Leveraging CRM Analytics for Data-Driven Decision Making
Image Source: Pexels.com
relationship management (CRM) analytics are invaluable to businesses. You can
collect, process, and analyze data on customer behaviors, preferences, and
challenges to help you gain insight into your customers and their wants. This
helps you create products and content that inspire repeat purchases and
long-term relationships with your brand. In addition, your business evolves
into one that relies on data for confident, results-oriented decision-making.
Becoming a data-driven business is advantageous
because your decisions will be based on hard facts and proven patterns,
increasing your profitability and year-over-year growth.
What is CRM
Before we dive in, let’s discuss CRM
analytics. CRM analytics is an umbrella term for all the ways you analyze
customer data intending to make better business decisions. They provide a
360-view of your customer to help you elevate your sales, marketing, and
customer service processes.
Data mining, reporting, and natural language
processing are some of the techniques used to support CRM analytics.
Four Tips for
Leveraging CRM Analytics to Drive Data-Driven Decision making
A core goal of CRM analytics is to drive
better decision-making in your business. Making more informed decisions about
how to market to your audience, what sales channels to use, and how to provide
the level of service your customers deserve, only results in a more profitable,
These four tips will help you use CRM
analytics to support your business decisions.
Identify the Right
Key Performance Metrics
The effective use of data starts with collecting data on the right things.
Collecting every kind of data is the fastest way to overwhelm yourself and your
team. Massive datasets are incredibly time-consuming and challenging to
It’s much wiser to figure out what kind of
information you need and the key performance metrics to track that provide that
data. You’re using your time and analysis energy much better this way. And you
will get the data you actually want and need to achieve your business goals.
Identifying the right key performance metrics
starts with defining your goals for CRM analytics.
For example, do you want to know where your
website traffic is coming from? Are you looking for insights into purchasing
process challenges? Do you want to find out what kind of content your customers
favor on each of your marketing channels?
Once you define your CRM analytics goals, you
can choose key performance metrics that align with those goals.
Keeping with the sample goals above, you could
track abandoned cart rate for insights into purchasing process challenges.
Organic and paid traffic metrics will help you analyze where website traffic is
coming from. And you can track reach, views, comments, and shares for content
After attaching key performance metrics to
your goals, set a schedule for when you’ll look at the associated data and
analyze it. Allow time for data to accumulate so that you have information to
Use Quality Data
Your goals and key performance metrics mean
nothing if you don’t have quality data collection methods. You must ensure that
the methods you’re using to gather data are reliable, accurate, and consistent.
For example, you can trust data straight from
your customers through surveys, polls, and market research groups because it’s
coming directly from them. Website analytics tools like Google Analytics offer
consistent reporting on user behavior on your site. Install voice analytics software to track customer insights through customer
service phone calls.
In addition, you can gather data from business events. Attendee demographic, contact, purchase intent,
and interest data are some of the information you can gather about current and
potential customers at business events. Collect this data through online
surveys, registration forms, and one-on-one conversations.
Be strategic about your data collection
methods because you need the most accurate, trustworthy data to use to drive
business and customer decisions.
Learn How To
Arrive at Meaningful Insights
Analyzing data is probably the most difficult
part of the analytics process. You have to dig into all of the numbers,
statistics, and patterns to figure out what it all means and how it impacts
your customer relationships, marketing, and sales processes.
Going beyond beginner-level analytics concepts
to more advanced ones will help you arrive at fresh customer insights from your data more often.
For example, you could use heatmaps to get a
visual for how often areas of your website pages are clicked to determine
conversion rate optimization. Pinpointing customer effort scores will help you
see how much effort a customer is putting in to engage with your business. You
could also use AI technology to conduct social sentiment analysis to flesh out
the emotions and tone behind customer feedback.
It’s also essential to refer back to the goals
you defined to extract meaningful insights from CRM analytics data. Revisit the
key performance metrics for each goal. Organize the numbers, statistics, and
patterns revealed for each metric.
Then, weigh the data you collected against the
original goal. Did you learn what you wanted to? If not, how can you revise the
goal or question to get the information you need?
Properly Use Data
To Inform Decisions
You have your list of meaningful insights.
Now, how do you use them to make decisions? Making decisions with the attitude
that everything goes when the data backs it up might not be the best approach.
Instead, it should be a balance of what the
data says and what your team’s experience and skillsets tell them. Your team
offers the human perspective while your analytics tools offer the numbers and
statistics you need to confirm what your team is feeling.
Data-driven decision-making must be a
collective effort for it to be successful.
CRM analytics isn’t something you can master
in a day. Collecting and analyzing customer data and pulling meaningful
insights from it is a layered skill to learn. But if you do, customer
relationships and business decision-making will improve.