Digital CRM is the use of multiple electronic communications channels and technologies to enhance customer relationship management (CRM).
The digital approach to CRM includes more interactivity but also more automation that replaces interactions. Social CRM, for example, fosters communication with customers and potential customers through social networking sites, such as Twitter and Facebook. But social media listening, a non-interactive technology, allows a company to monitor public perception of its product and brand in a much more comprehensive manner than can be accomplished through traditional means, such as feedback surveys. Discoverability marketing relies upon non-interactive methods to offer people products that they're actively seeking or that they may have a current need for.
Disney World allows visitors to book ride times and appointments with characters online. At the park, the customer doesn't have to wait in line for rides or look for Snow White, who greets the customer's child by name. Disney offers data-encoded MyMagic+ bracelets that customers can use for all transactions, including food purchases, parking, and opening the doors to their rooms. The bracelets enable more personalized and streamlined service for the customer and, at the same time enable the collection of a great deal of customer data that Disney can use to improve its marketing efforts.
Appliance manufacturers are selling products that incorporate digital CRM elements, such as a dishwasher that notifies the seller when it malfunctions. When the seller receives that notification, they can contact the purchaser to offer service. A smart meter could track usage, identify if a customer was using an appliance during peak hours and send them notification by email. A smart refrigerator could monitor contents and notify owners of expired products, or offer recipes based on what was available at any given time.
According to a recent Oracle survey, on average, businesses estimate they'll spend 18% more in the next two years on technology designed to improve the customer experience.