1. your name
Analytical CRMs:
Marketing and Sales Analysis,
Service Analysis
University of Sussex
MSc Information Technology with Business and Management
Kaori Baba
03/11/2016
Ver 1.0
2. your name
Agenda
• Background
• Needs of CRM
• CRM implementation
• Outcomes of Analytical CRM
• Analysis methods
– Basket analysis
– Decile analysis
– RFM analysis
• Summery
• References
• Q&A
3. your name
Background
It is predicted CRM will be the one of best important business application.
Revenue will double in 5 years and hit the ERP.
(Gartner Forecast: Enterprise
Software Markets, Worldwide,
2012-2017, 2Q13 Update)
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Needs of CRM
What company want to accomplish
- Gain the sales
- Get new customer
- Drive the business efficiently
CRM
What customer want to accomplish
- Buy the product/service with good quality and low price
- Have a great experience through the purchasing activity
- Be a loyal customer
5. your name
CRM implementation
Let’s install
the CRM!
Who use
CRM?
How do
we run the
CRM?
26% internal rate of ROIMake data-driven
decisions
500-plus door-to-door
sales agents have
digitally transformed
~Brilliant success stories~
Do we
have a
budget?
What is the
outcomes?
How long
implementation
takes place?
What is the most
important aspect
with customers
6. your name
CRM implementation
Key to to set realistic goals and strategies of CRM
- why we need the implementation of CRM system
- what are the causes of poor functioning or not
functioning of the current system or process
- what are the most critical point in the process or
system
- where is possible to save time, money and other
resources
- what are the specific tasks that we want to automate
- sectors within the firm will first feel the strength and
success of the implemented system
- which existing processes and sectors will be
integrated into the CRM system and strategy, and
- which external processes and sectors will be
involved in the development of CRM systems and
strategies
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Outcomes of Analytical CRM
Clear vision of firm’s goal and strategy with CRM system
Make them possible to breakdown the objectives what
they want to get from analytical CRM
CRM
What are the products,
which can be sold together?
Which customers are likely
to churn?
What offers can be given to
increase the profits?
Which are the upcoming
trends in the market?
How to increase cross
selling?
How to increase up selling?
Who are the most profitable
customers? Analyse
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Analysis method
Analysis method
“Basket analysis”
Outcomes Find out what goes with what? And
What products are ordered or purchased
together?
Marketing Up selling
Cross selling
Campaign
Suitability Luxury brand
As each SKU is expensive, it is unlikely that
many customers buy several items at one
visit
Sport brand
It is likely customers buy related items.
Camp beginner buys tent and sleeping bag
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Analysis method
Analysis method
“Decile analysis”
Outcomes Helps to understand that all customers do
not have an equal value for the store, but
only a small fraction of the customers
contribute to the most of the profit in the
store.
Marketing Loyalty program
Invitation to special event
Suitability Luxury brand
Firm wants to retain the existing loyal
customers and get new customers who can
be a loyal to its brand
Sport brand
Most of customers are average customers
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Analysis method
Analysis method
“RFM analysis”
Outcomes Classify the customers by three factors;
Recency of the last date of purchase,
Frequency of purchase, and
Monetary factor
Marketing Direct mail
Event
Coupon (birthday, store anniversary)
Suitability Luxury brand
Issue the catalogues for Valentine’s day
toward the customers who had purchased
on Christmas season
Sport brand
Send the anniversary coupons to the
customers who used to purchase frequently
6 months ago
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Summery
• CRM takes an important role of sale creation for the customer-centric companies.
• Digitalization of both customer and company made CRM innovation.
• To implement the CRM, company must have clear vision of objectives.
• Defining what kind of customer they mostly care, and what kind of marketing they
want to promote is the key of success as it leads good planning of queries on
implementing process.
• Each analysis methods are not always suitable for any kind of industries. Company
must acknowledge the type of their products and their customer behaviour.
• Further research is to be continued; law boundaries, activities in global company,
compatibility with other business applications, training for users
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References
• Louis columbus. (2016). Forbes. Retrieved 29 October, 2016, from
http://www.forbes.com/sites/louiscolumbus/2013/06/18/gartner-predicts-crm-will-be-a-36b-market-by-2017/
• Techtargetcom. (2016). SearchCRM. Retrieved 29 October, 2016, from
http://searchcrm.techtarget.com/news/1090934/Philips-keeps-reins-on-CRM
• Microsoftcom. (2016). Microsoftcom. Retrieved 29 October, 2016, from https://customers.microsoft.com/en-
US/story/jeweler-spreads-the-sparkle-streamlines-global-operati
• Salesforcecom. (2016). Salesforcecom. Retrieved 29 October, 2016, from
https://www.salesforce.com/uk/customers/stories/virgin-media.jsp
• Ivanovic, Slobodan, K. Mikinac, and L. Perman. 2011. CRM development in hospitality companies for the
purpose of increasing the competitiveness in the tourist market. UTMS Journal of Economics 2 (1): p.59–68.
• Jayanthi Ranjan and Vishal Bhatnagar. 2011. Role of knowledge management and analytical CRM in business:
data mining based framework. The Learning Organization, 2011, Vol.18(2), p.131-148
• Thomas W. Miller. 2014. Modeling Techniques in Predictive Analytics: Business Problems and Solutions with
R, Revised and Expanded Edition, p.39
• Shusaku Tsumoto, Takahira Yamaguchi, Masayuki Numao, Hiroshi Motoda. 2005. Active Mining: Second
International Workshop, AM 2003, Maebashi, Japan, October 28, 2003, Revised Selected Papers, p.156
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Q & A
Thank you very much for listening!
Any questions…?