Research tells us that sales are becoming more challenging─ sellers are being asked to support more accounts, collaborate more, and prioritize even more initiatives, and do it all efficiently and cost effectively. Most companies have a Customer Relationship Management (CRM) solution and are trying to use it to do just that.
Clearly, sales teams need all the productivity aids they can get. And there’s a new kid on the block: AI. As a software function, AI isn’t a new technology, but what is new is its application for end users—like sellers.
AI can easily transform a traditional CRM system into an intelligent, proactive selling tool that acts as a sales teams’ always-there assistant to help with mundane tasks, and provide insight on where, why and how sellers should spend their time.
The global AI market size is exploding. In 2023, the AI market size was valued at $150 billion and is projected to reach $1300 billion by 2030. That’s the power of AI in CRM.
What is an AI-powered CRM System?
A CRM system with AI capabilities uses forms of artificial intelligence (generative AI, natural language processing, machine learning) to automate and incorporate actionable insights into the customer relationship management process.
Modern CRM systems using AI are the next evolution in relationship management. According to a recent report by Gartner, the global CRM software market is expected to reach $58.3 billion by the end 2024, a 14 percent increase from just four years ago. This notable growth is being driven by the adoption of modern CRM systems that take advantage of AI.
Let’s look at some of the game-changing ways a CRM system powered by AI can benefit your business.
1. Enhanced Lead Qualification
Generative AI can help analyze lead information (both internal and external) helping sellers better understand how to prioritize leads, quit wasting time on low-potential leads, and instead concentrate on prospects who show genuine interest and a readiness to buy.
AI analyzes large amounts of data:
- Historical customer interactions
- Purchase histories
- Website behavior and engagement metrics
- Social media activity
By recognizing patterns in this data, AI can predict which leads are most likely to convert, allowing sales teams to focus on high-potential prospects. According to Microsoft’s Unleashing the Power of an AI-Driven CRM, having the information to identify the most promising leads can improve the quality of your leads by up to 30 percent.
2. Automation of Routine Tasks to Maximize Efficiency
Generative AI CRM can free sellers from redundant tasks by automating repetitive clerical and research processes. Microsoft Copilot for Sales is a genAI assistant designed for sellers to maximize productivity and close more deals.
The premise is that copilot is the seller’s helper, allowing the seller to work more efficiently and productively by providing email assistance, personalized sales content creation, and AI-generated insights. Then, sellers can concentrate on nurturing client relationships and tasks that truly drive growth.
Let’s take a simple example: crafting effective customer emails. The seller simply asks Copilot to draft the message and Copilot will analyze salesperson input, customer data, and historical email interactions to generate tailored email drafts by suggesting content, subject lines, and personalized messaging. The interface allows for easy customization of tone and length, saving sellers valuable time that could be spent connecting with customers, boosting sales and fostering lasting relationships.
Copilot can also summarize lengthy email chains, extracting key information relating to a sale, identifying important topics, and condensing the most relevant details. Sales teams can quickly comprehend conversation history and save the output to CRM, enabling teams to grasp key points quickly for swift decision-making.
With sellers spending as much as 66% of their day checking and responding to emails, this presents a significant business upside to give the seller more time with their customers.
3. Real-Time Insights for Informed Decision-Making
One of the most critical aspects of a CRM system that’s been infused with AI is the real-time access to data ensuring that sales teams can quickly respond to market conditions and customer needs. Such visibility helps sales and service teams boost operational efficiency, reducing time-to-value and enhancing productivity.
For example, genAI in CRM can sift through opportunities, key exchanges, message feeds, and cases to provide you real-time and contextual insights about each customer. Staff can use this knowledge to formulate targeted pitches, prepare for meetings, or identify key talking points. Moreover, genAI can even recommend follow-up actions in detail.
It goes without saying: The ability to process and analyze customer data in real time and recommend the next action to sellers can greatly increase their productivity.
4. Predictive Sales Forecasting Drives Better Resource Allocation
Predictive sales forecasting with AI is simply the ability to take historical data sets, compile them, and analyze that information along with variables like current market situation and consumer behavior to generate dynamic and predictive sales forecasts.
Think about the value of that─ it can be leveraged for strategic planning and resource allocation to maximize productivity. For example, if a particular customer segment shows increased engagement with a new product feature, resources can be redirected to capitalize on this opportunity, leading to business growth.
Additionally, AI in CRM helps optimize resource allocation by identifying inefficiencies or areas of overspending. By analyzing customer interactions, sales data, and marketing campaigns, businesses can pinpoint areas where resources are underutilized or allocated ineffectively, indicating the need for cost-saving measures. In fact, accurate sales forecasting powered by AI can lead to a 20 percent increase in sales productivity, according to Microsoft.
Let’s Talk
The superpower of using AI for CRM is to reduce time to value, so selecting the right CRM solution is critical. Microsoft Dynamics 365 offers a suite of CRM solutions, and all are powered with AI capabilities. At JourneyTeam, we can guide you through evaluating your CRM needs and help you make an an informed decision that aligns with your organization’s goals and considers how you can use genAI to help drive impact.
