WHY GROWTH ANALYTICS AND INTELLIGENT CRM ARE PIVOTAL FOR GROWTH AND MARKETING TEAMS?
Both growth analytics and CRM serve the larger goal of growing your business and making it perform better according to the KPIs that you’re interested in.
Managing customer relationships and monitoring growth metrics is an important goal for any enterprise, from fledgling startups to established companies. According to Salesforce, worldwide spending on analytics and CRM is expected to reach $114.4 billion by the year 2027. To get their money’s worth, companies ought to understand what growth analytics and CRM are all about, the purposes that they serve, and how they can be effectively integrated into their business.
Both growth analytics and CRM serve the larger goal of growing your business and making it perform better according to the KPIs that you’re interested in. However, there is a distinction between the two: CRM uses analytics to manage relationships with the clients, whereas growth analytics looks at how your business is faring about growth metrics.
More specifically, CRM, which stands for Customer Relationship Management, is a technological system that manages your business relationships with current and potential customers to grow your business. CRM tools allow organizations to focus on building meaningful relationships with individual people, which eventually enables improving acquisition and securing retention. CRM tools usually offer a centralized system to store customer data, manage marketing campaigns, and identify growth opportunities. CRM tools also enable collaboration by making this information available across all departments of the organization (management, sales, marketing, etc.)
Growth analytics, on the other hand, uses customer information (acquisition, conversions, retention, sales) and analyzes it to evaluate the business’ performance based on business goals. Growth analytics coupled with CRM is thus a winning combination that allows the business to map customer relationships to business growth metrics, and thus optimize all facets of the business operations.
Why growth analytics and CRM matter
Growth analytics and intelligent CRM allow you to adopt a customer-centered approach and move beyond guessing. There is no better way to understand your customers and what they want than by observing their behavior. Even questionnaires do not offer completely accurate information about customers.
This data not only allows you to build meaningful and enduring relationships with customers but also enables you to discover how this reflects on your company’s growth. These insights include which products and services are most profitable, which business channels offer the greatest potential for growth, who your most valuable customers are, what percentage of customers are retained, and so much more.
What your business should focus on
There are countless metrics that your Growth analytics and CRM tool can track. However, these metrics are of little value if they are not tied to business goals. It is thus important for a company to limit the data they track to those that affect their Key Performance Indicators (KPIs), such indicators include:
- Revenue generated: this is perhaps the most basic metric to track, however, it’s of incredible importance. Not only does it give an overall view of the company’s financial health, but it also can be dissected further to show which products, regions, or customers generated the most revenue.
- Conversion rates: this is the rate of customers that complete the desired goal, i.e., convert, along their customer journey. What is considered conversion depends on your business and goals, it could be upgrading to a paid subscription, buying a product, or any other profitable action. Tracking this metric allows you to uncover where customers are more likely to convert and capitalize on this finding.
- Retention rates: this is the rate of customers that are retained, which means that they keep coming back repeatedly to your product. This is the metric on which one of the pillars of retention rests and is indispensable to evaluating your company’s performance in the long run.
- Active users: this is the number of customers who are actively using your product over a certain period. This metric is valuable to monitor company performance over time and to identify areas for improvement.
- Churn rate: This metric represents the percentage of users that cease business with your company or churn out. It’s an important metric to keep an eye on to determine where exactly along the lifecycle are users most likely to leave and to take preventative actions against it.
In-house solution or a third party?
Developing in-house growth analytics and CRM tool is an expensive undertaking with uncertain results. It requires recruiting the required talent, months of development and iterative working, and countless obstacles along the way. Third-party tools are a much more effective option. They have been tested on multiple use cases before and are optimized to transform your customer data into actionable insights.
Read on here for an overview of B2Metric IQ and how it can benefit your business.
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