Managing data integrity with confidence Rebecca Clayton TFM 9 th February, 2005 Rebecca Clayton TFM 9 th February 2005 Managing data integrity with confidence

Today’s agenda The importance of data Data decay An effective data strategy Maintaining and enhancing your data The QAS approach Benefits of an operational data strategy

The importance of data Inaccurate data costs every time it is used Data decays if not maintained Accurate data is vital for decision-making Inaccurate data affects customer satisfaction - 31% of consumers end relationship due to inappropriate communications Source: NOP World research and Royal Mail

Data within an organisation 87% of organisations use customer data to support strategic decisions Source: NOP World research

Organisation-wide issue Strategic issues: capturing data consistently maintaining data enhancing data Not just about saving money but making money

Manchester United FC Fan base : 75m in 20 territories Aim to convert support from fan base into club revenue Accurate international data capture is vital Regular clean and refresh policy Accurate communication = cost savings

Red Letter Days £12m market-leading UK firm Complex multi-stage order handling and processing must run smoothly Accurate data capture vital at each stage through all mediums including web Aim to improve the customer experience

Data decay – the causes 13% of the UK public move each year – 7.7m people 700,000 people die each year 1.2m addresses change on PAF each year Source: NOP World research and Royal Mail

Data decay – the causes Data collection from different sources can cause duplications Lack of budget for regular verification Lack of awareness of data accuracy solutions available

Lets do some numbers 30 pieces in one month £1 per piece +0.21p to mail Over 12 months £ B2B vs B2C

“Our problem is the human error factor, we need more internal checks of the actual data inputting” Over 5000 employees, Business Services Data decay – the causes

“There are problems where people only put in the data relevant to their department…they are only thinking of themselves” employees, Finance Data decay – the causes

Improvement in data strategy 57% organisations use a single company wide database 67% of organisations now have a standard data quality policy Source: NOP World research

Increased routine validation* *Still 13% without any form of validation

Good news More board buy in More Investment More personnel Concerns Lack of data accuracy technology Increased commitment

Over 80% of organisations believe inaccurate data costs money, across the whole company Bad data costs Source: NOP World research

Data potential unrealised Over 50% did not believe that they were using their customer database to full potential Says Marketers 72% IT Managers 59% Database Managers 47%

Research shows… Companies have moved on Data quality increasingly on the Board agenda More consolidated databases More investment in data quality Still some dissatisfaction with data, affecting business decision making Only 18% ‘Very satisfied’ with data accuracy Only 20% ‘Very Satisfied’ with completeness

Data integrity drivers Legislation Mergers and acquisitions Use data intelligently Customer retention & growth -exceed customer expectations, CRM Instil best practice across the enterprise Improve cost base and reduce waste

The data integrity proposition More than just names and addresses Enhancing records Suppressing records

Suppression a hot topic DMA escalates its campaign to get industry to use Suppression as part of lessening the environmental impact of poorly targeted DM. David Coupe, Chairman of DMA

Suppression data Telephone and Fax Preference Services (TPS and FPS) Over 4 million registrations Legal obligation to use Potential fines and adverse publicity Mailing Preference Service (MPS) Over 1 million registrations

Suppression data National Change of Address (NCOA) 12 million records 100,000 new redirections a month Gone-away suppression 18,000 people move daily Not always together Not always permanently 13 items of DM a month

Suppression data Bereavement screening 700,000 people die a year £18 million wasted mailing the deceased Duplicate detection 70% consumers annoyed by duplicate mail Individual, family or household

BT’s Operator Services Info System (OSIS) Telephone number verification, addition, formatting and ex-directory flagging 50,000 changes a day Electoral Roll Name verification, addition and formatting 35 million records Enhancement data

So what can we do about it ?

Data strategy – a consistent approach Enterprise wide champions Capturing data across different customer touchpoints Cleaning, maintaining and enhancing Using data confidently

Becoming confident Self assessment audit Measure data quality – the complete record Set targets Get buy in

Measure and improve

Get your customers to help Give customers every opportunity to manage and update their own information Envelopes, DM, billing, web, , phone calls, meetings

Routine contact validation Phone Suppression

Report success Good data is good for everyone Make it part of the culture Policies and training Incentives

Why spend the time and effort ? ‘Productivity, customer satisfaction, growth, and better opportunities to up- sell and cross-sell across the customer base are the primary benefits of improved address data quality’. Ted Friedman Principal Analyst, Gartner Research

Success over time “We keep getting better with time, hopefully in five years time we will be using our database more, it is an evolutionary process” employees, Finance

We can help you with your data integrity strategy. Visit us on stand D40 for advice and live demonstrations.