- The cost of losing one customer is four times higher than the cost of obtaining that same customer (Return on Behavior Magazine)
- Satisfying and retaining current customers is 3 to 10 times cheaper than acquiring new customers, and a typical company receives around 65 percent of its business from existing customers (McKinsey, 2001)
- A 5% reduction in the customer defection rate can increase profits by 25% to 80% (Return on Behavior Magazine)
- 7 out of 10 customers who switch to a competitor do so because of poor service (McKinsey, 2001)
As a result, organizations are investing billions in upgrading sales, service, and CRM applications, enhancing business intelligence applications, master data management, and data mining solutions to help:
- Identify and acquire top customers
- Improve loyalty and wallet share of existing customers
- Improve customer support and service to increase retention and satisfaction
- Lower customer acquisition and servicing costs
Even with all these investments, many companies will fall short of meeting their business goals due to their inability to access, share, and leverage business value out of their data. Data is a critical asset, as important as the buildings and people in it. Without it, business professionals responsible for acquiring and retaining customers will fail to understand who their customers are, what their needs are, what their relationship is with the company, and why they continue or discontinue doing business with them.
Accessing and sharing the data you need without the right organization, process, people, and data integration platform can be very costly and risky. Those who attempt to integrate systems and applications through hand-coding and ad-hoc methods will eventually end up with the proverbial “integration hairball” that can cost companies a significant portion of their ongoing IT maintenance budget. Those who have the right organizational model, defined standards, processes, and well established data integration technology are better prepared to leverage their data assets for business success. Companies who fall into this category are considered to be “Data Driven”. Check out how Informatica 9 enables organizations to be more Data Driven.