Analytical CRM (business) analytical CRM – Software which helps a business build customer relationships and analyse ways to improve them. Applications provide all the necessary functions companies require for measuring, forecasting and optimizing their customer relationships. With the flood of information that companies collect, store and have available today, the challenge is getting the tight information to the right people at the right time to maximize the efficiency of customer interactions. By using analytics to boost the efficiency of knowledge management, companies have a powerful new tool that uses customer information to extend and deepen their relationships with customers
When applied to knowledge management, analytics helps companies better understand customer needs and preferences to identify recurring patterns.
Of the analytic capabilities in use today, customer valuation is a critical component. When tied to knowledge management, customer valuation can help companies concentrate their limited resources on their best and most valuable customers. Taking into account customer lifetime value, which is a forward-looking view at customer profitability by segment, customer valuation identifies the true value of a customer and ensures proper allocation of resources per customer segment. Customer profitability (CP) is the difference between the revenues earned from and the costs associated with the customer relationship in a specified period.
Knowledge management interpreted through analytics can dramatically improve CRM. By more precisely interpreting and sharing information, companies are better able to identify and segment specific customer groups. With the opportunity to increase sales and profitability through cross-selling opportunities, analytics can also improve customer retention and help prioritize the most profitable customers. By tying analytics closely to knowledge management, companies can equip the right people with the right information to meet individual customer needs, resulting in optimized resource allocation and ultimately, improved customer satisfaction.