AI IN CUSTOMER RELATIONSHIP MANAGEMENT: ENHANCING PERSONALIZATION AND RETENTION

Abstract

Artificial Intelligence (AI) is revolutionizing Customer Relationship Management (CRM) by enhancing personalization, improving customer engagement, and increasing retention rates. Traditional CRM systems often rely on rule-based approaches and historical data analysis, limiting their ability to provide real-time, dynamic customer interactions. AI-driven CRM leverages machine learning (ML), natural language processing (NLP), and predictive analytics to generate actionable insights, anticipate customer needs, and deliver tailored experiences. By integrating AI-powered chatbots, sentiment analysis, and automated decision-making, businesses can enhance customer satisfaction, streamline operations, and foster long-term relationships. This paper explores the role of AI in CRM, emphasizing how AI-driven automation, data-driven recommendations, and behavioral analytics contribute to higher customer retention and loyalty. Additionally, ethical considerations, data privacy concerns, and future trends in AI-driven CRM are discussed, highlighting the need for responsible AI adoption. The findings suggest that businesses leveraging AI in CRM can gain a competitive advantage by offering hyper-personalized interactions and proactive customer support, ultimately driving customer lifetime value.