BGS Customer Relationship Management Chapter 6 Technology and Data Platforms Chapter 6 Technology and Data Platforms Thomson Publishing 2007 All Rights Reserved

6.2 Technology Evolution Some organizations still using technology from the 1980s and 1990s Gain understanding of current technology objectives New technology perceived as CRM solution Organizations frequently need to “phase-in” new technology

6.3 Marketing Technology Development Path Three phases – Mass communication – Database marketing – Integrated marketing Organizations usually move through these phases over time and find themselves simultaneously utilizing functions in more than one phase

MKT Technology Development Path: Mass Communication Emphasis on list rental, sequential nonintegrated “push” strategy Program based with little or no synchronization among programs Predict consumer behavior Technology inefficient and sub-optimal

MKT Technology Development Path: Database Marketing Sophisticated data collection and management used to promote dialogue with “push” and inefficient “pull” strategy Programs supported by statistical models Predicting and attempting to change consumer behavior Complex databases, some distributed technology, enhanced data communication, online processing

Figure 6.1

Database Marketing Entities Data preparation (CDI steps) Operational data store (ODS) – Designed to contain limited amount of information used for current marketing activity – Quick data trivial capability – Easy access from multiple touch points – Integrated with data preparation (real-time and batch) and data warehouse

Database Marketing Entities Data warehouse (DW) – Designed as a repository for all customer, prospect, product/service, and related marketing information – Depth and breadth of historical information is organization and industry dependent – Integrated with one or more ODSs and data marts

Database Marketing Entities Data marts (DM) – Subsets of data warehouse – Designed to work efficiently with specific decision support software – Integrated with one or more ODSs and data marts – Business discipline specific application

Other Database Construction Considerations Number of individuals accessing the database concurrently Access requirements related to speed of access and information display requirements Export requirements for accessed data Internal and external security requirements

Other Database Construction Considerations Privacy requirements and adherence to current privacy regulations, planning for pending legislation, and anticipation of future legislation Database update requirements (i.e., adds, deletes, and changes) – Timing – Volume – Critical path

Other Database Construction Considerations Data recovery requirements – Priority – Timing – Ownership of process Contingency requirements – Which data and priority – Offsite redundancy – Cost issues

MKT Technology Development Path: Integrated Marketing Increase in internal and value chain real-time environment applications; interactive consumer applications enhance “pull” strategy Optimal marketing efforts with dynamic LTV measurement Increasing ability to change consumer behavior Technology: costs decreasing, easier to implement and maintain, more capabilities

Figure 6.3

Marketing Integration Consumer interaction – Computer telephony – Web – Kiosks – Mobile – POS – Self-service – Identification mediums (RFID, fingerprint, palm print, retinal scan)

Marketing Integration Analytical mediums – Data mining – Statistical activity – Data marts – Sales automation – EIS, EMS, DSS – Dashboards

Marketing Integration Operational environment – Core-competency – ERP – Value chain

Considerations when Deciding on Technical Complexity Amount of data captured Frequency of data capture Amount of data enhancement activity Amount of information to be kept and made available Frequency of data access Number of personnel accessing data Response requirements for data retrieval

Considerations when Deciding on Technical Complexity Human and financial resources needed for development, training, implementation and ongoing maintenance, and support of the environment Customer requirements for inquiry and transaction activity CRM strategic objectives

Summary Not all technical environments need to be complex Database entities can be combined and provide multiple functions Different OEMs provide different strategies, and organizations need to select the optimal solutions