Unlocking the power of AI in CRM 

John Cheney at Workbooks explores the ways that artificial intelligence tools can transform customer relationship management

 

CRM has evolved significantly over the years, transforming from a simple contact database into a powerful tool for businesses to nurture customer relationships and drive growth. It’s become an indispensable part of modern business, with around 91% of companies with more than 10 workers relying on a CRM system.

 

With the advent of artificial intelligence (AI), CRM is poised to undergo another revolution. AI offers the potential to revolutionise CRM by automating tasks, providing predictive insights, and personalising customer experiences.

 

However, realising these benefits requires careful consideration of the limitations and challenges associated with AI implementation.

 

Increased automation

AI-powered automation tools like chatbots and virtual assistants have already revolutionised the customer experience. When implemented well, they can be invaluable assets in CRM, handling any routine customer inquiries and offering round-the-clock support to customers. Plus, they offer quick response times which customers love.

 

But, when implemented poorly, AI-powered automation can become more of a hindrance than a help. In circumstances where customers have complex queries, chatbots can be extremely frustrating and detrimental to their satisfaction. Considering this, it’s not surprising that a survey found just one negative chatbot experience drives away 30% of customers.

 

To keep customer relationships in good stead, keep AI-powered automation tools for quick questions and direct anything technical to a customer service rep.

 

Sentiment analysis for real-time feedback

AI-powered sentiment analysis has the power to completely transform CRM. Imagine a customer service chatbot that can not only understand a customer’s query but also sense their emotional state. This is the power of AI-powered sentiment analysis. By analysing the tone and urgency of a customer’s message, AI can provide immediate and appropriate responses. 

 

This capability also needs to be implemented carefully. While AI can certainly detect customer dissatisfaction, it is not yet at a point where it can effectively deal with difficult customer conversations, and trying to use it to do so will most likely leave your customer feeling even more frustrated. That’s another reason why for more complex inquiries the chatbot should reroute the customer to a customer service rep.

 

Personalised, on-demand support

A major advantage of AI in CRM is its ability to sift through a vast knowledge base and provide the most important information at the exact time it’s necessary. Thanks to AI’s on-demand capabilities, customer service representatives engaged in a challenging live chat can receive instant suggestions for troubleshooting guides or related articles that could resolve the customer’s issue. 

 

And this "conversational" AI goes beyond simple search results. It tailors information in a user-friendly, step-by-step manner, making it feel like getting advice from a knowledgeable colleague. This personalised approach not only improves customer satisfaction but also streamlines internal processes.

 

The power of predictive analytics

Understanding your customers and prospects is more important than ever, and AI-powered predictive analytics takes CRM’s understanding of customers to a whole new level. By analysing data from the entire customer lifecycle, CRM predictive analytics can predict future customer behaviour and identify even more opportunities for engagement. 

 

Understanding customer lifetime value is a crucial part of customer retention. Thanks to AI’s predictive analytics, CRM has been able to achieve unprecedented accuracy in calculating CLV. This means customer support teams can predict which customers are at risk of churning and take proactive measures to retain them. AI-powered predictive analytics in CRM means happier customers, higher retention and boosted revenue.

 

The end of traditional lead scoring

AI is revolutionising the sales process by enabling businesses to identify and prioritise high-value leads with unprecedented accuracy. Through predictive lead scoring, AI tools can analyse a lead’s behavioural data and assign a score based on their likelihood to convert. 

 

This data can help sales teams have a more nuanced understanding of a lead’s potential value. Incorporating this data into their strategies allows sales teams to focus their efforts on leads that are most likely to become customers, improving efficiency and increasing conversion rates.

 

Limitations of CRM and AI

AI offers more than just consolidating and making sense of scattered data. It can actively use various techniques to discern customer perspectives and preferences, enabling tailored approaches. This presents a utopian vision for marketers — enhanced customer engagement, increased sales, and higher profits with reduced human intervention.

 

However, like many utopian dreams, practical hurdles exist. One major obstacle is the fragmentation of customer data across numerous sources. Enterprises often store data in isolated silos, making consolidation a complex task.

 

Additionally, understanding the structure and formats of this diverse data – from financial records to email output and unstructured data like images and videos — is essential for effective integration.

 

A cross-functional CRM team can play a key role in tackling these limitations. By working with various departments, this team can facilitate skill-sharing and data integration, fostering a unified approach. But the scarcity of AI experts poses another challenge. While many organisations claim to use AI, they often rely solely on algorithms, which represent just one component of the AI toolkit.

 

A holistic approach to AI

Effective AI implementation has numerous benefits. But it requires a holistic approach. To do it right, companies must reevaluate data practices, establish a cross-functional CRM team, and invest in AI expertise. 

 

By addressing these challenges, organisations can harness AI’s potential to enhance customer engagement and drive their business growth. 

 

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John Cheney is CEO of Workbooks, a CRM platform used by growing companies to run their business and engage effectively with their customers.

 

 Main image courtesy of iStockPhoto.com and tolgart