Customer relationship management (CRM) software has changed the way companies do business. It has provided increased capability for tracking and measuring not only relationships but relationships within departments and with vendors as well. Companies can now determine exactly who becomes a customer in response to a marketing campaign or a sales promotion. Combined with the power of the Internet of Things (IoT), the amount of information available, and the number of ways to use it to benefit both businesses and consumers is astounding.
The Great Information Exchange
For the IoT to work, consumers have to be willing to disclose personal information. An article in the Harvard Business Review points to the example of Waze, a wildly successful traffic management app that depends on users giving their location information. In exchange, they receive traffic information that saves them time and frustration. Each mobile device relays real- time traffic information to a central hub, which analyzes that data and returns informational messages containing the results back to each connected device.
In an age in which the loss of privacy to technology has become a hot topic, consumers expect real and tangible benefits in exchange for that information. A customer connected to IoT, through a shopping app, for example, can provide information about where they were in the store and how long they remained in a particular area as well as what they purchased. That data is combined with other data regarding the shopper’s personal information, such as age and spending habits, which gives marketers a much clearer picture of their shopping priorities. That picture can be used to improve the customer’s future experiences as well as make important marketing decisions.
For customers whose priority is a speed of service, advertised items can be placed in prominent and easily accessible areas. Customers whose priority is price would value sales coupons, while those who shop frequently for pleasure might appreciate participating in a loyalty program more. Having information about which customers are weekday versus weekend shoppers can also go a long way in planning successful sales promotions. Customers want to be rewarded for sharing their personal information with the type of customer service that reflects their personal preferences.
The Customer Service Revolution
Long gone are the days when all sales were final and service stopped at the end of a warranty. Today, if a customer has a problem with a product the day after the warranty expires, they are likely to share that fact on social media. That’s one reason that many companies have seen their service costs increase. However, hiring more qualified service and technical personnel can also create greater brand loyalty and customer retention, which surveys show results in higher profits. Companies that are able to view service as an on-going process and an opportunity to increase customer retention will be the most successful.
Just as having a team of highly trained technical service employees will continue to become more important as a result of the IoT. it is also becoming more important to hire more trained data analysts. Knowing how to effectively utilize CRM software and all the information provided by the IoT is just as important as having access to that information. That’s even truer now that data is being provided not just by humans, but by their devices as well.
Device Data
Today, there are hundreds of devices that provide data to both their owners and product manufacturers. The existence of the IoT depends on everyday objects equipped with sensors connected to the internet. Those everyday objects, which were once just computers and smartphones, now include appliances and even clothing. Light bulbs now have apps that notify their owners when they are about to expire, and allows manufacturers to know exactly when to send them a money-saving coupon for the purchase of their next one. Almost everything has the potential to be connected.
According to Gartner Research, the top five drivers of the need for businesses to utilize CRM software to remain competitive are social, mobile, big data, the cloud, and the IoT. Effective CRM software management builds strong customer relationships. Combining it with the IoT is the best way to ensure that those relationships endure long into the future.
