Big data is one of the latest buzzwords in the technology lexicon. The potential, reach and impact of big data technologies is the subject of much debate, and the hero in many success stories. Another concept, albeit older, is Customer Relationship Management (CRM), which has made a huge impact on the business world over the years, directly improving profitability, branding, and satisfaction. This paper looks at how big data can be leveraged to create an insightful CRM solution.

CRM with Big Data

WhiTe pApeR

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Big data is all about processing,

interpreting and representing huge data

typically, petabytes or even zettabytes of

data – sourced from text, database fields,

voice, video, blogs, kiosks, social networks

and websites – in a way that is meaningful

and actionable. As of 2013, we have

more than 2.4 billion internet users, more

than a billion Facebook subscribers, and

at least 200 million users of professional

networking sites like Linkedin, generating

a mountain of data in the form of blogs,

web clicks, likes, preferences and so on. Big

data technologies impart the capability to

interpret these vast data into information

and knowledge and valuable insights,

such as, the best time, channel or incentive

for an advertising content to directed at

a particular segment; context pertaining

to an organization’s customers, business,

environment or employees; or forecasts

of greater accuracy. What’s more, by

providing information in near real-time, big

data technologies enable faster turnaround

and response times.

in short, the possibilities of big data –

the data itself and the technologies for

harnessing it – are quite amazing.

The goal of all CRM solutions is to

increase customer satisfaction en route

to achieving organizational business

objectives. CRM believes in investing in the

customer, who is the prime asset of any

business. implemented right, CRM helps

organizations to understand and engage

customers better, become more relevant

to customers and users, empower and

engage the latter, and eventually earn a

higher share of wallet.

Yet, there is room for improvement.

CRM solutions can become smarter by

converting their data into customer

insights, subsequently using these to

improve customer processes. That would,

in turn, improve customer satisfaction,

conversion, loyalty, advocacy and share of

the wallet. here are a few examples of how

the big data gathered by CRM solutions

can make a profound impact on them.

In marketing

A typical marketing campaign extends to

billboards, advertising, carpet-bombed

calls to all on all devices, annoying ads and

pop-ups in social media and so on. While

these methods do create brand awareness

they come at a high cost and very low

ROi and conversion rates, besides being

a nuisance to customers. Now imagine a

world with big data, and the possibility

of targeting the right product to the right

person at the most opportune time and

place. Think of how valuable it would be

to have the ability to model products and

offers that could meet the requirements of

a target class, or to create campaigns that

make the greatest impact by promoting

the right offers to customers when they are

the most receptive. Big data insights can

enable all the above.

Big data also provides near real-time

feedback on the progress of an ongoing

campaign to help fine tune the resources,

content and channel, and make the

campaign more effective.

For instance, it could suggest a golf event

as a way to promote a business plan to

golf loving venture capitalists. it would

pick a date and time based on their busy

schedule and the weather forecast. Then

it would go on to suggest the ideal menu.

While the fate of the business plan rests on

its merit, the insights from big data could

surely tip the scales.

In sales

it is natural to question the need for big

data analytics when so much analytical

capability already rests with the

organization and its experienced sales

team. That’s akin to saying that there

is no need for permanent dwellings as

long as there are caves. The fact is that

about 80% of an organization’s data

exists outside of the structured data in

files and databases. Most of this data is

outside the organization even, very likely

in unstructured form. There is immense

potential to harness this data effectively

to serve goals, such as improvement

in processes, sales, conversions and so

on. Simply put, deeper knowledge of

opportunities and customer preferences

enables better management of sales.

Sales has always benefitted from

contextual data that is available on

demand. By providing this, big data

technologies could enable predictability

and conversion, and in retrospect, result in

the betterment of processes, products and

people.

In servicing

Servicing is an area, which can directly

impact customer satisfaction and loyalty.

hence, it is essential to clearly understand

customer issues and make all efforts to

resolve them. if customer data – including

queries on different channels – were to

be made available in a way that was both

meaningful and actionable, many of the

complaints would disappear. Also, if there

were a way to accurately assess staffing

requirements, based on product, channel,

and time of day and so on, it would

mitigate risk to a large extent. Big data

could be of particular relevance to virtual

Module-Based Individual Banking

Solution – Is a specialized, standalone

solution that supports banking

operations in specific business areas

like loans, treasury, customer analytics,

wealth management and so on.

Monolithic Core Banking Solution – Is a

single solution that can handle the entire

gamut of the bank’s products, modules

and business areas.

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agents when they respond to individuals.

Many of the issues and complaints could

be handled with ease. A satisfied customer

is the best advocate and is receptive to

cross selling and upgrade. insights into

channel usage can be used for better

channel control and optimal processing

.The viral updates and advocacy across

social media or traditional channels can

also be measured to gauge service aspects

and make improvements to enhance

customer satisfaction.

Big data can bring a lot of sophistication

to CRM and help ensure optimal sales and

customer satisfaction. Whereas earlier,

harnessing huge volumes of data was a

problem, it no longer is so, thanks to big

data technologies. processing big data

on the cloud puts the power of advanced

analytics within reach of those who cannot

afford to install expensive hardware and

software.

A word of caution

Big data technologies should be used in

conformity with rules and regulations,

including those pertaining to customer

privacy, intellectual property rights and

security, with digital data abounding as

well as scope for its misuse, there needs to

be a defined policy on the legitimate uses

of data.

One other point is that big data is only as

useful as the quality of the source data.

Garbage in Garbage out (GiGO) applies

as well to big data as it does to say,

application programming. it is very easy

to make incorrect inferences if the source

data lacks consistency or is not properly

analyzed. in such a case, there is a need

for an alternative data source or rework of

inferences.

Shriram parthasarathyprincipal Consultant, Finacle, infosys

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