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When Is Simulation Coming to CRM?

by Scott Nelson  |  August 4, 2011  |  4 Comments

The science of simulation has come a long way in recent years. Complex areas such as weather forecasting and market simulations are becoming better and better, in spite of the fact that it seems they can never forecast the weather accurately the one day you need it. And while it still is not the stuff of a Star Trek episode, it does make one wonder when the capability will become part of CRM. Off hand, a few obvious applications come to mind:

1. Campaign management: Simulating the effect of various offers on demographic and psychographic groups

2. Pricing: More then just a financial spreadsheet, really looking at demand impact

3. Channel optimization: looking at the impact on channels of various strategies

4. Workforce optimization: Impact on the personnel side of the business

5. Demand planning: seeing how all the variables come together on your ability to provide a good or service

The list could go on and on. The key is right now, CRM is more about transactions, and maybe some planning. When is planning going to become the key attribute, and simulation become the engine that drives it?

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Category: crm-strategy  

Scott D. Nelson
Managing VP
12 years at Gartner
18 years IT industry

Scott Nelson is a managing vice president in Gartner Research. He is responsible for managing research in the area of CRM. His particular research focuses on CRM vision and strategy.

Thoughts on When Is Simulation Coming to CRM?

  1. Scott,

    I like the idea of simulation in CRM. As a competitive intelligence professional I wonder how simulation might support war game/black hat exercises and win/loss analysis.

  2. Scott,

    WFO (workforce optimization – and its ugly cousin WFM) has had simulation and scenario planning for some time. What was initially a feature for competitive reasons became a fixture soon given the value it adds to call and contact center managers.

    I totally agree we need more, but I think it is going to be driven (as it was in Customer Service) by competitive reasons once the feature/function stops being the competition for vendors in different areas.


  3. […] More: When Is Simulation Coming to CRM? […]

  4. This is an interesting topic. What will be the input that is needed to make any CRM simulation usable? Do real-time business information aggregation and trend analysis help improve the quality of outcome?

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