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1. What is Analytical CRM

2. IMAGINE A SCENARIO WHERE BUSINESS
KNOWS WHAT CUSTOMERS WANT TO BUY –
THIS IS EXACTLY WHAT A BUSINESS
NEEDS BUT HOW TO ACHIEVE IT!! THAT IS
WHAT ANALYTICAL CRM DOES.
We already know that there are three types of CRM
applications - Operational, Analytical and Collaborative. In our
previous article we have discussed about Operational CRM.
Here we will talk about Analytical CRM.

3. IT IS A SYSTEMATIC APPROACH TO
ANALYZE CUSTOMER DATA AND
INTERACTIONS TO IMPROVE VARIOUS
BUSINESS PROCESSES IN SALES,
MARKETING AND SERVICE. THE MAIN
PURPOSE OF ANALYTICAL CRM IS TO
GATHER CUSTOMER INFORMATION FROM
VARIOUS CHANNELS AND GAIN
KNOWLEDGE ABOUT CUSTOMERS’
BEHAVIORS AND BUYING PATTERN AS
MUCH AS POSSIBLE. IT HELPS AN
ORGANIZATION TO DEVELOP NEW
MARKETING STRATEGY AND ASSESSMENT,
CAMPAIGN MANAGEMENT, CUSTOMER
ACQUISITION AND RETENTION.
So what is Analytical CRM?

4. Difference between Operational and Analytical CRM
Operational CRM deals with automation of Sales, Marketing
and Service processes that involve direct interaction of
customers’ requirements. Whereas Analytical CRM handles
those operations that do not have direct dealing with
customers. It analyzes customer data to enhance decision
making capability of an organization.

6. Key features of Analytical CRM
1. Gathers all relevant information about customers
from various channels/sources and builds a knowledge
base for an organization
2. Analyzes customer data based on rules and
methods set by business and prepares report to
improve customer relationship and interaction
3. Helps business to segment customers and run more
customer centric marketing campaign to increase
sales

7. Key features of Analytical CRM
4. Decides what if scenarios – probability of a
customer that purchases one product could buy
another product
5. Monitors events like customer may purchase gifts
on his marriage anniversary
6. Helps business to predict the probability of customer
defection and take necessary steps
7. Assists top management to do better financial
forecasting and planning

8. Benefits of using Analytical CRM
1. Higher lead conversation rate
2. Better customer experiences by addressing their needs
more effectively and efficiently
3. Better market analysis before running a campaign
4. Increase customer loyalty and satisfaction
5. More accurate financial forecasting and planning

9. For a business, collection of customer
data and its analysis is a continuous
and iterative process, decisions based
on customer data become better and
more accurate over the time based on
experiences and feedback from
previous analysis.

10. 1. CUSTOMER ANALYSIS REPORT: THIS IS THE
BASIC REPORT BASED ON ANALYSIS OF
CUSTOMER KNOWLEDGE BASE. THIS GIVES 360
DEGREE VIEW OF A CUSTOMER THAT HELPS A
COMPANY TO GAIN FURTHER INSIGHTS ABOUT
CUSTOMER’S NEEDS AND PREFERENCES.
Analytical CRM analyzes data coming
from every aspect of business and
generates reports, like

11. 2. SALES ANALYSIS REPORT: THIS TYPE
OF REPORTS SHOWS THE
ORGANIZATION’S SALES TREND FOR A
SPECIFIED PERIOD – MONTHLY,
QUARTERLY, YEARLY OR ANY TIME
FRAME THAT IS SIGNIFICANT FOR
BUSINESS. IT PROVIDES SUPPORT TO
STREAMLINE ALL SALES OPPORTUNITIES
BY IMPROVING SALES CYCLE. THIS
HELPS MANAGERS TO IDENTIFY MARKET
OPPORTUNITY, PREDICT SALES VOLUMES
AND PROFIT BY ANALYZING HISTORICAL
Analytical CRM analyzes data coming
from every aspect of business and
generates reports, like

12. 3. MARKETING ANALYSIS REPORT: THIS KIND OF
REPORTS HELPS TO DISCOVER NEW MARKETING
OPPORTUNITIES AND IMPROVE MARKETING
PERFORMANCE BY MAXIMIZING RETURN ON
INVESTMENT (ROI). IT ALSO HELPS TO DECIDE
MARKETING PERFORMANCE BASED ON VARIOUS
PARAMETERS LIKE REGION, CHANNELS, POLITICAL
INFLUENCE. IT ALSO FOCUSES ON CAMPAIGN
PLANNING AND EXECUTION, PRODUCT ANALYSIS.
Analytical CRM analyzes data coming
from every aspect of business and
generates reports, like

13. 4. SERVICE ANALYSIS REPORT: SERVICE ANALYTICS
IS A MAJOR AREA IN ANALYTICAL CRM. IT PROVIDES
THE INSIGHT ABOUT CUSTOMER SATISFACTION,
QUALITY OF SERVICE, AREAS OF IMPROVEMENT IN
SERVICE. IT ALSO HELPS TO FIND OUT
OPPORTUNITIES OF CROSS SELL OR UP SELL
PRODUCTS. IT HELPS TO TRACK EMPLOYEE
PERFORMANCE AND PRODUCTIVITY, TELLS
MANAGEMENT TO CONDUCT REQUIRED TRAINING FOR
EMPLOYEES.
Analytical CRM analyzes data coming
from every aspect of business and
generates reports, like

14. Analytical CRM analyzes data coming
from every aspect of business and
generates reports, like
5. CHANNEL ANALYSIS REPORT: CHANNEL ANALYSIS
REPORT HELPS BUSINESS TO UNDERSTAND
CUSTOMER BEHAVIOR ACROSS CHANNELS LIKE
EMAIL, PHONE CALL, SOCIAL MEDIA OR FACE TO
FACE INTERACTION. THIS KIND OF KNOWLEDGE CAN
BE USED TO INTERACT WITH CUSTOMERS MORE
EFFECTIVELY AND EFFICIENTLY.

15. Nowadays Analytical CRM is an integral part of any business. There are many
software applications available in market to do customer data analysis. It uses
various data mining techniques like predictive modelling, supervised modelling.
We will discuss about data mining in CRM in another article.
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