The future has arrived — at least it has in the world of customer relationship management or CRM software, one of the fastest growing categories of enterprise software. We’re in an omnichannel and personalized CRM era right now and the future of CRM is even brighter.

From small businesses to global enterprises, sales and marketing teams are adopting CRM to deliver better customer experiences, acquire and retain customers, and gain new customer-centric insights that are changing their companies for the better.

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Key Takeaways

• Generative CRM combines generative AI with CRM solutions and will be one of the biggest trends in 2024.
• 56% of consumers said they’ll become repeat buyers after a personalized experience, highlighting the need for hyper-personalization.
• Augmented reality and virtual reality provide many benefits like immersive experiences, product visualization, employee training and remote work.
• CRMs that align with environmental and wider social goals are growing popular, and so are solutions that ensure data safety and privacy.
• 17% of consumers switched or became less loyal to a previously preferred brand due to a lack of social aims or brand purpose.

Here’s some of the trends we’ll be looking at:

• Artificial Intelligence
  • Generative CRM
  • Automation
  • Chatbots
  • Natural Language Processing
  • Voice Assistants
• Hyper-Personalization
• Augmented Reality and Virtual Reality
• Sustainable and Ethical CRMs
• Data Security and Privacy
  • Blockchain CRM
• Pipeline Visibility
• Metaverse
• Next Steps

According to Fortune Business Insights, the global CRM market is expected to reach $157.53 billion by 2030, exhibiting a CAGR of 12%. Companies of all sizes are struggling to stay in step with their customers as their preferences related to how they learn about products and when they buy change constantly.

We asked several experts in the field of CRM to share some predictions and trends in customer relationship management. Here’s what they had to say.

Artificial Intelligence

Rich Bohn, the self-proclaimed oldest living independent CRM analyst and President of Sell More Now LLC, is excited about AI. “AI is real and happening now,” he said.

The possibilities are nearly endless when it comes to applying AI in CRM, and the market is huge. A study by MarketsandMarkets shows the global explainable artificial intelligence (XAI) market was valued at $5.1 billion in 2022 and is expected to reach $16.2 billion by 2028. Also, McKinsey mentioned AI as one of its top trends in its latest trends report.

Let’s take a look at some of AI’s applications in CRMs:

• Sales: You can enhance lead generation and predict future customer trends, personalizing communication. For instance, AI can get information about a company and determine which contacts are the most appropriate to target. Then, it can draft an email and prepare you for meetings with high-quality prospects.
• Marketing: Design visual and interactive marketing materials and target customers based on purchase and browser history. You can use predictive analytics to forecast client behavior. For example, if a new store is opening in Orange County, CA, AI can help target people from that area based on their previous searches or social media activity.
• Service: Create knowledge articles, respond to customer queries quickly and analyze customer feedback. Suppose a client approaches you with a query. AI can scour thousands of pages on the internet and get back to you with an answer that’s the most fitting, saving time while improving service.

Generative CRM

Imagine you’re a salesperson who’s been assigned a new account. How much time will it take you to read the company overview and draft the intro email in a way that’s personalized and targeted? Half an hour? Two hours? Now imagine your CRM platform doing this task for you within seconds — think about all the time you’ll save and what you can do with it instead.

Generative CRM combines the power of a CRM system with generative AI and helps make your team more efficient and productive. More and more CRM solutions will incorporate generative AI to drive business operations. It’s already evident in big-league vendors like Salesforce and Zoho.

They offer built-in analytical tools like Einstein and Zia that help predict outcomes, proactively resolve issues and recommend next-best actions based on prior customer interactions. These assistants act as intelligent sales reps, recognize customer interests and needs, and offer optimal products in real time.

According to Jayesh Govindarajan, Salesforce Senior VP of AI and Machine Learning:

It really reduces the friction of going from an idea to a first draft. That could be writing a document based on six meetings you’ve had. Or, it could be summarizing several conversation streams to look for one or two insights that you can use to improve your approach.”

61% of salespeople think gen AI will help serve customers better; however, 50% of sales and service teams don’t know how to get the most value out of generative AI. This shows that gen AI might be on the rise, but its widespread adoption will take time.

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Automation

Some of AI’s most interesting applications are for a business’ most boring tasks. As you’re already aware, AI helps automate repetitive and tedious tasks, helping free up sales reps’ time so they can focus on activities that require critical thinking and human intelligence. Generative CRM helps streamline tasks like content creation, customer service and data analysis.

In The Future of AI-Driven Marketing webinar, Nicholas Holland, VP of Product at HubSpot, said regarding automation that it’s the “little things.” He gave the example of building a list of your most engaged leads, for instance. It would take 10-15 minutes to do it manually, but with a gen AI agent, it gives you a baseline to work with.

In the same webinar, Oji Udezue, Chief Product Officer at Typeform, called generative AI’s automation a “superpower.”

When you start to claw back, ten minutes (here) and ten minutes (there), what do you do with that extra time, that’s what we’re excited about.”

Chatbots

John Chan, Software Lab Director at ISM, pointed out that chatbots mainly aid customer service efforts. This ranges from helping users find answers to directing prospects or customers to the correct location in their search.

Looking forward, he thinks AI has significant potential to move beyond basic inquiries.

In the coming years, it may be possible for chatbots to use natural language processing, deep neural networks and conversational capabilities to comprehend consumer inquiries while automatically providing an appropriate response.”

Chatbots also quickly reply to customer queries, offer real-time assistance and initiate proactive conversations. According to a HubSpot study, 71% of prospects prefer doing their own research rather than speaking to a human, and 85% of sales reps say self-service tools are an effective strategy to guide buyers’ purchase decisions.

Natural Language Processing (NLP)

This feature enables computers to effectively converse with customers by understanding human language. Several ways NLP can play a role in customer service are:

• Determining which requests are the highest priority.
• Classifying those requests so agents know what’s most urgent or important and can respond accordingly.
• Analyzing customer emails to better understand their sentiment.

Voice Assistants

Thanks to products like Alexa, voice assistants aren’t really new, and no one can deny their popularity. In 2022, 142 million people in the U.S. used voice assistants. That’s about half of the country’s population, and that number is expected to grow to 157.1 million by 2026. Moreover, industry leaders are optimistic about voice AI evolving as a key trend.

What we’re seeing is that trend overlapping into the CRM world. A number of products, such as Zoho CRM, already have voice assistant functionality in place, and according to Chan, advanced tools coming in the future will allow “CRM users to dictate their commands rather than manually typing in the requested information.”

AI will also enable actions like recording voice meetings, creating transcripts and identifying topics or words that have a specific meaning, Chan said.

Voice assistants also help you set reminders, send messages and create reports with ease.

Service expert and speaker Shep Hyken stated that this trend continues to improve but hasn’t fully matured yet:

It’s not quite a perfect human-like experience, but it’s getting close. And this is especially powerful for companies and brands with customers who might speak different languages.”

But wait, shouldn’t we be worried that AI will take jobs from sales reps? Is the CRM of the future an entirely robotic one? Nicholas doesn’t think so:

The way I look at it is you’re giving instructions to an intern”, AI is like a “college grad intern, they can’t take your job, but they’re pretty smart.”

Sam Altman, CEO of OpenAI, said something similar about AI and ChatGPT:

Like with all technological revolutions, I expect there to be a significant impact on jobs, but exactly what that impact looks like is very difficult to predict…I believe that there will be far greater jobs on the other side of this and that the jobs of today will get better…I think it’s important to understand and think about GPT-4 as a tool, not a creature…GPT-4 and other systems like it are good at doing tasks, not jobs.”

The truth of the matter is that while AI offers enormous benefits, when it comes to handling sensitive situations like dealing with upset customers, humans do it best.

So don’t worry about the robot uprising just yet. These experts all agree that AI will enhance human sales reps and employees in new and exciting ways.

However, there are some ethical considerations and challenges that come with AI that we need to be aware of. Some of them include data privacy issues and potential societal biases being ingrained into the algorithms.

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Hyper-Personalization

One size doesn’t fit all. That’s true for both clothes and customers. Their needs and expectations have evolved over the years.

According to Grand View Research, hyper-personalization of customer service is a trend worth noting for the coming years.

Hyken agrees:

Personalization will continue to trend in the positive direction of importance. The more data we put into a CRM about the customer, the better we’ll be able to automate the personalization. Customers will get the feeling the company knows them better than ever.”

Twilio Segment’s State of Personalization report states that 56% of consumers say they will become repeat buyers after a personalized experience. Conversely, younger customers are most likely to react negatively to impersonal buying experiences.

After an impersonal experience, 49% of Gen Z said they’re less likely to buy, and 27% said they’d stop buying and share the negative experience with friends and family. They’re also likely to be frustrated with impersonal ads on their feed and might use ad blockers or other tools to avoid ads altogether.

All these insights point to why mass personalization is at the front and center of the future of CRM. Personalization tools let you extensively mine data to uncover actionable insights, analyze behavioral patterns and deliver quality, relevant experiences.

When it comes to the future of CRMs, personalization comes in two forms — one is personalizing the CRM itself, and the other is using CRMs to personalize communication. It’s predicted that both will continue to trend in the coming years.

Personalization has become imperative for sales, marketing as well as customer service operations. In this digital era, the modern buyer wants businesses to anticipate their requirements on a micro and macro level.

Think about companies like Netflix or Amazon. One of the reasons they’re successful, Hyken said, is their ability to serve up personalized content, whether it’s suggested products based on a recent purchase or TV show recommendations similar to the one you just watched.

Udezue said this about AI-powered personalization:

It’s gonna make high-quality creative work easy to do and faster…You’ll be able to personalize marketing. What is our holy grail really? It’s to treat every customer like they’re individual snowflakes…(With AI personalization), you will be able to speak to one customer however they want.”

However, some challenges still exist in this sphere. According to the Twilio report, 39% of businesses said they struggle to implement personalization technology effectively.

Half of the companies feel like getting accurate data for personalization is a challenge, and 1 in 4 consumers say they are less comfortable with their data being used for personalization compared to last year, pointing to growing concerns about data safety and hyper-personalization.

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Augmented Reality and Virtual Reality

Mark Zuckerberg, CEO of Meta, said:

I believe that virtual and augmented reality are going to be the next major computing platform that will come after mobile. Just like mobile gave rise to new companies like Uber and Snapchat and WhatsApp, and completely changed the way we communicate and build businesses, VR and AR are going to give us that next platform that will enable even more types of amazing experiences and completely new kinds of businesses.”

The augmented reality and virtual reality market is projected to generate revenue of $32.1 billion in 2023. It’s rapidly growing, with countries like China and the U.S. leading the way in terms of innovation and adoption. Clearly, this is a trend to watch out for that will revolutionize the way CRM systems operate in the coming years.

Augmented reality (AR) technology enables users to integrate digital elements like images and videos into real-world environments. It may seem like a new concept, but chances are you’ve already used AR without realizing it. A common example is Snapchat’s dog filter — it overlays dog ears and tongue over the user’s face to create a reality that is augmented, i.e., to add something to an element to make it fuller or larger.

AR seems similar to another buzzword that’s been going around in the last few years — virtual reality (VR), but both differ in key ways. AR enhances the experience by adding virtual elements to real-world environments. VR, on the other hand, creates a completely virtual world of its own with devices like VR headsets, replacing the real-world environment.

Now, how do AR and VR help in improving CRM?

• Product Visualization: Unlike traditional media such as images and videos, users can have an interactive experience where they can get a better understanding of features, design and how the product might fit into their lives.
• Immersive Customer Experiences: It allows customers to interact with products and creates highly immersive experiences. With AR, you can visualize products in depth you have never seen before, improving purchase decisions and customer experiences. You can also build better product demonstrations that make a lasting impression.
• Remote Workspaces: The tools help create a virtual environment where teams can meet and collaborate. You can offer remote training and enable remote presentations, helping employees share information in new and interactive ways.
• Sales Processes: Salespeople can reach a wider customer base, saving money that they would otherwise spend on travel and logistics. Sales reps can assist customers as they explore products in virtual environments, provide real-time guidance and resolve queries. You can also track customer behavior and personalize your offerings for maximum returns.
• Employee Training: Employees can receive hands-on training in a virtual environment, reducing the need for costly in-person training. AR and VR help simplify topics and improve performance and skill development.

However, some challenges might hinder the process of AR and VR adoption in CRM. Firstly, there’s a significant upfront cost involved in the software and hardware of these tools. You need to have compatible devices to harness their full potential. Another is integrating them with CRM systems and other solutions, which can be tricky and cumbersome.

There’s also been chatter about integrating both AR and VR aspects to further enhance client experiences.

Rony Abovitz, founder of Magic Leap, a company that specializes in mixed reality, i.e., combining elements of AR and VR, said:

I think mixed reality is going to be the most powerful medium of our time, and that’s because it’s going to blend the digital world with the physical world in a way that we’ve never seen before.”

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Sustainable and Ethical CRMs

Nick Beighton, CEO of clothing brand ASOS, said:

Climate change is the defining challenge of our time. Businesses must take bold and decisive action to find solutions to the unfolding crisis, both individually and collectively.”

Terms like inclusivity, diversity, sustainability and ethical practices have entered our zeitgeist and are continuously trending upward. According to Marigold’s Global Consumer Trends Index 2023, 17% of consumers switched or became less loyal to a previously preferred brand due to a lack of social aims or brand purpose. Some other relevant insights from this report are:

• 17% of customers want brands that behave responsibly.
• 82% of consumers favor a brand’s messaging that uses their data responsibly.

Clearly, there’s been an increase in demand for businesses that cater to wider social and environmental goals. When it comes to Gen Z, a staggering 91% of them want to buy from sustainable companies.

When it comes to CRMs, solutions that integrate socially responsible practices into their strategies and strike a balance between environmental goals and business goals are becoming popular. The focus is on optimizing energy consumption, minimizing waste generation, promoting sustainable offerings and adopting eco-friendly technologies.

Future CRM systems will improve supply chain transparency and help businesses monitor suppliers’ environmental practices and product origin. You can ensure suppliers comply with sustainability standards and make informed decisions to draw in climate-conscious consumers.

CRMs with AI and predictive analytics provide insight into resource consumption patterns, helping optimize inventory levels and reduce waste.

The ethics of companies are also under scrutiny as of late. A recent example is how brands like McDonald’s and Starbucks are facing backlash and boycotts for donating to Israel amid the ongoing genocide of Palestinians. This goes to show that a company’s social responsibility and political stance are taken into account now, which shapes brand reputation, trust and loyalty.

Data Security and Privacy

Speaking of ethical CRMs, there’s been a surge in demand for CRMs that offer data privacy and safety. Gibu Mathew, VP at APAC in Zoho, identified the growing importance of data security and privacy in the marketplace as one of the 2024 CRM trends.

Cyber threats have been increasing and growing more sophisticated, and it’s become essential to protect sensitive data from data breaches and unauthorized access.

Simply having firewalls or antivirus software won’t help. You need to have comprehensive security strategies in place, train employees about the best practices to handle confidential information, plan for cases of data breaches, and schedule regular security audits to mitigate threats as they arise.

Here are some data security stats that provide insight into customer behavior:

• According to the Marigold report mentioned above, over two-thirds of consumers said ads based on location data are creepy. 51% of customers enact privacy mode on pre-installed browsers, a whopping 55% increase since 2022.
• According to Statista, 89% said that they would spend more money on a brand that protects their personal data online over one that doesn’t. Meanwhile, 74% of consumers are concerned about brands being able to view and track their online behavior to target them for advertising.

So, what does the future of customer relationship management hold in terms of data privacy?

CRMs have started to adapt to data privacy laws like GDPR, CCPA and other regulations to ensure compliance. By prioritizing customer consent and data transparency, companies are likely to gain customer trust and loyalty. CRM vendors are also taking a “privacy-by-design” approach where privacy controls are integrated into the product lifecycle and not added as an afterthought.

End-to-end encryption, anomaly detection and multi-factor authentication are some other data security features to keep an eye on in 2024. Some CRMs are employing data minimization techniques where they only collect data that’s necessary. This helps software providers align with privacy regulations and reduces the risk of unauthorized access.

Blockchain CRM

If you haven’t hopped on the Bitcoin bandwagon yet, you might not be familiar with what blockchain is. Simply put, blockchain is an ever-growing list of interconnected records or blocks. Integration of blockchain technology with CRM provides users with a secure and transparent way of managing data.

Blockchain is decentralized, and tampering with it is next to impossible, as hackers would require massive computing power to access the entire blockchain. It’s encrypted and accessible only to authorized users, reducing data breach incidents.

Blockchain-based CRMs give customers control and ownership over their data. The platforms let clients decide what information they want to share, creating a sense of empowerment in customers and building trust between consumers and businesses. You can also improve transparency by gaining insights into how you interact with third parties like suppliers or subcontractors.

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Pipeline Visibility

In SugarCRM’s 2024 State of CRM report, the top answer regarding the most crucial sales and marketing areas CRM helped optimize was pipeline visibility (37%). Forecasting and pipeline visibility (43%) were also cited as the second most important CRM activity, followed by capturing intent data and lead scoring (41%).

This data shows a clear trend of CRM vendors gearing up to provide clients with better pipeline visibility and features. These capabilities allow users to take a more centralized and data-driven approach. They also help track sales stages, forecast and report to management, enabling you to see the roadblocks coming ahead.

Metaverse

Metaverse is an online space where people can create digital personas and engage with each other in real time. It’s an interactive platform where users can participate in meetings and even hold virtual events.

The global metaverse market is expected to reach 936.6 billion dollars by 2030. Tech giants like Microsoft and Sony are investing heavily in metaverse development. Brands like Nike, Hyundai and Accenture have followed suit and used metaverse to expand their business offerings.

The CRM industry is also catching up and the convergence of CRM and metaverse offers many benefits, such as:

• Creating immersive experiences in the metaverse to improve customer engagement.
• Using metaverse data to personalize marketing campaigns and product recommendations.
• Providing instant assistance and helping resolve queries in the metaverse.
• Building immersive collaboration and working remotely.

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Next Steps

More integrated, contextually-aware and intelligent CRM applications and platforms will enable marketing and sales teams to define strategies with greater precision while measuring results achieved by sales teams better than ever before. CRM future developments also showcase how sustainable, ethical and data-secure practices are more important than ever before.

CRM will continue to outpace overall enterprise software growth, as the plethora of technologies and strategies they support directly contribute to revenue growth. Not to mention, it is also measurable by new customer acquisition and gross margin growth. Due to all of these factors, the future of CRM is among the brightest in all of enterprise and cloud-based software.

If you’re in the process of selecting software and are feeling overwhelmed, look no further. Check out our free comparison report that helps you compare and analyze capabilities from various systems and enables you to make an informed decision.

What do you think of our experts’ predictions? What do you foresee in the future of CRM? Let us know in the comments!

Contributing Thought Leaders

Rich started his sales career at the dawn of today’s microcomputer revolution. Recognizing the the potential impact this computer technology might make in sales figures; he went out and bought an Apple II. Thus began his 30 year quest exploring the benefits of sales automation and CRM! Over the years, he has written software reviews for many other publications. He was the Review Editor for Sales Process Engineering & Automation Review where he received the Sales Automation Association’s award for Excellence in Journalism. He was also a Contributing Writer, focusing on reviews, for Sales & Field Force Automation, now known as CRM Magazine. His no-nonsense reviews have helped literally thousands of sales pros make more informed CRM decisions!

Shep Hyken is a customer service and experience expert and the Chief Amazement Officer of Shepard Presentations. He is a New York Times and Wall Street Journal bestselling author, and his articles have been read in hundreds of publications. He also created a customer service training program that helps clients develop a customer service culture and loyalty mindset. Shep works with companies and organizations who want to build loyal relationships with their customers and employees.

John Chan serves as the Software Lab Director for ISM. His responsibilities include testing software and defining the evaluation criteria for The Guide to CRM Automation, as well as assisting with the implementation of ISM’s CRM Software Selection program. Prior to joining ISM in 1999, John worked on numerous marketing and consulting projects, including conducting a market research project for Citibank and organizing focus groups for US Airways.