KEY MARKET TRENDS OF ANALYTICAL CRM
OBJECTIVE OF THIS STUDY
At the end of this lesson, readers should be able to:
- Have a deeper understanding of Analytical CRM
- Know some of land mark research on Analytical CRM
- Discuss some of the functions of analytical CRM
Why is analytical CRM so confusing? Most people agreed that the analytical CRM marketing is growing rapidly – but there is no standard definition or agreement of what constitutes analytical CRM. The hype has definitely arrived as witnessed by CRM analytics appearing at the top or “peak of inflated expectation” in the famous Gartner Hypelurve (Scott and Gartner CRM Symposium – February, 2002).
Market size and growth
Some specification points form multiple sources on the size and growth of the market include the following assertions:
- IDC estimated that the CRM analysis market will surpass $1.5 billion in sales by 2005
- AMR Research estimate that investments in analytical application will grow at nearly double the rate of operational CRM systems. The market will expand to nearly $4.4 billion by 2005 which represents 19 percent of the CRM market.
- Meta Group’s recently survey of more than 400 enterprises found out that in the next twelve to eighteen months, customer analytic solutions will be purchases more than any other type of CRM offering
- Jupiter media metrix says that more than one-quarter of all S. firms will spend at least $500,000 on customer – based technologies over the next two years. Much of the investment will centre on analytical software ringing in at a healthy 8.7Billion in $2006
CRM analytics consist of both analytical and operational components and the goal is to maximize overall customer profitability while maintaining customer satisfaction my analytical CRM definition is multi faceted – analytical CRM is the critical foundation for intelligent analysis and application of customer information across an enterprise.
Analytical CRM also serves as the glue or connection between the operational customer – facing applications such as sales, service and web channel and the analytical back-office systems, business intelligence solutions and customer data warehouse.
Finally, analytical CRM is the feedback loop on the front end of real-time customer interaction or the back-end front end of real-time customer interactions or the back – end scored card for analyzing what happened and how to improve the next customer interaction.
Another way to look at analytical CRM is that it fulfils the critical first steps of the now famous Roger 1 – to – 1 approach to CRM Their 1 – to – 1 mantra is IDIC or Identify, Differentiate, Interact and customize. You cannot intelligently interact with your customize or customize your products and services until you identify and differentiate them.
Some researchers such as IDC, AMR Research, Meta Group, Jupiter media all agreed that there is brilliant prospect for collaborative CRM.
- Analytical CRM will help you to maximize over all customer profitability while maintaining customer satisfaction.
- Analytical CRM helps in managing customers’ feedback mechanism and customer interactions in organisations.