Magazine article CRM Magazine

The Future Is Now for Data Analytics: Turn Data Insights into Customer Excellence

Magazine article CRM Magazine

The Future Is Now for Data Analytics: Turn Data Insights into Customer Excellence

Article excerpt

THE BUZZ in the CRM industry is about big data. This data may come from your back-office ERP systems, your CRM system, social insights, or third-party sources.

At the end of the day, all that counts is your ability to use this data to make more informed decisions. But between raw data and informed decision-making is the all-important step of data analysis. Enter two challenges: the complexity of existing data analysis tools and the availability of data subject matter experts who can present insights to sales, marketing, and customer service executives. My forecast: In 2013, we will see tremendous enhancements in both areas, with data-driven decision-making becoming the norm, not the exception.

While companies such as Amazon and Sysco have excelled in the use of data analytics and predictive modeling, data-driven decision-making is no slam dunk. ISM works closely with B2C and B2B companies that have made data-driven decision-making part of their DNA. Each has set up an appropriate data structure (including, in several cases, data marts), has ensured that valuable internal and external data find their way into the data mart, and has engaged data analysts to cleanse, mine, and actively interpret the data to drive marketing and sales campaigns that deliver results.

One hospitality client has an amazing capability--using effective analytics and predictive modeling tools--to predict which customers should be approached for their credit card. A food service client uses analytics and predictive modeling to target customers with the next best offer based on the highest probability of success to close the deal. I have always been amazed that Nike knows its B2B customers (stores) and consumers so well that it can effectively recommend what a store should be purchasing from Nike. The stores love the advice, and Nike reaps the rewards of enhanced growth. Using similar data tools, many AAA clubs can spot which members are likely to churn and proactively intervene to avoid losing them. We have several clients leveraging data analysis and predictive modeling to segment their customer base and help ensure optimal customer journey moments of truth.

Most of these companies integrate these data insights with their CRM systems. This includes attaching customer insights to customer profiles, creating targeted marketing and e-commerce campaigns, better servicing customers via the contact center or self-service, and making real-time offers via the Web. …

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