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The Impact of Artificial Intelligence (AI) on CRM and Role of Marketing Managers

Written by T. Iqbal, Md N. Khan

Paper category

Master Thesis

Subject

Business Administration>Marketing & Sales

Year

2021

Abstract

Thesis: Marketing and artificial intelligence The adoption of modern marketing techniques has become essential for all companies to remain competitive in the market. Without in-depth understanding of customer preferences and their needs, marketers cannot make the right decisions and rely on them for success (Marketing Evolution, 2020). Therefore, they must quickly acquire the correct knowledge about the customer and act effectively at the same time (Marketing Evolution, 2020). This is where artificial intelligence stands out. AI-enabled marketing technologies can help marketing stakeholders make real-time, data-driven decisions, but it is equally important to understand how to best integrate AI into marketing activities (Marketing Evolution, 2020). Hall (2019) stated that AI marketing basically uses technology to improve customer experience (Hall, 2019). He explained that the effective implementation of artificial intelligence marketing can also greatly increase the return on investment (ROI) of promotional activities. This is possible because artificial intelligence marketing uses processes such as big data analysis and machine learning to gain insights from target audiences. Then use it to develop more effective marketing campaigns (Hall, 2019). AI also eliminates almost all assumptions involving customer interaction, whether the company uses email marketing or customer support (Hall, 2019). Another major impact of artificial intelligence on marketing is that tasks that used to rely solely on human resources in traditional marketing methods are now automated, so content generation, web design, and running the most accurate pay-per-click (PPC) advertising can all be achieved through AI Marketing is carried out (Hall, 2019). In the same article, Hall (2019) emphasized the advantages of artificial intelligence in digital marketing, saying that artificial intelligence can modernize and improve the results of a company's digital marketing activities, while reducing the risk of human error to a large extent. On the other hand, in order to truly connect with customers and understand their needs, human interaction is a must, because nothing can replace the attributes of empathy and compassion that humans can provide but machines cannot (Hall, 2019). For companies, it can be very useful if they fully understand what artificial intelligence is and how its implementation is beneficial to the overall business strategy, because artificial intelligence is already changing many areas such as finance, e-commerce, logistics, etc. (Ng, 2017). Looking specifically at the future insights of artificial intelligence on marketing, it is expected that artificial intelligence will affect marketing strategies, including business models, customer service, sales choices, and customer behavior (Davenport, Guha, Grewal, and Bressgott, 2019). 2.2 CRM 2.2.1 Understanding CRM Customer relationship management (CRM) is a collection of all strategies and processes used by marketers to develop and manage customer relationships (Optimove, 2020). The main goal of CRM is to improve and strengthen customer relationships, enabling companies to achieve customer loyalty, revenue growth, and customer lifetime value by retaining customers (Optimove, 2020). The adoption of CRM in enterprises is growing. It is important to understand the latest trends in a highly competitive market (Cole, 2019). Top CRM vendors such as Salesforce, Oracle, and SAP have been improving key CRM functions (Cole, 2019). Each of these CRMs has the ability to increase conversion rates, promote sales, collect effective data, and improve customer satisfaction (Cole, 2019). 2.2.2 Five ways AI changes CRMi. Data ingestion and retrieval Many people believe that with the advent of AI, marketers and sales professionals may be on the verge of unemployment, but this is a myth and is considered a short-term-life perspective (Fatemi, 2019). According to Fatemi (2019), artificial intelligence is expected to enrich rather than replace the human factor in sales. This means that future sales professionals will use artificial intelligence to supplement their professional practice and skills (Fatemi, 2019). By integrating artificial intelligence, sales professionals no longer need to manually enter data, thus saving hours of extra energy and unproductive time spent on various activities (Fatemi, 2019). Not only that, artificial intelligence also helps to centralize different customer databases, while storing complete customer life cycle information, whether retrieved by email, phone, or chatbots (Fatemi, 2019). ii. Sentiment analysis Since most customer interactions are actually carried out through media that do not reveal the customer's body language and facial expressions, it is difficult for salespeople to build trust and strong relationships with customers (Fatemi, 2019). Fortunately, artificial intelligence provides a powerful solution to this problem. By using sentiment analysis, artificial intelligence tools can analyze conversations and assess the emotional state of customers (Fatemi, 2019). According to Fatemi (2019), a good example of this is Cogito, which provides voice analysis of calls to help salespeople understand the emotional state of customers and how to respond to them in the best way. iii. Data reliability enhancement decision-making, the artificial intelligence integrated CRM system can help identify potential problems in the system, delete any duplicate data, report any errors so that users can correct them, determine whether there are any incomplete data in other systems, and Provide updates on any recommended outdated data (Dilmengani, 2021) Read Less