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Analytical CRMs: Marketing and Sales Analysis,

Service AnalysisUniversity of Sussex

MSc Information Technology with Business and Management

Kaori Baba03/11/2016

Ver 1.0

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Agenda• Background • Needs of CRM• CRM implementation• Outcomes of Analytical CRM• Analysis methods

– Basket analysis– Decile analysis– RFM analysis

• Summery• References• Q&A

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BackgroundIt 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

Digitalization 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

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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

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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 CRMClear 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 methodAnalysis method “Basket analysis”Outcomes Find out what goes with what? And

What products are ordered or purchased together?

Marketing Up sellingCross sellingCampaign

Suitability Luxury brandAs each SKU is expensive, it is unlikely that many customers buy several items at one visit

Sport brandIt is likely customers buy related items. Camp beginner buys tent and sleeping bag

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Analysis methodAnalysis 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 programInvitation to special event

Suitability Luxury brandFirm wants to retain the existing loyal customers and get new customers who can be a loyal to its brand

Sport brandMost of customers are average customers

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Analysis methodAnalysis 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 mailEventCoupon (birthday, store anniversary)

Suitability Luxury brandIssue the catalogues for Valentine’s day toward the customers who had purchased on Christmas season

Sport brandSend 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…?