Public or private organisations see the potential of big data and mining to be turned into big value by combining its CRM system with Big Data analytics. A sophisticated CRM system requires extensive support from accurate data analytics to ensure that potential customers are engaged and find value in their relationship with the company.
Since customers make buying decisions every day – and every decision depends on a consideration of cost, benefits, and value – management accountants need to be very aware of the value-creation potential of marrying traditional CRM systems with Big Data analytics. Big data analytics aims to support customer relationship strategies so that organisation can quantify sales transactions, evaluate promotional campaigns, develop product awareness at an individual level, and build long term relationship and brand loyalty.
However, management accountants must also be very aware that the ‘wild-child’ that has emerged in the union of Big Data and CRM, called Social CRM, is very difficult to control, and can seriously affect corporate value if negative publicity about the company goes viral in social networks.
Professor Janek Ratnatunga is CEO of the Institute of Certified Management Accountants. He has held appointments at the University of Melbourne, Monash University and the Australian National University in Australia; and the Universities of Washington, Richmond and Rhode Island in the USA. Prior to his academic career he worked with KPMG.