xRM Software - Current Market Overview

The key features of xRM

xRM – Application examples in selected industries

Disadvantages of Extended Relationship Management (xRM)

1. High implementation costs

Expanding CRM into a comprehensive relationship management system often requires extensive customization and integration, which can be very complex. In addition, such integrations are usually very resource-intensive. Time, personnel, and budget must be allocated for implementation and operation—especially for customized xRM solutions.

2. Dependence on individual adjustments

xRM systems are usually heavily customized to specific business processes, resulting in a high degree of individualization. Such customized solutions can be costly to operate and update, especially if standard functions have been heavily modified.

3. Challenges in data integration

There are particular challenges involved in data integration, as an xRM manages not only customer data but also numerous other types of relationships. The data sources are often heterogeneous. Consolidating and maintaining large amounts of data from different sources requires consistent data management.

4. Training and change management

Another disadvantage of an xRM can be user acceptance. Employees must be trained to use what is often a more complex system. In addition, the introduction of an xRM often brings about profound changes in working methods and processes, which requires appropriate change management.

5. Cost factor

Depending on the provider selected and the degree of customization, one disadvantage of an xRM can be the cost factor. Implementation, licensing, and operating costs can often be very high for complex systems. The ROI often only becomes apparent in the medium to long term. Short-term successes through the use of an xRM are rare.

6. Security and data protection issues

Another challenge is the security and data protection aspects of xRM. The more relationships are mapped, the more complex the authorization and role concept becomes. At the same time, the challenge of ensuring compliance increases, as the processing of personal data from very different groups requires strict adherence to data protection laws (e.g., GDPR).

7. Technological dependence

Proprietary xRM platforms can create strong ties to a single provider, limiting long-term flexibility. Extensive customization can hinder future system updates or result in additional migration costs.

Comparison of xRM and CRM

Further specific criteria and suggested questions for the assessment of xRM systems

• Check whether the xRM system is flexible enough to adapt to changing business requirements. The ability to create custom entities, relationships and workflows is critical.
• Ensure that the xRM system integrates seamlessly with your existing IT infrastructure, including ERP systems, document management, and industry-specific applications.
• Also check compatibility with communication systems such as telephone systems or e-mail clients.
• Evaluate the user-friendliness of the platform. An intuitive user interface and simple customization options are crucial for user acceptance.
• Check whether the xRM system offers robust security functions and complies with the applicable data protection regulations (e.g. GDPR).
• Ensure that the system provides powerful reporting and analytics capabilities to enable data-driven decisions.
• Can your own company-specific KPIs be defined and visualized in dashboards or reports?
• Check whether the system offers mobile accessibility to allow users flexible use.
• Evaluate the system's ability to manage different types of data, including customer, partner, contract, asset and project data.
• Check the options for data validation, duplicate checking and data enrichment.
• Check whether the solution provides dashboards that enable a 360-degree view of relationships.
• Does the system have predictive models for lead scoring, churn risk or upselling opportunities?
• Does the system support the documentation of compliance with ethical standards (e.g. supplier audits)?
• Are interfaces available to connect industry-specific tools or legacy systems?
• Calculate the total costs of the solution (license fees, implementation costs, maintenance) compared to the expected benefits (e.g. increased efficiency or sales growth).
• Does the xRM system support the integration and visualization of geodata (e.g. address data on maps, location analysis of customers, partners or projects)?
• Is it possible to connect to external geo-services (e.g. WMS/WFS, OGC-compliant interfaces) and how easy is it to integrate them?
• Does the system support different channels for marketing campaigns (e-mail, social media, SMS, print, events) and does it enable multi- or omnichannel campaigns to be managed?
• Can campaign results be analyzed in detail (e.g. opening rates, conversion rates, response tracking, ROI calculation)?
• Does the xRM system support the creation and management of email templates? Can templates be maintained centrally and made available to different teams or user groups?
• Can email templates be linked to workflows or automations, e.g. to automatically send emails when certain events occur?