Tag Archives: 360 degree customer view

Don’t Rely on CRM as Your Single Source of Trusted Customer Data

Step 1: Determine if you have a customer data problem

A statement I often hear from marketing and sales leaders unfamiliar with the concept of mastering customer data is, “My CRM application is our single source of trusted customer data.” They use CRM to onboard new customers, collecting addresses, phone numbers and email addresses. They append a DUNS number. So it’s no surprise they may expect they can master their customer data in CRM. (To learn more about the basics of managing trusted customer data, read this: How much does bad data cost your business?)

It may seem logical to expect your CRM investment to be your customer master – especially since so many CRM vendors promise a “360 degree view of your customer.” But you should only consider your CRM system as the source of truth for trusted customer data if:

Shopper
For most large enterprises, CRM never delivered on that promise of a trusted 360-degree customer view.

 ·  You have only a single instance of Salesforce.com, Siebel CRM, or other CRM

·  You have only one sales organization (vs. distributed across regions and LOBs)

·  Your CRM manages all customer-focused processes and interactions (marketing, service, support, order management, self-service, etc)

·  The master customer data in your CRM is clean, complete, fresh, and free of duplicates


Unfortunately most mid-to-large companies cannot claim such simple operations. For most large enterprises, CRM never delivered on that promise of a trusted 360-degree customer view. That’s what prompted Gartner analysts Bill O’Kane and Kimbery Collins to write this report,
 MDM is Critical to CRM Optimization, in February 2014.

“The reality is that the vast majority of the Fortune 2000 companies we talk to are complex,” says Christopher Dwight, who leads a team of master data management (MDM) and product information management (PIM) sales specialists for Informatica. Christopher and team spend each day working with retailers, distributors and CPG companies to help them get more value from their customer, product and supplier data. “Business-critical customer data doesn’t live in one place. There’s no clear and simple source. Functional organizations, processes, and systems landscapes are much more complicated. Typically they have multiple selling organizations across business units or regions.”

As an example, listed below are typical functional organizations, and common customer master data-dependent applications they rely upon, to support the lead-to-cash process within a typical enterprise:

·  Marketing: marketing automation, campaign management and customer analytics systems.
·  Ecommerce: e-commerce storefront and commerce applications.
·  Sales: sales force automation, quote management,
·  Fulfillment: ERP, shipping and logistics systems.
·  Finance: order management and billing systems.
·  Customer Service: CRM, IVR and case management systems.

The fragmentation of critical customer data across multiple organizations and applications is further exacerbated by the explosive adoption of Cloud applications such as Salesforce.com and Marketo. Merger and acquisition (M&A) activity is common among many larger organizations where additional legacy customer applications must be onboarded and reconciled. Suddenly your customer data challenge grows exponentially.  

Step 2: Measure how customer data fragmentation impacts your business

Ask yourself: if your customer data is inaccurate, inconstant and disconnected can you:

Customer data is fragmented across multiple applications used by business units, product lines, functions and regions.

Customer data is fragmented across multiple applications used by business units, product lines, functions and regions.

·  See the full picture of a customer’s relationship with the business across business units, product lines, channels and regions?  

·  Better understand and segment customers for personalized offers, improving lead conversion rates and boosting cross-sell and up-sell success?

·  Deliver an exceptional, differentiated customer experience?

·  Leverage rich sources of 3rd party data as well as big data such as social, mobile, sensors, etc.., to enrich customer insights?

“One company I recently spoke with was having a hard time creating a single consolidated invoice for each customer that included all the services purchased across business units,” says Dwight. “When they investigated, they were shocked to find that 80% of their consolidated invoices contained errors! The root cause was innaccurate, inconsistent and inconsistent customer data. This was a serious business problem costing the company a lot of money.”

Let’s do a quick test right now. Are any of these companies your customers: GE, Coke, Exxon, AT&T or HP? Do you know the legal company names for any of these organizations? Most people don’t. I’m willing to bet there are at least a handful of variations of these company names such as Coke, Coca-Cola, The Coca Cola Company, etc in your CRM application. Chances are there are dozens of variations in the numerous applications where business-critical customer data lives and these customer profiles are tied to transactions. That’s hard to clean up. You can’t just merge records because you need to maintain the transaction history and audit history. So you can’t clean up the customer data in this system and merge the duplicates.

The same holds true for B2C customers. In fact, I’m a nightmare for a large marketing organization. I get multiple offers and statements addressed to different versions of my name: Jakki Geiger, Jacqueline Geiger, Jackie Geiger and J. Geiger. But my personal favorite is when I get an offer from a company I do business with addressed to “Resident”. Why don’t they know I live here? They certainly know where to find me when they bill me!

Step 3: Transform how you view, manage and share customer data

Why do so many businesses that try to master customer data in CRM fail? Let’s be frank. CRM systems such as Salesforce.com and Siebel CRM were purpose built to support a specific set of business processes, and for the most part they do a great job. But they were never built with a focus on mastering customer data for the business beyond the scope of their own processes.

But perhaps you disagree with everything discussed so far. Or you’re a risk-taker and want to take on the challenge of bringing all master customer data that exists across the business into your CRM app. Be warned, you’ll likely encounter four major problems:

1) Your master customer data in each system has a different data model with different standards and requirements for capture and maintenance. Good luck reconciling them!

2) To be successful, your customer data must be clean and consistent across all your systems, which is rarely the case.

3) Even if you use DUNS numbers, some systems use the global DUNS number; others use a regional DUNS number. Some manage customer data at the legal entity level, others at the site level. How do you connect those?

4) If there are duplicate customer profiles in CRM tied to transactions, you can’t just merge the profiles because you need to maintain the transactional integrity and audit history. In this case, you’re dead on arrival.

There is a better way! Customer-centric, data-driven companies recognize these obstacles and they don’t rely on CRM as the single source of trusted customer data. Instead, they are transforming how they view, manage and share master customer data across the critical applications their businesses rely upon. They embrace master data management (MDM) best practices and technologies to reconcile, merge, share and govern business-critical customer data. 

More and more B2B and B2C companies are investing in MDM capabilities to manage customer households and multiple views of customer account hierarchies (e.g. a legal view can be shared with finance, a sales territory view can be shared with sales, or an industry view can be shared with a business unit).

 

Gartner Report, MDM is Critical to CRM Optimization, Bill O'Kane & Kimberly Collins, February 7 2014.

Gartner Report, MDM is Critical to CRM Optimization, Bill O’Kane & Kimberly Collins, February 7 2014.

According to Gartner analysts Bill O’Kane and Kimberly Collins, “Through 2017, CRM leaders who avoid MDM will derive erroneous results that annoy customers, resulting in a 25% reduction in potential revenue gains,” according to this Gartner report, MDM is Critical to CRM Optimization, February 2014.

Are you ready to reassess your assumptions about mastering customer data in CRM?

Get the Gartner report now: MDM is Critical to CRM Optimization.

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Posted in CMO, Customer Acquisition & Retention, Customers, Data Governance, Master Data Management, Mergers and Acquisitions | Tagged , , , , , , , , , , , , , , , , | Leave a comment

Inside Dreamforce ’13: Why sales may be building 360-degree customer views outside Salesforce

I had a disturbing conversation at Dreamforce. Long story short, thousands of highly skilled and highly paid financial advisors (read sales reps) at a large financial services company are spending most of their day pulling together information about their clients in a spreadsheet, leaving only a few hours to engage with clients and generate revenue.

Not all valuable customer information is in Salesforce

360_degree_city-1024x640

Are you in sales? Your time is too valuable to squander on jobs technology can do. Stop building 360-degree customer views in spreadsheets. Get it delivered in Salesforce.

Why? They don’t have a 360-degree customer view within Salesforce.

Why not? Not all client information that’s valuable to the financial advisors is in Salesforce.  Important client information is in other applications too, such as:

  • Marketing automation application
  • Customer support application
  • Account management applications
  • Finance applications
  • Business intelligence applications

Are you in sales? Do you work for a company that has multiple products or lines of business? Then you can probably relate. In my 15 years of experience working with sales, I’ve found this to be a harsh reality. You have to manually pull together customer information, which is a time-consuming process that doesn’t boost job satisfaction.

Stop building 360-degree customer views in spreadsheets 

So what can you do about it? Stop building 360-degree customer views in spreadsheets. There is a better way and your sales operations leader can help.

One of my favorite customer success stories is about one of the world’s leading wealth management companies, with 16,000 financial advisors globally.  Like most companies, their goal is to increase revenue by understanding their customers’ needs and making relevant cross-sell and up-sell offers.

But, the financial advisors needed an up-to-date view of the “total customer relationship” with the bank before they talked to their high net-worth clients. They wanted to appear knowledgeable and offer a product the client might actually want.

Can you guess what was holding them back? The bank operated in an account-centric world. Each line of business had its own account management application. To get a 360-degree customer view, the financial advisors spent 70% of their time pulling important client information from different applications into spreadsheets. Sound familiar?

Once the head of sales realized this, he decided to invest in information management technology that provides clean, consistent and connected customer information and delivers a 360-degree customer view within Salesforce.

The result? They’ve had a $50 million dollar impact annually and a 30% increase in productivity. In fact, word spread to other banks and the 360-degree customer view in Salesforce became an incentive to attract top talent in the industry.

Ask sales operations to give you 360-degree customer views within Salesforce

I urge you to take action. In particular, talk to your sales operations leader if he or she is at all interested in improving performance and productivity, acquiring and retaining top sales talent, and cutting costs.

Want to see how you can get 360-degree customer views in Salesforce? Check out this demo: Enrich Customer Data in Your CRM Application with MDM. Then schedule a meeting with your sales operations leader.

Have a similar experience to share? Please share it in the comments below.

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Posted in Customer Acquisition & Retention, Customers, Data Integration, Data Quality, Financial Services, Master Data Management, Operational Efficiency, Uncategorized | Tagged , , , , | Leave a comment

Logitech MDM Case Study: Live Questions, Answers and Attendee Poll Results (Part II of II)

Last week, I posted this blog:  Logitech MDM Case Study: Seven Lessons for Mastering Product and Customer Data (Part I of II) which shares highlights from recent webinar. Logitech’s Severin Stoll, Senior Business Engagement Manager of Global IT Solutions spoke with David Decloux, MDM technical lead in EMEA about Logitech’s Global MDM implementation, in which they are mastering product, customer and consumer data.

Logitech’s Severin Stoll and Informatica's David Decloux answer questions from webinar attendees about building an MDM business case, implementation time, data governance, and real-time MDM.

In this blog, I’ll share some of the highlights of the Q&A I led and results from two polls. (more…)

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Posted in Customers, Data Governance, Manufacturing, Master Data Management, Retail | Tagged , , , , , , , , , , , , , , , , , , , , | Leave a comment

Logitech MDM Case Study: 7 Lessons for Mastering Product and Customer Data (Part I of II)

Severin Stoll played a critical role selling MDM within the business organization as a solution to their business challenges. Currently he’s in IT, responsible for the overall MDM program.

Severin Stoll played a critical role selling MDM within the business organization as a solution to their business challenges. Currently he’s in IT, responsible for the overall MDM program.

Logitech’s Severin Stoll, Senior Business Engagement Manager of Global IT Solutions participated in a webinar with David Decloux, MDM technical lead in EMEA about Logitech’s Global MDM Implementation.

Severin shared the business challenges that led the global electronics company to pursue an MDM program, their business requirements, and the seven lessons for mastering product and customer data. Their next step is mastering consumer data.

In the next two blogs I’ll share some of the highlights from the discussion, the Q&A session and the poll results from this popular webinar which attracted more than 800 registrants. (more…)

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Posted in Customers, Manufacturing, Master Data Management, Retail | Tagged , , , , , , , , , , , , , , , , , | Leave a comment

Retail Case Study: Printemps Department Store Builds a Trusted Customer Data Foundation with MDM and Data Quality

If you have never traveled to France, you have missed the unique and exciting shopping experience offered at Printemps, a luxury fashion retailer. Its flagship store in Paris drives 60% of the company’s revenue. More than 1.5 million customers who love fashion visit this store as well as the retailer’s 15 other high-end stores around the country.

Printemps Haussmann, flagship department store in Paris, France.

Printemps’ goal is to cultivate long-term personal relationships with their high value customers by delivering exceptional services. Their strategy to accomplish this goal is to continuously meet their high value customers’ needs and expectations and create compelling incentives for customers to visit their stores.

Printemps’ marketing team is continually striving to be more customer-centric and improve campaign effectiveness. They are using customer analytics to segment their customers and better understand their preferences. For example:

  • Which customers prefer fashion, beauty or accessories?
  • Which customers prefer communications through the mail, email, mobile phone, social media channels?

Printemps has plenty of information about their 1.5 million customers. So what
was standing in their way? They lacked a 360-degree view of their high value
customers. The key culprit was duplicate customer information across multiple
systems.

I had the honor of introducing Olivier de Compiègne, who is responsible for Project Services and Customer Relationships at Printemps at Informatica World. Olivier’s main message: if your goal is to attract high value customers and boost customer loyalty, first you must invest in a solid customer data foundation.

To build their solid customer data foundation, Printemps’ team is leveraging Informatica Data Quality to ensure their customer information is as accurate and complete as possible across all key sources. They are using Informatica MDM, master data management (MDM) technology to rationalize customer information from numerous data sources to create a single customer view as well as a 360-degree customer view, which includes each customer’s purchase history.

Printemps’ solid customer data foundation is maintained on an ongoing basis, which allows Printemps’ marketing team to have confidence in the data they use for customer analytics and campaign management. Now they can truly support personalized relationships with customers and optimize their marketing by sending tailored messages to targeted customer segments.

If you are trying to cultivate long-term personal relationships with your customers and lack a 360 degree customer view, I hope Olivier’s story was helpful.  Do you have similiar goals? Please share your thoughts. I’m interested in hearing from you.

If you want to learn more about how Printemps’ is using Informatica Data Quality and Informatica MDM, please:

 

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Posted in Customer Acquisition & Retention, Data Quality, Master Data Management, Retail | Tagged , , , , , , , , , , , , , , , | Leave a comment