SAP AG outlined its new and enhanced CRM analytics offering as part of the latest version of mySAP customer relationship management (mySAP CRM) announced in June. New capabilities in mySAP CRM include real-time analytics to leverage customer insight during each customer interaction; marketing optimization to boost response rates; sales, marketing and service business planning to closely measure performance against strategic targets; and out-of-the-box analytics scenarios. Leveraging SAP's deep knowledge of the key business processes of 23 industries and more than 6,500 installations of SAP's leading business intelligence offerings, the new capabilities expand the scope of core analytics functionality in mySAP CRM. By enabling deep integration with multiple sources and applications across the enterprise, organizations can now better measure and predict customer actions by transforming raw information into business strategies for optimizing the most profitable customer relationships.
The new analytics capabilities in mySAP CRM enable companies to extract more business value from their wealth of transactional data to better understand customers and the products they want, at what price, and under what conditions. Compared to point solutions, the integrated mySAP CRM solution is unique in its ability to integrate information from SAP and third-party sources, delivering comprehensive information to support more effective decision-making.
"It is critical to link financial information from various parts of the enterprise with key business processes in order to evaluate the impact of customer profitability," said Henry Morris, Group VP Applications and Information Access at IDC. "CRM analytics become far more powerful when leveraging crucial information from across the organization identifying customer interests, predicting customer value, and then linking this knowledge to optimal, timely actions. SAP has achieved this objective and more with its new analytics offerings in mySAP CRM."
New real-time analytics in mySAP CRM combines customer insight with predictive information to make recommendations that increase the value of each customer interaction. For example, manufacturing companies can dramatically reduce credit risk by rapidly determining a credit score based on a customer profile and generating a proposal for the best terms of payment. Tele-sales representatives can also leverage information such as purchasing history, product upgrades and accessories to identify cross and up-selling opportunities.
As a member of both the Datamining Group and the Expert Group for Java Datamining, SAP is playing a leadership role in developing and influencing standards for the next generation of predictive analytics.
By introducing sophisticated analytical models into the campaign automation process, marketing managers can plan campaigns more effectively based on expected results such as response rates, costs, profits and return on marketing investments. For example, with marketing optimization and refinement in mySAP CRM, companies can identify customer segments that display similar behavior patterns such as number of interactions during a specific timeframe and target campaigns to those customers most likely to respond. By linking back-end financial applications with marketing programs, mySAP CRM also enables detailed cost-performance analyses.
Planning scenarios in mySAP CRM help companies set clear goals and coordinate the necessary resources to achieve their critical business objectives. Campaign planning, opportunity planning, promotion planning and partner planning are tightly integrated into key business processes to improve the effectiveness of how these processes impact business performance management. For instance, many high tech companies such as chip manufacturers create products in close collaboration with their customers. By linking supply chain data with customer demand, organizations can make better decisions about inventory levels and future product development efforts.
Analytical applications such as customer lifetime value enable companies to assess the profitability and retention of each customer segment. This provides organizations with a clear picture of how marketing, sales and service efforts should be focused on the most valuable customers. For instance, chemical companies can better target offerings and increase profit margins based on understanding a certain customer segment's tolerance for lower grade quality, demand for "off-spec" products or flexibility in delivery timeframes. Customer satisfaction and loyalty analytics gauge key customer drivers and how well companies are meeting changes in their customers' priorities over time. These capabilities help companies prioritize the customers and products having the most impact on profits.
Companies can proactively combat the risk of customer attrition with churn analysis capability in mySAP CRM. Telecommunications and utilities companies, for example, can maintain and grow revenues by identifying and contacting the customers most likely to cancel their contracts.
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