Analytical CRM: The Fusion of
Data and Intelligence
Mihir Pandit [PC-09]
Vipul Patil [PA-20]
ANALYTICAL CRM
• The Fusion of Data and Intelligence
• The system associated with this customer
discovery
• Revolutionary ...
REQUIREMENTS FOR ANALYTICAL CRM
Learning relationship with customers
 Notice: What its customer are doing
 Remember: Wha...
HOW IT WORKS???
Transaction Processing System
Data Warehouse
Data Mining
Discovery of
hidden
information
EXAMPLE:
Transaction Processing System
Frequent Buyer of Books
Customer touch point
Continue…….
Data Warehouse
Track Customer behavior over time
…………..Visit: 1 Visit: 199
Visit: 199
Continue……
Data Mining
1. Give customers more of what they want
2. Value their time
3. Over delivery
4. Contact frequently...
Continue……
Ultimately Building Profitable Business around the customer
WHAT IS DATA MINING??
Data mining is the exploration and analysis of
large quantities of data in order to discover
meaning...
WHAT TASKS CAN BE PERFORMED WITH DATA
MINING?
 Directed and undirected data mining
 Classification
 Estimation
 Predic...
CLASSIFICATION
In order to understand customer and communicate about
world, we are constantly classifying, categorizing an...
ESTIMATION
 Deals with continuously valued outcomes
 It comes up with a value for some unknown continuous
variable such ...
PREDICTION
 Prediction is same as classification or estimation except
that the records are classify according to some pre...
AFFINITY GROUPING
 To determine which things go together
 e.g.: What things go together in a super market?
 Market-Bask...
CASE STUDY: DIPERS AND BEER
CLUSTERING
 Task of segmenting a heterogeneous population into a
number of more homogenous subgroups or clusters.
 Recor...
VIRTUOUS CYCLE OF DATA MINING
? !
Social CRM
Concept, Benefits and Approach
to adopt
Who is our “SOCIAL” CUSTOMER?
Consumes information and learns about
breaking news through sites like
Twitter, Facebook , L...
WHAT IS SOCIAL CRM?
It is companies strategy
to overseeing clients
and sales prospect.
• More as philosophy with
bussiness...
It is based on around information
that companies could collect on
their customers and then input
into crm system that allo...
How CRM evolved into social CRM
According to Wikipedia - Web 2.0 is a term describing changing trends in the use of
World Wide Web technology and web desi...
Web 2.0 stimulated
fundamental changes in
consumer behavior
Interactions between
customer and brands starting
earlier and ...
New CR means more than just mere on demand
attention or mass customized products and services
Web 2.0 provoked an
expansio...
Technology
Lets take a look at the fundamental changes that Social CRM is
introducing to the current, traditional CRM in t...
Evolution of the CRM landscape
•Focus on individual relationship (company to
customer, company to partner, etc.)
•Limited ...
Evolution of Customer Touch Points
•Single view of the customer based on the
interactions history, customer profile data
r...
Evolution of Business Processes Modeling
•Customer processes developed from the
company standpoint (customer life cycle fo...
Evolution of Organizational Mindset
•Innovation comes from one specialized source
within the company (innovation group)
•F...
Evolution of Technology
•CRM Solutions focused in automating and
supporting internal business processes
•CRM Solutions foc...
Bottom line
• Social CRM does not replace traditional CRM. It extends current CRM 1.0
capabilities to engage conversations...
Putting Social CRM to work: Understand Social
Influence in CRM Building Blocks and transform
it...
Strategy
Operations
Org...
To support this transformation, go deeper in the
‘Company life cycle’ from the customer point of
view…Establishing need
Co...
...and apply findings into your current CRM
foundations following a consistent roadmap.
Social
Strategy
Social Operations
...
Some foreseen benefits of Social CRM
 Raise Marketing ROI better targeting, better product solution, customer experience ...
Example of Social CRM
Advantages
There are a couple of things that these accounts have in common that make
them great examples:
• Fast response ...
Application in data mining
Super market becomes a info broker:
Point of sale scanner
Record every item purchased.
Aggregat...
References
• Data mining techniques,2nd Edition for Sales
Marketing,Customer relationship management.
• Gartner Report.
• ...
Analytical crm and social crm
Analytical crm and social crm
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Analytical crm and social crm

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  •  Analytical CRM comprises the analysis and systematic evaluation of customer data using business intelligence functions.
  • It is started from the first interaction of customer with enterprise.So let us take example from our class only that Ms. Pavitra has fondness of books and She is frequent buyer of books. Now earlier she was buying books from crossward but then she came to know about “Flipkart.com”Which provides books at very reasonable price , through cash on delivery and many more services…So she registered with enterprise (When she registered the first transaction processed between customer and Enterprise)A detail record is generated at the flipkart.com about pavitra.These transaction system are the customer touch points where information about customer behaviour first enters the enterprise
  • Every records of interaction with customer , each point of transaction, order , each visit recorded.Hundred of gigabytes and terabytes of data is gathered Data warehouse allows enterprise to remember what it has noticed about its customers.
  • Give customers more of what they want Analytical CRM can help an organization go beyond the typical “Dear Mr. Smith” salutation. An organization can use its analytical CRM information to make its communications more personable. For example, if it knows a customer’s shoe size and preferred brand it can notify the customer that there is a pair of size 12 shoes set aside to try on the next time the customer visits the store.2. Find new customers more of what they wantsimilar to the best customers Analytical CRM might determine that an organization does a lot of business with women 35 to 45 years old who drive SUVs and live within 30 miles of a certain location. The company can then find a mailing list that highlights this type of customer for potential new sales.3. Find out what the organization does best Analytical CRM can determine what an organization does better than its competitors. For example, if a restaurant caters more breakfasts to midsized companies than its competition does, it can purchase a specialized mailing list of midsized companies in the area and send them a mailing that features the breakfast catering specials.4. Beat competitors to the punch Analytical CRM can determine sales trends allowing an organization to offer the best customers deals before the competition has a chance to. For example, a clothing store might determine its best customers for outdoor apparel and send them an offer to attend a private sale right before the competition runs its outdoor apparel sale.5. Reactivate inactive customers Analytical CRM can highlight customers who have not done any business with the organization in a while. The organization can then send them a personalized letter along with a discount coupon. It will remind them of the company and may help spark a renewed relationship.6. Let customers know they matter Analytical CRM can determine what customers want and need, so an organization can contact them with this information. Anything from a private sale to a reminder that the car is due for a tuneup is excellent customer service.
  • Well, they mined the database that stored all the customer transactions and, to their big surprise, it turned out that beer was the product most often sold with diapers. On top of that, these purchases were made mainly on Friday afternoons by men between the ages of 25 and 35. After some serious thinking, the supermarket figured out the rationale was that because diapers are voluminous, the wife, who in most cases made the household purchases, left the diaper purchase to her husband who had the car. The husband and father, most often between 25 and 35 years old, usually bought the diapers at the end of the working week. With the weekend, beer often becomes a priority; and so, beer became the product most often associated with the sale of diapers.
  • CRM is strategically designed to improve interactions between different parties
  • JetBlue has Social CRM down, period. Especially considering that this is the airline industry, where companies deal with hundreds of thousands of customers every day, JetBlue’s community management team rocks. They are on top of their game and they always respond. Maybe that’s why they’ve reached 1.7 Million followers? Probably. This is Social CRM at its best:
  • Analytical crm and social crm

    1. 1. Analytical CRM: The Fusion of Data and Intelligence Mihir Pandit [PC-09] Vipul Patil [PA-20]
    2. 2. ANALYTICAL CRM • The Fusion of Data and Intelligence • The system associated with this customer discovery • Revolutionary Change • Product Focused Enterprise Customer Centric Enterprise
    3. 3. REQUIREMENTS FOR ANALYTICAL CRM Learning relationship with customers  Notice: What its customer are doing  Remember: What it and its customer have done over time  Learn: From what it has remembered  Act: on what it has learned to make customer more profitable
    4. 4. HOW IT WORKS??? Transaction Processing System Data Warehouse Data Mining Discovery of hidden information
    5. 5. EXAMPLE: Transaction Processing System Frequent Buyer of Books Customer touch point
    6. 6. Continue……. Data Warehouse Track Customer behavior over time …………..Visit: 1 Visit: 199 Visit: 199
    7. 7. Continue…… Data Mining 1. Give customers more of what they want 2. Value their time 3. Over delivery 4. Contact frequently (SMS/ Email) 5. Generate a trustworthy mailing list 6. Follow up
    8. 8. Continue…… Ultimately Building Profitable Business around the customer
    9. 9. WHAT IS DATA MINING?? Data mining is the exploration and analysis of large quantities of data in order to discover meaningful patterns and rule.  Data warehouse provides the enterprise with a memory  Data mining provides the enterprise with an intelligence  Central idea: data from the past will be useful in future  Goal: to allow enterprise to improve its marketing, sales and customer support operation through better understanding of customer
    10. 10. WHAT TASKS CAN BE PERFORMED WITH DATA MINING?  Directed and undirected data mining  Classification  Estimation  Prediction  Affinity grouping  Clustering
    11. 11. CLASSIFICATION In order to understand customer and communicate about world, we are constantly classifying, categorizing and grading. NMIMS SBM SPP SPTM M.Pharm+ MBA B.Pharm+ MBA Pharmaceutics Pharma analysisQuality assurance
    12. 12. ESTIMATION  Deals with continuously valued outcomes  It comes up with a value for some unknown continuous variable such as income, height or credit card balance.  E.g.: Regression analysis  Estimating numbers of children in family  Estimating the lifetime value of customer
    13. 13. PREDICTION  Prediction is same as classification or estimation except that the records are classify according to some predicted future behavior. E.G. Predicting which customer will leave within six months?
    14. 14. AFFINITY GROUPING  To determine which things go together  e.g.: What things go together in a super market?  Market-Basket analysis
    15. 15. CASE STUDY: DIPERS AND BEER
    16. 16. CLUSTERING  Task of segmenting a heterogeneous population into a number of more homogenous subgroups or clusters.  Records are grouped together on the basis of self similarity.  Helpful in ‘Market Segmentation’
    17. 17. VIRTUOUS CYCLE OF DATA MINING
    18. 18. ? ! Social CRM Concept, Benefits and Approach to adopt
    19. 19. Who is our “SOCIAL” CUSTOMER? Consumes information and learns about breaking news through sites like Twitter, Facebook , Linkedin etc. Learns about new products through social channels. Is wise to unsolicited promotions and trusts only relevant information. Desires to converse with the brand rather than 1-way ad messages. Expects brand to be active in same social media where he/she hangs out in. Wants brand to listen engage and respond quickly.
    20. 20. WHAT IS SOCIAL CRM? It is companies strategy to overseeing clients and sales prospect. • More as philosophy with bussiness strategy • Engages customer with mutually beneficial relationship • Supported by social technology, bussiness rules and processes.
    21. 21. It is based on around information that companies could collect on their customers and then input into crm system that allows them to target various customer. OLD GUARD: TRADITIONAL CRM NEW GUARD: SOCIAL CRM PR department: bigger role by taking charge of brands social presence while handling customer engagement online. Advocacy and experience: No active message but active engaging.
    22. 22. How CRM evolved into social CRM
    23. 23. According to Wikipedia - Web 2.0 is a term describing changing trends in the use of World Wide Web technology and web design that aims to enhance creativity, secure information sharing, collaboration and functionality of the web. Web 2.0 is enabling: • Collaboration • Community creation • Conversation • Creativity Image source: http://web2.socialcomputingmagazine.com/all_we_got_was_web_10_when_tim_bernerslee_actually_gave_us_w.htm It all started with the web 2.0 revolution and its 4C’s
    24. 24. Web 2.0 stimulated fundamental changes in consumer behavior Interactions between customer and brands starting earlier and never ending New behavior patterns demand a new strategy, better segmentation, new channels and targeted messages and review of current customer facing business processes Being connected, customers realized that they could ask more from companies and share opinions about products and services The new Social Customer Uses new online channels and new communication tools Trusts in advices made by online acquaintances and strangers Tends to buy more online than offline Wants to provide feedback about the product and customer service Expects better customer experience Reads and creates product reviews, produ ct rankings and blog posts Seeks support to connect with like- minded peers
    25. 25. New CR means more than just mere on demand attention or mass customized products and services Web 2.0 provoked an expansion of the “R” in the CRM acronym Company / Customer Company / Partner Company / Competitor Company / Company Customer / Partner Customer / Competitor Customer / Customer Partner / Competitor
    26. 26. Technology Lets take a look at the fundamental changes that Social CRM is introducing to the current, traditional CRM in terms of… Landscape Channels Processes Mindset Your company Competitor Supplier / Partner Customer Customer CustomerCustomer Customer Customer Customer Customer Customer Customer Customer Customer Customer • Phone • Fax • Email • Service • Letters • Personal contact • Company’s website • SMS • Instant Messenger • Chat • Media • Phone • Fax • Email • Service • Letters • Personal contact • Company’s website • SMS • Instant Messenger • Chat • Media • B l o g s + • Social Bookmarking • Mi cro blo gs • RSS • Wikis • Social Networks • Widgets • Podcast • Video sharing • Forums • Wish lists • Pricecomparison website • Reviews and ratings in retail sites • Photo sharing • Slides sharing • Auction website
    27. 27. Evolution of the CRM landscape •Focus on individual relationship (company to customer, company to partner, etc.) •Limited view of the customer and his community preferences, habits, etc. •Targeted messages generate value Your company Competitor Supplier / Partner Customer Customer CustomerCustomer Customer Customer Customer Your company Competitor Supplier / Partner Customer Customer CustomerCustomer Customer Customer Customer Customer Customer Customer Customer Customer Customer •Focus on collaborative relationship (engaging a more complex relationship network) •Multiple connections allow better understanding of the customer and his community •Conversation generates value CRM 1.0 CRM 2.0
    28. 28. Evolution of Customer Touch Points •Single view of the customer based on the interactions history, customer profile data residing in the company’s base and data integration with internal systems •Company owns the data but it is limited to previous interactions • Phone • Fax • Email • Service • Letters • Personal contact • Company’s website • SMS • Instant Messenger • Chat • Media • Phone • Fax • Email • Service • Letters • Personal contact • Company’s website • SMS • Instant Messenger • Chat • Media • Blogs + •Single view of the customer is far more complex to achieve. Besides internal information, the company must rely on external information such as customer profiles in social networks and his behavior when participating in a community. •Customer and other web 2.0 sites own part of the precious data • Social Bookmarking • Microblogs • RSS • Wikis • Social Networks • Widgets • Podcast • Video sharing • Forums • Wish lists • Price comparison website • Reviews and ratings in retail sites • Photo sharing • Slides sharing • Auction website CRM 2.0CRM 1.0
    29. 29. Evolution of Business Processes Modeling •Customer processes developed from the company standpoint (customer life cycle for the company). •Process centric – adapt and optimize processes to support better customer interaction •Focused on CRM processes •Company processes developed from the customer standpoint (company life cycle for the customer. •Conversation centric –to establish brand community, enable idea capturing and better segmentation •Focused on the evolution of CRM processes and resulting impacts in the value chain Establishing need Experience Sharing impressions Decision Marketing Sales Customer Service Support processes Operation processes Value Expansion Targeting Retention Acquisition Expansion Targeting Retention Acquisition CRM 2.0CRM 1.0
    30. 30. Evolution of Organizational Mindset •Innovation comes from one specialized source within the company (innovation group) •Frontline employees communicate targeted messages for transactional operations •Innovation is gathered from all employees as they are closely connected to the final customer and to each other via internal web 2.0 tools. Customers are in the center of the innovation cycle. •Frontline and non frontline employees engage conversations including new customers in the context and rerouting conversations. New set of employee skills needed. ! ! ! ! Interaction Conversation Contribution Transaction Feedback Employee Customer Employees Customers CRM 2.0CRM 1.0
    31. 31. Evolution of Technology •CRM Solutions focused in automating and supporting internal business processes •CRM Solutions focused in community creation internal and externally Process Support Account Management Contact Management Activity Management Lead / Opp Management Campaign Management Sales Management Service Management… Conversation tools Process Support Account Management Contact Management Activity Management Lead / Opp Management Campaign Management Sales Management Service Management… Monitoring / Interconnecting tools RSS Blogs Wikis Social Networks Widgets Forums Podcast Brand monitoring services Data mining APIs Open Id Customer Owned Data Cloud Computing CRM 2.0CRM 1.0
    32. 32. Bottom line • Social CRM does not replace traditional CRM. It extends current CRM 1.0 capabilities to engage conversations with customers and the market, • Social CRM humanize the company so the customer can see it as a trusted peer (customers trust people like themselves), • Social CRM puts the customer in the core of the company’s strategy. It affects thoroughly operations, its value chain and organizational structure and culture, • Social CRM introduces new value drivers into the company’s strategy thanks to customers engaged with the brand, • Social CRM needs a new organizational mindset supported by web 2.0 empowered employees.
    33. 33. Putting Social CRM to work: Understand Social Influence in CRM Building Blocks and transform it... Strategy Operations Organization Social Influence The Social Influence changes the traditional CRM building blocks and requires companies to work towards a Social CRM concept composed by Social Strategy, Social Operations and Social Organization
    34. 34. To support this transformation, go deeper in the ‘Company life cycle’ from the customer point of view…Establishing need Consumption needs Need by influence Buying Paying Experience Searching SelectingDecision Comparing Sharing Sharing impressions Deciding Receiving Using CompanyLifeCycle Customer behavior
    35. 35. ...and apply findings into your current CRM foundations following a consistent roadmap. Social Strategy Social Operations Social Organization Implementation Strategy Redesign Building Blocks Design and Develop tools Monitor and Adapt • Understand your public and current customer behavior • Decide how you will engage with the market (monitor buzz, react to comments, supply social platform, etc.) • Find out which tools will be deployed • Build a business case • Review current CRM building blocks (as is) • Realign Social CRM Strategy with current CRM Strategy (touch points, segmentation, customer value, etc.) • Review Processes to operate Social CRM • Establish Social CRM mindset throughout the company • Design and develop tools which will support the company in engaging with Social Customers • Train employees and close the recognition and reward loop • Measure results and adapt current Social CRM to meet changes in customer needs and/or market dynamics
    36. 36. Some foreseen benefits of Social CRM  Raise Marketing ROI better targeting, better product solution, customer experience and word- of-mouth.  Gain insights to explore new market segments and improve marketing effectiveness  Identify new business opportunities and improve cross/up-sell abilities through increasing contact with existing and potential customers  Cut sales commissions costs by building community around the brand  Increase R&D capabilities and innovation through tapping into the collective intelligence of your target audience  Increase customer loyalty by promoting transparent dialogue and improving employee/customer interaction efficiency  Decrease customer service costs through self-helping communities
    37. 37. Example of Social CRM
    38. 38. Advantages There are a couple of things that these accounts have in common that make them great examples: • Fast response times • Follow-up support (you can’t fix everything via Twitter, so sometimes it’s necessary to move the conversation elsewhere) • If a quick solution is possible, it’s given immediately (see Best Buy’s San Antonio example) • Fast access to company information (these aren’t CEOs or CCOs, but they’re definitely experts) • They respond to both compliments and complaints
    39. 39. Application in data mining Super market becomes a info broker: Point of sale scanner Record every item purchased. Aggregate pattern is known.(what sells well together wat should be shelved together). Eg. Safeaway,Walmart Cross Selling: Detailed record of customer & uses data mining to predict were are they in their life cycle &what product they likely need. Eg.ICICI,Fidelity investment Wallet share and Customer share Holding to a good customer: New Customer> Old customer to retain. Incentive is expensive hence data mining. Weeding out bad Customer: Some customer cost more than they are worth. Consumes more resources without buying much. Revolutionizing an industry :Eg.Wachnova
    40. 40. References • Data mining techniques,2nd Edition for Sales Marketing,Customer relationship management. • Gartner Report. • Harvard bussiness review. • DATAQUEST, A Cyber Media Publication
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