Analytical CRM

ANALYTICAL CRM

1           Analytical CRM may be defined as a decision support system that is targeted to helping senior executives ,marketing, sales and customer support personnel to better understand and capitalize upon their customer needs, the c customer buying cycle.

2           Analytical CRM consist of applications that enable business to analyze relevant data in order to achieve a more meaningful and profitable interaction with the customer.

3           It uses customer data for analysis, modeling and evaluation to create a mutual relationship between company and its customers.

4           It helps to better understanding of customer behavior.

5           The analytical CRM solution enable the effective management of a customer relationship. Analysis of customer data can a company begin to understand bahaviours,identify buying patterns and trends and discover casual relationship.

Key features of Analytical CRM

•      It integrates and inheriting all this data into a central repository knowledge base with an overall organization view.

•      It combines and interacts the value of customers with strategic business management of organization and value of stakeholders.

•      It determines, develops and analyze inclusive set of rules and analytical methods to scale and optimize relationship with customers by analyzing and resolving of all questions.

1 NEED OF ANALYTICAL CRM

•      CUSTOMER ACQUISITION

•      CUSTOMER ATTRITION(slow destruction)

•      TIME UNTIL ATTRITION

•      REVENUE DOLLAR MODEL

•      CUSTOMER UPGRADE

2 PURPOSE OF ANALYTICAL CRM

•      Design and execution of targeted marketing campaigns to optimize marketing effectiveness.

•      Design and execution of specific customer campaigns, including customer acquition,cross selling, up- selling, retention.

•      Analysis of customer behavior to aid product and service decision making.

•      Management decisions

•      Prediction of the probability of customer defection

•      Analytical CRM generally makes heavy use of data mining.

•      Importance of analytical CRM

•      Make more profitable customer by providing high value services.

•      Retaining profitable customer through sophisticated analysis.

•      Addressing individual customer needs and efficiently improving the relationship with new and existing customer.

•      Improves customer satisfaction and loyalty.

•      Find and explore useful knowledge in large customer database.

•      It helps in classifying customers, predicting customer behavior.

•      Steps in analytical CRM process Step:1 Problem formulation

•      Segmentation of clients

•      Acquisition analysis

•      Relation analysis

•      Channel or approach analysis. Step:2 preparation

Step:3 Definitive analysis

•      Statistical techniques

•      Data mining

•      Machine learning techniques Step:4 Visualizing