How AI can transform CRM today and in the future

Artificial intelligence (AI) – the buzzword of the 21st century. With the help of AI algorithms, language-based systems are created, data-based decisions can be made for production, for example, and creativity can be imitated. Furthermore, AI enables autonomous driving, the detection of diseases, the unlocking of the smartphone through facial recognition and the execution of predictive maintenance. AI has long since become an integral part of our living environment.

But what exactly is behind it and how can AI also be used and used in CRM?

Significance and sub-areas of Artificial Intelligence (AI)

Artificial intelligence is the ability of a machine to mimic human abilities such as logical thinking, planning, learning, and creativity. A distinction is made between many sub-areas of AI, including:

Machine Learning: Machine learning improves the performance of machines based on mathematical algorithms.
Example: Recommender systems in e-commerce
Deep Learning: Machines analyze big data and identify patterns.
Example: State-of-the-art translation tool DeepL or facial recognition
Artificial Neural Networks: Artificial neural networks are based on the human body. Newly learned things can be linked and learned independently.
Example: Speech Recognition, Autonomous Driving
Natural Language Processing (NLP): NLP is the natural communication between man and machine.
Example: Chatbots, Siri, Auto-Assistants

Areas of application of AI in CRM processes

The use of AI in CRM should never be for the sake of technology, but the real driver must always be a problem that can be solved with the help of AI.

Nowadays, there are many use cases where AI is used in the CRM and CRM-related processes. The goal of this is always to optimally support CRM users in their daily work with the help of data, to increase their efficiency, to ensure better processes and to make well-founded decisions.

Assignment of sales reps to prospects and new customers: Sales staff are faced with a variety of tasks in their day-to-day business and look after several customers at the same time. With the help of AI, prospects and new customers can now be assigned to exactly the right sales reps based on previous touchpoints, previous close rates, experience, and current utilization, ultimately maximizing the likelihood of closing and customer satisfaction.
Prediction of Customer Lifetime Value: AI can also be used to accurately predict the customer’s value to the company. It uses historical customer data to forecast revenue expectations and revenue potential. As a result, customers can be compared with each other and the right measures in marketing and sales can be derived.
Prediction of the probability of termination: Customer churn is extremely expensive for businesses. In many cases, a customer’s dissatisfaction is noticed far too late – and then, in the worst case, it is already too late. It is better if machine learning is used to detect customer churn at an early stage so that it can be proactively counteracted.

Artificial intelligence, CRM and SAP ERP – how do they fit together?

For companies that use SAP, the database is SAP ECC or S/4HANA – this contains a large amount of information from a wide variety of business areas. This huge database can be used as a basis for AI. The CRM serves as the “frontend”, which in the best case sits directly on top of the SAP ERP, so that no additional interfaces are required and no unnecessary sources of error arise. In CRM as the work surface for marketing, sales and service, AI offers important added value through predictions and forecasts that support employees in their daily work.

Although the use of AI in CRM is not new, there are already competitive advantages for companies that use it that should not be underestimated. Thanks to AI, salespeople understand their customers better, can spend their time on the right tasks and act more successfully.

Podcast Episode 32: How Artificial Intelligence (AI) Will Change CRM Today and in the Future

Would you like to learn more about AI in the CRM context? Then our podcast episode is perfect for you.

Listen now

About the author

Robin HartmannHead of Modern Work and Business Intelligence itmX GmbH

As Head of Modern Work and Business Intelligence, Robin is responsible for optimising our customers’ processes and helping them to position themselves for future challenges. As a creative mind, he is primarily driven by innovation topics. Due to his proximity to the customer, he experiences the real business requirements first-hand and enjoys driving them forward together with our customers.