Last month I was in London, invited to speak at an event hosted by the IBA Group. The theme of the event was the resurgence of CRM and how it is being combined with Big Data and becoming an important part of corporate strategy today – particularly for companies planning how to improve their customer service.
The analyst Peter Ryan from Ovum was up before me. He talked about the strategic use of CRM and how the improved use of information feeds into a customer service strategy. Ovum has predicted that improving the customer experience will be even more important than improving revenues for companies in 2015 therefore this theme is taking on a new significance.
The director of Internet Solutions at IBA, Aliaksei Minkevich, was also speaking. He described some case studies and drove home the real importance of thinking about technology projects and how they can improve the way a business uses data. Aliaksei was particularly focused on describing how a technology solution is no longer as simple as it used to be. Much of the business benefit from processes and systems today comes from the opportunities to use information in a smarter way, rather than just reducing cost or aiming for efficiency.
I started talking about the connection – as I see it – between modern day CRM and Big Data. The way customers interact with companies in all industries has changed in the past decade and this wider social change in how people communicate has to be appreciated by corporate executives.
The two big drivers of this change were the launch of the iPhone in 2007 and the explosion in the use of social networks from 2008 – both very recent dates. Of course it was possible to use the mobile Internet before the iPhone, but Apple made it so much easier and easy access became the expectation from consumers.
And, of course, people were using social networks prior to 2008, but this was when it really went mainstream. Facebook started maturing and Twitter became commonly mentioned in broadcast media, such as radio and TV. 2008 was really the tipping point when social networks became normal for everyone.
These developments have changed the way customers interact with companies. It is now fairly normal for any customer to use at least six different channels when interacting with brands – email, voice, chat, Facebook, Twitter, and review or rating websites like Tripadvisor. There are more and this changes all the time, but this is already a very different environment when compared to those days before social networks and the mobile Internet were common.
So companies should no longer be exploring how to improve customer service as an activity, they need to be working harder at Customer Relationship Management – back to CRM again. This is because the real measure of success with customers in this multichannel environment is the quality of the engagement between the brand and the customer.
Getting this right demands the use of some serious technology. Running a customer service team no longer means just answering the phone, it needs data analysts, knowledge of Big Data, and a CRM system that allows the customer to engage and enjoy interacting with the brand.
Companies that can deliver this kind of technology in a way that improves the experience of your customers are going to lead the way. Tech players will become customer service experts as the use of technology underpins how companies interact with their customers.
Underneath all this remains the fact that how we all communicate has changed. If you want any executive to understand why this is important, then just ask them about the last time they needed to select a politician to vote for, a restaurant to eat in, or a hotel to stay in. If all these decisions are now being shaped by data, then don’t you think that the relationship between your own customers and your company are also about to be shaped the same way?