Customer Relationship Management (CRM) and Big Data.

Customer Relationship Management (CRM) is a business strategy aimed at building and maintaining long-term relationships with customers through effective management of customer interactions, data, and feedback. Big data, on the other hand, refers to the large volumes of structured and unstructured data generated from various sources. The integration of big data and CRM can provide organizations with a more complete view of their customers, enabling them to provide personalized and customized services, improve customer satisfaction, and drive revenue growth.

An Holistic Approach to CRM

Zerbino et al. (2018) propose a holistic approach to big data-enabled CRM that involves the integration of big data analytics, social media, mobile technologies, and cloud computing. This approach enables organizations to collect, store, and analyze customer data from multiple sources, including social media, customer interactions, and transactions, and use it to gain insights into customer behavior, preferences, and needs. With this information, organizations can provide more personalized and relevant services to customers, improving customer satisfaction and retention.

CRM and Personalisation

Del Vecchio et al. (2022) conducted a structured literature review on the use of big data for CRM and identified several key areas of focus for future research. These include the development of more advanced analytics techniques to better understand customer behavior, the integration of emerging technologies such as artificial intelligence and machine learning, and the exploration of ethical and privacy issues related to the collection and use of customer data.

The use of big data-enabled CRM has several benefits for organizations. First, it allows organizations to gain a more complete view of their customers, enabling them to provide personalized and customized services that meet individual customer needs. This can improve customer satisfaction, loyalty, and retention. Second, it enables organizations to make more informed decisions based on data-driven insights, reducing the risk of making costly mistakes. Finally, it can drive revenue growth by identifying new business opportunities, improving customer acquisition, and increasing customer lifetime value.

However, the use of big data in CRM also presents several challenges. One major challenge is the volume and complexity of the data involved, which can make it difficult to extract meaningful insights. Another challenge is the need to ensure the privacy and security of customer data, particularly in light of new data protection regulations such as the General Data Protection Regulation (GDPR) in Europe. Finally, there is a need to ensure that organizations have the necessary skills and expertise to effectively manage and analyze big data.

Therefore, the integration of big data and CRM can provide organizations with a more complete view of their customers, enabling them to provide personalized and customized services, improve customer satisfaction, and drive revenue growth. However, this also presents several challenges, including the need to manage and analyze large volumes of data, ensure the privacy and security of customer data, and develop the necessary skills and expertise. Future research in this area is needed to address these challenges and further explore the potential of big data-enabled CRM.

References:

Anshari, M., Almunawar, M. N., Lim, S. A., & Al-Mudimigh, A. (2019). Customer relationship management and big data enabled: Personalization & customization of services. Applied Computing and Informatics, 15(2), 94-101.

Del Vecchio, P., Mele, G., Siachou, E., & Schito, G. (2022). A structured literature review on Big Data for customer relationship management (CRM): toward a future agenda in international marketing. International Marketing Review