Business growth rate depends on several factors. Out of them, the main two components are:
1. Customer relation Management in other words CRM.
2. Business Intelligence in other words BI.
CRM takes care of tracking Campaigns, Leads, Contacts and Opportunities etc. All of their relevant data are stored and retrieved through CRM.
But multiplying data doesn’t lead to the growth of the business. The data is meaningless unless it is analysed.
Analysis draws a vivid picture stating where the business stands. Analysis leads to strategic planning for the growth of the business or organization.
BI helps in consolidating the live data and displaying the key performance indicators (KPIs) or key financial indicators (KFIs), which are high end gauges for the health of the business or organization. KPIs include financial budgets, sales and revenue forecasts, cash flow, lead conversion rates, inventory turnover etc.
The concept of integrating of CRM with BI leads to the era of Analytic CRM.
Basically we can say that CRM Strategy includes:
a) Operation CRM: Automating interaction with the customers and sales force.
d) Analytical CRM: Analysis of the data generated by operational CRM.
Advantages of Analytical CRM:
1. Design and implement targeted marketing campaigns: Companies evaluate which group of companies are more profitable or which revenue stream is more focused on what product. This helps a business to target its marketing strategy.
2. Predictive Analysis: It helps in analysing the past trends to align future supply and demand.
3. Customer Segmentation: Customers can be segmented, based upon their reactions towards new product launches, new promotional strategies, their tendency to purchase products. This allows the business to estimate which customers can be converted to solid customer base which in turn affect the marketing strategy as well.
CRM and BI are the two wheels of the vehicle which shapes the future of a business or organization.