CRM systems are no longer enough to compete
Companies have spent over $100 billion on CRM software in the last year alone. That’s four times what they spent eight years ago. Yet, customer satisfaction hasn’t moved. Why? Because a CRM system, by itself, doesn’t solve the problem. It collects data—mostly structured information from sales, customer service, and marketing—but it doesn’t do much with it.
The way customers engage with businesses has changed. They leave signals everywhere—on social media, product review sites, and through direct interactions with apps and digital platforms. CRM systems, as they exist today, don’t capture this. The data they store is valuable, but it’s only a fraction of the bigger picture.
Companies that rely solely on CRM data are flying blind. They don’t see how customers actually use their products. They don’t hear what’s being said outside their owned channels. They miss out on the behavioral insights that drive smarter marketing, faster product development, and better service.
“If customer satisfaction isn’t increasing, it’s because most businesses are collecting data instead of leveraging it.”
IT infrastructure and unstructured data are the next bottlenecks
Most businesses already have more customer data than they know what to do with. The issue is making sense of it. The real challenge is unstructured data. This includes everything from social media comments and customer reviews to support call transcripts and product usage logs. It doesn’t fit neatly into CRM systems, making it harder to analyze and act on.
Legacy IT infrastructure makes this worse. Many systems in place today were built for a world where structured data ruled—spreadsheets, databases, and transaction logs. That’s not how customers communicate anymore. They send messages, upload images, post videos, and leave voice notes. If a business can’t process that, it’s missing the most important customer insights.
Companies that fail to modernize their IT infrastructure will struggle to compete. Those that do will gain an edge. Businesses that successfully integrate real-time analytics, natural language processing (NLP), and AI-driven automation will process customer signals faster, act with more precision, and build stronger relationships. The gap between those who adapt and those who don’t is only going to grow.
The revenue impact of customer-centric strategy
Data is directly tied to revenue growth. The report categorizes businesses on a spectrum, from customer-ignorant (barely using customer data) to customer-clairvoyant (maximizing data-driven insights). The results speak for themselves.
- Customer-obsessed companies have grown revenue by 15% since 2020.
- Customer-clairvoyant companies, which actively use predictive analytics and AI, have seen 18% revenue growth in the same period.
- Customer-ignorant companies, which do little to leverage data, have grown by only 4%.
Customer-centric businesses use collected data to personalize experiences, refine product offerings, and predict customer needs before they arise. Digital sensors, smartphone apps, and third-party data sources provide a continuous feedback loop. Businesses that integrate these signals outperform those that don’t.
“The market is moving toward real-time decision-making. Companies that embrace this will grow. Those that don’t will fall behind.”
Generative AI is reshaping how companies use data
Generative AI is one of the most effective tools for transforming customer data into action. It makes sense of its stored information. AI can scan massive datasets, extract patterns, and generate insights faster than any team of analysts.
Right now, customer-clairvoyant companies are using AI to clean and structure their data, making it usable across their business. This allows them to respond faster to customer needs, refine products based on real feedback, and automate decisions that used to take months.
The impact is clear:
- Companies using generative AI in data engineering have reduced data integration costs by 27%.
- They’ve cut processing time by 40%, meaning they move faster and make better decisions than competitors.
The companies winning today are those that apply AI to their data. The speed of decision-making is becoming the biggest advantage a business can have. Those that invest in AI-powered data transformation will lead. Those that don’t will fall behind.
Key executive takeaways
- CRMs alone won’t drive growth: Traditional CRM systems collect structured data but fail to capture real customer behavior from digital channels, social media, and product usage. Leaders should invest in advanced data integration tools to unlock deeper insights and improve decision-making.
- Outdated IT and unstructured data are bottlenecks: Legacy systems struggle to process unstructured data like social media posts, voice transcripts, and product interactions. Companies must modernize IT infrastructure and leverage AI-powered analytics to make data actionable.
- Customer-centric companies grow faster: Businesses that actively use customer data to personalize experiences and refine products outperform competitors. Leadership should prioritize real-time data strategies to increase revenue and customer retention.
- AI is reshaping data strategy and cutting costs: Generative AI helps businesses process customer data faster, reducing costs and decision-making time. Executives should adopt AI-driven data engineering to enhance efficiency and gain a competitive edge.
