What are the Combined Prospects of CRM and Predictive Analytics?
Martech Outlook | Tuesday, February 25, 2020
CRM and predictive analytics make for a winning combination when it comes to optimizing marketing performance.
FREMONT, CA: The levels of complexity in customer relationship management (CRM) are on the rise. Many reasons like evolving customer demands, break-neck competition, and technological advancements are some of the key factors contributing to the complexity. As per a report, almost one to two-thirds of all CRM projects fail because the CRM solutions used are insufficient and old. Some companies tend to use CRM even after they lose relevance owing to emerging technological trends and innovations. Predictive analytics is a potential solution in such situations.
Predictive analytics makes use of predictive sales software in CRM to deliver measurable profitable growth within a fixed timeframe. Several firms are also linking their predictive analytics software with disruptive technologies such as artificial intelligence (AI) to diminish operational costs and enhance revenues. Some of the companies are also leveraging the insights from predictive analytics reports to redesign their existing CRM to give more accurate results.
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The length of the sales cycle can be effectively shortened by implementing predictive analytics. Alternatively, the deployment of an entirely new CRM is both expensive and is associated with longer sales cycles. Advanced analytics models aid human judgment with seller feedback and facilitate in the retraining of CRM models. Such analytics capabilities empower the sales executives to prioritize and plan their sales strategy. Further, predictive sales solutions offer a higher return on investment (ROI).
Predictive analytics applies data mining, machine learning (ML), and AI to make predictions involving products, clients, and leads. Companies can leverage such insights to obtain scores for the leads, recognize risks, interpret pricing, and cross-selling opportunities. Thus, companies are using predictive analytics to expand their customer relations instead of restructuring the CRM models from scratch. With the successful implementation of a predictive analytics solution, firms are entitled to a wide range of business insights, which are comprised of market dynamics, customer behavior, as well as emerging trends.
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