ABSTRACT
Analytical Customer Relationship Management (CRM) is the process through which organizations transform customer-related data into actionable insight for either strategic or tactical purposes. Analysis of customer-related data supports both strategic and operational CRM. Strategic CRM focuses on the development of a customer-centric business dedicated to winning and keeping profitable customers by cost effectively creating and delivering value better than competitors. Most CRM software applications generally allow users to produce simple descriptive reports, but for deeper insights other forms of analysis are often needed. CRM programs typically pursue one or more of three broad strategic goals: building revenues, reducing costs or enhancing customer loyalty/satisfaction/engagement. Simple statistical procedures such as computation of totals, averages, modes, medians and ranges are the foundation of many of the descriptive standard reports generated by CRM users. Many CRM strategies introduce tiered levels of service for customers, with more personalized and frequent service, and better terms being offered to higher value customers.
