Tag Archives: operator

Murphy’s First Law of Bad Data – If You Make A Small Change Without Involving Your Client – You Will Waste Heaps Of Money

I have not used my personal encounter with bad data management for over a year but a couple of weeks ago I was compelled to revive it.  Why you ask? Well, a complete stranger started to receive one of my friend’s text messages – including mine – and it took days for him to detect it and a week later nobody at this North American wireless operator had been able to fix it.  This coincided with a meeting I had with a European telco’s enterprise architecture team.  There was no better way to illustrate to them how a customer reacts and the risk to their operations, when communication breaks down due to just one tiny thing changing – say, his address (or in the SMS case, some random SIM mapping – another type of address).

Imagine the cost of other bad data (thecodeproject.com)

Imagine the cost of other bad data (thecodeproject.com)

In my case, I  moved about 250 miles within the United States a couple of years ago and this seemingly common experience triggered a plethora of communication screw ups across every merchant a residential household engages with frequently, e.g. your bank, your insurer, your wireless carrier, your average retail clothing store, etc.

For more than two full years after my move to a new state, the following things continued to pop up on a monthly basis due to my incorrect customer data:

  • In case of my old satellite TV provider they got to me (correct person) but with a misspelled last name at my correct, new address.
  • My bank put me in a bit of a pickle as they sent “important tax documentation”, which I did not want to open as my new tenants’ names (in the house I just vacated) was on the letter but with my new home’s address.
  • My mortgage lender sends me a refinancing offer to my new address (right person & right address) but with my wife’s as well as my name completely butchered.
  • My wife’s airline, where she enjoys the highest level of frequent flyer status, continually mails her offers duplicating her last name as her first name.
  • A high-end furniture retailer sends two 100-page glossy catalogs probably costing $80 each to our address – one for me, one for her.
  • A national health insurer sends “sensitive health information” (disclosed on envelope) to my new residence’s address but for the prior owner.
  • My legacy operator turns on the wrong premium channels on half my set-top boxes.
  • The same operator sends me a SMS the next day thanking me for switching to electronic billing as part of my move, which I did not sign up for, followed by payment notices (as I did not get my invoice in the mail).  When I called this error out for the next three months by calling their contact center and indicating how much revenue I generate for them across all services, they counter with “sorry, we don’t have access to the wireless account data”, “you will see it change on the next bill cycle” and “you show as paper billing in our system today”.

Ignoring the potential for data privacy law suits, you start wondering how long you have to be a customer and how much money you need to spend with a merchant (and they need to waste) for them to take changes to your data more seriously.  And this are not even merchants to whom I am brand new – these guys have known me and taken my money for years!

One thing I nearly forgot…these mailings all happened at least once a month on average, sometimes twice over 2 years.  If I do some pigeon math here, I would have estimated the postage and production cost alone to run in the hundreds of dollars.

However, the most egregious trespass though belonged to my home owner’s insurance carrier (HOI), who was also my mortgage broker.  They had a double whammy in store for me.  First, I received a cancellation notice from the HOI for my old residence indicating they had cancelled my policy as the last payment was not received and that any claims will be denied as a consequence.  Then, my new residence’s HOI advised they added my old home’s HOI to my account.

After wondering what I could have possibly done to trigger this, I called all four parties (not three as the mortgage firm did not share data with the insurance broker side – surprise, surprise) to find out what had happened.

It turns out that I had to explain and prove to all of them how one party’s data change during my move erroneously exposed me to liability.  It felt like the old days, when seedy telco sales people needed only your name and phone number and associate it with some sort of promotion (back of a raffle card to win a new car), you never took part in, to switch your long distance carrier and present you with a $400 bill the coming month.  Yes, that also happened to me…many years ago.  Here again, the consumer had to do all the legwork when someone (not an automatic process!) switched some entry without any oversight or review triggering hours of wasted effort on their and my side.

We can argue all day long if these screw ups are due to bad processes or bad data, but in all reality, even processes are triggered from some sort of underlying event, which is something as mundane as a database field’s flag being updated when your last purchase puts you in a new marketing segment.

Now imagine you get married and you wife changes her name. With all these company internal (CRM, Billing, ERP),  free public (property tax), commercial (credit bureaus, mailing lists) and social media data sources out there, you would think such everyday changes could get picked up quicker and automatically.  If not automatically, then should there not be some sort of trigger to kick off a “governance” process; something along the lines of “email/call the customer if attribute X has changed” or “please log into your account and update your information – we heard you moved”.  If American Express was able to detect ten years ago that someone purchased $500 worth of product with your credit card at a gas station or some lingerie website, known for fraudulent activity, why not your bank or insurer, who know even more about you? And yes, that happened to me as well.

Tell me about one of your “data-driven” horror scenarios?

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Posted in Banking & Capital Markets, Business Impact / Benefits, Business/IT Collaboration, Complex Event Processing, Customer Acquisition & Retention, Customer Services, Customers, Data Aggregation, Data Governance, Data Privacy, Data Quality, Enterprise Data Management, Financial Services, Governance, Risk and Compliance, Healthcare, Master Data Management, Retail, Telecommunications, Uncategorized, Vertical | Tagged , , , , , , , , , | Leave a comment

Understand Customer Intentions To Manage The Experience

I recently had a lengthy conversation with a business executive of a European telco.  His biggest concern was to not only understand the motivations and related characteristics of consumers but to accomplish this insight much faster than before.  Given available resources and current priorities this is something unattainable for many operators.

Unlike a few years ago – remember the time before iPad – his organization today is awash with data points from millions of devices, hundreds of device types and many applications.

What will he do next?

What will he do next?

One way for him to understand consumer motivation; and therefore intentions, is to get a better view of a user’s network and all related interactions and transactions.  This includes his family household, friends and business network (also a type of household).  The purpose of householding is to capture social and commercial relationships in a grouping of individuals (or businesses or both mixed together) in order to identify patterns (context), which can be exploited to better serve a customer a new individual product or bundle upsell, to push relevant apps, audio and video content.

Let’s add another layer of complexity by understanding not only who a subscriber is, who he knows and how often he interacts with these contacts and the services he has access to via one or more devices but also where he physically is at the moment he interacts.  You may also combine this with customer service and (summarized) network performance data to understand who is high-value, high-overhead and/or high in customer experience.  Most importantly, you will also be able to assess who will do what next and why.

Some of you may be thinking “Oh gosh, the next NSA program in the making”.   Well, it may sound like it but the reality is that this data is out there today, available and interpretable if cleaned up, structured and linked and served in real time.  Not only do data quality, ETL, analytical and master data systems provide the data backbone for this reality but process-based systems dealing with the systematic real-time engagement of consumers are the tool to make it actionable.  If you add some sort of privacy rules using database or application-level masking technologies, most of us would feel more comfortable about this proposition.

This may feel like a massive project but as many things in IT life; it depends on how you scope it.  I am a big fan of incremental mastering of increasingly more attributes of certain customer segments, business units, geographies, where lessons learnt can be replicated over and over to scale.  Moreover, I am a big fan of figuring out what you are trying to achieve before even attempting to tackle it.

The beauty behind a “small” data backbone – more about “small data” in a future post – is that if a certain concept does not pan out in terms of effort or result, you have just wasted a small pile of cash instead of the $2 million for a complete throw-away.  For example: if you initially decided that the central lynch pin in your household hub & spoke is the person, who owns the most contracts with you rather than the person who pays the bills every month or who has the largest average monthly bill, moving to an alternative perspective does not impact all services, all departments and all clients.  Nevertheless, the role of each user in the network must be defined over time to achieve context, i.e. who is a contract signee, who is a payer, who is a user, who is an influencer, who is an employer, etc.

Why is this important to a business? It is because without the knowledge of who consumes, who pays for and who influences the purchase/change of a service/product, how can one create the right offers and target them to the right individual.

However, in order to make this initial call about household definition and scope or look at the options available and sensible, you have to look at social and cultural conventions, what you are trying to accomplish commercially and your current data set’s ability to achieve anything without a massive enrichment program.  A couple of years ago, at a Middle Eastern operator, it was very clear that the local patriarchal society dictated that the center of this hub and spoke model was the oldest, non-retired male in the household, as all contracts down to children of cousins would typically run under his name.  The goal was to capture extended family relationships more accurately and completely in order to create and sell new family-type bundles for greater market penetration and maximize usage given new bandwidth capacity.

As a parallel track aside from further rollout to other departments, customer segments and geos, you may also want to start thinking like another European operator I engaged a couple of years ago.  They were trying to outsource some data validation and enrichment to their subscribers, which allowed for a more accurate and timely capture of changes, often life-style changes (moves, marriages, new job).  The operator could then offer new bundles and roaming upsells. As a side effect, it also created a sense of empowerment and engagement in the client base.

I see bits and pieces of some of this being used when I switch on my home communication systems running broadband signal through my X-Box or set-top box into my TV using Netflix and Hulu and gaming.  Moreover, a US cable operator actively promotes a “moving” package to help make sure you do not miss a single minute of entertainment when relocating.

Every time now I switch on my TV, I get content suggested to me.  If telecommunication services would now be a bit more competitive in the US (an odd thing to say in every respect) and prices would come down to European levels, I would actually take advantage of the offer.  And then there is the log-on pop up asking me to subscribe (or throubleshoot) a channel I have already subscribed to.  Wonder who or what automated process switched that flag.

Ultimately, there cannot be a good customer experience without understanding customer intentions.  I would love to hear stories from other practitioners on what they have seen in such respect

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Posted in Business Impact / Benefits, Complex Event Processing, Customer Acquisition & Retention, Customer Services, Customers, Data Integration, Data Quality, Master Data Management, Profiling, Real-Time, Telecommunications, Vertical | Tagged , , , , , , , , , | Leave a comment