You know how important customer data is for driving revenue and growing your business if you’ve ever used customer relationship management (CRM) software .
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Making decisions based on your collected data is crucial to providing an excellent customer experience and keeping your customers happy. On that note, you’ve probably heard that machine learning and AI are the future of analytics.
You’ve heard right—they are.
If you’ve ever been confused about what machine learning is and what it can do for you, we’re here to help by explaining three different ways ML is transforming CRMs to better help businesses leverage their data.
- Machine learning is becoming a more common feature in CRMs and unlocks extra insight into the data you’re already gathering.
- Using machine learning to boost your predictive lead scoring and analytics will increase your ROI and conversion rate.
- Machine learning helps provide you with a 360º view of your customers and can find patterns for you before they become problems.
- Qualitative data is often hard to parse, but machine learning makes analyzing unstructured data a breeze.
What is machine learning anyway?
At its core, machine learning is a category of AI that aims to extract knowledge or patterns from a series of observations. Think of it like a person who looks at collected data and provides you with insight and analytics based on the data, while also learning and adapting with each set of data.
Except this person can look at every single point of data in less time than it takes you to grab a cup of coffee.
Within a CRM, it will look at all existing customer information (both structured and unstructured) and provide you with a more complete look at a customer’s story.
Machine learning in a CRM helps you serve your customers in a few ways:
✓ It will look at your previous decisions and data to see which actions led to better solutions.
✓ It will help you make the most informed decisions with new customers by recommending next best actions based on fresh customer interactions.
✓ It will continually learn and adapt based on your updated strategies and outcomes from different decisions you’ve made.
The key here is that a lot of the most complicated aspects of machine learning are done by the vendors developing the algorithms. You just get to reap the benefits.
How machine learning is transforming CRMs
Below we’ll dive into three specific changes machine learning has brought to CRM software:
- Get a better ROI with predictive analytics
- Connect disparate customer data points to understand customer decisions
- Give value to unstructured qualitative data with ease
1. Predictive analytics leads to better ROI
Predictive analytics have been one of the key differentiators for CRM solutions in the past few years, and Gartner found that there’s growing interest around predictive functionality from marketing technology.
With all the major players in the industry buying into this technology, even smaller businesses get to reap the benefits. The most common predictive analytics you’ll find in CRMs is predictive lead scoring. […]