In the age of engagement, customers expect a seamless, integrated and consistent customer experience. But most companies can’t meet those expectations today. This video explains what holds many companies back.Then, check out this eBook, Mastering the Chaos of Customer Experience. It explains the 7 steps to becoming a customer ready enterprise. A customer ready enterprise has a total customer relationship view, that trusted customer profile that’s accurate, up-to-date, complete and consistent across the company.
Find out how you can stop your customer data chaos and start using great customer data to fuel great customer experiences.
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On Saturday, I got a call from my broadband company on my mobile phone. The sales rep pitched a great limited-time offer for new customers. I asked him whether I could take advantage of this great offer as well, even though I am an existing customer. He was surprised. “Oh, you’re an existing customer,” he said, dismissively. “No, this offer doesn’t apply to you. It’s for new customers only. Sorry.” You can imagine my annoyance.
If this company had built a solid foundation of customer data, the sales rep would have had a customer profile rich with clean, consistent, and connected information as reference. If he had visibility into my total customer relationship with his company, he’d know that I’m a loyal customer with two current service subscriptions. He’d know that my husband and I have been customers for 10 years at our current address. On top of that, he’d know we both subscribed to their services while live at separate addresses before we were married.
Unfortunately, his company didn’t arm him with the great customer data he needs to be successful. If they had, he could have taken the opportunity to offer me one of the four services I currently don’t subscribe to—or even a bundle of services. And I could have shared a very different customer experience.
Every customer interaction counts
Executives at companies of all sizes talk about being customer-centric, but it’s difficult to execute on that vision if you don’t manage your customer data like a strategic asset. If delivering seamless, integrated, and consistent customer experiences across channels and touch points is one of your top priorities, every customer interaction counts. But without knowing exactly who your customers are, you cannot begin to deliver the types of experiences that retain existing customers, grow customer relationships and spend, and attract new customers.
How would you rate your current ability to identify your customers across lines of business, channels and touch points?
Many businesses, however, have anything but an integrated and connected customer-centric view—they have a siloed and fragmented channel-centric view. In fact, sales, marketing, and call center teams often identify siloed and fragmented customer data as key obstacles preventing them from delivering great customer experiences.
According to Retail Systems Research, creating a consistent customer experience remains the most valued capability for retailers, but 55 % of those surveyed indicated their biggest inhibitor was not having a single view of the customer across channels.
Retailers are not alone. An SVP of marketing at a mortgage company admitted in an Argyle CMO Journal article that, now that his team needs to deliver consistent customer experiences across channels and touch points, they realize they are not as customer-centric as they thought they were.
Customer complexity knows no bounds
The fact is, businesses are complicated, with customer information fragmented across divisions, business units, channels, and functions.
Citrix, for instance, is bringing together valuable customer information from 4 systems. At Hyatt Hotels & Resorts, it’s about 25 systems. At MetLife, it’s 70 systems.
How many applications and systems would you estimate contain valuable customer information at your company?
Based on our experience working with customers across many industries, we know the total customer relationship allows:
- Marketing to boost response rates by better segmenting their database of contacts for personalized marketing offers.
- Sales to more efficiently and effectively cross-sell and up-sell the most relevant offers.
- Customer service teams to resolve customers’ issues immediately, instead of placing them on hold to hunt for information in a separate system.
If your marketing, sales, and customer service teams are struggling with inaccurate, inconsistent, and disconnected customer information, it is costing your company revenue, growth, and success.
Transforming customer data into total customer relationships
Informatica’s Total Customer Relationship Solution fuels business and analytical applications with clean, consistent and connected customer information, giving your marketing, sales, e-commerce and call center teams access to that elusive total customer relationship. It not only brings all the pieces of fragmented customer information together in one place where it’s centrally managed on an ongoing basis, but also:
- Reconciles customer data: Your customer information should be the same across systems, but often isn’t. Assess its accuracy, fixing and completing it as needed—for instance, in my case merging duplicate profiles under “Jakki” and “Jacqueline.”
- Reveals valuable relationships between customers: Map critical connections—Are individuals members of the same household or influencer network? Are two companies part of the same corporate hierarchy? Even link customers to personal shoppers or insurance brokers or to sales people or channel partners.
- Tracks thorough customer histories: Identify customers’ preferred locations; channels, such as stores, e-commerce, and catalogs; or channel partners.
- Validates contact information: Ensure email addresses, phone numbers, and physical addresses are complete and accurate so invoices, offers, or messages actually reach customers.
This is just the beginning. From here, imagine enriching your customer profiles with third-party data. What types of information help you better understand, sell to, and serve your customers? What are your plans for incorporating social media insights into your customer profiles? What could you do with this additional customer information that you can’t do today?
We’ve helped hundreds of companies across numerous industries build a total customer relationship view. Merrill Lynch boosted marketing campaign effectiveness by 30 percent. Citrix boosted conversion rates by 20%. A $60 billion global manufacturer improved cross-sell and up-sell success by 5%. A hospitality company boosted cross-sell and up-sell success by 60%. And Logitech increased sales across channels, including their online site, retail stores, and distributors.
Informatica’s Total Customer Relationship Solution empowers your people with confidence, knowing that they have access to the kind of great customer data that allows them to surpass customer acquisition and retention goals by providing consistent, integrated, and seamless customer experiences across channels. The end result? Great experiences that customers are inspired to share with their family and friends at dinner parties and on social media.
Do you have a terrible customer experience or great customer experience to share? If so, please share them with us and readers using the Comment option below.
This article was originally posted on Argyle CMO Journal and is re-posted here with permission.
According to a new global study from SDL, 90% of consumers expect a consistent customer experience across channels and devices when they interact with brands. However, according to these survey results, Gartner Survey Finds Importance of Customer Experience on the Rise — Marketing is on the Hook, fewer than half of the companies surveyed rank their customer experience as exceptional today. The good news is that two-thirds expect it to be exceptional in two years. In fact, 89% plan to compete primarily on the basis of the customer experience by 2016.
So, what role do CMOs play in delivering omnichannel customer experiences?
According to a recent report, Gartner’s Executive Summary for Leadership Accountability and Credibility within the C-Suite, a high percentage of CEOs expect CMOs to lead the integrated cross-functional customer experience. Also, customer experience is one of the top three areas of investment for CMOs in the next two years.
I had the pleasure of participating on a panel discussion at the Argyle CMO Forum in Dallas a few months ago. It focused on the emergence of omnichannel and the need to deliver seamless, integrated and consistent customer experiences across channels.
Lisa Zoellner, Chief Marketing Officer of Golfsmith International, was the dynamic moderator, kept the conversation lively, and the audience engaged. I was a panelist alongside:
- Chris Brogan, Senior Vice President, Strategy & Analysis,Hyatt Hotels & Resorts
• Chris Berg, Vice President, Store Operations, The Home Depot
• Chip Burgard, Senior Vice President, Marketing, CitiMortgage
Below are some highlights from the panel.
Lisa Zoellner, CMO, Golfsmith International opened the panel with a statistic. “Fifty-five percent of marketers surveyed feel they are playing catch up to customer expectations. But in that gap is a big opportunity.”
What is your definition of omnichannel?
There was consensus among the group that omnichannel is about seeing your business through the eyes of your customer and delivering seamless, integrated and consistent customer experiences across channels.
Customers don’t think in terms of channels and touch points; they just expect seamless, integrated and consistent customer experiences. It’s one brand to the customer. But there is a gap between customer expectations and what most businesses can deliver today.
In fact, executives at most organizations I’ve spoken with, including the panelists, believe they are in the very beginning stages of their journey towards delivering omnichannel customer experiences. The majority are still struggling to get a single view of customers, products and inventory across channels.
“Customers don’t think in terms of channels and touch points; they just expect seamless, integrated and consistent customer experiences.”
What are some of the core challenges standing in your way?
A key takeaway was that omnichannel requires organizations to fundamentally change how they do business. In particular, it requires changing existing business practices and processes. It cannot be done without cross-functional collaboration.
I think Chris Berg, VP, Store Operations at The Home Depot said it well, “One of the core challenges is the annual capital allocation cycle, which makes it difficult for organizations to be nimble. Most companies set strategies and commitments 12-24 months out and approach these strategies in silos. Marketing, operations, and merchandising teams typically ask for capital separately. Rarely does this process start with asking the question, ‘What is the core strategy we want to align ourselves around over the next 24 months?’ If you begin there and make a single capital allocation request to pursue that strategy, you remove one of the largest obstacles standing in the way.”
Chip Burgard, Senior Vice President of Marketing at CitiMortgage focused on two big barriers. “The first one is a systems barrier. I know a lot of companies struggle with this problem. We’re operating with a channel-centric rather than a customer-centric view. Now that we need to deliver omnichannel customer experiences, we realize we’re not as customer-centric as we thought we were. We need to understand what products our customers have across lines-of-business such as, credit cards, banking, investments and mortgage. But, our systems weren’t providing a total customer relationship view across products and channels. Now, we’re making progress on that. The second barrier is compensation. We have a commission-based sales force. How do you compensate the loan officers if a customer starts the transaction with the call center but completes it in the branch? That’s another issue we’re working on.”
Lisa Zoellner, CMO at Golfsmith International added, “I agree that compensation is a big barrier. Companies need to rethink their compensation plans. The sticky question is ‘Who gets credit for the sale?’ It’s easy to say that you’re channel-agnostic, but when someone’s paycheck is tied to the performance of a particular channel, it makes it difficult to drive that type of culture change.”
“We have a complicated business. More than 500 Hyatt hotels and resorts span multiple brands and regions,” said Chris Brogan, SVP of Strategy and Analytics at Hyatt Hotels & Resorts. “But, customers want a seamless experience no matter where they travel. They expect that the preference they shared during their Hyatt stay at a hotel in Singapore is understood by the person working at the next hotel in Dallas. So, we’re bridging those traditional silos all the way down to the hotel. A guest doesn’t care if the person they’re interacting with is from the building engineering department, from the food and beverage department, or the rooms department. It’s all part of the same customer experience. So we’re looking at how we share the information that’s important to guests to keep the customer the focus of our operations.”
“We’re working together collectively to meet our customers’ needs across the channels they are using to engage with us.”
How are companies powering great customer experiences with great customer data?
Chris Brogan, SVP of Strategy and Analytics at Hyatt Hotels & Resorts, said, “We’re going through a transformation to unleash our colleagues to deliver great customer experiences at every stage of the guest journey. Our competitive differentiation comes from knowing our customers better than our competitors. We manage our customer data like a strategic asset so we can use that information to serve customers better and build loyalty for our brand.”
Hyatt connects the fragmented customer data from numerous applications including sales, marketing, ecommerce, customer service and finance. They bring the core customer profiles together into a single, trusted location, where they are continually managed. Now their customer profiles are clean, de-duplicated, enriched, and validated. They can see the members of a household as well as the connections between corporate hierarchies. Business and analytics applications are fueled with this clean, consistent and connected information so customer-facing teams can do their jobs more effectively and hotel teams can extend simple, meaningful gestures that drive guest loyalty.
When he first joined Hyatt, Chris did a search for his name in the central customer database and found 13 different versions of himself. This included the single Chris Brogan who lived across the street from Wrigley Field with his buddies in his 20s and the Chris Brogan who lives in the suburbs with his wife and two children. “I can guarantee those two guys want something very different from a hotel stay. Mostly just sleep now,” he joked. Those guest profiles have now been successfully consolidated.
This solid customer data foundation means Hyatt colleagues can more easily personalize a guest’s experience. For example, colleagues at the front desk are now able to use the limited check-in time to congratulate a new Diamond member on just achieving the highest loyalty program tier or offer a better room to those guests most likely to take them up on the offer and appreciate it.
According to Chris, “Successful marketing, sales and customer experience initiatives need to be built on a solid customer data foundation. It’s much harder to execute effectively and continually improve if your customer data is not in order.”
How are you shifting from channel-centric to customer-centric?
Chip Burgard, SVP of Marketing at CitiMortgage answered, “In the beginning of our omnichannel journey, we were trying to allow customer choice through multi-channel. Our whole organization was designed around people managing different channels. But, we quickly realized that allowing separate experiences that a customer can choose from is not being customer-centric.
Now we have new sales leadership that understands the importance of delivering seamless, integrated and consistent customer experiences across channels. And they are changing incentives to drive that customer-centric behavior. We’re no longer holding people accountable specifically for activity in their channels. We’re working together collectively to meet our customers’ needs across the channels they are using to engage with us.”
Chris Berg, VP of Store Operations at The Home Depot, explained, “For us, it’s about transitioning from a store-centric to customer-centric approach. It’s a cultural change. The managers of our 2,000 stores have traditionally been compensated based on their own store’s performance. But we are one brand. For example in the future, a store may be fulfilling an order, however because of the geography of where the order originated they may not receive credit for the sale. We’re in the process of working through how to better reward that collaboration. Also, we’re making investments in our systems so they support an omnichannel, or what we call interconnected, business. We have 40,000 products in store and over 1,000,000 products online. Now that we’re on the interconnected journey, we’re rethinking how we manage our product information so we can better manage inventory across channels more effectively and efficiently.”
Omnichannel is all about shifting from channel-centric to customer-centric – much more customer-centric than you are today. Knowing who your customers are and having a view of products and inventory across channels are the basic requirements to delivering exceptional customer experiences across channels and touch points.
This is not a project. A business transformation is required to empower people to deliver omnichannel customer experiences. The executive team needs to drive it and align compensation and incentives around it. A collaborative cross-functional approach is needed to achieve it.
Omnichannel depends on customer-facing teams such as marketing, sales and call centers to have access to a total customer relationship view based on clean, consistent and connected customer, product and inventory information. This is the basic foundation needed to deliver seamless, integrated and consistent customer experiences across channels and touch points and improve their effectiveness.
This blog post initially appeared on CMSwire.com and is reblogged here with their consent.
Friends of mine were remodeling their master bath. After searching for a claw foot tub in stores and online, they found the perfect one that fit their space. It was only available for purchase on the retailer’s e-commerce site, they bought it online.
When it arrived, the tub was too big. The dimensions online were incorrect. They went to return it to the closest store, but were told they couldn’t — because it was purchased online, they had to ship it back.
The retailer didn’t have a total customer relationship view or a single view of product information or inventory across channels and touch points. This left the customer representative working with a system that was a silo of limited information. She didn’t have access to a rich customer profile. She didn’t know that Joe and his wife spent almost $10,000 with the brand in the last year. She couldn’t see the products they bought online and in stores. Without this information, she couldn’t deliver a great customer experience.
It was a terrible customer experience. My friends share it with everyone who asks about their remodel. They name the retailer when they tell the story. And, they don’t shop there anymore. This terrible customer experience is negatively impacting the retailer’s revenue and brand reputation.
Bad customer experiences happen a lot. Companies in the US lose an estimated $83 billion each year due to defections and abandoned purchases as a direct result of a poor experience, according to a Datamonitor/Ovum report.
Customer Experience is the New Marketing
Gartner believes that by 2016, companies will compete primarily on the customer experiences they deliver. So who should own customer experience?
Twenty-five percent of CMOs say that their CEOs expect them to lead customer experience. What’s their definition of customer experience? “The practice of centralizing customer data in an effort to provide customers with the best possible interactions with every part of the company, from marketing to sales and even finance.”
Mercedes Benz USA President and CEO, Steve Cannon said, “Customer experience is the new marketing.”
The Gap Between Customer Expectations + Your Ability to Deliver
My previous post, 3 Barriers to Delivering Omnichannel Experiences, explained how omnichannel is all about seeing your business through the eyes of your customer. Customers don’t think in terms of channels and touch points, they just expect a seamless, integrated and consistent customer experience. It’s one brand to the customer. But there’s a gap between customer expectations and what most businesses can deliver today.
Most companies who sell through multiple channels operate in silos. They are channel-centric rather than customer-centric. This business model doesn’t empower employees to deliver seamless, integrated and consistent customer experiences across channels and touch points. Different leaders manage each channel and are held accountable to their own P&L. In most cases, there’s no incentive for leaders to collaborate.
Old Navy’s CMO, Ivan Wicksteed got it right when he said,
“Seventy percent of searches for Old Navy are on a mobile device. Consumers look at the product online and often want to touch it in the store. The end goal is not to get them to buy in the store. The end goal is to get them to buy.”
The end goal is what incentives should be based on.
Executives at most organizations I’ve spoken with admit they are at the very beginning stages of their journey to becoming omnichannel retailers. They recognize that empowering employees with a total customer relationship view and a single view of product information and inventory across channels are critical success factors.
Becoming an omnichannel business is not an easy transition. It forces executives to rethink their definition of customer-centricity and whether their business model supports it. “Now that we need to deliver seamless, integrated and consistent customer experiences across channels and touch points, we realized we’re not as customer-centric as we thought we were,” admitted an SVP of marketing at a financial services company.
You Have to Transform Your Business
“We’re going through a transformation to empower our employees to deliver great customer experiences at every stage of the customer journey,” said Chris Brogan, SVP of Strategy and Analytics at Hyatt Hotels & Resorts. “Our competitive differentiation comes from knowing our customers better than our competitors. We manage our customer data like a strategic asset so we can use that information to serve customers better and build loyalty for our brand.”
Hyatt uses data integration, data quality and master data management (MDM) technology to connect the numerous applications that contain fragmented customer data including sales, marketing, e-commerce, customer service and finance. It brings the core customer profiles together into a single, trusted location, where they are continually managed. Now its customer profiles are clean, de-duplicated, enriched and validated. Members of a household as well as the connections between corporate hierarchies are now visible. Business and analytics applications are fueled with this clean, consistent and connected information so customer-facing teams can do their jobs more effectively.
When he first joined Hyatt, Brogan did a search for his name in the central customer database and found 13 different versions of himself. This included the single Chris Brogan who lived across the street from Wrigley Field with his buddies in his 20s and the Chris Brogan who lives in the suburbs with his wife and two children. “I can guarantee those two guys want something very different from a hotel stay,” he joked. Those guest profiles have now been successfully consolidated.
According to Brogan,
“Successful marketing, sales and customer experience initiatives need to be built on a solid customer data foundation. It’s much harder to execute effectively and continually improve if your customer data is a mess.”
Improving How You Manage, Use and Analyze Data is More Important Than Ever
Some companies lack a single view of product information across channels and touch points. About 60 percent of retail managers believe that shoppers are better connected to product information than in-store associates. That’s a problem. The same challenges exist for product information as customer information. How many different systems contain valuable product information?
Harrods overcame this challenge. The retailer has a strategic initiative to transform from a single iconic store to an omnichannel business. In the past, Harrods’ merchants managed information for about 500,000 products for the store point of sale system and a few catalogs. Now they are using product information management technology (PIM) to effectively manage and merchandise 1.7 million products in the store and online.
Because they are managing product information centrally, they can fuel the ERP system and e-commerce platform with full, searchable multimedia product information. Harrods has also reduced the time it takes to introduce new products and generate revenue from them. In less than one hour, buyers complete the process from sourcing to market readiness.
It Ends with Satisfied Customers
By 2016, you will need to be ready to compete primarily on the customer experiences you deliver across channels and touch points. This means really knowing who your customers are so you can serve them better. Many businesses will transform from a channel-centric business model to a truly customer-centric business model. They will no longer tolerate messy data. They will recognize the importance of arming marketing, sales, e-commerce and customer service teams with the clean, consistent and connected customer, product and inventory information they need to deliver seamless, integrated and consistent experiences across touch points. And all of us will be more satisfied customers.
Like me, you probably just returned from an inspiring Sales Kick Off 2015 event. You’ve invested in talented people. You’ve trained them with the skills and knowledge they need to identify, qualify, validate, negotiate and close deals. You’ve invested in world-class applications, like Salesforce Sales Cloud, to empower your sales team to sell more effectively. But does your sales team have what they need to succeed in 2015?
Gartner predicts that as early as next year, companies will compete primarily on the customer experiences they deliver. So, every customer interaction counts. Knowing your customers is key to delivering great sales experiences.
But, inaccurate, inconsistent and disconnected customer information may be holding your sales team back from delivering great sales experiences. If you’re not fueling Salesforce Sales Cloud (or another Sales Force Automation (SFA) application) with clean, consistent and connected customer information, your sales team may be at a disadvantage against the competition.
To successfully compete and deliver great sales experiences more efficiently, your sales team needs a complete picture of their customers. They don’t want to pull information from multiple applications and then reconcile it in spreadsheets. They want direct access to the Total Customer Relationship across channels, touch points and products within their Salesforce Sales Cloud.
Watch this short video comparing a day-in-the-life of two sales reps competing for the same business. One has access to the Total Customer Relationship in Salesforce Sales Cloud, the other does not. Watch now: Salesforce.com with Clean, Consistent and Connected Customer Information.
Is your sales team spending time creating spreadsheets by pulling together customer information from multiple applications and then reconciling it to understand the Total Customer Relationship across channels, touch points and products? If so, how much is it costing your business? Or is your sales team engaging with customers without understanding the Total Customer Relationship? How much is that costing your business?
Many innovative sales leaders are gaining a competitive edge by better leveraging their customer data to empower their sales teams to deliver great sales experiences. They are fueling business and analytical applications, like Salesforce Sales Cloud, with clean, consistent and connected customer information. They are arming their sales teams with direct access to richer customer profiles, which includes the Total Customer Relationship across channels, touch points and products.
What measurable results have these sales leaders acheived? Merrill Lynch boosted sales productivity by 15%, resulting in $50M in annual impact. A $60B manufacturing company improved cross-sell and up-sell success by 5%. Logitech increased across channels: online, in their retail partner’s stores and through distribution partners.
This year, I believe more sales leaders will focus on leveraging their customer information for competitive advantage. This will help them shift from sales automation to sales optimization. What do you think?
“Raw materials costs are the company’s single largest expense category,” said Steve Jenkins, Global IT Director at Valspar, at MDM Day in London. “Data management technology can help us improve business process efficiency, manage sourcing risk and reduce RFQ cycle times.”
Valspar is a $4 billion global manufacturing company, which produces a portfolio of leading paint and coating brands. At the end of 2013, the 200 year old company celebrated record sales and earnings. They also completed two acquisitions. Valspar now has 10,000 employees operating in 25 countries.
As is the case for many global companies, growth creates complexity. “Valspar has multiple business units with varying purchasing practices. We source raw materials from 1,000s of vendors around the globe,” shared Steve.
“We want to achieve economies of scale in purchasing to control spending,” Steve said as he shared Valspar’s improvement objectives. “We want to build stronger relationships with our preferred vendors. Also, we want to develop internal process efficiencies to realize additional savings.”
Poorly managed vendor and raw materials data was impacting Valspar’s buying power
The Valspar team, who sharply focuses on productivity, had an “Aha” moment. “We realized our buying power was limited by the age and quality of available vendor data and raw materials data,” revealed Steve.
The core vendor data and raw materials data that should have been the same across multiple systems wasn’t. Data was often missing or wrong. This made it difficult to calculate the total spend on raw materials. It was also hard to calculate the total cost of expedited freight of raw materials. So, employees used a manual, time-consuming and error-prone process to consolidate vendor data and raw materials data for reporting.
These data issues were getting in the way of achieving their improvement objectives. Valspar needed a data management solution.
Valspar needed a single trusted source of vendor and raw materials data
The team chose Informatica MDM, master data management (MDM) technology. It will be their enterprise hub for vendors and raw materials. It will manage this data centrally on an ongoing basis. With Informatica MDM, Valspar will have a single trusted source of vendor and raw materials data.
Informatica PowerCenter will access data from multiple source systems. Informatica Data Quality will profile the data before it goes into the hub. Then, after Informatica MDM does it’s magic, PowerCenter will deliver clean, consistent, connected and enriched data to target systems.
Better vendor and raw materials data management results in cost savings
Valspar expects to gain the following business benefits:
- Streamline the RFQ process to accelerate raw materials cost savings
- Reduce the total number of raw materials SKUs and vendors
- Increase productivity of staff focused on pulling and maintaining data
- Leverage consistent global data visibly to:
- increase leverage during contract negotiations
- improve acquisition due diligence reviews
- facilitate process standardization and reporting
Valspar’s vision is to tranform data and information into a trusted organizational assets
“Mastering vendor and raw materials data is Phase 1 of our vision to transform data and information into trusted organizational assets,” shared Steve. In Phase 2 the Valspar team will master customer data so they have immediate access to the total purchases of key global customers. In Phase 3, Valspar’s team will turn their attention to product or finished goods data.
Steve ended his presentation with some advice. “First, include your business counterparts in the process as early as possible. They need to own and drive the business case as well as the approval process. Also, master only the vendor and raw materials attributes required to realize the business benefit.”
Want more? Download the Total Supplier Information Management eBook. It covers:
- Why your fragmented supplier data is holding you back
- The cost of supplier data chaos
- The warning signs you need to be looking for
- How you can achieve Total Supplier Information Management
I was recently searching for fishing rods for my 5-year old son and his friends to use at our neighborhood pond. I know nothing about fishing, so I needed to get educated. First up, a Google search on my laptop at home. Then, I jostled between my phone, tablet and laptop visiting websites, reading descriptions, looking at photos and reading reviews. Offline, I talked to friends and visited local stores recently, searching for fishing rods for my 5-year old son and his friends to use at our neighborhood pond. I know nothing about fishing, so I needed to get educated. First up, a Google search on my laptop at home. Then, I jostled between my phone, tablet and laptop visiting websites, reading descriptions, looking at photos and reading reviews. Offline, I talked to friends and visited local stores.
This blog post initially appeared on CMSwire.com and is reblogged here with their consent.
The product descriptions weren’t very helpful. What is a “practice casting plug”? Turns out, this was a great feature! Instead of a hook, the rod had a rubber fish to practice casting safely. What a missed opportunity for the retailers who didn’t share this information. I bought the fishing rods from the retailer that educated me with valuable product information and offered free three to five day shipping.
What does this mean for companies who sell products across multiple channels?
Virtually everyone is a cross-channel shopper: 95 percent of consumers frequently or at least occasionally shop a retailer’s website and store, according to the “Omni-Channel Insights” study by CFI Group. In the report, “The Omnichannel Opportunity: Unlocking the Power of the Connected Customer,” Deloitte predicts more than 50 percent of in-store purchases will be influenced digitally by the end of 2014.
Because of all this crosschannel activity, a new term is trending: omnichannel
What Does Omnichannel Mean?
Let’s take a look back in time. Retailers started with one channel — the brick-and-mortar store. Then they introduced the catalog and call center. Then they built another channel — e-Commerce. Instead of making it an extension of the brick-and-mortar experience, many implemented an independent strategy, including operations, resources, technology and inventory. Retailers recently started integrating brick-and-mortar and e-Commerce channels, but it’s not always consistent. And now they are building another channel — mobile sites and apps.
Multichannel is a retailer-centric, transaction-focused view of operations. Each channel operates and aims to boost sales independently. Omnichannel is a customer-centric view. The goal is to understand through which channels customers want to engage at each stage of the shopping journey and enable a seamless, integrated and consistent brand experience across channels and devices.
Shoppers expect an omnichannel experience, but delivering it efficiently isn’t easy. Those responsible for enabling an omnichannel experience are encountering barriers. Let’s look at the three barriers most relevant for marketing, merchandising, sales, customer experience and information management leaders.
Barrier #1: Shift from product-centric to customer-centric view
Many retailers focus on how many products are sold by channel. Three key questions are:
- How can we drive store sales growth?
- How can we drive online sales growth?
- What’s our mobile strategy?
This is the old way of running a retail business. The new way is analyzing customer data to understand how they are engaging and transacting across channels.
Why is this difficult? At the Argyle eCommerce Leadership Forum, Vice President of Multichannel at GameStop Corp Jason Allen shared the $8.8 billion video game retailer’s approach to overcoming this barrier. While online represents 3 percent of sales, no one measured how much the online channel was influencing overall business.
They started by collecting customer data for analytics to find out who their customers were and how they interacted with Game Stop online and in 6,600 stores across 15 countries. The analysis revealed customers used multiple channels: 60 percent engaged on the web, and 26 percent of web visitors who didn’t buy online bought in-store within 48 hours.
This insight changed the perception of the online channel as a small contributor. Now they use two metrics to measure performance. While the online channel delivers 3 percent of sales, it influences 22 percent of overall business.
Take Action: Start collecting customer data. Analyze it. Learn who your customers are. Find out how they engage and transact with your business across channels.
Barrier #2: Shift from fragmented customer data to centralized customer data everyone can use
Nikki Baird, Managing Partner at Retail Systems Research (RSR), told me she believes the fundamentals of retail are changing from “right product, right price, right place, right time” to:
- Who is my customer?
- What are they trying to accomplish?
- How can we help?
According to RSR, creating a consistent customer experience remains the most valued capability for retailers, but 54 percent indicated their biggest inhibitor was not having a single view of the customer across channels.
Why is this difficult? A $12 billion specialty retailer known for its relentless focus on customer experience, with 200 stores and an online channel had to overcome this barrier. To deliver a high-touch omnichannel experience, they needed to replace the many views of the customer with one unified customer view. They invested in master data management (MDM) technology and competencies.
Now they bring together customer, employee and product data scattered across 30 applications (e.g., e-Commerce, POS, clienteling, customer service, order management) into a central location, where it’s managed and shared on an ongoing basis. Employees’ applications are fueled with clean, consistent and connected customer data. They are able to deliver a high-touch omnichannel experience because they can answer important questions about customers and their valuable relationships, such as:
- Who is this customer and who’s in their household?
- Who do they buy for, what do they buy, where do they buy?
- Which employees do they typically buy from in store?
Take Action: Think of the valuable information customers share when they interact with different parts of your business. Tap into it by bridging customer information silos. Bring fragmented customer information together in one central location. Make it universally accessible. Don’t let it remain locked up in departmental applications. Keep it up-to-date. Automate the process of updating customer information across departmental applications.
Barrier #3: Shift from fragmented product data to centralized product data everyone can use
Two-thirds of purchase journeys start with a Google search. To have a fighting chance, retailers need rich and high quality product information to rank higher than the competition.
Take a look at the image on the left. Would you buy this product? Probably not. One-third of shoppers who don’t make a purchase didn’t have enough information to make a purchase decision. What product information does a shopper need to convert in the moment? Rich, high quality information has conversion power.
Consumers return about 40 percent of all fashion and 15 percent of electronics purchases. That’s not good for retailers or shoppers. Minimize costly returns with complete product information so shoppers can make more informed purchase decisions. Jason Allen’s advice is, “Focus less on the cart and check out. Focus more on search, product information and your store locator. Eighty percent of customers are coming to the web for research.”
Why is this difficult? Crestline is a multichannel direct marketing firm selling promotional products through direct mail and e-Commerce. The barrier to quickly bringing products to market and updating product information across channels was fragmented and complex product information. To replace the manual, time consuming spreadsheet process to manage product information, they invested in product information management (PIM) technology.
Now Crestline’s product introduction and update process is 300 percent more efficient. Because they are 100 percent current on top products and over 50 percent current for all products, the company is boosting margins and customer service.
Take Action: Think about all the product information shoppers need to research and make a decision. Tap into it by bridging product information silos. Bring fragmented product information together in one central location. Make it universally usable, not channel-specific. Keep it up-to-date. Automate the process of publishing product information across channels, including the applications used by customer service and store associates.
Delivering an omnichannel experience efficiently isn’t easy. The Game Stop team collected and analyzed customer data to learn more about who their customers are and how they interact with the company. A specialty retailer centralized fragmented customer data. Crestline centralized product information to accelerate their ability to bring products to market and make updates across channels. Which of these barriers are holding you back from delivering an omnichannel experience?
“Inaccurate, inconsistent and disconnected supplier information prohibits us from doing accurate supplier spend analysis, leveraging discounts, comparing and choosing the best prices, and enforcing corporate standards.”
This is quotation from a manufacturing company executive. It illustrates the negative impact that poorly managed supplier information can have on a company’s ability to cut costs and achieve revenue targets.
Many supply chain and procurement teams at large companies struggle to see the total relationship they have with suppliers across product lines, business units and regions. Why? Supplier information is scattered across dozens or hundreds of Enterprise Resource Planning (ERP) and Accounts Payable (AP) applications. Too much valuable time is spent manually reconciling inaccurate, inconsistent and disconnected supplier information in an effort to see the big picture. All this manual effort results in back office administrative costs that are higher than they should be.
Do these quotations from supply chain leaders and their teams sound familiar?
“We have 500,000 suppliers. 15-20% of our supplier records are duplicates. 5% are inaccurate.”
“I get 100 e-mails a day questioning which supplier to use.”
“To consolidate vendor reporting for a single supplier between divisions is really just a guess.”
“Every year 1099 tax mailings get returned to us because of invalid addresses, and we play a lot of Schedule B fines to the IRS.”
“Two years ago we spent a significant amount of time and money cleansing supplier data. Now we are back where we started.”
Please join me and Naveen Sharma, Director of the Master Data Management (MDM) Practice at Cognizant for a Webinar, Supercharge Your Supply Chain Applications with Better Supplier Information, on Tuesday, July 29th at 11 am PT.
During the Webinar, we’ll explain how better managing supplier information can help you achieve the following goals:
- Accelerate supplier onboarding
- Mitiate the risk of supply disruption
- Better manage supplier performance
- Streamline billing and payment processes
- Improve supplier relationship management and collaboration
- Make it easier to evaluate non-compliance with Service Level Agreements (SLAs)
- Decrease costs by negotiating favorable payment terms and SLAs
I hope you can join us for this upcoming Webinar!
“Not only do we underestimate the cost for projects up to 150%, but we overestimate the revenue it will generate.” This quotation from an Energy & Petroleum (E&P) company executive illustrates the negative impact of inaccurate, inconsistent and disconnected well data and asset data on revenue potential.
“Operational Excellence” is a common goal of many E&P company executives pursuing higher growth targets. But, inaccurate, inconsistent and disconnected well data and asset data may be holding them back. It obscures the complete picture of the well information lifecycle, making it difficult to maximize production efficiency, reduce Non-Productive Time (NPT), streamline the oilfield supply chain, calculate well by-well profitability, and mitigate risk.
To explain how E&P companies can better manage well data and asset data, we hosted a webinar, “Attention E&P Executives: Streamlining the Well Information Lifecycle.” Our well data experts Stephanie Wilkin, Senior Principal Consultant at Noah Consulting, and Stephan Zoder, Director of Value Engineering at Informatica shared some advice. E&P companies should reevaluate “throwing more bodies at a data cleanup project twice a year.” This approach does not support the pursuit of operational excellence.
In this interview, Stephanie shares details about the award-winning collaboration between Noah Consulting and Devon Energy to create a single trusted source of well data, which is standardized and mastered.
Q. Congratulations on winning the 2014 Innovation Award, Stephanie!
A. Thanks Jakki. It was really exciting working with Devon Energy. Together we put the technology and processes in place to manage and master well data in a central location and share it with downstream systems on an ongoing basis. We were proud to win the 2014 Innovation Award for Best Enterprise Data Platform.
Q. What was the business need for mastering well data?
A. As E&P companies grow so do their needs for business-critical well data. All departments need clean, consistent and connected well data to fuel their applications. We implemented a master data management (MDM) solution for well data with the goals of improving information management, business productivity, organizational efficiency, and reporting.
Q. How long did it take to implement the MDM solution for well data?
A. The Devon Energy project kicked off in May of 2012. Within five months we built the complete solution from gathering business requirements to development and testing.
Q. What were the steps in implementing the MDM solution?
A: The first and most important step was securing buy-in on a common definition for master well data or Unique Well Identifier (UWI). The key was to create a definition that would meet the needs of various business functions. Then we built the well master, which would be consistent across various systems, such as G&G, Drilling, Production, Finance, etc. We used the Professional Petroleum Data Management Association (PPDM) data model and created more than 70 unique attributes for the well, including Lahee Class, Fluid Direction, Trajectory, Role and Business Interest.
As part of the original go-live, we had three source systems of well data and two target systems connected to the MDM solution. Over the course of the next year, we added three additional source systems and four additional target systems. We did a cross-system analysis to make sure every department has the right wells and the right data about those wells. Now the company uses MDM as the single trusted source of well data, which is standardized and mastered, to do analysis and build reports.
Q. What’s been the traditional approach for managing well data?
A. Typically when a new well is created, employees spend time entering well data into their own systems. For example, one person enters well data into the G&G application. Another person enters the same well data into the Drilling application. A third person enters the same well data into the Finance application. According to statistics, it takes about 30 minutes to enter wells into a particular financial application.
So imagine if you need to add 500 new wells to your systems. This is common after a merger or acquisition. That translates to roughly 250 hours or 6.25 weeks of employee time saved on the well create process! By automating across systems, you not only save time, you eliminate redundant data entry and possible errors in the process.
Q. That sounds like a painfully slow and error-prone process.
A. It is! But that’s only half the problem. Without a single trusted source of well data, how do you get a complete picture of your wells? When you compare the well data in the G&G system to the well data in the Drilling or Finance systems, it’s typically inconsistent and difficult to reconcile. This leads to the question, “Which one of these systems has the best version of the truth?” Employees spend too much time manually reconciling well data for reporting and decision-making.
Q. So there is a lot to be gained by better managing well data.
A. That’s right. The CFO typically loves the ROI on a master well data project. It’s a huge opportunity to save time and money, boost productivity and get more accurate reporting.
Q: What were some of the business requirements for the MDM solution?
A: We couldn’t build a solution that was narrowly focused on meeting the company’s needs today. We had to keep the future in mind. Our goal was to build a framework that was scalable and supportable as the company’s business environment changed. This allows the company to add additional data domains or attributes to the well data model at any time.
Q: Why did you choose Informatica MDM?
A: The decision to use Informatica MDM for the MDM Trust Framework came down to the following capabilities:
- Match and Merge: With Informatica, we get a lot of flexibility. Some systems carry the API or well government ID, but some don’t. We can match and merge records differently based on the system.
- X-References: We keep a cross-reference between all the systems. We can go back to the master well data and find out where that data came from and when. We can see where changes have occurred because Informatica MDM tracks the history and lineage.
- Scalability: This was a key requirement. While we went live after only 5 months, we’ve been continually building out the well master based on the requiremets of the target systems.
- Flexibility: Down the road, if we want to add an additional facet or classification to the well master, the framework allows for that.
- Simple Integration: Instead of building point-to-point integrations, we use the hub model.
In addition to Informatica MDM, our Noah Consulting MDM Trust Framework includes Informatica PowerCenter for data integration, Informatica Data Quality for data cleansing and Informatica Data Virtualization.
Q: Can you give some examples of the business value gained by mastering well data?
A: One person said to me, “I’m so overwhelmed! We’ve never had one place to look at this well data before.” With MDM centrally managing master well data and fueling key business applications, many upstream processes can be optimized to achieve their full potential value.
People spend less time entering well data on the front end and reconciling well data on the back end. Well data is entered once and it’s automatically shared across all systems that need it. People can trust that it’s consistent across systems. Also, because the data across systems is now tied together, it provides business value they were unable to realize before, such as predictive analytics.
Q. What’s next?
A. There’s a lot of insight that can be gained by understanding the relationships between the well, and the people, equipment and facilities associated with it. Next, we’re planning to add the operational hierarchy. For example, we’ll be able to identify which production engineer, reservoir engineer and foreman are working on a particular well.
We’ve also started gathering business requirements for equipment and facilities to be tied to each well. There’s a lot more business value on the horizon as the company streamlines their well information lifecycle and the valuable relationships around the well.
If you missed the webinar, you can watch the replay now: Attention E&P Executives: Streamlining the Well Information Lifecycle.