Experts at a university in the US recently discussed how deploying a strong customer relationship management system can help companies improve sales – especially over holiday periods.
Reo Song, assistant professor of marketing at Kansas State University, stated that anytime a business sends out holiday catalogs or starts a new mail or email campaign, it’s an opportunity to use advanced data mining software to learn more about customers habits. This information can then be used to help increase sales.
Whether a customer shops more online or in-store, what they buy and how often they make a purchase are all valuable points of data, according to Mr Song.
“It’s all being done today by data analysis,” he said, adding that demographics, time of purchase, quantity price and other factors can be leveraged to a company’s benefit.
The availability of this information is prompting companies to take much more data-focused decision making strategies, as opposed to traditional opinion-based strategies.
“That data-driven decision-making plays a huge role in all areas of our life, including business, sports and politics,” he said.
“The role of the business managers who make decisions based on hunches is dwindling, being replaced by analysts who can tackle massive data for insight.”
Mr Song added that CRM software is one of the most important developments for any business that has made this shift. By creating unique offerings to customers based on their habits – engendering a feeling of being special in the customers – a company can see much higher retention.
Moreover, the solution can be used to develop probability of purchase forecasts or tailored responses to marketing programs. These have proven to be effective ways to drive ROI through CRM software..
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