ANALYTICAL CRM

CUSTOMER RELATIONSHIP
MANAGEMENT
Customer relationship management
(CRM) is the practice of intelligently
finding, marketing to, selling to, and
servicing customers

What is CRM really trying to do?

Tactical cultivation of customer relationships
based on strategic vision and objectives
Achieved as a company analyzes and prioritizes
opportunities, then communicates with intelligence and
relevance to individual customers in preferred
channels

THREE ASPECTS OF CRM

Operational - automation of customer
processes that offers support to a
companys sales or service representative
Collaborative - the program communicates
to customers without a companys sales or
service representative (self service)
Analytical - analysis of customer
information for multiple purposes

Analytical CRM
Analytical CRM includes a sound analytical
infrastructure that help to gather all the relevant
information about the customers and organize it
consistently.
It help in achieving a 360-degree view of
customers, through which company can
maintain and build truly interactive, mutually
beneficial, and profitable relationships.

It helps the company to identify the new

trends in the market.
It help in gaining further insights into
customer needs and preferences.

Analytical CRM analyzes customer data

for a variety of purposes:
Design and execution of targeted
marketing campaigns to optimize
marketing effectiveness
Design and execution of specific customer
campaigns, including customer
acquisition,
cross-selling, up-selling, retention ..

Management decisions, e.g. financial

forecasting and customer profitability
analysis.

Prediction of the probability of customer

defection (churn analysis) .
Analytical CRM generally makes heavy
use of data mining.

Analytical CRM Power Tools

Capabilities that Companies Must
Have

Broad range of actionable

analysis and predictive
modeling capabilities
Holistic view of customer
interactions to understand
the whole customer
Means to understand and
automate the event rules that
drive the business and
communicate with
individual customers

Manage the Total Communications

Environment with Analytical CRM
Direct
Mail

Store /Branch

E-Mail/Fax

Analytical CRM
ATM/Kiosk

Call Center

Agent

THE VALUE ANALYTICAL CRM ADDS TO

BUSINESS DESIGN
Acquire new profitable customers by
cloning best customers.
Improve relationships with existing
customers by addressing their individual
needs

Cont..
Optimize cross-selling and up-selling
opportunities
Improve customer loyalty and reduce
customers' propensity to churn

How Analytical CRM Functions

Analysis
Analyze
customer
profiles &
behavior
Target
customers
Evaluate
response
Event Analysis

Modeling
Build and
analyze
predictive
models
Score
customers

Personalization
Generate personalized
offers by customer
Build personalization
Rules

Communication
Plan continuous
communication
dialogues
Define batch and real-time
event rules and trigger

Optimization

Interaction

Prioritize and limit

communications
by channel
Regulate frequency
and quantity of
contacts by
channel
Optimize customer
communications
through contact
modeling

Deploy outbound
or manage
pending
inbound/eventdriven
communications
Manage workflow
of interactions
Personalization
Merge
Real-time
personalization

Industry LDM

Data Warehouse

ALL CUSTOMER INTERACTION DATA

Scope of Analytical CRM

Customer behavior modeling
Customer value assessment
Customer profitability
Customer lifetime value

Cont.
Customer profiling and scoring
Customer portfolio optimization
customer interaction.

Achieve Positive Business Results

Over Time

CRM is an ongoing, scientific

process
not an isolated campaign
or marketing plan

CRM Process Must Balance

Quality of
Customer
Experiences

Achieve Positive
Business
Results

THANK YOU