Hi Tech CRM

The Financial Times  of September 17th, 2009 features several articles on new technology that can gauge customer intentions more accurately. One of them by FT technology writer, Geogg Nairn discuses how data analysis and smart algorithms can help businesses identify the most profitable customers thereby keeping them loyal. Called "predictive analytics technology" it "uses complex statistical models and algorithms as well as other data mining and analysis tools."

The article notes that a "recent Forrester Research survey of more than 350 CRM professionals, “improving customer loyalty” was rated as a key priority by 57 per cent of respondents and came second only to “improving the customer experience.” In a plain terms, the technology seeks to limit customer "churn" as well as differentiating between high value customers and those that are on the margin if now below. That enables businesses to offer incentives and rewards to high-value customers. Its use in hospitality seems self-evident as even among repeat customers it is clear that not all have the same implication for profitability.

On an (eerily) higher level another article in the FT on digital technology is headlined "Technology shows what's on a customers mind." The article quotes the head of customer experience consultancy, Foviance, as saying that she looks to "measure consumers’ subconscious responses – from anticipation and excitement to boredom and anxiety – to a range of online experiences." In order to that they use neuroscience as measured via electroencephalography (EEG). "Research subjects invited to Foviance’s London-based laboratories are fitted with a cap containing sensors that measure electrical activity in the brain as they navigate the websites of Foviance’s clients." Experts at Foviance "make website design recommendations that they claim will enhance customer engagement and boost conversion rates. Neuropsychologists, have shown that 85 per cent of decision-making happens subconsciously, which is why EEG can offer insights into people’s interactions with websites and software packages." While that almost seems Orwellian in its reach, it could be a marketer's dream in any industry thereby enabling a near-perfect of tailoring of products and services based on true customer expectations.