dealer frustration.
CRM in Manufacturing: Find Your Biggest Wins
Answer a few quick questions to map your top CRM opportunities across key sales and service use cases. Get a tailored value brief with next steps.
Tomorrow’s AI-Powered Manufacturing CX
Manufacturing customer experience is transforming from reactive service to AI-driven, anticipatory models where predictive intelligence addresses customer needs.