Predictive Analytics Goes Prime Time
As an industry, we have been ballyhooing the promise of predictive analytics for quite some time. But as more companies eschew old-model SaaS deployments for truly cloud-based CRM and data warehousing, the throughput and storage issues that hindered truly predictive analytics initiatives will start to go away.
Companies looking to better know their customers, and provide truly proactive service and delivery models, will be the first to take up predictive analytics, in my opinion. While we talked a lot about offer and promotions management, I think that predictive analytics will be best put to work in customer retention and servicing – the “give the customer what they need before they realize they need it” scenario, rather than the “offer someone something they might want to buy.” The benefits to retention in the former are huge, versus the intrusive and sometimes risky path of “best offer” models of predictive analytics.
AI Has a Lot of Exciting Potential, But It Doesn’t Become “Real” in 2017
There have been a number of announcements and concept-type demos around AI-powered CRM from SugarCRM and other CRM providers. But nothing of real material weight has been released for general use. I believe we’ll see the same in 2017: Everyone will continue to talk about AI, but we are still a couple of years away from getting the technology in the hands of users.
While both SugarCRM and Salesforce will be releasing “1.0” versions of products they are aligning with AI, truly AI-powered CRM will not be available until 2018 at the earliest. Why? Because this is hard stuff, and even deep-pocketed providers like Salesforce have lots of operational (think of a hulking, aging SaaS back end that can not scale easily) as well as development issues to resolve before really bringing broadly available AI-powered tools to market.
The use case is clear: We need to be equipping sales and other customer-facing agents with more insights and tools to do their jobs better. CRM can no longer be about data entry and simply tracking deal status. (See my above note about breaking from the “status quo.”) But it is going to take some time. I expect to see some more acquisitions by everyone involved to help speed the pace of development in 2017.