Ever want to know the future? Most of us would love to know what it holds. Customer relationship management, or CRM, software is like having the proverbial crystal ball. The data analysis that CRM provides is changing the business world from opinion-based decision making to data-driven, with every click, lead and purchase that the consumer makes online and off.
This ability to analyze data and provide accurate insight into a business’ target market make CRM a valuable asset and business owners are jumping onboard this inevitable business trend.
“After a slow growth rate in the first half of 2011, the CRM software market recovered steadily and observed an upward growth in 2012,” according to SBwire.com. “Despite the maturity of the market, the demand for CRM application software solutions is forecasted to follow this upward trajectory for the period of 2012 -2018.”
Looking into that ‘crystal ball’ of customer relationship management allows companies to expand into future purchasing or response trends from marketing programs and send targeted promotions and offers to different customers. The responses and purchases will be higher due to the targeted selection of consumers leading to a better return on investment.
To find current and future customers with a higher probability of purchase, CRM software relies on data from many sources. Purchase history and demographic information can be gathered via website registration, and of course, past purchases. Data can also be purchased from different sources, such as credit card companies, and combined with existing information. Social media sites are a growing source of data that is now being used extensively for CRM data analysis. All of it is then compiled by data warehousing and analyzed to be used by consulting services.
The end product, analysis, may show businesses their future customers, future purchases and future profits.