How can Artificial Intelligence (AI) enhance Customer Relationship Management (CRM)? | Susana Costa e Silva
It was about this topic that Susana Costa e Silva, professor at Católica Porto Business School and director of the Masters in Management, wrote for Store Magazine. Read the article and remember some benefits AI can bring to customer relationship management (CRM).
"At a time when so much ink has been spilt by Artificial Intelligence (AI) and so much has been written about the adverse effects that this technology could have in the future if used for less legal purposes, it is essential to understand, in concrete terms, the which can be beneficial for some areas of management.
It's not new that today's companies have access to abundant valuable information like never before. The explosion in content production has resulted in a vast reservoir of data easily accessible via the web, which doubles every two years. It is also nothing new that, given this boom in available information, the processing and extraction of reliable and relevant information for decision-making has become an even more complex task for which individuals need more and more of the help provided. by intelligent systems created by man.
AI is a field of computer science that focuses on building systems and machines capable of performing tasks that usually require human intelligence. Not all computer programs can be considered AI as it requires a computer equipped with a system that not only operates but also demonstrates the ability to adapt to new and non-specifically programmed situations, seeking appropriate solutions. In other words, AI involves the development of algorithms and programs that allow machines to act, think and learn in ways similar to humans. These refined algorithms, regardless of the future and futuristic uses that may be given to them, can be of particular value for management, and companies can benefit from them in a wide range of areas, particularly in the automation of some tasks.
In the context of business management, it is expected to see AI being applied to the analysis of large volumes of data to identify trends and hidden patterns and generate valuable insights for making informed decisions in various domains within an organisation. How companies can benefit from AI will depend on the investment they can make in terms of savings, resource use and increased productivity. And given that there are more and more operators in this field on the market, it is expected that in the long term, the development of these solutions will become increasingly within the reach of all companies, to a greater or lesser extent. Two of the domains where its use is most effective are CRM (Customer Relationship Management) and MA (Marketing Automation), where some potential gains are to be retained, starting with automation and continuing to customisation in the treatment of customers, having with a view to retention and increasing engagement:
- Automation of repetitive tasks: AI allows, first of all, the automation of routine and repetitive tasks, such as sending automatic messages as soon as a particular standardised situation occurs, following-up emails, scheduling and recreating posts on social media, operating customer issues and complaints, etc. This automation allows managers to free up specialists’ time for more creative tasks.
- Increased segmentation efficiency and customisation potential: AI helps to group by different categories and give other priorities to different customer segments (current and prospective), which can, in turn, help identify and create, based on information collected through primary and secondary data, customer profiles that are priority and to which the company should direct its preference in terms of marketing efforts; AI also allows you to work with different layers of information, simultaneously using demographic, psychographic criteria, consumer preference data, geo-location data and presence of competitors, etc. which can help increase customer conversion if the company can direct appropriate value propositions, at proper prices and through the right channels. For example, through geo-referencing systems and based on an in-depth knowledge of its customers' preferences, the company can direct unique campaigns and product recommendations, providing interactions capable of increasing customer engagement and exceeding your expectations. Knowing where the customer is and adjusting the information given to them based on their profile, location, and even time of day can significantly facilitate the convenience of purchasing.
- Practically real-time data forecasting: AI algorithms can analyse historical data to make very accurate predictions about what consumer behaviour is expected to be and the company's operating context. These predictions can be made practically in real-time with scrutiny of social networks, interactions with the company's website and its customer support channels or even complaints. This information is not only helpful in helping to identify better which are the most profitable and potentially attractive segments to target marketing investments but also to adjust ordering decisions, stock management, etc.
- Lead Qualification: AI can make it possible to scrutinise leads and other interactions carried out by consumers and potential customers, anticipating their behaviour about techniques and instruments used in engagement by the sales team. For example, anticipating bad debts and returns, adjusting sales conditions, taking out insurance, etc.
- Obtaining Customer Insights and Feedback analysis: based on customer feedback, whether on social networks, on the company's direct channels, or in targeted surveys, and based on the reach of your word-of-mouth, the AI can be trained to produce reports with handy information in anticipating potential problems and their scope, as well as in outlining solutions that increasingly meet the expectations demonstrated throughout the customer journey, increasing gain points and, above all, reducing pain points.
- Use of chatbots or virtual voice assistants: conversational agents are today an inescapable reality that, if well implemented, can provide customer support instantly and 24/7. Not only can the battery of frequently asked questions be infinitely more extensive and more complex, but agents can be infused with technology that allows them to learn and adjust as closely as possible to interactions that human agents would carry out.
- Possibility of channel integration: one of the biggest challenges facing companies today is the integration of their channels in contact with customers to provide an experience considered “seamless”, in which the customer can move between the different channels that the company offers (whether physical or virtual, such as e-mail, e-commerce, mobile commerce, social commerce and the metaverse) without any friction or apparent differentiation. By providing information from each channel and optimising the relationship through other channels, AI makes an indelible contribution to facilitating a subtle and practically invisible transition between channels. In this sense, the customer can provide a customer journey with a pleasant experience, whatever the channel used, given that – through AI – they are presented as perfectly integrated.
- Continuous learning: AI algorithms are constantly learning based on primary and secondary data and optimising marketing campaigns and actions. This results in a regular adjustment of instruments and techniques to the reality that is now more scrutinised and for which we now have more data than ever. This iterative process results in marketing efficiency never before known, providing investment evaluation measures and allowing scrutinisation of actions based on their ROI and customer engagement potential.
Generally, companies at the forefront of AI are developing increasingly customised solutions to incorporate AI into marketing automation. This will allow its client companies to increase the efficiency of their marketing investments and increase the connection with their customers, building loyalty and working towards consolidating a reputation in the market that could eventually improve their competitive position in the market."
