How Can Natural Language Processing Enhance CRM Interactions?

Customer expectations have changed dramatically over the last few years. It’s not just about timely service anymore, customers want thoughtful interactions, consistent experiences and round-the-clock availability. So it’s safe to say that customer service should be a top priority of those businesses who want to stay ahead.

While these expectations offer an opportunity to maintain a competitive edge, it’s equally a challenge. Trying to juggle client relationships manually or just with CRM tools alone is not sustainable. But fortunately, this is where Natural Language Processing (NLP) has stepped in.

So how can NLP improve the way in which you connect with customers through CRM? Let’s get into it.

 

What Is Natural Language Processing?

 

In short, NLP is a form of artificial intelligence (AI) that gives computers the ability to comprehend and interpret human language, and then respond accordingly.

If you think about how Apple’s Siri can understand your commands when you speak or how Google can finish a sentence for you when you search for something, that’s all NLP at work.

So when NLP is applied to CRM, you get systems that are able to automate routine tasks that you don’t have the time for, communicate better and have a deeper understanding of what your customers want.

 

The Powerful Combination Of CRM And NLP

 

Customer Relationship Management (CRM) systems are used to store and update information about customers. It will note every interaction that has taken place between the individual customer and the business. This ranges from e-mail messages to purchases and even mentioning the company on social media.

All this information is put together to build the customer’s profile to help businesses understand what they want specifically. When you bring NLP into it, these CRM systems are then able to read and interpret language on their own. This goes far beyond just a system capable of storing data.

 

How Can NLP Enhance CRM Interactions?

 

By integrating NLP with existing CRM systems, companies have the ability to change how they interact with their customers. It goes far beyond just keeping up with new technology, it’s about creating better customer experiences to foster brand loyalty in the long-term.

 

Customer Support Becomes Smarter

 

When NLP is integrated with CRM, it can read and understand e-mails and messages that come through from customers. From there, it can then either respond instantly itself or suggest a reply based on the content of the message.

So if a customer is enquiring about an order that hasn’t been received, an NLP-powered CRM will respond to let the customer know that the order status is being checked or automatically send tracking updates.

Customers are tended to quickly and they feel heard, which is going to improve their overall experience with your business.

 

Data Entry Can Be Automated

 

The point of CRM is to continuously update customer information as it becomes available. When a customer sends a new request or complaint, NLP is able to prioritise the issues according to urgency and categorise them for the right department to handle.

This way of working reduces errors and missed communication, keeping workflows running smoothly.

 

 

Better Understanding Of Customer Sentiment

 

In some communication cases, it’s not what people say but how they have said it. Using sentiment analysis, NLP can determine whether a customer is happy, frustrated or confused based on the content of their message.

If a customer is unhappy, the CRM will then flag it to a team member who can address the issue. Again, it all comes back to understanding customers and making them feel seen and heard.

 

More Personalisation Is Possible

 

Based on previous customer data that CRM has collected, NLP can sift through it all to understand the preferences and behaviour of each individual person.

With this information, CRM can then suggest which options each customer is likely to be interested in. Marketing teams can then tailor their strategies accordingly and serve the customer recommended products.

With this level of personalisation, companies are more likely to see repeat business.

 

Predictive Insights About Customer Trends

 

It may seem like NLP is only reactive to customer activity, but in reality, it can be proactive too. When analysing hundreds of thousands of customer interactions, it becomes easy for it to spot information like interest in product features and common frustrations with products or the customer service.

This gives teams more control to de-escalate issues before they become a big problem and even the chance to spot new opportunities before their competitors do.

 

Does The Use Of NLP Mean The Human Touch Isn’t Needed?

 

The short answer is absolutely not. NLP shouldn’t, in any case, be used as a human replacement but rather a tool to enhance human work.

While it is capable of managing the mundane, repetitive tasks and offering deep customer insights, customer service teams still need to regularly interact with customers to build authentic, human relationships.