Data Quality And The Customer Life Cycle

One of the sections in my recent Informatica-sponsored paper on Understanding the Financial Value of Data Quality Improvement looked at impacts associated with customer retention. Once the company has acquired a customer, there is an expectation that steps will be taken to ensure that the customer’s business is retained, and this means not only encouraging the customer to continue doing business with the company, but to take the proper steps to prevent the customer from purchasing products of services from any competitors as well. There are a number of techniques employed for customer retention, most of which rely on high quality information about the customer as well as deep visibility into that customer’s relationship and history of interactions.

An aspect of the customer relationship involves having accurate knowledge about stages in the customer’s life cycle. Throughout the duration of the relationship, there are two flavors of customer life cycle events – those that are related to the customer’s engagement with your company’s products or services, and those related to their own personal milestones. An example of the first type of life cycle event is when you car hits a service milestone, such as the need for a 15,000 mile service. An example of the second type happens when your daughter turns 16 and is eligible to get a driver’s license.

Both of these types of life cycle events present opportunities for maintaining the customer relationship and managing customer retention. And, as we will see in my next post, attempting to navigate the complexities of retention in the presence of data errors might not only achieve the desired retention expectations; it might even lead to customer attrition. More in my next post…

This entry was posted in Customer Acquisition & Retention, Customers, Data Governance, Data Quality and tagged , , , , . Bookmark the permalink.

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