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Analytical CRM

• The only sustainable competitive advantage is the ability to learn


faster than your competition and to be able to act on the learning.

Jack Welch….former CEO GE


Analytic Competitors across
industries
CPG BFS Hospitality& Industria Pharma Retail Telecom Transport eCommer
Entertainment l ce
Products
Anheuse Barclays Harrah’s Cemex Astra Amazon Sprint Fedex Google
r entertainment Zeneca
Busch
Mars Capital Oakland A’s John Solvay TESCO O2 Schneider Netflix
One Deere National

P&G RBC Marriot Vertex JCPenny UPS Yahoo

Gallo Progres New England Walmart


Winery sive Patriots
Core of Analytic CRM
• Expansion of customer knowledge and its application in customer
contacts. It constitutes
• Relationship data
• Data Mining
• Segmentation and selection
• Cross selling & Retentions
• Marketing effectiveness
• Reporting
Analytics in Use
• Netflix: predicting customer’s movie preference.
• Harrah’s: customer loyalty
• Marriot International: Revenue management
• Capital One: customer desirability.
• Walmart: supply chain analytics
• Professional sports team: choosing the right players
• Progressive: High FICO score will pay less premiums
• US elections 2012: us of big data
Components of CRM Strategy
1) Customer-Management
Orientation

4) CRM
Strategy
Implementation

2) Integration and 3) Information capture


alignment of and alignment of
organizational processes technology
CRM architecture components
• Operational CRM…involves process mgmt tech.(contact
cycle)

• Analytical CRM…business performance mgmt tech.


Operational CRM : Infrastructure
• Involves ...automation of processes involving customer touch points

• CRM solutions :
• Sale Force Automation(SFA),
• Customer Service Support(CSS),
• Campaign Management (CM),
• Personalization and Content Management
Analytical Projects
• Leverages resources created by operational projects

• Helps determine customer strategy and development of on-going CRM


strategy

• Major activities:
• Customer data transformation- data warehousing, data integration
• Customer knowledge discovery-data analysis, prediction based on
results
Analytical CRM projects
• Customer demographic analysis and customer behavior modeling

• Define customer segments to form basis for differential marketing decisions


• Analysis of customer transaction history
• Analysis of customer service records
• Prediction of future purchase behavior

• Customer value assessment


• Focus resources on most valuable customer relationships
Attributes of Analytical CRM
• Distinctive capability, strategic.
• Enterprise wide approach and management of analytics.
• Senior management commitment
• Large scale ambition
Implementation Issues

• Resistance from employees

• Motivation and Training

• Availability of information
CRM Implementation Matrix

Customer dimension (CLC stages)


Acquisition Growth and Decline and
stage retention stage exit stage

Analytical
CRM

Management
Dimension Operational
CRM

Each cell in the matrix corresponds to a specific implementation activity or process


Customer dimension: captures influence of changing phase of a customer-firm
relationship
Management dimension: constitutes analytical and operational aspects of CRM