Analytical CRM - Definition & Meaning
What is Analytical CRM?
Analytical CRM in simple terms is the structured and systematic analysis of customer data. It is done using business intelligence functions. The CRM (Customer Relationship Management) is a combination of a) customer understanding and b) relationship management. Analytical CRM refers to the usage of this customer understanding to performance productive relationship management.
The basic aim of analytical CRM is to figure out certain key aspects from a stream of information and thereby gain knowledge about the customer. This knowledge could also be used as means to communicate with the customers and addressing them as in campaign management. Analytical CRM may just be a simple report on activities. The data about the customers could be sales data like the purchase history, marketing data like response to a campaign, financial data like payment history or even service data. Intelligent analysis of these data with the help of certain tools help the company find answers to questions like who are their most valuable customers, which segment of customers will act to a certain offer , where should the company focus their sales on , which customers are not buying since a significant period and so on. On the other hand, analytical CRM helps in increasing customer satisfaction as well through better, timely, personalized and customized services and solutions. Hence analytical CRM enhances customers as well as the firms’ value.
The functioning of the analytical CRM is illustrated in the figure below:
Retail giant Wal-Mart uses analytical CRM by collecting data from its stores and identifying which segments are actually buying, what they are buying, which promotions are most availed and so on. Companies also uses analytical CRM to find out which customers are not buying for a significant period of time. They then plan certain campaigns to address that segment and encourage them to purchase.
Hence, this concludes the definition of Analytical CRM along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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