Leveraging customer data to drive growth and improve customer relationships is the first and foremost thing for any business.
As revenue can increase by 245% when businesses rely completely on a CRM platform.
Unlike collaborative CRM or operational CRM systems, analytical CRM focuses on analyzing customer data to discover actionable insights.
But you must be wondering what exactly analytical CRM is and how it can benefit a business. Let us understand these concepts with the best tools.
Think of analytical CRM as a magnifying glass for your customer data. It goes beyond storing names and emails, revealing hidden patterns and trends in customer behavior. This translates to smarter marketing campaigns and improved sales strategies.
What is Analytical CRM?
Analytical CRM refers to the use of data analysis techniques and technologies to collect, integrate, and analyze customer data from various sources.
Through data mining modules or OLAP tools (online analytical processing) from different channels, such as live chat and phone calls, analytical CRM helps businesses understand customer behavior, predict future needs, and personalize interactions for improved customer loyalty and engagement.
The main goal is to gain deeper insights into customer behavior, preferences, and trends to make informed decisions.
Benefits of Analytical CRM: A Data-Driven Advantage
Implementing an analytical CRM system offers a multitude of advantages for businesses of all sizes. Let us understand a few benefits of analytical CRM:
1. Enhanced Customer Insights
Get a 360-degree view of your customers, including demographics, purchasing history, and communication preferences.
Further, research revealed that using CRM software can increase sales revenue growth by 245%. A thorough understanding of customers leads to increased customer loyalty and allows businesses to scale.
2. Optimized Sales Strategies
With analytical CRM systems in place, businesses can identify high-value customers and understand their purchasing patterns. Analytical CRM helps sales and marketing teams focus their efforts on the most promising leads and close deals faster.
Additionally, efficient and market-research-based campaigns will then lead to better results and more customers. Businesses leveraging CRM analytics software see sales increase up to 29%.
3. Improved Marketing Effectiveness
By analyzing customer data, businesses can identify the most effective marketing channels and campaigns. Analytical CRM enables marketers to track the performance of various marketing initiatives, optimize their efforts, and allocate resources more efficiently.
Understanding individual customer preferences and behaviors allows for personalized marketing messages. Personalized content not only captures the customer’s attention but also fosters a deeper connection, improving engagement rates and customer loyalty.
4. Increased Customer Retention
By understanding customer needs and proactively addressing concerns, analytical CRM helps businesses build stronger relationships and reduce churn. Additionally, it allows for identifying upselling and cross-selling opportunities, increasing customer lifetime value.
By understanding individual customer preferences and histories, businesses can tailor their interactions to meet specific needs.
“A satisfied customer is the best business strategy of all.”
– Michael LeBoeuf
5. Data-Driven Decision Making
Analytical CRM helps ensure data flexibility and usability for data-driven decisions. With multiple data sets on a single platform, quick decisions can be made by comparing insights. Quick decision-making gives companies a competitive advantage and frees up time for other initiatives.
Moreover, analytical CRM systems analyze data patterns to detect early warning signs of issues such as customer churn, market decline, or operational inefficiencies.
6. Streamlined Operations
Analytical CRM systems integrate data from different departments and provide a unified view of customer interactions. This streamlining of processes ensures that all teams have access to accurate and up-to-date information, leading to improved collaboration and efficiency.
Analytical CRM helps identify which areas require more attention and which are over-resourced, leading to optimal utilization of time, budget, and personnel.
You May Also Read: What is CRM Analytics? Types & Key Metrics with Tableau CRM
Key Features and Capabilities of Analytical CRM
Analytical CRM systems offer a range of features and functionalities to empower businesses with actionable customer insights. Here are some key capabilities:
1. Service Analysis
Service analytics help assimilate information from pools, surveys, and customer sentiment analysis to provide insights into customer satisfaction data.
This helps organizations work on customer service and directing resources to the right place.
Further, users can break down service costs and also achieve a balance between costs and revenue earned.
2. Channel Analysis
By analyzing data from different communication channels (email, social media, phone calls, etc.), businesses can determine which channels are most effective for engaging customers.
This insight allows for better allocation of resources and improved customer communication strategies.
Understanding whether customers prefer to be contacted via email, social media, or phone allows businesses to tailor their communication strategies to meet customer satisfaction.
3. Customer Analysis
Customer analytics can generate reports on customer behavior. Through setting up profiles, this type of reporting gives you a comprehensive understanding of your customer base.
This feature helps businesses identify high-value customers, predict future behaviors, and tailor marketing and sales data strategies accordingly.
Moreover, by analyzing customer data, businesses can calculate the lifetime value of each customer, which represents the total revenue a customer is expected to generate over their relationship with the company.
4. Sales Analysis
With the use of sales analytics, which examines all of your company’s sales operations, you are able to better understand the sales cycle, improve the sales pipeline, and adjust your plan in light of apparent trends.
of organizations with accurate sales pipelines are more likely to grow their revenue year over year.
Source: Data Axle
You may forecast and plan for future sales volumes and profitability with the use of this information.
5. Market Analysis
Market analysis involves studying market trends, the competitive landscape, and customer preferences.
Analytical CRM tools provide businesses with insights into market dynamics, helping them stay ahead of competitors and adapt to changing market conditions.
Marketing analytics is a great way to plan, manage, and scale up your marketing campaigns.
Top 5 Analytical CRM Tools: Compare Best Features and Pricing
With a huge list of analytical CRM applications to choose from, it gets difficult to choose the right one. Here is a list below:
1. HubSpot
HubSpot offers a comprehensive CRM platform with robust analytical capabilities. It provides insightful dashboards, customer segmentation tools, and marketing automation features. Additionally, it also integrates with other HubSpot tools for a seamless experience.
Key Features
- Automated workflows
- Lead activity tracking
- Lead source tracking
- Integration with marketing tools
- Lead segmentation
- Lead scoring
Pricing
- Professional: $767 Per Month
- Enterprise: $3102 Per Month
- The platform’s core CRM software is free of charge.
- It provides real-time lead behavior notifications.
- The tool offers personalized email sequences for leads as well as existing customers.
- The platform does not provide a flexible annual contract option.
- Using HubSpot email templates can be a bit complex to modify without knowledge of CS.
2. Tableau (Formerly Einstein)
Tableau, formerly known as Einstein, is a leading data visualization and business intelligence tool. It empowers users to create interactive and shareable dashboards, providing deep insights into data. With advanced analytics capabilities and intuitive drag-and-drop functionality, Tableau simplifies complex data analysis, making it accessible for all skill levels.
Key Features
- Viz Extensions
- VizQL data service API
- Ad hoc analysis
- Trailhead integration
- Ad hoc reporting
Pricing
Contact the sales team for pricing details.
- The platform allows users to build amazing visualizations with it.
- The tool automates data cataloging, preparation, modeling, and visualization, which saves time.
- One can quickly visualize large amounts of data and connect to a variety of data sources, including Excel, text, and Google Drive files.
- The platform cannot perform advanced analytics, which can be a limitation for some users.
- The tool can be expensive for small as well as large companies.
3. Zoho Analytics
Zoho Analytics is a powerful data analytics and business intelligence tool designed to help businesses make informed decisions. It offers comprehensive data integration, visualization, and AI-driven insights, allowing users to create interactive reports and dashboards. Zoho Analytics is ideal for businesses seeking efficient, data-driven solutions.
Key Features
- Ai-powered insights
- Custom functions
- Data blending
- Embedded analytics
- Geo visualization
Pricing
- Basic: $11.49 per month
- Standard: $22.74 per month
- Premium: $50.70 per month
- Enterprise: $189.72 per month
- You can connect to your databases through multiple platforms, like Amazon Redshift and many others.
- The tool provides opportunities for creating custom metrics.
- You can create instant dashboards from every table, URL, or database you connect with.
- The data synchronization is not in real-time; you need to wait at least 2 hours for it.
- The application is designed for GUI use, and it does support writing SQL.
4. Bitrix24
Bitrix24 is one of the best analytical CRM examples, which provides a platform to organize and track interaction with potential or existing clients, partners, agents, and other contacts. It’s a collaboration platform that’s perfect for CRM. It has over 30 tools that will help your business grow and help you enjoy working in a team.
Key Features
- Social media integration
- Workflow automation
- Sales automation
- Contact management
- Quotes and invoices
Pricing
- Basic: $19 per month
- Standard: $47 per month
- Professional: $95 per month
- Enterprise: $191 per month
- No coding is required for developing the application for user business.
- The platform has more than 35 tools in one place.
- It offers limitless potential to interact with existing and pondering clients.
- No proper guide or materials are available for learning the platform.
- The customer service contacts mostly through mail, and it takes 2-3 days to fix the problem.
5. Creatio
Creatio is an innovative CRM and process automation platform designed to accelerate sales, marketing, and service operations. With powerful analytical capabilities, low-code customization, and AI-driven insights, Creatio empowers businesses to streamline processes, enhance customer engagement, and drive growth through efficient, data-driven decision-making.
Key Features
- Service Level Agreement (SLA) management
- Field sales management
- Sales forecasting
- Lead management
- Mobile CRM
Pricing
- Growth: $25/per month
- Enterprise: $55/per month
- Unlimited: $85/per month
- The platform’s dashboard is easier to understand for non-tech users.
- The platform offers a 360-degree view of your prospects and customers.
- The tool provides overviews of areas of the business through dashboards.
- Some documentation on the platform is outdated.
- The platform lacks advanced filtering and data visualization.
You May Also Read: CRM Automation: Functions, Benefits & Examples
Conclusion
Analytical CRM is a powerful tool that enables businesses to leverage customer data for informed decision-making, improved marketing strategies, and improved customer relations. By understanding the benefits, key features, and top tools available, businesses can choose the right analytical CRM system to drive growth and stay competitive.
While both Analytical CRM and Business Intelligence (BI) involve data analysis, they serve different purposes. Analytical CRM focuses specifically on customer data. BI, on the other hand, encompasses a broader range of data analysis for overall business performance and decision-making.
Some limitations of Analytical CRM include the need for high-quality data, potential data privacy concerns, and the complexity of integrating data from multiple sources.
To ensure data privacy when using Analytical CRM, businesses should implement robust data protection measures, such as encryption, access controls, and regular security audits.
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