CRM and Predictive Analytics

Predictive analytics, the science of predicting future probabilities or trends is becoming an important tool for companies to utilize thier CRM systems. CRM Magazine recently published an article regarding the importance of predictive analytics within CRM systems.

From "The Year in (P)review Looking back, and to the future: CRM trends and events to watch." CRM Magazine December 2005.

Colin Shearer, vice president of product marketing for SPSS, also believes that information, specifically analytics, is the next must-have part of the CRM puzzle. "More and more organizations are adding analytical capabilities to optimize [customer] interactions, and in the near term we'll see the vast majority of organizations incorporate some level of predictive analytics in their CRM infrastructure to gain a deep understanding of what customers want and to predict accurately how customers are going to behave," he says. "In the future, expect to see whole CRM infrastructures built on the premise that predicting customer behavior is fundamental."

When applied to quality CRM data, predictive analytics can provide sales managers and representatives with actionable insights that can profoundly improve sales performance indicators such as close rates, size of sale and repeat sales. Sales representatives may be armed with likely cross-sale and up-sale opportunities, critical incentives and other information specific to the individual customer they are relating with.

Sales managers are able to predict which opportunities are most likely to close, and focus resources where they will earn the greatest return. In addition, insight into the future value of certain customers allows managers to make long-term minded decisions.

As an award winning data analysis software company, ProWorks is well versed in providing valuable insights based on rich data. In the near future, look for ProWorks to release analysis tools that deliver predictive analytics information directed at helping sales representatives and managers execute their jobs more effectively.