A Case For CRM Analytics

By Catherine Hensley
Updated: October 03, 2011

A Case For CRM Analytics

The use of CRM analytics measurements to improve business efficiency has been growing in popularity. These analytics are used to promote more refined and faster business decisions in the workplace regarding a company’s customers. For your business to compete in the global economy and to provide your customers with the best service possible, CRM analytics are worth considering.

CRM (or “customer relationship management”) is a software system that employs different technologies to provide support and assistance in the management of a company’s interactions with its clients and customers. Tasks like customer service or tech support can be automated by a CRM, greatly reducing the costs of these services. For enterprise-class businesses, a CRM system can be used and accessed by multiple company locations in many different geographical places.

Considered a form of “online analytical processing,” CRM analytics assist companies in the gathering and evaluating of information concerning customers (http://searchcrm.techtarget.com/definition/CRM-analytics). With this kind of customer data analysis, many evaluative functions can be performed. For instance, personalization and segmentation grouping are two popular CRM analytics tools. With personalization, information is gathered regarding how individuals interact with a website, such as which pages they visit most frequently. This information is then used by the company in directly marketing to certain customers based on their particular preferences.

With customer segmentation grouping, information is gathered and then sorted into specific groups. Purchase preferences online, for example, are one such popular metric in this analytic. Customers are divided into groups of those most likely and least likely to purchase or re-purchase particular products based on what they have bought in the past.

Event monitoring is another popular CRM analytic metric. Simply put, when a customer reaches a certain dollar amount of purchases on a site, this tally is logged for the site’s parent company. The CRM analytic employed by the company keeps track of these “events” and brings them to the attention of the company. A company may choose to reward frequent “event” spenders with bonus gifts or coupons, for instance.

There are many benefits to using CRM analytics in measuring and evaluating customer interactions with a company. More productive and targeted marketing efforts are often the biggest draw for companies considering using this tool. Keep in mind, though, that one potential challenge comes from integrating the software with systems already in place and other new ones. Despite this possible drawback, however, CRM analytics offer a lot of positive benefits worth considering.
 

Featured Research
  • 12 Must-Have CRM Features

    Having a CRM is absolutely essential to any modern day business's success. In fact, 91% of companies with 11+ employees now utilize a CRM solution in their business. When making the decision to purchase or upgrade your CRM solution, it can be quite overwhelming determining which features are essential to your success versus those that pack more fluff than punch. more

  • Making the Case for a New CRM

    Did you know that having an outdated CRM is just as bad as not having one at all? Do you find yourself working even just a little too hard to make your current CRM work to maintain your contacts and relationships? While it is increasingly more difficult to reduce customer churn, modern CRM tools are much more powerful and provide much more opportunity to develop stronger relationships with your clients that can provide more stability and revenue to your company and bottom line. more

  • Don't Make These 10 CRM Mistakes

    Finding and buying a CRM is exciting. It is also quite daunting as you want to be as prepared as possible so as to avoid making a costly mistake. We have seen that many businesses fail when implementing a CRM, as they repeatedly make the same errors over and over again. more

  • The 2017 CRM Comparison Guide: Q2 Edition

    If you’re in the market for CRM software, we’ve got good news. We’ve updated our CRM comparison guide for Q2. more

  • Are You Using These 8 CRM Features?

    One of the biggest mistakes that businesses make when it comes to their CRM software is the features they don’t use. This happens because they invest in CRM with a handful of problems in mind, so they’re content as long as it solves them. But if you want to maximize your ROI, you should be utilizing every feature available to you. more