Analytical customer relationship management technology (aCRM), a subsection of the wider business intelligence (BI) market, while complex, is a compelling technology. By employing aCRM analytics, businesses stand to gain a fuller understanding of the customer in order to serve them better, thus increasing customer longevity and generating more profit.
Global enterprise investment in aCRM is forecast grow from an estimated $2.3 billion today to over $3 billion in 2009, spelling good news for technology vendors operating in this space.
In particular, North America and Europe lead the way in adopting customer analytics, however fastest growth will be exhibited by the Caribbean and Latin America, followed by Asia Pacific.
Six key user groups in aCRM output
aCRM is the active collection, concentration and analysis of data gathered about the customer and their interactions with the business. It represents the next, logical step in this development path through utilization of customer data held within the enterprise. This analysis is then used to generate value, both for the enterprise and the enterprise’s customers. It encompasses cultural change at every level as part of the wider CRM project: the creation of a customer focused business.
Datamonitor considers there to be six key user groups in aCRM output:
* Power users – usually the smallest group, and by far the most advanced. They require the full flexibility BI tools can supply, and often provide other areas of the business with information from their own analysis
* Senior executives – interest in aCRM is often limited to dashboards detailing performance against key performance indicators (KPIs). The breadth of this information, however, can be significant, with executives across different parts of the business having different priorities. While appearing simple, often the technology behind the dashboard is complex
* Marketing organizations – one of the larger groups and potentially one of the most advanced. They are in a position to become advanced users of aCRM, a process only just getting under way in most adopting businesses
* Sales organizations – a potentially significant user group. Their needs are often found in the output of other area’s analysis. For example, the use of leads generated through marketing campaigns, and timely information delivery, especially during closing periods.
* Customer-facing organizations – predominately the call center, but also retail environments. These users are dependent on timely and accurate delivery of information relating to the customers they are dealing with
* Customers – offering customers intelligence about the way they use products purchased from that company can be a competitive differentiator. Simple, pre-defined queries and easy-to-understand delivery is key
The clear lead adopters are to be found in the financial services, retail, manufacturing and communications industries around the globe. However with confusion and lack of understanding among end users regarding aCRM and its uses, it will be imperative for vendors to educate enterprises across all verticals as to the aCRM function, its working, uses and benefits.
Vendors in this space need to tread carefully to exploit the opportunities that exist. Market education is a clear requirement, with many potential users confused by the range of technological options available to them, and a lack of understanding around the uses of aCRM. There are clear signs marking the appropriateness of aCRM for different enterprises and vendors will do well targeting those that display them.
