How Machine Learning can help in CRM?
Relationships are personal things, driven by mutual understanding and recognition. Gone are the days when the customer communication was based on trial and error. Nowadays, CRM and marketing strategies are driven by efficient collection and analysis of customer data fueled by Machine Learning (ML) algorithms. It combines science, statistics and coding to make predictions based on data patterns.
ML sits on top of the CRM systems. It can tell the full customer story by capturing valuable insights from the data. It comprises of 3 stages –
- Analyzing the past data to quantify what actions led to greater outcomes
- Interpreting each customer interaction and recommending the next best action
- Continuously update its ‘learning’ based on recent set of results without the need for manual changes
“Marketers need to build digital relationships and reputation before closing a sale.” -Chris Brogan, Marketing Consultant & Author
ML has helped in creating a truly personalized marketing relationships and experiences for the customers, in other words, one-to-one marketing. To cite an example of a mobile operator for a better understanding of this statement. One roaming customer can be offered a roaming bundle while another customer who is about to finish his or her data package might receive an SMS to upsell more data. While for another client, it might just be a reminder to recharge the account before his or her account credit expires.
ML can help increase the value of your CRM investment by contributing in the following areas –
- Gaining future insights — ML provides a future facing, predictive view. It looks at every customer interaction and makes recommendations regarding the next best offer that will be used to target a client for a better outcome
- Continually updating predictions — ML evolves itself with every new interaction, new product releases, and customer life-cycle changes. This ability eliminates the need to set manually up changes and rules
- Discovering the ‘why’ — Even though CRM systems presents you with a unified view of data, it lacks insights into why any interactions happen. ML helps you demystify the prediction and uncover the reasons behind customer actions. This unique capability helps the marketers to take the right decision and convert more leads.
- Making predictions on one-to-one marketing — CRM is helpful as long as the generated reports talk about all the customer interactions. It fails at the individual level. ML treats each customer interaction as a separate data point which enables it to recommend the right message to the right client designate or a consumer at the right time.
- Analyzing unstructured data — ML gives new value to unstructured data — like email text, meeting notes. This capability in combination with the structured data can be used to make better decisions resulting in favorable outcomes.
“Make it about them, not about you.” -Simon Sinek
Machine learning is certainly the next big thing in the evolution of CRM. It helps in extracting more value from the data and enables one-to-one marketing. Organizations thus, need to learn how to harness the customer data effectively for better outcomes, and this is where MobiusLogic can help you.
At MobiusLogic, we have done CRM related work with Salesforce.com, Siebel CRM, Onyx CRM and Microsoft CRM Dynamics.