The role of technology-based CRM in customer engagement 

Importance of Customer Relationship Management (CRM) 

It is not an old notion to promulgate customer retention over finding a new one as it is more cost-effective and brings better results. It all starts with identifying a customer’s lifetime value and targeting customers of high net worth. Customer Relationship Management (CRM) plays a significant role in sustaining a customer for a longer time and bringing more sales from the existing one. The idea is about engaging a customer in a meaningful way to extract information, data, and eventually sales from them. Therefore, connecting a company with the masses and still maintaining the details of individual customers is a task to be handled with care. It is an art in which humans are dexterous, as they can understand individual needs and psychology. 

The rise of technology-based CRM 

To implant a human-enabled system, software, and process is an integral part of CRM. They must work in tandem to produce effective results for the organization. This could germinate a debate over the use of technology-enabled CRM and its potential to replace the human touch. Interactive Voice Response (IVR), Artificial Intelligence enabled chatbots are replacing live human calls and direct interaction with the salesperson. 

“Generation Z” is used to this change, but “Generation X” is missing this human touch and live interaction with the seller or its agents. Therefore, the debate is apparent regarding the use of technology in CRM over human involvement. No doubt that technology-based CRM is less costly, can reach the masses, and produce efficient results through data mining, and can be helpful in faster interaction with clients. But it’s all time and all situation usage are not possible or could produce unsatisfactory results.  

As a marketer, you must create an attempt in identifying the venues where technology-based CRM can be effective and helpful in customer retention. Some of them are as follows –  

• Technology-based CRM can create a customer data-based management system.  This system has the potential to create a dashboard for each customer, which includes customers’ personal information, buying habits, and sales records. Example: Salesforce and Zoho CRM systems and applications. 
• Marketing automation software such as Hubspot and Marketo are also available and are useful in sending bulk mails and messages to customers.  
• Social media monitoring tools such as Hootsuite and TweetDeck helps in integrating and using all social media platform simultaneously to send common messages across these platforms.    

• Chatbots and customer analytics tools are also helping sellers in extracting customer requirements and hence creating customize plans.  

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The future of technology-based CRM 

There are some situations where technology-based CRM may not be as effective as direct human interaction to establish a better brand image. There are two possible situations where interaction between the company and its customers may take place.  

First is a company trying to reach customers to promote its product or to educate a customer about its brand, service processes, etc. Next is a customer who wants to interact with a company for seeking help or writing a complaint. The former may demand the use of technology-based CRM, whereas the latter may seek a human touch.  

Nevertheless, the use of technology in CRM has reached another level where technology can prompt and motivate a customer to give a response. Gamification is one such tool that helps in getting client responses and referrals. Leader boards, treasure hunts, contests, and events are hosted by the websites where participants get rewards in the form of discounts, offers, and rebates.  

Personalized information obtained through data mining may result in many customers having similar choices. The cost of finding new customers could be calculated easily with the help of CRM technologies using customer analytic tools. Attention could be paid to the fence sitters (ones who are looking to switch brands), low-profit customers, customers purchasing only a single product line, and customers who need extra services. This eventually helps companies to reduce customer attrition rates and achieve better profit margins.  

Missing human touch in CRM may not be a problem for Generation Z customers, as they are accustomed to using technology. Henceforth, the future of the use of technology in CRM is bright, and it seems to have an edge over the traditional mode of CRM.       

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Acquire deeper understanding of CRM with an online MBA from Manipal University Jaipur  

An MBA provides a valuable opportunity to delve into the realm of Customer Relationship Management (CRM) and its applications. Through comprehensive coursework and practical experiences, an MBA equips individuals with the necessary knowledge and skills to understand the intricacies of CRM and its impact on organizational success. By studying CRM within the broader context of business strategy, marketing, and data analytics, MBA graduates gain a holistic understanding of how to effectively manage customer relationships, enhance customer satisfaction, and drive business growth.