Free Essay Example: Business Analytics in CRM

Customer relationship management (CRM) gets construed as an informatics term for industries or organizations regarding data integration, methodologies, services, software and internet capabilities which assist an enterprise in managing their relationships with customers in an organized manner. Moreover, the analysis of CRM is often used in describing an automated methodology of processing data about a client or a customer to make business decisions. Numerous organizations compile too much data over time through keeping track of their clients in each point in a life cycle which makes it a significant part of servicing and sales aspect of the customer relations (Nam, Lee, & Lee, 2019). Moreover, the analytics of customer relationship management is made up of all programming which analyzes data about an enterprise's clients or customers and presents it for quicker and better business decisions to be made.

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Numerous organizations which venture into CRM analytics without having their information integrated and the strategies of management aligned, need to restructure themselves to use the analysis effectively. Additionally, many applications are always specifically emphatic on ascertaining that the systems of an Enterprise Resource Planning (ERP) are operating as required before trying to use any data with the CRM analytic tools. Therefore, the action makes the layer of the CRM to become a great glass for magnification of an ERP problem. Moreover, customer analytics is a type of online analytical processing (OLAP) because the integration of data is always the critical first step before the application of CRM analytics (Eitle, & Buxmann, 2019).

Also, the way web sites have added a new and always faster and efficient way of interacting with customers, the need and opportunity to turn collected data about a client into useful information becomes apparent. As a result, numerous software organizations have developed products that conduct customer data analysis. Thus, the main goal of an analytical CRM is often to support, enhance, and develop the work as well as the decision-making capability of a company by determining strong predictions and patterns in customer information and data that are gathered from various operational systems of CRM (Jaklic, Grubljesic, & Popovic, 2018).

Business analytics in CRM can, therefore, be used in the following numerous ways:

Personalization, which is the ability to market customers or clients based on the collected data about them. The action, however, requires obtaining a 360-degree customer view that pictures the customer whether he or she is critical to stay ahead of a competition or not. Moreover, organizations which can listen to their clients and provide the targeted services and offers based on each need and preferences of a customer might have an edge. There is also an increased frequency of customer engagement in business analytics (Green, 2018). The behavior of a customer can be recognized by a business when it is about interacting with them. Therefore, in this scenario, a CRM system can engage proactively with the clients via sales meetings, calls, e-mails, as well as provide adequate, relevant information for their status to be upgraded from a know casual buyer to a frequent and loyal customer (Eitle, & Buxmann, 2019).

Creating loyal programs is another use of business analytics in CRM where a business can utilize the business analysis to figure out the most profitable customers to the organization and provide a high value to their business. Therefore, when the system of CRM takes control, the organization can operate closely with the customers and provide the clients with loyalty benefits, which not only increases customer retention rate and customer satisfaction but also will be beneficial for the provision of more business opportunities through probable referrals (Jaklic, Grubljesic, & Popovic, 2018). Nevertheless, there is predictive modeling where there is a comparison of different product development plans on the future success of the business. The action can only be possible when the organization is given the knowledge base of the customer through measuring the levels of engagement via the shares of the customer (Nam, Lee, & Lee, 2019). There is also customer value and profitability analysis which is about learning the contributions of customers to the highest profits over time. The action involves understanding the spending of a customer as well as the number of resources and organization dedicates to the customer in return which can be done in customer segmentation groupings. The organization can divide customers through a CRM analytic tool into those least and most likely to repurchase a product (Green, 2018).

The analytics of CRM can lead to more productive and better relationships with a customer through evaluating the customer service of the organization, verifying user data, and analyzing the customers. The customer relationship management analytics can also lead to enhancement and improvement in the supply chain management where there are faster delivery and a lower inventory which in the long run, lowers costs as well as more competitive pricing (Someh, & Shanks, 2015). Therefore, among the greatest benefits of CRM analytics is having the ability to build vast target campaigns for marketing from the analysis of the customers. However, there is always a primary challenger which accompanies the analytics of CRM which is often the integration of any analytical software with its existing systems and the new systems. If the software fails to integrate, then the data collected is always difficult to utilize (Eitle, & Buxmann, 2019).

References

Eitle, V., & Buxmann, P. (2019, January). Business Analytics for Sales Pipeline Management in the Software Industry: A Machine Learning Perspective. In Proceedings of the 52nd Hawaii International Conference on System Sciences.

Green, F. (2018). Winning with Data: CRM and Analytics for the Business of Sports. Routledge.

Jaklic, J., Grubljesic, T., & Popovic, A. (2018). The role of compatibility in predicting business intelligence and analytics use intentions. International Journal of Information Management, 43, 305-318.

Nam, D., Lee, J., & Lee, H. (2019). Business analytics used in CRM: A nomological net from IT competence to CRM performance. International Journal of Information Management, 45, 233-245.

Someh, I. A., & Shanks, G. G. (2015, May). How business analytics systems provide benefits and contribute to firm performance?. In ECIS.