scope of analytical crm

Examining scope of Analytical CRM




At the end of this lesson, readers should be able to:

  • Define Analytical CRM
  • Examine the areas that it covers.
  • Discuss the strength of Analytical CRM.
  • Know its limitations.

Analytical CRM has much to do with capturing, analyzing and applying the knowledge about customers and ways to approach them, typically using databases, statistical tools, data mining, machine learning, business intelligence and reporting methodologies.

Customer knowledge consist of basic personal data such as: Customer name, company name, business unit, business department, address, e-mail, phone, fax, gender, nationality e.t.c.

It also consist of sophisticated client knowledge such as client value, (annual revenue profit ability), transactions (product description, revenue, profit, payment method, payment behavior).

We also have internet communication (IP address, entry page, click stream, visit length). Telephone communications (call centre, report data, sales calls).  This client information can be captured from the processes (sales, services, finance, and marketing) and channels of the organization. Certain data can also be acquired from external sources such as market research data or address databases. It is often advisable to store all client data centrally for the organization to avoid multiple versions of the truth. Client data should be actual, complete, correct, unique and accessible for those who need it when they need it.


  • Optimize marketing effectiveness.
  • Customer acquisition, cross selling, up-selling, retention e.t.c.
  • Analysis of customer behavior to aid product and service decision making e.g. product pricing, new product development.
  • Management decisions e.g. financial forecasting, and customer profitability analysis.
  • Prediction of the profitability of customer detection.


  • Can help to find and explore useful knowledge in large customer databases.
  • Classify customers, predict customers behavior select market approach and channel.


  • Certain Analytical CRM techniques can be complex to understand.
  • It is still in early stage of usage.

scope of analytical crm


At the end of this lesson, we have discovered that:

  • Analytical CRM has to do with capturing, analyzing and usage of customers knowledge.
  • Some of the knowledge includes: Basic personal data, sophiscated client knowledge, internet communication and telephone communication.
  • Analytical CRM are used to: Optimize marketing effectiveness, analyze customers’ behavior, manage decisions and predict the profitability of customers.
  • Some of its limitations include: complexity and non popularity of the applications.

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