Analytical CRM (With Examples)

What is Analytical CRM?

Analytical CRM is the systematic analysis of collected customer data. In simple terms, while regular CRM platforms help you store and organize customer data, an analytical CRM platform uses the data to study your customer’s behavior.

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Analytical CRM systems also give you insight into the health of your deals, trends, and patterns — allowing you to use these insights to make important business decisions.

Analytical CRM Applications

Analytical CRM systems are used by almost every department in a business. Here are some ways you can use an analytical CRM:

  • Store valuable customer and company data
  • Understand what went wrong when a deal fails
  • Forecast future customer behavior and expected revenue
  • Track leads throughout the sales pipeline and identifies rotten deals
  • Predict customer and sales trends and plan marketing campaigns accordingly
  • Determine the best mode of communication with a particular customer through channel analytics

The Types of Data Analysis in Analytical CRMs

There are 4 main types of data analysis in Analytic CRMs:

1. Descriptive Analysis2. Predictive Analysis3. Diagnostic Analysis4. Prescriptive Analysis

1. Descriptive Analysis

As the name suggests, based on live data, descriptive analysis explains to the user what happened. For example, if a chart shows the change in total customers for a quarter, a descriptive analysis will tell you what exactly changed (i.e. the exact number).

2. Predictive Analysis

Predictive analysis studies business patterns and gives you an idea about what can happen in the near future. The most common examples are sales and revenue forecasts, a common feature in sales CRMs.

3. Diagnostic Analysis

Once your CRM tells you what has happened, it’s also important to understand the reason behind it. For example, lower revenue at the end of a quarter may be due to poor conversation or lesser call duration with your leads. This is the type of thing that diagnostic analysis tells you.

4. Prescriptive Analysis

Prescriptive analysis is the final stage, where your CRM will tell you what your next best option is. This is usually found in CRM tools like Freshsales, which has an AI bot that can give you suggestions based on your business’s performance.

Common Features of Analytical CRMs

Apart from the few USPs that each CRM tool brings to the table, certain features are common to all. This includes:

  • Almost every analytical CRM tool uses data mining to dig out hidden patterns and establish a relationship between all important variables present in a large set of data
  • Once you have all the data you need, it can help you build an ideal buyer persona i.e., the ideal customer profile for your business.
  • By collating all your data in one place, analytical CRMs often help you find cross-selling and upselling opportunities.
  • Analytical CRMs that are powered by AI often help you improvise your marketing campaigns based on the response you’re getting from your customers.

Benefits of Analytical CRM Systems

Using an analytical CRM has endless benefits. But these are the 3 most important ones:

1. Forecasting

1. Forecasting

Predictive analysis studies existing patterns and gives you an idea about what could happen. This could be in terms of the number of deals you close, the amount of revenue you generate, or any other parameter. Knowing what might happen in the future can help you allocate your resources accordingly.

2. Better Understanding Your Customers

2. Better Understanding Your Customers

As we mentioned before, analytical CRM tools use data mining to dig through masses of data and establish a relationship between multiple parameters.

During this process, you often find out a lot about your customers that helps you better understand their needs and preferences and what influences their choices, for example.

Analytical CRM systems also help with customer segmentation and designing marketing campaigns according to particular segments to ensure your efforts are personalized for maximum results.

3. Simplified Research

3. Simplified Research

Every business requires some research. It could be market research or an analysis of your own company. Either way, research is often expensive and time-consuming.

But with an analytical CRM tool, you can process tons of data in seconds and get auto-generated charts and reports highlighting your performance and other major developments in your business.

Analytical CRM vs Other Types of CRM

Here’s a rundown of all the major types of CRM:

1. Analytical CRM

Salesforce Einstein AI — Best Analytical CRM

The job of an analytical CRM is to evaluate all the data that comes in and create analytics and reports based on it. For example, it can calculate which leads are most likely to close a deal.

As we found in our Salesforce review, it’s a good example of an Analytical CRM. It offers features like AI predictions, customer call analysis, lead scoring, and forecasting to help sales teams.

2. Operational CRM

Marketing Automation with Act! CRM

The primary goal of an operational CRM is to save time by automating repetitive tasks. Examples include auto-populating customer profiles from internal and external sources.

An operational CRM also helps sales teams automate email marketing campaigns. Act! CRM is a good example of an operational CRM.

You get 170+ templates and various email marketing tools, which help you build personalized customer campaigns.

3. Collaborative CRM

Monday CRM communication — best collaborative CRM

A collaborative CRM allows you to establish communication between various internal departments. For example, you can use integrations like Slack and Teams to communicate internally.

Monday CRM, for example, offers whiteboard collaboration, allowing teams to work together on the same board. Plus, 200+ third-party integrations, many of which are communication tools.

The Bottom Line

Analytical CRM tools are a necessity for every business. After all, just gathering data isn’t enough. You also need something to process it and tell you what the data means or how you can benefit from it.

Using these insights, you can make informed decisions and guide your business in the right direction. It’s like having your own personal business advisor.

FAQs

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References

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Krishi Chowdhary

Krishi Chowdhary has half a decade of experience writing buying guides and product reviews for numerous leading technology websites. He spent two years writing for Business2Community.com before joining Techopedia.com. He has a degree in Commerce and extensive experience in the technology industry. He's also the key driver behind TechReport.com's news content, delivering expertise insight into the latest tech and cybersecurity news daily.