Integrating Electronic Customer Relationship Management and Artificial Intelligence: A Theoretical Foundation for Marketing Intelligence in the Service Industry

Introduction

Companies striving for market share are always seeking different methods to stand out from the fierce competition. However, rapid technological developments have made it increasingly difficult to establish long-term distinctions as marketing operations become more open. Customer relationship management (CRM) is one of the most important competitive advantages that businesses may use to keep customers from switching to competitors. With the widespread use of the internet, e-CRM has emerged as a new form of CRM, and big data and artificial intelligence are being explored as potential possibilities for CRM's future development (Bahrami et al., 2012; Ghalenooie & Sarvestani, 2016; Libai et al., 2020). As customers nowadays have many options, companies are competing to attract and retain customers while outmaneuvering one another. Organizations adopt various methods to compete with their rivals, such as cost leadership, distinctiveness, or both, leading to market segmentation, penetration, and a variety of other outcomes. The question is how businesses can gain an advantage over their competitors. This can be achieved by understanding their competitors' skills and keeping one step ahead of them, a process known as marketing intelligence.

To delve deeper into the case of e-CRM and MI, this chapter is divided into three major parts. Part I provides a general overview of CRM and its transformation into e-CRM, as well as discusses the main benefits and applications of e-CRM in service firms. Part II covers MI concepts, the benefits of MI systems in the service industry, and the implications of MI systems in the service industry. Part III discusses the integration of e-CRM and AI in marketing, specifically MI systems in the service industry. Additionally, the main opportunities and challenges of integrating e-CRM and marketing intelligence systems in the service industry are addressed. Finally, conclusions are proposed.