What is Analytical Customer Relationship Management

What is Analytical Customer Relationship Management

7 Benefits of Analytical Customer Relationship Management for Your Business

Analytical customer relationship management (CRM) is a type of CRM that focuses on collecting, storing, and analyzing customer data to improve customer satisfaction, retention, and loyalty. Analytical CRM can help you understand your customers better, segment them into different groups, predict their behavior and preferences, and plan your marketing and sales strategies accordingly. In this article, we will explore what analytical CRM is, how it works, and what benefits it can bring to your business.

Key takeaways

Analytical CRM is a type of CRM that focuses on collecting, storing, and analyzing customer data to improve customer relationships.

Analytical CRM works by following these steps: data collection, data integration, data analysis, data visualization, and data utilization.

Analytical CRM can bring many benefits to your business, such as increased customer satisfaction, retention, loyalty, sales revenue, operational efficiency, competitive advantage, and business performance.

What is analytical CRM?

Analytical CRM is a system that uses various tools and techniques to process and interpret customer data from multiple sources, such as social media, live chat, phone calls, website visits, purchase records, etc. Analytical CRM does not directly handle customer interactions or front-line operations. Instead, it works behind the scenes to provide insights and recommendations for your business decision-making.

Analytical CRM can help you answer questions like:

  • Who are your most valuable customers and why?
  • What are the common characteristics and needs of your customer segments?
  • How can you increase customer satisfaction and loyalty?
  • What are the best channels and methods to reach your target audience?
  • How can you optimize your sales pipeline and conversion rates?
  • How can you measure the effectiveness of your marketing campaigns and customer service?

How does analytical CRM work?

Analytical CRM works by following these steps:

  • Data collection: Analytical CRM gathers customer data from various sources, such as CRM software, web analytics, social media analytics, surveys, feedback forms, etc.
  • Data integration: Analytical CRM integrates and consolidates customer data into a single database or data warehouse, where it can be easily accessed and managed.
  • Data analysis: Analytical CRM applies various analytical techniques and tools, such as data mining, machine learning, artificial intelligence, business intelligence, etc., to extract meaningful insights from customer data.
  • Data visualization: Analytical CRM presents the results of data analysis in a clear and understandable way, using charts, graphs, dashboards, reports, etc.
  • Data utilization: Analytical CRM uses the insights derived from data analysis to provide suggestions and recommendations for improving customer relationships, such as personalized offers, targeted campaigns, cross-selling and up-selling opportunities, etc.

What are the benefits of analytical CRM?

Analytical CRM can bring many benefits to your business, such as:

  • Increased customer satisfaction: By understanding your customers better, you can provide them with more relevant and personalized products, services, and experiences that meet their needs and expectations.
  • Increased customer retention: By analyzing customer feedback and behavior, you can identify potential issues and risks that may cause customer dissatisfaction or churn. You can also implement loyalty programs and reward schemes to encourage repeat purchases and referrals.
  • Increased customer loyalty: By building trust and rapport with your customers through consistent and timely communication, you can foster long-term relationships that increase customer loyalty and advocacy.
  • Increased sales revenue: By segmenting your customers into different groups based on their value, behavior, preferences, etc., you can tailor your marketing and sales strategies to each segment. You can also leverage cross-selling and up-selling opportunities to increase the average order value and lifetime value of each customer.
  • Increased operational efficiency: By optimizing your sales pipeline and conversion rates, you can reduce the cost of acquiring new customers and increase the profitability of existing customers. You can also automate some of the tasks and processes involved in customer relationship management using analytical CRM tools.
  • Increased competitive advantage: By gaining deeper insights into your customers and markets, you can discover new opportunities for growth and innovation. You can also anticipate customer needs and trends ahead of your competitors and offer unique value propositions that differentiate you from others.
  • Increased business performance: By measuring the effectiveness of your marketing campaigns and customer service using analytical CRM metrics, you can evaluate your strengths and weaknesses and improve your business performance accordingly.


  • Analytical CRM can help you improve customer satisfaction, retention, and loyalty by providing you with valuable insights and recommendations.
  • Analytical CRM can help you increase sales revenue, operational efficiency, and competitive advantage by segmenting your customers, predicting their behavior, and optimizing your marketing and sales strategies.
  • Analytical CRM can help you measure and improve your business performance by providing you with key metrics and reports.

What is Analytical Customer Relationship Management?

Analytical Customer Relationship Management (CRM) is a systematic approach to analyze customer data and interactions to improve various business processes in Sales, Marketing and Service. The main purpose of Analytical CRM is to gather customer information from various channels and gain knowledge about customers’ behaviors and buying pattern as much as possible.

How Analytical CRM Benefits Businesses?

Analytical CRM software processes data gathered from the organization to extract applicable insights to optimize the business. Analytical CRM system manages back-office operations with ease. It enables businesses to take data-supplemented decisions by evaluating customer behavior and forecasting purchase intention. Some of the benefits of Analytical CRM are:

  • It helps to segment customers based on their preferences, needs, and behaviors.
  • It helps to design personalized and targeted marketing campaigns that increase customer loyalty and retention rates.
  • It helps to optimize sales performance by identifying the most profitable customers and prospects and providing relevant offers and recommendations.
  • It helps to improve customer service by anticipating customer needs, resolving issues faster, and enhancing customer satisfaction.
  • It helps to streamline data management by collecting, storing, and analyzing customer data in a secure and centralized place.

What is the Global Demand for Analytical CRM?

According to a report by Grand View Research, the global CRM market size was valued at USD 58.04 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 14.2% from 2021 to 2028. The report attributes this growth to the increasing adoption of cloud-based CRM solutions, the rising demand for data-driven decision making, and the growing need for enhancing customer experience across various industries.

The report also segments the CRM market by type, deployment, enterprise size, application, end-use, and region. Among the types, the analytical CRM segment accounted for the largest market share in 2020, owing to its ability to provide actionable insights for improving customer relationships. Among the regions, North America dominated the market in 2020, followed by Europe and Asia Pacific. However, Asia Pacific is expected to witness the fastest growth during the forecast period, due to the rapid digitalization and increasing adoption of CRM solutions by small and medium enterprises (SMEs) in the region.

Frequently asked questions

Q: What is the difference between analytical CRM and operational CRM?
A: Operational CRM handles the direct interactions with customers through various channels, such as email, phone calls, chatbots etc. Operational CRM aims to improve the efficiency and quality of customer service. Analytical CRM handles the indirect interactions with customers by collecting and analyzing customer data. Analytical CRM aims to improve the effectiveness and profitability of customer relationships.

Q: What are some examples of analytical CRM tools?
A: Some examples of analytical CRM tools are:

  • Pipedrive: A CRM software that helps you manage your sales pipeline and track your performance.
  • HubSpot: A CRM platform that offers various modules for marketing, sales, and service.
  • Zoho Analytics: A business intelligence and analytics module that integrates with Zoho CRM and other applications.
  • ClickUp: An all-in-one work app that includes a CRM feature for teams to organize, collaborate, and grow.
  • Creatio: A low-code platform that allows you to create custom CRM solutions with analytics capabilities.

Q: How can I implement analytical CRM in my business?
A: To implement analytical CRM in your business, you need to follow these steps:

  • Define your business goals and objectives for using analytical CRM.
  • Identify the sources and types of customer data that you need to collect and analyze.
  • Choose the analytical CRM tools and techniques that suit your needs and budget.
  • Integrate your analytical CRM system with your existing CRM software and other applications.
  • Train your staff on how to use the analytical CRM system and interpret the results.
  • Monitor and evaluate the outcomes of using analytical CRM and make adjustments as needed.






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