Analytical CRM

Knowledge Center

Summary, forum, best practices, expert tips and information sources.

What is Analytical CRM? Description

Analytical CRM is the part of Customer Relationship Management that aims at storing, analyzing and applying the knowledge about customers and about ways to approach customers, typically using databases, statistical tools, data mining, machine learning, Business Intelligence and reporting methodologies.

Customer knowledge consists out of:

  • Basic personal data such as: customer name, company name, business unit, business department, address, email, phone, fax, gender, nationality, etc
  • More sophisticated client knowledge such as:
    • Client value (annual revenue, profitability)
    • Transactions (product description, revenue, profit, payment method, payment behavior)
    • Internet communication (IP-address, entry page, click stream, visit length)
    • Telephone communication (call center report data, sales calls)
    • Other communications (mailings, response)
    • Customer satisfaction (with product, service, company)

This client information can be captured from the processes (sales, services, finance, marketing) and channels (Multi Channel Marketing) of the organization. Certain data can also be acquired from external sources, such as market research data or address databases. It is often advisable to store all client data centrally for the organization to avoid 'multiple versions of the truth'. Client data should be actual, complete, correct, unique (each client should be in the database only 1 time) and accessible for those who need it when they need it. This is true a fortiori for companies with a strategic Customer Relationship Management philosophy.

Analytical CRM exampleUsage of Analytical CRM. Applications

  • Optimize marketing effectiveness.
  • Customer acquisition, cross-selling, up-selling, retention, etc.
  • Analysis of customer behavior to aid product and service decision making (e.g. pricing, new product development). Compare: Quality Function Deployment.
  • Management decisions, e.g. financial forecasting and customer profitability analysis.
  • Prediction of the probability of customer defection (churn).

Steps in Analytical CRM. Process

After the client data is collected and stored, the actual analysis can take place. The analysis process is roughly made of the following steps:

  1. Problem formulation. What do we want to know. Is answering the question relevant and possible (technically, financially and organizationally). Typical a CRM analysis question is about:
    • Segmentation of clients
    • Acquisition analysis (what is the quality of various lists or databases)
    • Relation analysis (expected retention, opportunities for cross-selling, deep-selling, up-selling)
    • Channel or approach analysis (which channel or approach gives the best results)
  2. Preparation (random sample survey, relevant variables, cases, spread in scores, prepare definitive dataset)
  3. Definitive analysis, using:
  4. Visualizing the results in such a way that it is understandable for the users.

Strengths of Analytical CRM. Benefits

  • Can help to find and explore useful knowledge in large customer databases.
  • Classify customers, predict customer behavior, select market approach or channel.

Limitations of Analytical CRM. Disadvantages

  • Certain Analytical CRM techniques can be complex to understand.
  • Still in early stage of usage. .

Analytical CRM Special Interest Group

Special Interest Group (702 members)

Forum about Analytical CRM  

The most recent topics about: Analytical CRM.

How to Use Artificial Intelligence in Marketing
Artificial Intelligence (AI) is a disruptive technology that will impact a diverse range of industries. Even though the (...)
Customer Profitability Analysis
Should a firm focus primarily on the customers who are ready to pay a higher price? Are those customers the most profita (...)
🔥 NEW The Data-Driven Marketing Approach
In today's highly competitive world, providing customers with a customized experience often leads to good business resul (...)
The Value of Customer Data
Lots of people think that customer data and especially if you have a lot of it, is very valuable and can even provide a (...)
Best Practices about Analytical CRM

Here you will find the most valuable ideas and practical suggestions.

🥇 Customer Classification Model
Dear all, I'm looking for a method to clasify our customers. I want to analyse them on financial stability, market secto (...)
🥈 What is Analytical Marketing? Explanation
I am looking for the most applicable explanation of "analytical marketing"... Please react if you have a good definitio (...)
🥉 Analytical CRM in the Pay TV Industry
Can anyone help me about implementation of Analytical CRM in the Pay TV industry? Who can share some experiences or best (...)
Implementation of Analytical CRM: Customized Development or Vanilla Approach?
I think a company will have a competitive edge if it goes for customized development rather than a vanilla implementatio (...)
Project Using Analytical CRM
Hello everyone. I am eager to develop a project applying the analytical CRM approach. I found it much practical. I am co (...)
Expert Tips about Analytical CRM

Here you will find professional advices by experts.

Customer Behavior Modeling

Tracking and Modeling Customer Behavior Patterns (...)

Customer Relationship TYPES

CRM, Relation Marketing, Branding (...)

3 Steps in Solving Problems with Data Credibility

Improving Data Reliablility, IT, Business Intelligence (...)

Online versus Traditional Research

Advantages and Disadvantages (...)

Internet of Things and Marketing

Marketing, Supply Chain Management, Internet Strategy (...)

Measuring the True Effectiveness of Advertising

Advertising Effectiveness (...)

Common Pitfalls of Analytical CRM

Implementing Analytical CRM (...)
Information Sources about Analytical CRM

Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.

The Costs of DISsatisfied Customers

Customer Satisfaction (...)

Customer Lifetime Value

Predicting CLV, Database Marketing, Interactive Marketing, Forecasting (...)

Customer Profitability Model

How much is a Customer Worth? (...)

Analytical CRM

Customer Satisfactoin, Analytical CRM (...)

Using Big Data for Competitive Advantage

Customer Analysis, Data Management (...)

Analytical CRM Diagram

Analytical CRM (...)

Compare with Analytical CRM: Customer Relationship Management  |  Business Analytics  |  Regression Analysis  |  Dynamic Regression  |  Exploratory Factor Analysis  |  Exponential Smoothing  |  ARIMA  |  Multi Channel Marketing  |  Business Intelligence  |  Operational CRM

Return to Management Hub: Marketing

More Management Methods, Models and Theory

Special Interest Group Leader

Are you an expert in Analytical CRM? Sign up for free

Link to this knowledge center

Copy this code to your web site:


About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2020 12manage - The Executive Fast Track. V15.6 - Last updated: 30-9-2020. All names ™ of their owners.