Impacts of Big-Data Technologies in Enhancing CRM Performance

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Impacts of Big-Data Technologies in Enhancing CRM Performance
Nasser Taleb
Canadian University Dubai
Nasser.taleb@cud.ac.ae
Mohammad Salahat
USTF Fujairah UAE
m.salahat@ustf.ac.ae
Liaqat Ali
USTF Fujairah UAE
l.ali@ustf.ac.ae
Abstract— big data is a hot business topic today. In business
organizations, customer-relationship management (CRM) is an
important pillar to achieve competitive advantages. Big data
refers to practices of integrating big data into an
organizational CRM process to achieve the objectives of
improving and sustaining customer service. The alternative
goal of big data is to combine internal CRM data with
customer behavior and buying patterns from the environment
external to the organization. Several tools exist that can
integrate big data with other CRM data to improve customer
analysis and understand buying behavior and patterns. This
paper reports research evaluating the role of big-data
technology in enhancing the effective use of CRM. Research
proves that data’s predictive model is enhanced by analyzing
customer buying patterns. Issues and challenges related to the
implementation of big data are discussed and benefits of
appropriate implementation of big-data technologies are
highlighted. The research further demonstrates some tangible
benefits of implementing big-data technologies in CRM.
Keywords- Big Data, Data Analytics, CRM, Technology,
Business Organizations and Customers
I. INTRODUCTION
Today, big data is recognized as one of the most
important emerging technologies. It is important to note that
big data is used to characterize the recent explosion of
different types of data from different sources. Controlling the
huge amount of data injected into the network and how to
fast transform them to end user has met the challenge (Jing
Sun et al,, 2019). Big data and analytics are strongly linked.
The term analytics means collecting and analyzing data to
extract useful and relevant trends and patterns that can be
used to make decisions, enhance performance, and even
create new business models. Likewise, big data consists of
massive amounts of both structured and unstructured data
stored in a database and analyzed using such software as
Apache Hadoop and Apache Spark (Tsai et al., 2015).
Apache Hadoop and Apache Spark helps to analyze
business-process data. Big data helps managers store
business data in a server that can be used to make decisions
to improve procedures. Big-data technology help to manage
customer data and analyze daily transactional data, by which
management can track operations closely (Wamba et al.,
2017).
The paper is based on the evaluation of the role of big-
data technology in enhancing the effectiveness utilization of
customer-relationship management (CRM). As a result, by
relying on the right tools for managing customers’ data,
organizations can increase profitability, brand effectiveness,
and customer satisfaction. Big-data technology is useful
because it offers companies appropriate performance metrics
for their business. Big-data technology leads organizational
managers to generate the sales reports that will help analyze
the business (Tsai et al., 2015). Big data helps to segment
customers according to their behavior, interests, and
purchasing habits, helping businesses reach their desired
target markets and their desired business profit. Figure 1
shows Walmart’s worldwide growth from 2016 to 2018, and
this is generated by using big-data analytical tools.
Figure 1: Walmart worldwide sales data from 2006 to 2018
(billion U.S. dollars).
Source: (Statista, 2019).
II. RESEARCH BACKGROUND
Currently, organizations face the need to handle large
customer databases. They must understand the requirements
of big-data technology to handle the data. Big data is
emerging in business mainly to process, store, maintain, and
analyze customer data. Big data is being used in CRM
because every organization, whether it already has a massive
number of customers or is planning to acquire more, must
store and manage customer information to track their sales.
Apache Hadoop, Apache Spark, MapReduce, and Apache
HBase are the big-data analytical tools that help to maintain
an organization’s relationship with its customers to provide
them with their required services and products (Hadoop,
2019).
Detailed and accurate information related to customers
can be amassed through big-data implementation. Big data is
generated from various sources, including server logs,
mobile applications, business records, database stores, and
social media. CRM data consists of all types of information
related to the consumer; the management of this information
has become crucial to provide value (Chen et al., 2014).
Businesses with physical stores have implemented CRM to
gather data related to the back office and employees.
Changes in business patterns have forced the use of big data:
The information related to consumers’ saved cards, payment

methods, and delivery addresses, and so on must be
maintained. The rising use of the Internet enables business
organizations to shift into online business, and big data has
become crucially important to store all types of customer
information in the company database. Managerial decisions
are developed through proper maintenance of data-collection
methods and techniques through big data. Transaction
fluency and personalized choice along with financial
information on consumers are maintained to ease business
operations (Stimmel, 2016). Thus, organizations maintain
big-data CRM systems, defined as the practice of integrating
the concept of big data into the business’s CRM
implementation to provide value to the consumer. The big-
data software and platforms considered are Oracle Big Data
Analytics and High-Performance Computing (HPC) systems,
which are widely used by enterprises to conduct business
operations and avoid problems in handling information
(Kunz et al., 2017). Adapting big data provides the firm with
the data related to marketing, sales, consumers, and decision-
making which enable managers to maintain effective CRM.
The term big data was first coined by Roger Mougalas in
2005, but the concept of handling a wide range of data
existed before (Erevelles et al., 2016). CRM was established
for effective communication between salespeople and
consumers in the absence of information technology. In
1970, Nomad Software’s database offered access to
information and traditional contact-management software
was introduced in 1980. Big data works with far more
information than traditional databases can capture, organize,
and process. Amazon has already implemented big data to
maintain a stable relationship with consumers and ease
business operations through effective CRM.
III. IMPORTANCE OF THE RESEARCH TOPIC
Big data is important because it can enhance CRM in
business organizations. Companies use big data to maintain
consumer segmentation which results in more customized
services and products. As the patterns of business have
changed over time, it has become crucially important to track
a huge number of customer records, so the implementation
of big data is important in the CRM context. CRM
implementation enables business organizations to analyze
customers’ demands and needs to attract as attention as they
can. Big data enables businesses to gather all their customer
information in one server and access it at any time to
simplify the CRM operation. It is not possible for companies
to organize all the information in such traditional tools as MS
Excel. In contrast big-data CRM provides value to the
customer. So, the importance of the topic is reflected through
the introduction of the use of big data in CRM. Predictive
data models analyze customer buying patterns and history.
Big data enables the organization to store this information in
its database. Benchmarking for analyzing employee
performance is also achieved through the implementation of
big data.
This paper discusses the issues of integrating big-data
technology into their CRM. To discuss the role of big-data
technology in CRM, a few other issues are incorporated,
including aspects of CRM, the importance of CRM
maintenance, the benefits of big-data technology, and the
implementation of big-data technology in CRM. The prime
CRM benefit is increased customer satisfaction from
implementing such marketing strategies as product
development and custom pricing (Badwan et al., 2017). This
paper investigates and analyzed different organizations
regarding the use and implementation of big data, and their
feedback is used to describe issues regarding the benefits of
big-data technology in CRM to provide service that meets
customer requirements (Nyadzayo & Khajehzadeh, 2016).
Furthermore, paper includes an elaborate discussion
regarding the issues of data privacy and outdated information
in the absence of big-data technology”.
IV. METHDOLOGY
It is clear from the literature review that big-data
analytics plays an important role in understanding customer
behavior through CRM. This understanding helps
organizations improve their customer service. A structure
topology based on the literature review can help understand
the influence of big-data analytics and its role in CRM. The
theoretical framework was developed after collecting
secondary data that helped understand the importance of big
data and its relationship to CRM. Two research questions
guided the research:
• What different types of approaches are adopted by
your organizations to implement big-data analytics
in customer relationship management to improve
customer satisfaction and to understand their buying
behaviors?
• How do organizations see the future of big data in
different forecasting systems to measure and
improve their customer relationship management?
According to contingency theory, it is important to
understand that no organization works perfectly. It is
therefore difficult to accurately measure the performance and
benefits of big-data analytics in different organizations. The
researchers therefore choose three different organization
types, retail, property, and insurance, to collect the primary
data for this research. All three organizations agreed to take
part in the research survey. The survey interviews included
11 questions:
• To what extent is your organization using and
benefiting from big data?
• How you would rate the use of big data in CRM by
your organization?
• How would you rate the analytic capabilities in
your company today when managing CRM?
• To what extent are the staff in your company
dedicated to analytics, modeling, and data mining?
• In your opinion, what is the greatest opportunity
related to big data in your company, especially in
CRM?
• Do you expect big data to help you improve
organizational efficiency and effectiveness in
CRM?

• How will the use of big data be improved in your
organization when dealing with CRM issues?
• In 3 to 5 years, what will the role of big data be in
your organization especially in CRM?
• What tangible benefits of big data do you see in
your organizations?
• How do you measure the success of big data?
• What challenges do you see in implementing big
data, especially in CRM?
V. FINDING AND ANALYSIS
From the analysis of semi-structured interviews and
discussion it was found that organizations now using and
benefiting from big data and they fully understand the
importance of data analytical tools and techniques. Some
organizations were found to be keen in the further
improvements of data analytics and they mentioned that
there is appropriate use of big data while using CRM
application to maintain customer relationship management.
It was found that some organizations provide training
session to make sure that analytical capabilities are there
when using and managing customer relationship
management. In retail, it was found that staff are really
dedicated to find several patterns of customer buying
behavior and to use those factors in predicative analysis. Big
data now got the opportunity to play an important role to the
success of organization by providing patterns and sequences
of data for the predictive analysis and forecasting. Big data
certainly improve the efficiency and effectiveness in
maintaining CRM. This leads to the tangible benefits of
organizations. However, challenges are varying from
organization to organizations, discussed in further sections
of this paper.
This investigation guided us to show the importance key
issues and technologies related to big data technologies.
This includes emergence of Big-Data technologies in
business with more focus on CRM, and how to implement it
in CRM, what are the benefits and challenges facing the
implantation, issues of absence of implementing big-data
technologies. This will be followed with discussion and
analysis related to them.
VI. EMERGENCE OF BIG-DATA TECHNOLOGIES IN
BUSINESS
The concept of big-data technology enables firms’
management to concentrate on customer retention; new
market segmentation is achieved through information
technology (Wu et al., 2014). Business organizations with
physical stores gather information through data management.
With an expanding business, the organization of a huge
amount of data requires the implementation of big-data
management. Both structured and unstructured information
like invoice data, sales quantity, payment procedures,
delivery address are saved for each consumer under the
technology. For example, Amazon implemented data lakes
for management of business information to maintaining
CRM as they expanded their business operation globally.
Customer interaction and research, along with development
choices, are improved through the application of big data in
Amazon (Amazon, 2018). The storage of data sometimes
costs too much for the companies and changes in particular
data create complexity in tracking business records, which is
the reason for the emergence of big data in the CRM context.
The time-consuming behavior of traditional information
tracking procedures is the reason for the introduction of big
data in business.
Figure 2: Big-data CRM features - Source: (Stimmel, 2016)
VII. ASPECTS OF CRM
The aspects of CRM, Figure 2, include the storage of all
information related to the consumer and maintenance of the
information for analysis purpose (Khodakarami & Chan,
2014). Customer demand is analyzed from a wide range of
information, which helps the production and manufacturing
units introduce attractive product lines for customers. On the
other hand, global trends are analyzed by the marketing team
from information gathered through social media about active
promotions. CRM does not address identifying new potential
consumers and target markets, which is considered a
drawback of CRM. Moreover, the retention of consumers
and referrals from valued consumers create a new consumer
base for the company through CRM. For example, Walmart
implemented five stages for big data to help their consumers.
Walmart’s pharmacy efficiency increased, and store
checkout was facilitated through big data. The supply-chain
stages are managed, the shopping experience is personalized,
and product assortment is optimized through effective CRM
(Walmart, 2018).
Moreover, CRM includes performance improvement,
decision support, transparency creation, population
segmentation, and innovative business models. The
transparency of the information allows information to be
shared between departments to improve organizational
effectiveness (Chen et al., 2014). Proper CRM streamlining
is constructed based on big-data technology. CRM efficiency
increases through the accessibility of all the information
from a single source (Forbes, 2017). The generation of
consumer leads is effectively achieved by analyzing the
previous year’s consumer data. Optimal pricing is
established by maintaining CRM as the data regarding the
pricing of the product are analyzed properly with the help of
big data.

VIII. IMPORTANCE OF MAINTAINING CRM
CRM is a set of strategies and practices that help
companies manage and analyze customer interactions
regarding company products and services to help satisfy their
customers and develop the customer base. According to
Hargreaves et al. (2018), CRM enables decision-makers to
analyze customer intention regarding a specific product or
service to provide services that meet their customers’
requirements. Additionally, CRM helps to maintain the
customer details by which organizations can deliver service
to each customer according to their needs. According to
Nyadzayo & Khajehzadeh (2016), CRM helps organizations
group customers according to their business needs; this
grouping can vary with geographic location.
Figure 3: Customer relationship management.
Source: (Zerbino et al., 2018).
Top companies are using data collection and data
analysis to adjust real-time business decisions. However, due
to system and data error, analysis can go wrong, which may
slow business operations and decision-making. According to
Wang et al. (2016), CRM is also used to acquire new
customers. Organizations need to identify new strategies and
CRM tools that can help analyze and identify opportunities
to attract new customers and enter new markets. This will
create complexity in data storage regarding the new
customer data to process using big-data technology. The
main effects of CRM are to deal with customers and provide
them with appropriate service according to their
requirements. Currently, Telstra Corporation is using big-
data technology to manage their customer data and offers
details for each customer (Telstra, 2019). This helps increase
the business opportunity for the company and enhances the
company’s profits and turnover. Big data also helps to
maintain a massive amount of business operations data by
storing them in a database server which helps to analyze
those data whenever required. On the other hand, server
issues can occur when the traffic load increases in the server.
Then the management team member cannot access the data,
which may delay a project.
IX. VIII. IMPLEMENTATION OF BIG-DATA
TECHNOLOGIES IN CRM
Big-data techniques helps CRM systems to process
customer information faster and more smoothly, improving
business operations. According to Kunz et al. (2017), big-
data technology can perform analysis to help identify
business objectives and customer behavior. On the other
hand, it increases the complexity of business operations to
store and maintain those data efficiently. Big-data
technology can analyze the daily customer transactions to
help understand customer buying behavior and improve
products and services. On the other hand, big-data
technology requires a big budget to implement and requires
many resources for maintenance which is not possible for
small organizations.
According to Zerbino et al. (2018), big-data technology
helps management teams find specific customer data to help
them save time in business operations. In addition, big-data
technology is a software driven process. Therefore, data
errors occurring during the execution process may delay
business operations. The advantage of big data is that it can
help to reduce processing time. Also, with reduced
processing time, reports about massive numbers of sales can
be generated and analyzed quickly to strengthen the
decision-making process. The analysis of the data further
helps to understand customer perceptions and behavior in
buying and selling. Business organizations can implement
Apache Hadoop and Apache Spark to process customer and
business-operations information. For example, IBM uses
big-data technology to store their business-operations data in
the cloud (IBM, 2018) and to analyze and solve content-
management problems.
Figure 4: Big-data analytics. Source: (Tsai et al., 2015).
X. CHALLENGES OF BIG-DATA IMPLEMENTATION IN
CRM
The challenges of big data faced by organizations while
implementing CRM include incompatibility, possible failure,
system errors, and data complexity. Hadoop is an important
component for using big data, but real-time analysis of the
information is not achieved through standard Hadoop
(Hadoop, 2019). The cost associated with implementing big
data and the required server maintenance are high, creating a
barrier for small and medium-sized organizations. However,
the long-term success and ease of operations offered by big-
data CRM applications can be worth the cost. Decision-
making is effectively greatly facilitated through the proper
evaluation of big data in CRM. However, decisions based on

the data of any location may be limited to the short term and
may not be valid for the long run.
Figure 5: Challenges of big-data technology
implementation. Source: Authors of this study
XI. BENEFITS OF IMPLEMENTING BIG-DATA
TECHNOLOGIES IN CRM
Big-data technology is basically used to manage, and
process massive data related to business processes. Big-data
technology can be used in an organization’s CRM to manage
the details of the customer and help the organization seize
business opportunities by satisfying their customers’ needs
and requirements. According to Stimmel (2016), when
implementing big-data technology in CRM, it helps to keep
track of the customer data. Analyzing those customer data
can help managers understand their choices and
requirements, which will, in turn, help to improve the
organization’s product and service offering. However, due to
the nature of cloud storage, data breaches can happen,
creating the main source of leaked confidential information.
This is a necessary risk due to the complexity of the process
to identify and track customer requirements, the main reason
for implementing big data in CRM. From analyzing
customer information using data analytics, the organization
can better understand the customers’ expectations and make
decisions regarding business process improvements to meet
customer expectations. Another advantage of big-data
technology is the ability to identify appropriate marketing
techniques such as Internet marketing and paid marketing
techniques by analyzing the organization’s sales data. As an
example, Walmart is using machine learning AI, IoT, and
big data to boost retail performance (Forbes, 2017). Walmart
uses this big-data technology to store and process their
online order details.
According to Hashem et al. (2016), big-data technology
helps management define business strategies by analyzing
customer-transaction data to make and maintain strong
relationships with customers. By analyzing customer-
transaction data using big-data technology, leaders can easily
predict how particular business operations will be accepted
by users or customers of organization. Integrating CRM with
big-data technology helps management consider feedback
from customers regarding product and services, which will
help the organization identify business opportunities
(Zerbino et al., 2018). Hence, this integration leads
management to improve their products and services in ways
that will enhance their customer base and meet customers’
needs. However, many customers give fake feedback which
can create massive confusion in business operations. Data
analysis with the help of big-data technology leads
management to compare themselves with competing
businesses to help make decisions regarding their business
process (Ahmed et al., 2017). Big-data technology also helps
businesses make improve their customer understanding by
taking online feedback, which will help them to revise their
marketing and sales strategy to retain their customer base.
Figure 6: Benefits of big data in CRM. Source: Authors of
this study
XII. ISSSUES FACED IN THE ABSENCE OF BIG-DATA
TECHNOLOGIES
CRM includes a huge amount of consumer information,
but it only deals with the maintenance of the information.
Analysis of the data is not included under the theory (Chen
& Zhang, 2014). Big-data CRM can help to organize all the
information related to business operations, finance, and
customers. The problems related to CRM data include
unverified or incorrect data, privacy concerns, inability to
identify new consumer bases, and the difficulty of keeping
information updated in the absence of big data. According to
Weinzimmer & Esken (2016), gaps in information on the
basis of purchase history or demographic information
restricts the effectiveness of CRM. The information provided
by consumers is expected to be true and the analysis of the
information results using particular strateg, but out-of-date
information such as updated payment details and residential
information are also stored in the company database. This
information occupies extra storage, another problem with
CRM.

Figure 7: Issues faced in the absence of big-data technology.
Source: Authors of this study
As the information used for marketing campaigns must
be accurate to calculate the campaign’s financial details,
unverified information or incorrect data leads to potentially
costly miscalculations (Kitchin, 2014). Customer feedback
for a product or service is often received through face-to-face
interactions with the employees or in the written survey form
in the absence of social media. Customer–company
relationships are established by saving all relevant customer
information. CRM was established mainly for customer
retention through providing them ease and comfort in buying
products or services (Weinzimmer & Esken, 2016). On the
other hand, potential new consumers are attracted through
proper evaluation of the CRM as it includes the consumer
buying behavior of that product or service. The reliability
and security of the information must be maintained
effectively for validity of the calculations.
XIII. ANALYSIS AND EVALUATION OF ISSUES OF NOT
USING BIG-DATA TECHNOLOGIES
In response to the analysis of big-data implementation to
enhance CRM, detractors cite data breaches and misuse of
information along with organizational decision-making.
A. Data Breaches
Data breaches are occurring more frequently in those
companies who are using big-data technology to support
their business processes. Big-data technology depends
heavily on such software as Apache Hadoop and Spark, and
these two products store their data in a database (Hadoop,
2019). Storing business information in cloud storage does
give hackers an opportunity to steal those data from the
server and blackmail the organization. The United States
Office of Personnel Management (OPM) where peoples
fingerprint details and background-check information had a
breach in 2015. Smaller data breaches can be perpetrated
using the local Internet service protocol and proxy servers. It
can even happen in home networks. From the above analysis,
the data-breach rate is increasing because organizations are
increasingly using big-data technology to process their data
and store their business-process data on cloud servers
(Kumar et al., 2018). The information-processing speed is
improved, improving interactions between salespeople and
consumers. Breaches and leaks of consumer information are
the drawbacks of implementing big-data CRM. This study
demonstrates that such factors as consumer satisfaction, cost
per customer, revenue per consumer, and customer retention
are priorities when benchmarking big data. Absence of
proper security in the big-data database has been less
important. The main solution to secure the big-data server is
for the organization to implement a virtual private network
by which company authorities can hide the protocol details
of their server. This would help them to keep their business
process data secure. A virtual private network is accessible
only by authorized people.
B. Misuse of Information and Decision Making
The misuse of personal information is another drawback
of big data in business. As an example, the commercial
website of Ashley Madison, which includes users’
extramarital affairs, was breached in 2015 and more than 25
GB of information was leaked. This is considered an
example of a drawback of big data in business. The decisions
taken on the basis of information over a short time do not
always reflect the overall solution of an issue (Wu et al.,
2014). The decision-making process must be constructed on
the pillar of consumer data management, and effective
decisions are achieved through data over time in the case of
any business
XIV. CONCLUSION
This paper evaluated the role of big-data technology in
enhancing CRM with a detailed analysis of big-data
technology in organizations to develop deep relationships
with customers. There are tangible benefits of big-data
technology, primarily related to enhancing the customer
experience. This technology also helps to predict business
strategies by analyzing daily sales data. Big-data technology
enables management to analyze customers’ perceptions and
make decisions regarding product and service improvements.
Currently, organizations are keen to capture all activities
made by their customers through all points of access.
Decisions regarding pricing or identifying the target market
completely depend on consumer behavior, and using big data
simplifies the interpretation of the data. Customer retention
is achieved through maintaining a CRM system, and new
consumer bases are identified using big data.
It was found that organizations are now using big-data
analytics in different business processes, especially in CRM.
The three selected organizations are adequately using big
data and analytics in their CRM. However, they rate as more
than adequate the use of big data in their organizations.
Satisfaction with the capabilities of big-data analytics in
CRM and all other processes of the organizations was high
because the staff are familiar with the use of big data in the
selected organizations. All three selected organizations
believed that big data can improve CRM, which will further
their competitive advantages. They are confident about the
forecasting process using big-data analytics, and they felt
that tangible and intangible benefits are there, such as

improved customer experience, higher quality products and
services, efficient operations, and strong CRM.
In conclusion, the essential CRM elements included data
movement, cataloguing, machine learning, and analytics,
which includes all types of business-function information.
Personalized choices along with a profile for each and every
consumer are maintained to deliver value to the consumer.
The benefits of big data in CRM are characterized as real-
time analytics, interaction cultivation, and interaction with
the staff. The regular flow of information is delivered to
management under big data, enhancing the simplicity and
ease operations. Employee performance is easily and
effectively monitored for use of resources, and products are
manufactured based on customer demand. Pricing strategies
can be constructed based on consumer feedback, and real-
time analytics is achieved through effective use of big data to
enhance CRM.
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Authors’ background (This form is only for submitted manuscript for review)
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Nasser Taleb
Associate
Professor
Canadian University
Dubai UAE
Information Systems
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Mohammed Salahat
Assistant
Professor
University of
Science and
Technology of
Fujairah UAE
Information Systems
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Liaqat Ali
Assistant
Professor
University of
Science and
Technology of
Fujairah UAE
Information Systems
https://liaqat22.wixsite.com/
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