BGS Customer Relationship Management Chapter 5 CRM and

BGS Customer Relationship Management Chapter 5 CRM and Data Management Thomson Publishing 2007 All Rights Reserved

5. 1 Introduction • Data management is a key CRM enabler • Data integration is a series of steps • Critical path to create a single accurate view of the customer • Manage the customer interaction

5. 2 Managing Customer Interactions • Customer perceptions driven by interaction experiences • Digital age has enabled the customer to expect more • Improper management undermines relationship between the organization and the customer • Proper management requires a centric view of the customer

Managing Customer Interactions • Successful management allows organizations to – – Create and sustain loyalty Differentiate itself from competition Grow relationships Increase favorable customer word-of-mouth • Attaining a centric view of the customer requires data integration across the enterprise

5. 3 Customer Data Integration (CDI) Problem • • • Data capture and storage process variances Disparate databases Real-time customer interaction Data latency Lack of standards Data inaccuracy

5. 4 CDI Definition and Requirements • CDI: A data management process where all customer and prospect data is consolidated to create a single accurate view of the customer • All organization points of customer interaction must have access to an accurate and current customer centric view • Data to be distributed accurately to points of interaction in a timely manner

CDI Definition and Requirements • CDI requires: – Enabling technology to manage initial and ongoing data integration efforts – Customer linkage capability – Organization-wide adoption of technology and customer linkage

5. 5 House-Holding Concepts • Individuals living at the same address and having the same last name are considered to be in the same household • House-holding allows an organization to view a customer at several levels – Individual level – Household level • Mechanics for creating households are similar for consumers and businesses

House-Holding Concepts • Consumer house-holding considerations – Children have temporary address while attending college – People have secondary residences (e. g. , snowbirds) – Changing norms (e. g. , home office, nontraditional family)

5. 6 CDI Steps Identify Touch Points • Any area that an interaction can occur between an organization and a customer or prospect • Interaction medium may vary – Human to human (e. g. , POS) – Human to human with technology as enabler (e. g. , customer communicating via Web chat session) – Human to technology (e. g. , customer interfacing with computer telephony) – Technology to technology (e. g. , Web transaction)

CDI Steps Identify Touch Points • B 2 B business interface examples – procurement, accounts payable and receivable, sales, technical support, order processing, customer service, distribution, repair/maintenance, PR, survey, promotion response, investing community, value chain partners, unsolicited communication

CDI Steps Define How Data is Collected • Technology – Web forms, Web free form text, computer telephony, kiosks, self-service POS, fax • Human – Verbal, written, observation

CDI Steps Establish Data Collection Rules • Identify data variables to be collected (e. g. , demographic, psychographic, geographic, behavioral, transaction) • Define priority scheme for data variable capture based on source

Consumer Data Rule Construction Data Element Income Age Occupation Homeowner Touch Point A Touch Point B C Touch Point D Data Used $65 K-$70 K $120 K N/A X $65 K 35 -40 37 37 X 37 Professional Other Unskilled X Professional N/A Yes X Yes N/A 2(4 -8 yrs) 1 @ 4 yrs, 1 @ 3 yrs 2 (4 -8 yrs) Children

Summary • CDI is a CRM key success factor • CDI is dynamic due to technology changes, business objective changes, new best • CDI can vary by industry or country • CDI has ancillary benefits