1. Analytical CRM: The Fusion of
Data and Intelligence
Mihir Pandit [PC-09]
Vipul Patil [PA-20]

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. 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. HOW IT WORKS???
Transaction Processing System
Data Warehouse
Data Mining
Discovery of
hidden
information

5. EXAMPLE:
Transaction Processing System
Frequent Buyer of Books
Customer touch point

6. Continue…….
Data Warehouse
Track Customer behavior over time
…………..Visit: 1 Visit: 199
Visit: 199

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. Continue……
Ultimately Building Profitable Business around the customer

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. WHAT TASKS CAN BE PERFORMED WITH DATA
MINING?
 Directed and undirected data mining
 Classification
 Estimation
 Prediction
 Affinity grouping
 Clustering

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. 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. 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. AFFINITY GROUPING
 To determine which things go together
 e.g.: What things go together in a super market?
 Market-Basket analysis

15. CASE STUDY: DIPERS AND BEER

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. VIRTUOUS CYCLE OF DATA MINING

18. ? !
Social CRM
Concept, Benefits and Approach
to adopt

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. 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. 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. How CRM evolved into social CRM

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. ...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. 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. Example of Social CRM

39. 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

40. 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

41. References
• Data mining techniques,2nd Edition for Sales
Marketing,Customer relationship management.
• Gartner Report.
• Harvard bussiness review.
• DATAQUEST, A Cyber Media Publication