CRM analytics, also known as customer analytics, refers to the process of interpreting the data within your CRM software to uncover valuable insights that will impact business decisions. The overall purpose is to better understand your customers so you can sell to them as effectively as possible.
While there are specific functions a CRM should provide to work well, another side of its functionality
is providing data and analytics. Business analytics is the foundation for successfully converting leads into
customers and customers into brand advocates.
1. Shows a clear customer journey
2. Indicates a change in lead status
3. Offers insight into customer retention strategies
4. Segments your customers
After implementation, CRM analytics offers insights to understand and use the data that is mined.
Organizations use CRM analytics in the following ways:
1. Customer segmentation groupings: Dividing customers into those most and least likely to repurchase a product.
2. Profitability analysis and customer value: Learning which customers contribute to the highest profits over time. This involves understanding not just how much a customer spends, but how many resources you dedicate to that customer in return.
3. Personalization: The ability to market to individual customers based on the data collected about them.
4. Measuring and tracking escalation: The ability to measure how often problems arise with a product or service to eliminate that issue and quickly achieve customer satisfaction.
5. Predictive modeling: Comparing various product development plans in terms of likely future success given the customer knowledge base by measuring engagement levels through customer shares.