In this ultra-competitive business environment, organizations that are still setting their targets based on historical performance, is not sufficient to stay ahead in the curve. There is a much awaited need, not just to understand ’What’s happened in the Past’, ‘What’s happening at Present’ but also ‘What’s likely to happen in Future’.

Synergizing Customer Relationship Management (CRM) with Predictive Analytics has transformed the way organizations are doing business. Together, they have the power to perform analysis on real-time customer data and capture ‘top-of-mind’ share of the management team. This ends up arresting the space in consumer’s hearts which will increase the ROI for the organization.

Evolution of CRM Life Cycle

CRM and Predictive analytics

Why there’s much emphasis on ‘Customer Lifetime Value’

Since the onset of the recession, organizations are trying to squeeze more value out of every dollar spent. To counteract the growing competition, organizations want to optimize the value they derive out of their customer lifecycle.

Initially organizations rely on Business Intelligence (BI) tools to study the trends at the macro and aggregated levels of the business. However, it gives a very narrow picture as it is only capable of querying, reporting and online analytical processing. So, though analysis on the database help the top management with the fact based decisions, but it does not provide the top management with the future trends, needs and demands of the customer.

To take complete advantage out of the customer lifecycle, we need to anticipate customer’s hidden needs and provide them with the products/services that delight them. CRM with predictive analytics will give top management, operations and marketing teams the real-facts which give them the power to spot business trends.

Paradigm shift from “BI” to “CRM +Predictive Analytics” = “Consumer Driven Markets”

Conventionally, CRM involves “maximizing the lifetime value of a customer” which means building customer loyalty towards the brand. However, the strategy the companies used to follow from decades was to intervene in the customer life cycle only when the customer appears to turn away from the organization or when the organization is ready with their next-best offer.

Nevertheless, this strategy has improved the organizations margins. But during recession when the struggle to survive gets tough, the companies come up with an idea of elongating the customer lifecycle. Today, companies have built their strategy around customer lifecycle. Organizations have started interacting with the customers from the introduction stage and for potential customers even before that point   Companies take lot of interest in the customer view point on their products and on competitor products. They also keep a track of what are the features that interest them, what are the features that excite them or what features they would love to have in the product. Organizations have gone a step further and have started collecting data from social media, to gain an insight of the mind of the target customer base as well as of the consumer using competitor services.   All this data has been used for analysis through various technologies and statistical models to predict customer and Industry behavior in future.

This exercise has brought customers closer to companies like never before. Today it is a Win-Win situation for both the organization and their consumer.



CRM with Predictive Analytics, includes analytic models that work for the lowest levels of the business e.g. at the level of individual customer, product, marketing campaign and at the level of each store. It has the advantage to study the data and analyze it to predict behaviors of consumer, organizations, competitors and upcoming business trends (as can be expressed by an analytic or mathematical formula) that can be provide inputs to the management for setting up their goal and targets.

In short, CRM with predictive analysis helps organizations to mitigate the risk as they can take decisions based on the probable future (which is based on facts & trends). Its result leads to:

  • Delight and inspire customers
  • Building of  corporate brand
  • Better relationship with clients
  • High-quality work
  • Risk Mitigation for organization