CRM Software Optimizes Predictive Performance in Marketing

by | Dec 9, 2014

Sometimes it may seem as if you are simply “throwing mud on the wall” with your marketing efforts. You may use a combination of marketing methods, but
CRM Software Optimizes Predictive Performance in Marketingone of the outstanding features of email marketing is the ability to measure performance, adapt to the metrics and develop tactics for the future to become predictable profit
centers.

This method of business modeling uses the actions of current prospects and customers to forecast the actions of new sales leads. It is quite different from standard business reporting and sales forecasting. Instead of focusing on the CRM data to guide the company’s internal actions, it predicts actions the customer will take.

Prediction Goals

Only the people within your organization can determine which predictable behaviors will be valuable. It pays to talk to both your sales team and customer service staff to choose what you want to monitor for predicting customer actions.

Expect to make a few trade-offs. For example, one group of customers may have a greater likelihood of making a purchase. A completely different group may be likely to have higher purchases. You may want to develop email marketing metrics to indicate immediate profit or be loyalty focused with a one-year customer value.

Once you determine what you want to predict about your customer actions, you can decide how to maximize the predictions and measure it in your CRM software. For example, if you are trying to predict repeat customers, your goal may be to target those who currently don’t repeat purchase. On the other hand, you may want to approach those that purchase multiple times to leverage their value with up sells.

Prepare for Customer Actions

Before your customers and prospects respond to your email marketing efforts, you can be ready for a limited number of responses.

First, set up metrics in your CRM software  for basic email responses like opens and clicks. Next, monitor other critical actions taken by recipients to inform your future emails and actions. Some of the predictive data may be sales lead source, first-order data, how long they have been a customer, number of orders, value of orders, customer type, basic demographics, discount history, etc.

Application of Data

The more you know about the process sales leads take to becoming a customer, the more you are able to manage communications to fit their preferred model. Predictive performance measures give you data to guide your efforts based on sound historical evidence. The real-time availability combined with exceptional accuracy of the CRM software solution provides indisputable results you can use to increase the ROI of your marketing budget.