OBJECTIVE OF THIS ARTICLE
In this lesson, we will be looking at:
- Shat CRM Analytics is
- Benefits from CRM Analytics
We already know that CRM is in case you have forgotten to get a copy of series one of this book. But when we talk about Analytics, we talk about the analysis of data that the organisation have about their customers. This will help them in meeting their customers at the right place with the right product and services.
Benefits form CRM Analytics
One thing you should know is that Data Analysis in CRM is a continuous process. Organisations have to continue to review their customer’s information and use the information gathered in evolving a well informed and balanced decisions about their customers.
Customers information are always gathered front offices which are departments that have a direct relationship with the customers. As this information is obtained, they are systems that perform data cleansing, application rules and storing of information in the data repository.
The organisation needs to do some calculations in order to know whether they are taking the right decisions. While applying calculations, the organisation needs to analyse if the rules are consistent across multiple channels. This need to be done in order to ensure that the customer is satisfied irrespective of the channel that they have chosen to interact with the organisation.
You should also know that the organisation must be able to have established ruled that will regulate customers interaction and know the number of systems that each rule will govern in general.
Now the benefit …
Customer Retention: A sophisticated customer-centric data warehouse must be able to mirror customer’s that have left the Organisation’s lifecycle and join competitors chain. It must be able to portray the reasons why they have left in order to prevent future attrition. The models must also be able to identify potential defectors among the current customers and prevent their movement.
Sales and Customer Service: In today’s business environment, you should know that it is an organisation that is able to provide superior customer service that rules the market space. If an organisation have adequate information about their customer, they will be able to provide valuable information to their sales and marketing people which they can use to corner sales. You should know that if the organisation have adequate information, it is possible for them to create software that will predict products that can be introduced to customers and prospects alike.
There are programs such as market basket analysis which analyses transactional databases to find a set of items that appear frequently together in a single purchase. This helps in increasing cross-selling ratio, product placement improvements and better layout of catalogues and web pages among others.
Marketing: Business people know that marketing cannot thrive without adequate information about the prospects. When the marketers have adequate information about the prospects, they will be able to execute retention campaigns, lifetime value analysis, trending, targeted promotion among others. Indeed only by having a complete customer profile can promotion be targeted, and targeting dramatically increases response rates and that decreases campaign cost.
Direct mail costs are directly proportional to the completeness and accuracy of customer data.
Risk assessment and Fraud Detection: An accessible customer base reduces the risk of entering into undoing risk. When an organisation have a database of their customers, they will be able to know the relationships between their various customers, they will also be able to identify customer’s carrying out fraudulent activities or using different names. An insurance company will also be able to identify customers with different types of policies more than expected.
At the end of this lesson, we have been able to discover that:
- Analytical CRM has to do with the critical assessment of customer data in order to come up with facts that will allow the organisation to do business from the customers perspective.
- Some of the benefits include Customer retention, sales and customer service efficiency, marketing and risk and fraud detection among others.
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