Tag Archives: customer-centric

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.

FacebookTwitterLinkedInEmailPrintShare
Posted in CMO, Customer Acquisition & Retention, Customers, Data Governance, Master Data Management, Mergers and Acquisitions | 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:

 

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

The CIO’s Role In Driving Customer Profitability

 

 

 

When asked by the Conference Board in 2011 to rank the challenges that keep them up at night, U.S.-based CEOs put business growth in the number one position. Growing the business means growing the customer base by delivering a superior customer experience—and that demands leadership for the elimination of customer data silos and delivering complete, reliable customer data to the business.

The CIO is in a unique strategic position to help out—and emerge as (an unexpected) customer champion. Cases of CIOs taking on the role of customer champion, in my opinion, are not prevalent enough and represent a missed opportunity to advance the organization’s quest for customer profits. Companies need to focus on such immediately actionable key metrics as understanding the value of gained and lost customers, quantities of referrals, and the movement of customers from one level of profitability to another. I call these the “Guerrilla Metrics” because they power the customer onto the corporate agenda—and will help the CEO determine the value of the corporation based on its ability to manage customers as assets. This requires enabling the integration of customer data and driving that as a priority. (more…)

FacebookTwitterLinkedInEmailPrintShare
Posted in Customer Acquisition & Retention | Tagged , , , , , , , | 1 Comment

Join our @INFASupport TweetFest

It’s not the survival of the fittest anymore, it’s not the survival of the strongest either, it IS however the most adaptable who survive.

At Informatica we are always innovating ways to serve our community better. In keeping pace with the adoption of social networking, the Global Customer Support team expanded some of our communication channels to include new options of contacting us through social media. There are a number of great social media tools, but perhaps the simplest one for business use is Twitter.

We launched our @INFASupport Twitter channel in mid-February and have used this as one way to support, reach out to and dialogue with our wider community since then. We have received a number of accolades from our followers/customers for all the useful information we have been sharing and also for giving them an easier and quick channel for communicating with us. (more…)

FacebookTwitterLinkedInEmailPrintShare
Posted in Customers, Informatica Events | Tagged , , , | Leave a comment

Webinar: Learn How Kodak Is Enabling Customer Centricity With MDM

If you’ve wondered exactly what type of impact master data management (MDM) can have on improving B2B sales here’s a terrific opportunity to find out first hand!

I’m delighted to announce that Kodak, the multibillion-dollar global imaging company, will be joining us for a must-attend webinar on how it’s using a multidomain MDM solution to enable customer centricity and empowering its sales, marketing and customer service teams with access to a single customer view. (more…)

FacebookTwitterLinkedInEmailPrintShare
Posted in Business Impact / Benefits, Business/IT Collaboration, CIO, Customers, Data Governance, Data Quality, Enterprise Data Management, Informatica Events, Master Data Management, Operational Efficiency, Uncategorized | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment