The size of data that companies have to work with keep increasing every day and organizations have started looking for tools that will help them process the large data easily and quickly. The introduction of a tool like Customer Relationship Management (CRM) software has caused an overhaul in most business processes.
Companies that are making use of CRM software are experiencing steady efficiencies in their marketing, sales, as well as their call center operations. While the abilities in these areas of your business can be readily observable, there are some quality insights that you will not have access to unless you integrate an analytics component. Some of them are listed below:
Understand the Different Traits of Customers
Incorporating an analytics component into your CRM software helps improve your customer relations. By now, you most likely know the importance of understanding customer values, histories, and preferences in any business. With CRM analytics, your customers can be grouped based on their behavior, so you will be able to separate the best customers for special offers. This way you maximize the value of your best customers.
Measure and Forecast Performance
Another advantage CRM analytics gives you is that you can determine or understand the performance of your company when it comes to marketing, sales, and service. The primary goal of any business is to reduce cost while increasing overall revenue.
CRM analytics help speed this along by lowering the cost of sales, marketing, and service while giving an assuring return on investment. Analytics also help in predicting or forecasting return on investment, so it becomes convenient when determining how lucrative a business deal.
Personalization and Predictive Analytics
Integrating analytics into CRM also helps you forecast how your customers will react to a decision in the future. It uses their segmented demographics and past behavior. For example, if a customer’s contract with a company is ending, you can use this analytics tool to predict the likelihood of the customer renewing his/her contract. This way, you can tailor your marketing strategy to fit the information you have on the possibility of resigning.
Customers that don’t have any record or complaints and have been buying more products are likely to stay while those with many complaints recorded are less likely to remain. Therefore, you can determine the amount of marketing effort you focus on different groups depending on the information you get from the analytics better.
Benchmarking
Benchmarking is essential for the growth of any company, as it allows you to determine the level of your performance. You can also compare your progress with other companies in the same industry, so you will be able to know where you stand about the competition. Some crucial indicators used for benchmarking analysis include retention, customer satisfaction, and cost per service call and revenue per service call.
In conclusion, Customer Relationship Management is very vital for businesses in this current age of massive data. Of course, you can use a CRM without analytics, but you will be limiting yourself from the fantastic options you get with CRM. Therefore, it is vital that you incorporate the analytics into your CRM to maximize the potential of the tool.