Internet of Things & The Future of CRM
By Amer Wilson
According to Cisco, there will be 50 billion devices connected to the Internet by 2020. Companies would like to mine this data to get insightful data about customer behavior to segment their markets and target their campaigns more effectively. This is where CRM software will play an instrumental role in empowering companies to deal with today’s digitally savvy customers.
Internet of Things or IoT in short presents both a challenge and an opportunity. But first let’s try to understand what is meant by the buzzword Internet of Things.
What Is The “ Internet of Things ”?
Oxford Dictionary defines it as “a proposed development of the Internet in which everyday objects have network connectivity, allowing them to send and receive data.” Everyday objects, from wearable devices such as smart watches to household appliances such as refrigerators to automobiles, will be equipped with sensors capable of connecting to the internet, creating a fully connected world. These devices will both send and receive data and share updates via the Internet with other devices. Mankind is on a mission to make everything smart and connected. CRM providers would like to seize this opportunity by using the huge volumes of data created by smart products to improve customer relationships.
How Internet of Things will impact the realm of CRM?
People were starting to think that CRM was a thing of the past. It had become outdated as it was not giving insightful data which social media platforms were delivering. However, IoT has injected new life into CRM. Gartner predicts “CRM will be at the heart of digital initiatives in coming years as enterprises look to create more targeted interactions in a multi-channel environment.” With the advancements in IoT, CRM is all set to change the business landscape.
1. Adjust Prices according to Demand
Get real-time data about the availability of products and use it to your advantage by changing the prices instantaneously. Lower the prices to get an edge over your competitors. Similarly, you can increase prices when demand far exceeds the supply.
2. Customized Marketing Promotions
Learn which customers are interested in purchasing your products and design your marketing campaigns and promotions keeping their tastes and preferences in mind. This will increase the efficiency and result in the desired ROI since you won’t be targeting customers who show little to no interest in your product.
3. Real-time Analytics
Instead of waiting for the data to arrive and then analyze it to take corrective measures, IoT can deliver real-time results regarding marketing campaigns, competitor prices and promotions. This will enable the marketing and sales teams to quickly adapt to the prevailing market trends. Now, there won’t be any delays in collecting data and creating actionable strategies.
4. Complaint Free Customer Service
Solve the customer’s problem before he knows it. Since devices will be connected to the internet at all times, you can automatically detect malfunctions and take the necessary action. This will make customer service hassle free.
5. Improve Customer Retention
Losing customers to competitors can be irksome. IoT can be leveraged to track customer behaviour. Instead of the customers reaching out to you, your customer support team should reach out to them to determine any dissatisfaction on their part. Discounts or special offers can be made to such customers in order to encourage them to stay loyal with your brand.
Internet of Things is a big paradigm shift. It is the future and CRM is at heart of it. Any business that wants to invest in its customers should incorporate this rising trend into their CRM system.