CRM INTELLIGENCE MANAGEMENT CYCLE
OBJECTIVES OF THIS STUDY
At the end of this lesson, readers should be able to:
- Define CRM intelligence management Cycle
- Identify the four steps in CRM intelligence Management cycle
- Benefits of Analysis in CRM
- Measurement indicators in CRM
A four process illustrates the CRM Intelligence Management Cycle which are collection of data, analysis, action and effective Management of the process.
As an Organisation formulates the data warehouse on order to cater for customer data, the Organisation must be able evaluate and establish a mechanism that will cater for all customer data throughout the entire Organisation
The Organisation must be able to cater for all operational and financial data of the customers in order to enable the Organisation to meet customers’ demands and understand the financial implication of current and future behaviour of the customers. The Organisation needs to gather as much as possible about the customers in order to have an insight into their behaviours and most importantly how to make their purchase decisions.
After you have gathered all the data that you need, you must be able to analyse it. You should know that CRM analysis is different from ordinary analysis. This is because the CRM analysis is more specific and complex in nature. The purpose of analyzing data include:
- Customer Behaviour and Preferences: You should know that the more an Organisation can have a complete view of customers, the better the relationship can be conducted and fortified. Understanding customer behavior will enable the Organisation to come up with customers based strategies that will meet customers’ needs.
- OPERATIONAL FACTORS: Analysis will enable channel capacity and design, sales effectiveness across multiple channels and channels effectiveness. It will enable the Organisation to know how their touch points are points and things that can be done in order to boost their effectiveness.
- FINANCIAL FACTORS: This includes the study of customer profitability, cost allocation, consumption of resources to sell/service the customer e.t.c. In order to determine the key opportunities for improving profitability, and relate them to customer related activities or operational activities.
In order to achieve this, there is the need for the Organisation to embark on a set of analysis and modeling tools. Analysis tools can provide the ability to evaluate customer profiles and behaviour, and identify communication potentials. In most cases, they also enable evaluation of customer response and behaviour.
- ACTION: After analysis of customer data, there is the need for action on the part of the Organisation . The Organisation must be able to plan and execute communication based on analytical intelligence. The Organisation must be able to automate all types of customer communications from prospecting to multi-channel interactions over time.
In doing this, the Organisation must consider the uniqueness of every customers and the need for personalization of services for customers. The main thing that will determine this is the past behaviour of the customers.
Optimization capabilities can prioritize communications across all channels and ensure effective communications.
Optimization should be based on the priority of the message and the availability of resources to act within a particular time window. This should encompass all touch points such as direct mail, kiosks, point of sale, call centre, web, E-mail, ATM, Store/branch and sales contacts. Optimization is intended to reduce the conflicts that may occur in channels.
- MEASUREMENT OF RESULTS:
The Organisation must measure the effectiveness and impact of its CRM activities on a regular basis to ensure meeting of its objectives.
There are different ways by which performances of CRM analytics can be measured which includes Campaign costs, Marketing campaign gross margin and Revenue, total customers in database showing real profitability, Revenue and gross margins per customer in the database, revenue and gross margin from targeted customers and the percent change in CRM-related revenue and cost year to year.
The real value of CRM is its ability to identify customers at the point of their needs. They must be able to know what their customers want and give them exactly what they want. This will help greatly in reducing attrition in the Organisation.
If the Organisation can identify their customers at the point of their needs, they will be able to render personalized services to their customers. If the Organisation are able to meet their customers through the appropriate channel, it will enhance customer relationships which will ultimately lead to increase in marketing success and customer loyalty.
Above all, with analytical CRM, an enterprise-class data warehouse and a well formulated knowledge of the customer base, an Organisation will be able to satisfy the interest of their shareholders and stakeholders.
At the end if this lesson, we have been able to discover that:
- CRM intelligence Management cycle has four steps which include: collection, Analysis, Action and Measurement of results.
- Analysis has to do with logical sequence to any data