Artificial Intelligence-Driven CRM: Enhancing Customer Engagement and Performance in the Iranian Retail Industry

Ali Hedayati

doi:10.63053/ijmea.40

Authors

Ali Hedayati K. N. Toosi University of Technology, Master of Business Administration (MBA), Marketing,Tehran,Iran

DOI:

https://doi.org/10.63053/ijmea.40

Keywords:

Artificial Intelligence, Customer Relationship Management, Retail Industry, Iran

Abstract

The landscape of Customer Relationship Management (CRM) is undergoing a profound transformation driven by advancements in artificial intelligence (AI) and automation technologies. Progressive organizations increasingly leverage AI to analyze customer behavior, refine brand communication strategies, and cultivate stronger relationships. Modern CRM platforms generate large volumes of data through customer interactions and behavioral patterns. AI algorithms mine this data to uncover latent insights into individual preferences, predict future behaviors, and generate personalized recommendations.

AI-powered automation has streamlined CRM workflows by facilitating rapid, tailored interactions that improve responsiveness and reinforce customer loyalty. Through consistent engagement and value creation, businesses can maximize customer lifetime value and sustain long-term relationships.

This study investigates the transformative role of AI in CRM, with a specific focus on the retail sector in Iran. The integration of machine learning (ML) and AI technologies into CRM solutions has enabled Iranian retail businesses to gain a more granular understanding of customer preferences, automate routine operations, and deliver hyper-personalized experiences. For instance, ML models can efficiently process complex customer datasets to identify behavioral trends and forecast purchase intentions—informing adaptive marketing strategies and customized product offerings.

Moreover, AI-driven virtual assistants and chatbots enable continuous customer support, effectively handling inquiries and issues beyond standard business hours. This paper highlights the critical impact of AI and ML in enhancing CRM functionality and customer engagement within the Iranian retail market. A survey of 213 participants across Iran’s retail sector was conducted to evaluate the impact of AI on CRM transformation. The findings confirm a substantial influence of AI on reshaping the CRM experience in Iran’s retail industry.

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