Customer relationship management software has emerged as one of the most crucial tools for doing business successfully today, and the power of big data predictive analytics is making CRM more powerful than ever. The CRM predictive analytics market, valued at $4.18 billion in 2014, is expanding at a compound annual growth rate of 12.83 percent, on track to be worth $7.65 billion by 2019, Markets and Markets projects. CRM analytics tools are in demand because they help companies predict market behavior, understand their buyers and make more sales.
Companies that know how to use CRM predictive analytics effectively have a major marketing and sales advantage over rivals who aren’t taking advantage of this revolutionary technology. Here’s a look at three ways CRM predictive analytics can help you gain an edge over your competition and take the lead in your market.
Predicting Customer Demand Surges
CRM lets you make predictions about future marketing and sales trends based on historic data. One important application of this is predicting what your customers will want and when they will want it. This can help you ensure that the products and services you’re selling are what your customer base wants and that you’ll have your inventory and staff prepared to meet peak demand times.
One of the most valuable uses of this approach is predicting holiday sales trends. For instance, most retailers center their annual sales around certain key sales days such as Black Friday, but a review of the actual data shows that seasonal sales peaks over the Christmas shopping season can last anywhere from 38 to 88 days depending on the market sector, explains Marketing Week writer Mindi Chahal. Knowing when your holiday sales peak begins and when it ends can make you better prepared to have sufficient staff on hand and sufficient items in stock to meet the surge in demand.
Understanding Your Target Market
Another valuable application of predictive CRM analytics is helping you narrow your target market. Traditional market research methods are effective as far as they go, but the amount of data they can manage is limited. Big data analytics can provide a more complete analysis of your market by integrating data from many sources, including customer purchase history, social media profiles and emails. This enables you to spot characteristics of your target market that you might otherwise overlook.
A good illustration of how this can be applied effectively is the type of recommendation engine used by companies such as Amazon and Netflix. By analyzing buyer behavior and demographic characteristics, these companies generate repeat business by making recommendations designed to appeal to customers’ buyer profiles.
Helping Your Staff to Make Data-based Sales Decisions
Just as recommendation engines can help your website optimize automated sales efforts to online buyers, CRM predictive analytics can also help your sales team make data-driven sales decisions when interacting with prospective buyers. Your sales managers can see who your hottest prospects are, as well as which of your top sales representatives are available for deployment. Your sales representatives can see data about customers’ purchase history, demographic characteristics and buying preferences, enabling them to make more effective sales presentations.
In order to use CRM tools effectively for these types of applications, your staff will need specialized training. Customer FX provides Infor CRM training to help companies make the most of CRM tools. Scheduling this type of training can empower your marketing and sales teams to put CRM predictive analytics tools to optimal use in order to boost your sales performance, grow your profits and gain an edge on your competition.
About the Author
Roy Rasmussen, coauthor of Publishing for Publicity, is a freelance writer who helps select clients write quality content to reach business and technology audiences. His clients have included Fortune 500 companies and bestselling authors. His most recent projects include books on cloud computing, small business management, sales, business coaching, social media marketing, and career planning.