CUSTOMER RELATIONSHIP MANAGEMENT IN A DIGITAL ECONOMY-

MARKETING IN THE ERA OF ARTIFICIAL INTELLIGENCE

COURSE NAME: Post Graduate Diploma in Management

Batch: 2018-2020

AUTHOR NAME:

1. Harsha Sawlani - 8380906015,

2. Manawwar Hussain - 8626080471

Email id:

1 .hsawlanih10@gmail.com

2.manawwar.hussain@outlook.com

Affiliation: the information we gave is true according to our knowledge and it is not copied
from anywhere else.
Abstract
The omnipresence of technology in the 21st century is an undeniable phenomenon, and has
altered the way goods and services are produced to fulfil wants and needs. The defining aspect of
the evolution of the field of marketing in the last four decades has been of focusing on consumer
wants and producing goods and services to fulfil them, rather than looking for customers for
goods best produced by an organisation. The convergence of these two trends, denoted by the
digitization of the way organisations interact with their customers to analyse and fulfil their
needs is the core focus of this research paper. We look at the anecdotal examples available in the
real world to justify the validity of theories of customer relationship marketing along with the
evolution of the strategies used by major industries and firms to include the digital sphere in
value delivery to their customers., concluding with the limitations of the use of technology in the
realm of CRM, simultaneously highlighting the signs of counter-productivity of investments in
technology to manage the interactions between organisations with their customers.

Keywords:
CRM, digital marketing, artificial intelligence
Introduction (background and motivation)
The digitization of data and processes has diffused in virtually all aspects of business
management, with key components being generation of data and processing of the given data
into actionable strategic inputs. In the realm of customer relationship marketing, this aspect of
technology is gaining a wider focus, with the integration of artificial intelligence and real-time
data analytics to define and serve larger customer bases. The exponential growth of technology
in the past three decades has paved the way for many new-age management tools and metrics,
but there often is a significant level of subjectivity involved in the analysis of the usefulness of
the use of technology in the field of management, usually stemming from varied organisations
serving equally diverse customer bases, with similar data management tools with different goals
and therefore, end results. This paper intends to bring focus to the effective use of data generated
by digital sources along with the utilisation of digital media as a means to fulfil greater consumer
needs, to gain higher customer equity.
Objective – of research paper
The influence of digitized modes of data generation and use of artificial intelligence in the field
of customer relationship management has played a vital role in the shaping of corporate
strategies of marketing management. This has simultaneously led to the generation of contrasting
perspectives regarding the necessity of the implementation of given data in the field of customer
relationship management, along with the effectiveness of the modified approaches to
management. In the context of rapid evolution of the mode of value generation and consumption,
recurring investments in new technology to facilitate newer forms of products and product
bundles is compared with the ability to realise the value addition from the investments.
Simultaneously, the utility of technology in the generation of user data for gaining insights into
customers and potential customers’ has also been in question due the rapid redundancy of
information requiring constant updating of databases, along with the redundancy of technology
as a whole prior to their expected termination point. The objective of this research paper is to
generate a contextual background to determine the right organisational form and structure to
maximise revenue generation from investments in technology as proposed in existing market
research, with focus on development of marketing strategies, and evaluating the key components
of marketing strategies utilising artificial intelligence.

Methodology – what was done to answer the question

This paper uses secondary data in the form of research reports, macroeconomic data, expert
opinion, international publications and brand strategies to evaluate the trends in the field of
marketing which are directly and indirectly linked to strategic investments in data analytics and
digital media as marketing tools.
This paper focuses on conducting qualitative analysis of classical and contemporary theories and
research in the field of customer relationship management. Using existing research in the fields
of customer relationship management, data analytics and artificial intelligence, the research
determines the efficiency of digital media as effective tools for generating and managing
customer relationships, along with the determination of the level customisation required for
converting potential customers into realised revenue. The research analyses organisations from a
wide range of industries, from The data generated is then viewed against the context of the
predicted growth in technology (and consequent changes in consumer wants) in the foreseeable
future to interpolate the possibilities of using data analytics in a customer relationship
management for a larger range of products.
The research intends to answer two primary hypotheses:
 Is it possible to predict the evolution of marketing as a discipline, in the foreseeable
future?
 Can the direction taken by the growth of artificial intelligence be charted?

Results/Discussion/Findings

CRM Trends to Watch in 2018

. Here are the trends I see for the coming year:

1. AI-Powered Automated Workflows

The inefficient processes that hinder CRM will no longer be acceptable, and AI-powered
automation will play a much bigger role in streamlining workflows. We expect to see an
increasing number of enterprises utilizing solutions with AI baked directly into their CRM. Last
year, for example, Salesforce.com introduced Einstein, a suite of capabilities such as predictive
analytics and natural language processing, all driven by machine learning and deep learning.
Salesforce Einstein

DATA IN SALESFORCE Einstein learns from and makes predictions on all the customer data
already in Salesforce. Insights, predictions, and recommendations are served up seamlessly in
Salesforce. No data prep needed.
TAILORED PREDICTIONS Multi-tenant, automated machine learning means every customer
has a unique model built for their specific use case and data. Now every one of Salesforce’s
100,000+ customers can have the best predictive model, custom-built for them. No PhD
required.
PART OF THE SALESFORCE PLATFORM Einstein is part of Salesforce’s trusted Platform,
meaning our customers can take advantage of the same model management and monitoring tools
they’ve come to know and love. No production headaches here.
AI will develop in parallel with user interactions using various touch points within CRM and
evolve continuously to deliver more intelligent and personalized actions. Learning critical
patterns will enable AI-infused CRM to automate certain actions, decrease the manual work
required, and empower sales and marketing professionals to work more efficiently and
effectively.
2. IoT(internet of things) Integration.

It helps to interpret the historical data and connect in real time with client using GPS to know the
weather and etc. Like patients can be monitored in real-time and proactive appointments.
3. Self-Service via CRM

One particular channel that will be seeing deeper integration with CRM self-service.More than
half of consumers will not go for an online purchase if their questions is not answered by
company, according to Forrester research. The Service Desk Institute has found that more than
80 percent of IT departments are using self-service as a way to meet this need.
The connection between self-service and CRM is a normal one, Like chatbots—can both
customize self-service interactions and provide a customer care feedback loop that marketing and
sales also can tap into as needed. CRM makers have taken notice, and customer service
integration, and self-service in particular, is on the rise.
4. From CRM to Social CRM

Creating virtual communities to engage customers in a more meaningful way will be the new
trend for social media marketing and customer behavior and buying patterns. This helps the
company to forecast the future sale through the pattern of buying behavior.

Customer relationship management is the systematic process to manage customer relationship

initiation, maintenance, and termination across all customer contact points to maximise the value
of the relationship portfolio. [Reinartz, Krafft, Hoyer]. The focus in this paper is on customer-
facing CRM, with one of the important aspects being the coordination of information across time
and contact channels, which is a critical component as information generated from each
interaction – regardless of channel used – is integrated in the improvement of the value generated
for each customer, and uniformity in the conveyed message is maintained. The rapid growth of
technology has enabled organisation to serve wider consumer bases with greater ease, owing to
investments in information technology in the global economy generating low cost software and
data management solutions. [economic data]

Managing fruitful customer relationships

The customer segment termed ‘Barnacles’ are depicted as having long term loyalty but low
predicted profitability can also be incorporated in marketing strategy, with positioning of
products in a manner that involve a significant degree of asset specificity. With the widespread
purchase and consumption of digital media, the avenues of revenue generation from Barnacles
have significantly increased, such as with control on the mode of consumption, repeat purchases
are encouraged by the increased switching costs between brands and products (example – Apple
& iTunes, Amazon & Kindle). Alternatively, the repeat purchases are also induced by provisions
of timed subscription products, which are perceived as a single purchasing transaction
eliminating the need for repeated search costs.

Direct CRM
One of the most important aspects of digitization in the field of customer relationship
management is the direct forms of communication, leading the way of moving marketing
towards two-way communication, playing a critical role in co-creation of value. Using channels
where the organisation has complete control on the messages communicated and customer inputs
received, the organisation can form a basis for instantaneous communication.
Use of organisation’s own websites can open multiple channels for dialogue, both one-way and
two-way forms of communication. Communication of the newest products, promotional offers,
campaigns often reflect in the homepage of an organisation, usually in the form of page wide
notification boxes on the homepage and sidebars in subsequent webpages, ensuring transmission
of messages to the widest range of audiences and subsequently inducing latent demand in
potential customers with high possibility of conversion. Using multiform media in the
promotional messages, such as audio-text or audio-video enhances the ability to generate higher
cognitive involvement of customers, thus enabling the higher conversion rates. The webpages
themselves form platforms for one way communication wherein the organisation has the ability
to convey information to the depth of detail it chooses – firms focusing on the affective aspects
of consumer psychology utilise the webpages for promoting the aesthetic appeal of the product
brands, as denoted by Apple in using a simplistic webpage to depict the ‘clean’ aesthetic along
with smooth user interface, contrasting with the layouts used by firms in the apparel industry
with vivid imagery in the webpages promoting the ‘trending’ aesthetics of their products.
Two way communication is facilitated by the use of technology to improve upon the marketing
process – using chat boxes and chatbots (automated systems of communication powered by
artificial intelligence) enables in drastically improving the response time for each customer
query, conveying of company offerings best matching the individual customer’s demands. Using
of chat boxes enables the user to generate an inquiry into the products without having the need to
exit the webpage (to generate inquiry through email or using a different mode of
communication), simultaneously eliminating the need for a higher degree of formality, as the
intent of chat boxes is to simulate casual conversation. One of the primary examples of use of
chat boxes is in the processing of customer complaints for products with immediate production
and consumption, such as the use of chat boxes in fast food delivery applications (Swiggy,
Zomato, FoodPanda) to enable quick response and mediation, thus enabling high customer
satisfaction and customer retention. Automating certain parts of the communication process by
the use of chatbots enables further simplification of the process, reducing the need of human
presence on the other end of the conversation, thereby accelerating the productivity of each
employee in the customer-facing aspects of the organisation.

Indirect interactions
An organisation need not stay dependant on its own resources to generate information about its
consumer base – the interconnectedness of human interactions on the internet forms an important
resource in the analysis of consumer behaviour, and in turn generates inputs for use in customer
relationship marketing.
Data on user’s purchase patterns can be obtained from a multitude of sources – the actions of
customers on an organisation’s own website generates data on the exact process of product
search and comparison prior to the purchase of an item, along with the efficacy of the
‘suggestions’ provided by algorithms using the customer data. Internet cookies stored by web
browsers on device hardware to keep track of webpages visited are used by websites to
continually update their information on a user’s personal characteristics, to enable automated
advertisement generated to be tailored to each user. This opens avenues for organisations to
obtain data from a wider base, as organisations can now specify their target audience who would
be receiving the advertisements, to improve on the conversion rate from each promotional
outreach. An example of using customer data generated from external sources is the use of
Facebook in promotional campaigns, wherein the marketer can choose from a variety of
parameters, such as target audience age, location and interests, for a variety of purposes from
event promotion, lead generation to brand engagement.
The research conducted in places and emphasis on the generation of ‘personalised product trees’
to analyse the past data generated by users to map the range and details of products that could be
consumed by a user, and therefore act as an input for the right products the firm needs to provide,
to obtain maximum customer equity. This can be visualised in the form of a single purchase –
razor blades – forming basis for related transactions – shaving foam and aftershave.
The data generated from users need not be directly provided by the users; the use of data
analytical tools has enabled the generation of data from multiple sources. A common tool used
by firms for marketing in the digital age is the use of natural language processing applications
that track brand sentiments which are then used as inputs for strategic planning in organisations.
The NLP applications build on machine translation and automated summarisation of data, such
as repeated statements of ‘I like Brand X but don’t really like Component Y used in its products’
through multiple channels such as microblogging websites of Facebook and Twitter along with
specific data points such as hobby forums, and form a summary analysis of the sentiment of
Component Y not being preferred by a majority of users. The data generated is processed
through software conducting psychometric analysis of the data, on aspects such as vocalised
criticism being disseminated at a higher rate than vocalised approval, to form a balanced view of
actual perception of a brand in the minds of a consumer.

Past data of artificial intelligence used in CRM

Figure1
Figure2

Conclusion
The study shows that digital modes can be used for CRM, but high level of subjectivity exists,
part of which depends on how an organisation structures its value delivery mechanism, along
with its ability to successfully modify existing strategies to incorporate digitisation within CRM.
The study is limited in its focus on the ethical and legal concerns regarding use of artificial
intelligence — using involuntarily contributed data within business strategies has been met with
significant backlash, but the inability to quantify the magnitude of the issue has meant that the
greater realisation of the problem is yet to come, and might alter the use of CRM in the near
future.
References:

Organisation fit, Reinartz,Krafft,Hoyer, https://www.destinationcrm.com/Articles/CRM-

News/CRM-Featured-Articles/The-Top-15-CRM-Stories-from-2018-129290.aspx,
https://www.forbes.com/sites/louiscolumbus/2016/05/28/2015-gartner-crm-market-share-
analysis-shows-salesforce-in-the-lead-growing-faster-than-market/