Business intelligence (BI) is extremely important for an organization to develop business strategies and make well-informed decisions. BI is primarily obtained by analyzing the data obtained from both the industrial as well as the customer activities, giving the business a complete overview of how the surroundings look like currently, and how it may change in the future.
With the evolution of technology and social media, businesses are finding it hard to keep up with the exponential increase in the amount of available data. Although BI may be viewed a solution to this problem, its scope isn’t specific enough to be of any use when dealing with customer-centric decisions.
CRM (Customer Relationship Management), on the other hand, has itself rooted deeply in managing customer interactions. The fundamental function of CRM is to utilize historical data to recognize and engage with potential customers, and work to maintain them as a long-term business partner and create the right business image in their mind.
To put it plainly, BI is utilized by businesses to make sense of existing data and apply it to the entire business to produce actionable insight, whereas CRM is more of a business action in analyzing that insight and coming up with strategies to convert leads and prospects into long-term customers.
Increase the frequency of customer engagement:
By doing a BI analysis, a business can recognize customer behavior when it comes to interacting with them. Building on this report, a CRM system can proactively engage with these customers through e-mails, calls, sales meetings, and provide enough relevant information to upgrade their status from a casual buyer to a loyal and frequent customer.
For example, if a BI analysis report states that a customer viewed a product on the website but decided not to buy it, the business can automate e-mails that offer a cheaper or a better alternative. This lets the customer know that the company is looking out for them, and makes them more likely to purchase again.
Create loyalty programs:
A business can utilize a BI analysis to figure out which of their customers are profitable to the company and provide high value to their business. When the CRM system takes over, the company can work closely with these customers and provide them with loyalty benefits, which is not only beneficial for providing more business through probable referrals, but also increases customer satisfaction and the customer retention rate.
For example, if a customer is seen to be regularly purchasing novels from a bookstore, the managers can provide them with a membership card that may give a flat 10% discount on every third purchase. This makes the customer happy and more likely to recommend the bookstore to their acquaintances through the word-of-mouth.