Innovation in EBA-

CRM Analytics: Turning data into action

Group 9
 Agenda

CRM Analytics – Market Drivers

What is CRM Analytics
Business Architecture
CRM Analytics in Credit Cards
Helps to achieve objectives
Benefits
Value Additions
Challenges
 CRM Analytics – Market Drivers

Failure of traditional CRM projects

Lack of focus on a customer-centric business
strategy

Enormous amount of data from ERP, SCM and

CRM
Data not analyzed to dig out trends and patterns
of customer behavior

93% of corporate data never used for decision

making process

Unable to achieve higher ROI through CRM

 What is CRM Analytics

For accurate Customer Behavior, companies must emphasize on

CRM Analytics – The Latest Phase

in the evolution of CRM
“Analytical CRM is a consistent suite of analytical
applications that help you measure, predict, and
optimize customer relationships.”

Analytics
CRM
CRM (Data Mining
Analytics
and BI)
Business Architecture

Source: Analytical CRM SAP White Paper

 CRM Analytics in Credit Cards
Credit Risk Analytics
• Credit Delinquency
Scorecards
• Customer Approval and
Conversion Scorecards
• Optimal Loan Amount,
Pricing and loan duration
• Mortgage Portfolio
Optimization
• Collections Analytics
• Fraud Analytics
• Basel II Analytics
Marketing Analytics
• Profit-based Customer
Acquisition Strategy
• Revenue Scorecards; eg
Total 180 days revenue
• Campaign Management
• Cross-sell Scorecards
• Retention and Activation
• Loan Prepayments
• Loyalty and Winback
• Pricing Analytics
Linking CRM Analytics in CC

Customer information

Demography
Customer profitability

Customer history

Credit history

No of transactions

Amount of transactions

Spending pattern

New Accounts

Accounts Closed

Different charges
Outcomes of CRM Analytics in CC
 Helps To Achieve Objectives
CRM Analytics helps each organization to achieve their objectives

MARKETING SALES SERVICE

Drive campaign Increase customer
Develop accurate
ROI satisfaction (CSAT)
forecasts
Increase response Reduce customer service
Achieve revenue
rates costs
goals
Improve marketing Drive revenue through
Increase close rates
agility service channels

Source: Microsoft Business Intelligence, Nic Smith

 Benefits

More More More More

Agility Productivity Revenue Customer Loyalty

Strategically Eliminate Prioritize Empower

align all learning curve marketing and employees with
customer-facing issues while sales initiatives in customer metrics
operations and realizing fast those that show that guide
empower adoption rates by the greatest employees to
employees from delivering return on make decisions
the top down to familiar investment. that will help build
quickly adjust to applications that customer trust.
changing work the way
environments. your employees
work.

Source: Microsoft Business Intelligence, Nic Smith

 Value Addition – Marketing

Monitor Marketing Drive Conversion

Performance Rates
Analyze Pipeline Push Intelligence to
Performance Point of Interaction
Source: Microsoft Business Intelligence, Nic Smith
 Value Addition – Sales

Monitor Sales Predict Customer

Performance Behavior
Analyze Process Push Intelligence to
Performance Field
Source: Microsoft Business Intelligence, Nic Smith
Value Addition – Customer Service

Monitor Service Predict Customer

Performance Behavior
Analyze Process Push Intelligence to
Performance Point of Interaction
Source: Microsoft Business Intelligence, Nic Smith
 Challenges

Integration with the Legacy systems

Quality of Data
Cost and Complexity of system integration
Cultural Challenges