If you have heard the term “analytical CRM”, it is one of three CRM subsets along with “Operational CRM” and “Collaborative CRM”. Analytical CRM, which mines data received from every level of the organization, provides insights and intelligence to help businesses operate more effectively.
When used for sales and marketing (its common application), it analyzes data from multiple sources, such as web forms, white paper downloads, and other portals to help profile prospects. When properly applied, Analytical CRM can help increase profitability and optimize organizational efficiency.
Types of CRM
Operational CRM, which is the most traditional CRM subset, maintains a record of direct interactions with clients and prospects. Since it’s based on data entries typically from AEs and SDRs, it helps organizations monitor sales and marketing activities. Top operational CRM vendors include Salesforce, Zoho, Pipedrive and many others.
Collaborative CRM is another CRM subset that helps coordinate activities between organizations working on joint projects. Its goal is to ensure that various organizations operate in single orchestrated manner. Often this entails communicating with vendors and documenting the logistics for any type of outsourced goods and services. You can find more about Collaborative CRM providers here
Benefits of Analytical CRM
Unlike the other two CRM subsets, analytical CRM provides a deeper level of intelligence, which is what its name implies. Its objective is to create an automated way to get more insight about what it predicts are your best opportunities. Your database may hold 20,000 contacts but at any given time maybe 5,000 of them are interacting with your marketing touch points (website, emails, white papers, social posts, etc.). Your sales reps could randomly try calling all 20,000 contacts or you could systematically prioritize calls based on tools ranking leads showing “interested” patterns and purchase intent.
Besides allowing an organization to make better decisions based off of data, Analytical CRM also offers the ability to highlight new opportunities, revenue streams, and capabilities. Below are just a few examples of the intelligence you can extract when using an analytical CRM system:
1. Account Based Marketing
When you know the interests of an individual or organization, you have the ability to specifically address their needs. Email segmentation is one example of what account based marketing can allow, which is why tracking touch points becomes important.
2. Marketing Campaign Optimization
What are the most successful marketing campaigns and which are the biggest flops? In the past, we would have to manually conduct surveys and correlate sales by educated guesses. Using tracking info and Analytics, we can take the guess work out of where to spend marketing dollars.
3. Optimization of marketing and sales activity
While this is also a benefit of operational CRM, tracking software can provide analytic intelligence across different departments. Your sales and marketing teams can learn to further maximize time and resources by focusing on prospects most likely to be persuaded by their efforts.
4. Knowledge on what motivates prospects to become customers
When you combine prospects’ demographic info with a record of their interests and marketing exposures, you can begin to get a picture of what motivates them to become a customer. If you analyze this data properly and apply what you learn to future endeavors, you will be able to convert more and more prospects.
5. New sales opportunities
When you understand how your clients are connected and what motivates each target segment, you can see opportunities for up-sells and cross-sells. Plus, you can use these analytic CRM tools to be more timely and relevant. For example, if a client is prompted to view additional products on your site from an email, you could be notified to reach out and contact that person.
How to get more data on prospects
Data is king, but a king cannot rule without knowing his kingdom. As a business professional, your website is your kingdom and it’s probably your #1 brand asset. When you use lead identification tools to identify prime targets perusing your website, you can begin selling and marketing to them immediately.
Cookies have often been used to build a profile of prospects based on their interests, but today we have a more permanent and precise option for identifying leads via “digital fingerprinting”. By using tracking code linked to someone’s digital fingerprint (set of digital characteristics) and a business intelligence database, you can build robust profiles for your brand based off of real world evidence that you can review in your analytical CRM system, such as The Marketing Manager.
How to begin using analytical CRM?
Track every interaction with your web pages, emails, and content types, such as video views and whitepaper downloads.
- Track every interaction with your web pages, emails, and content types, such as video views and whitepaper downloads.
- Look for patterns of people that have eventually bought and work your way backwards to focus on those demonstrating a similar buying progression. For instance, if 10% of the clients who have downloaded a white paper also signed up for your blog became buyers of your product, this behavioral segment becomes a hot lead list that your sales reps can target.
- Apply scores to different digital behaviors that demonstrate purchase intent, and then rank your leads accordingly. For example, a “video view” may be scored as three points whereas a “meeting request” could warrant ten points.
- Use data appending tools to gather as much info on the interested companies as possible to reduce sales research time (e.g. email addresses, coworkers, company revenue, addresses, phone numbers, and social media accounts). Much of this information is available through built-in analytic CRM tools and the info can be appended to your CRM.
As with any type of data analysis tool, the more data, the better. Once you implement an analytic CRM system, you can continue to track interactions and conversions, while optimizing those activities that lead to client acquisitions. Then, when matching your tracking code to any current matches of your ideal customer profile, you can build better sales and marketing models based off of your findings.
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