Customer Relationship Management (CRM) is a system that has allowed businesses to store, organise, and analyse customer data for two main purposes: to improve the efficiency and efficacy of professional business practices and to enhance customer experience.
With significant innovation and technological improvements in CRM technology since the end of the 20th century, the technology has evolved and improved in many ways to keep up with the growing need to succeed in increasingly competitive environments.
Bearing in mind the status quo in CRM technology, however, it’s necessary to look forward and contemplate the future of the industry. That means identifying emerging trends in CRM as well as acknowledging potential challenges.
As it stands, there appears to be a significant gap between the ways in which companies are using CRM technology as opposed to the immense potential that it offers. Thus, the objective is to close that gap.
Some of the best CRM providers include:
Emerging Trends in CRM Technology
The overarching trend in CRM technology is the need to create a single source of in-depth information that employees from across companies are able to access and utilise effectively and efficiently.
Commitment to a SSoT
Companies are moving towards creating a Single Source of Truth (SSoT) by breaking down silos within traditional business models – that is, ensuring that all departments are relying on the same standardised information that is accessible to all.
Using AI to Obtain Deeper Insight
Artificial Intelligence (AI) is constantly improving, and its current trajectory predicts that it will become better at utilising big data and organising it in ways that humans simply can’t. This means that it will become possible to get more out of the information companies already have access to, including working on things like predictive analytics.
Increased Use of Self-Service
Current data shows that customers are finding increasing enjoyment in self-service options for troubleshooting and problem-solving. It seems reasonable to anticipate that providing more self-service options will continue to improve customer experiences, and this ought to generate additional data that can be analysed for potential improvement.
Expanding Data Sources
Constant technological innovation and improvement have resulted in many new ways in which technology can obtain users’ data. For now, it seems like mobile data and IoT (Internet of Things) data are on the rise in terms of having the ability to gather a wide variety of information – that is, using things like smart watches, smart home devices and more to access customer data that wasn’t previously accessible.
Hyper-Personalisation
Hyper-personalisation makes use of transaction history, online activity, social media, device type, conversational style, GPS data and so much more. By means of advanced CRM technology that uses AI, it’s becoming increasingly possible to analyse this big data.
Part of organising this large amount of information includes customer journey mapping which allows and encourages employees to consider the totality of a customer’s experience when contemplating future engagement.
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Potential Challenges in the Future of CRM Technology
As bright as the future of CRM technology appears, it also introduces its own set of challenges.
Continued Fragmentation of CRM Systems
Many companies struggle to depart from the siloed approach of maintaining a separation between departments and partners. Until all parts of the business are completely integrated, it won’t be possible to establish a true SSoT.
Lack of Use Beyond Sales and Service For CRMs
The potential of CRM technology beyond sales is often misunderstood. Meanwhile, it could be expanded to include use in broader customer services (both pre and post-sales) and into marketing, digital commerce and more.
Data Accuracy and Privacy
Especially when using advanced technology, it can be difficult to ensure that all data obtained is accurate and up to date. Furthermore, it’s both essential and very difficult to ensure widespread confidentiality of data, and it requires constant effort and monitoring.
CRM Cost and ROI
Implementing a good CRM system can be pricey at the outset, and this often holds companies back. However, if utilised properly, a CRM can provide a significant ROI in the long run.
Adoption of CRMs
Whether it’s due to a lack of understanding of the value of CRM systems or the importance of breaking down silos, the most significant obstacle in the future of CRM technology is simply a lack of adoption and a failure to realise its potential.
What is the Future of CRM Technology?
The future of CRM technology is all about decreasing the gap between the current implementation and utilisation of CRM technology and the potential that it holds.
By properly realising what it has to offer and combining this with the use of constantly evolving technology, it’s safe to say that CRM technology will be able to continue to improve both customer service and the overall success of the businesses that utilise it.
