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

2. 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

3. 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

4. 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. 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

6. 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

7. 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

8. 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

9. 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)

10. 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)

11. CDI Steps Identify Touch Points B2B 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

12. 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

13. 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

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

15. 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