Understanding Analytical Cycle For CRM

analytical cycle for crm

Understanding Analytical Cycle For CRM




At the end of this chapter, readers should be able to:


  • Define Analytical CRM
  • Explain how Analytical CRM is used to analyze and segment customers.
  •   Explain the roles of Justifying, Planning, Drive and Metrics in analytical CRM.



Analytical CRM plays an important role in CRM. They are used in segmenting and targeting customers. Most importantly analytical GRM is used in justifying, planning and measuring CRM initiatives. In this chapter, we are going to look at how analytical CRM is been to achieve these objectives.


  • Justify

Analytical CI{M can be used to justify the introduction of an initiative or to drum support for an initiative by the executives. In formulating a CRM initiative, you should be able to determine the initiative by which you will be able to determine your success. If one particular initiative meets up with the standard that you have set for your program, you can gather support for such initiative.

analytical cycle for crm

Such metrics that you can use include assessing customer satisfaction, customer profitability customer retention, and sales and service delivery efficiency and effectiveness. You must also think of the benefits that is accrued to such programs. This must be presented to the executive management for approval.


  • Plan

CRM initiatives should be prioritized based on an evaluation of the organization’s biggest problem and greatest opportunities. You must be able to analyze your profitability based on product, channel and customers which is an essential part of the planning process. This xviii help you in making decisions regarding resource allocation, product development and identifying your opportunities too.



Planning must also take budgetary provision into consideration. This will give room for a trade-off. For instance, you can sacrifice a product that is not moving well in the market for the ones that are well accepted by the people. It will also help the organization to establish priorities and allocate resources appropriately for specific initiatives.


  • C. Drive

Analytics drive CRM initiatives as it allows the organization to have a better insight into its customer’s life. This knowledge helps the organization to segment its customers; the segmentation is done based on certain characteristics such as life stage, profitability products, demographics and information on customer behaviour gathered from each segment can be analyzed as this will allow the organization to come up with a model and predict customer behaviour.


Predictive modelling is essential to effectively target customers. Many campaign management vendors are combining segmentation and predictive modelling into a single solution, which Gartner has termed as “Relationship optimization”. Profitability systems can also be placed into the marketing system so that it becomes a dimension for segmentation and analysis. As a marketing CRM executive, you have to continue to carry out analysis of your customers in real-time and this must be compared customers profile in order to be sure of its authenticity


  • Measure

CRM initiatives must be measured on a regular basis in order to refine initiatives and to justify adoption. Organizations have to measure it in line with what was agreed upon in the beginning in order to be sure that the initiative is still relevant.


Such measurements will enable decision managers to make business decisions that will enable them to understand customer behaviour, guide business strategy better manage resources, optimize channels, improve product and maximize customer profitability. In order to do this effectively, it will require query reporting and group comparison capabilities.




Analytical CRM is a group of applications that utilizes the data gathered from core CRM systems to enhance understanding of customer behavior. It uses the information gathered from customer facing applications to know more about customers and their purchase behaviors, which is later used to segment the customers and come up with products that can satisfy their needs. CRM analytics is a set of programs that come up with information that helps organization to solidify their relationship with their customers and come up with a mutually satisfying relationship which allows the organization to make quicker and reasonable decisions about their customers.


Analytical CRM is very much different form operational CRM in that, it focuses on creating relevant content to customers. It takes time to study customers in order to know what they want and pull all resources together in order to ensure that the organization is able to meet customers at the right place with the right products and services.


There are some things that are unique to CRM analytics. Some of it are segmentation studies, customer migration analysis, cross sell/up sell analysis, new + customer model, customer contact optimization, customer attrition and Lifetime value.


When we talk of segmentation studies, we are talking of grouping your customers together based on certain characteristic that they share. So that you can come up with products that meets their needs. Etisalat for example came up with “Etisalat Elite” to meet the needs of the rich on their network.


We can talk of customer migration analysis which has much to do with the customer chose in between the different product that the organization have to offer for sale.


We have cross-sell and up-sell which talks about the opportunity to introduce new products to existing customers or getting to new leads to your lifecycle based on now far you have been able to satisfy your loyal customers.


We can also talk of new customer model which talks about packages that you can introduce, or what your eligible leads are likely to see in your product before they can decide that they wants to join your lifecycle. You can come up with models that will attract them to join your lifecycle.


We have customer contact optimization, which has much to do with getting the best of act of your customer contact. Many organizations believe that having customer contact is all about having your customer residential address and next of kin details. They don’t know that it can be avenue for the organization to retain such customers for life.


CRM analytics you should know must have a data warehouse and a well planned data structure that allow the organization to have a customized reporting, analysis and data mining may allow extracting of data from operational CRM into a complex database where the organization is able to segment and profile their customers based on facts that they are to draw out from their data warehouse. In that case, the analytics might draw its data from multiple sources as well as call centres.


One of the sources of CRM analytics is Business intelligence applications which consists of tools that includes query and reporting tools, business graphics, online Analytical processing (OLAP), statistical analysis, forecasting and data mining. All these tools are often package to become one comprehensive tool for analysis purpose.


Some of the software available for CRM analytics did more than analysis, they also provide supports and perform campaign management functions such as:

  • Mailing, faxing or email offers to targeted customers.
  • Initiating and managing a program to reacquire former customers.


CRM analytics is quite different from data warehouse as it feed the result of analytical processes into operational management tools. This allows the organization to continue to evolve policies that will ensure the actualization of total customer experience.


One after reasons why organizations invest in analytical CRM is based on its ability to manage customer value. It has the capability of making sure that the organization is able to serve their customer across multiple channels.


Above all, Customer Value Management (CVM) is a process that refines and leverages the benefits of customer relationship management. In a broad context, it encompasses customer identification, contact management, campaign management, advanced data modelling and customer scoring.



At the end of this lesson, we have been able to discover that:

  • Analytical CRM is a group of application that uses data gathered from operational CRM to analyze and under customer behaviour.
  • Analytical CRM studied customers in order to know what they want and mobilized resources together in order to give customers exactly what they want.
  • CRM analytics make use of data warehouse and business intelligence.
  • Business intelligence includes Query and reporting, Business graphics, online Analytical Processing, Statistical Analysis, Forecasting and data mining.
  • CVM includes customer identification, contact management, campaign management, advanced data modeling, and customer scoring.


Brainstorming Session

  1. Organizations need data about their customers in order to understood their behaviors and serve them better. Also, organization needs to protect their customers information. How can organization ensure that security of customers” information does not affect achievement of CRM goals.
  2. Many organizations have been selective in the way they approach CRM strategies. Some limits CRM application to call centre development and online relations. What are some of the reasons why many organizations are afraid of embracing CRM (doing business from a customer perspective) in full?



Action Point

I know you might agree with some of the points that I have raised in this article. You might not agree with some of the issues raised. Let me know your views about the topic discussed. We will appreciate it if you can drop your comment. Thanks in anticipation.



Download Our App.


CEHNigeria On Google Playstore

Download Our Blog App On Google Playstore. 


Have a deeper understanding of Google Search Console. Use SEOPOZ



Have a deeper understanding of Google Search Console. Join SEOPOZ for free. 

Join Our Whatsapp Group Here


Join Our Whatsapp Group

Follow Us On Twitter and I will Follow Back


Follow Us On Twitter

Kindly follow me on Twitter and I promise I will follow back. Aside you all get updates when we post new articles. 



















About Adeniyi Salau 826 Articles
I am an IT enthusiast and a man of many parts. I am a Certified Digital Marketer, Project Manager and a Real Estate Consultant. I love writing because that's what keeps me going. I am running this blog to share what I know with others. I am also a Superlife Stem Cell Distributor. Our Stem Cell Products can cure many ailments.

Be the first to comment

Leave a Reply

Your email address will not be published.


CommentLuv badge