Tag Archives: SaaS Integration

Is Your Data Ready to Maximize Value from Your CRM Investments?

Is Your Data Ready to Maximize Value from Your CRM Investments?

Is Your Data Ready to Maximize Value from Your CRM Investments?

A friend of mine recently reached out to me about some advice on CRM solutions in the market.  Though I have not worked for a CRM vendor, I’ve had both direct experience working for companies that implemented such solutions to my current role interacting with large and small organizations regarding their data requirements to support ongoing application investments across industries. As we spoke, memories started to surface when he and I had worked on implementing Salesforce.com (SFDC) many years ago. Memories that we wanted to forget but important to call out given his new situation.

We worked together for a large mortgage lending software vendor selling loan origination solutions to brokers and small lenders mainly through email and snail mail based marketing.  He was responsible for Marketing Operations, and I ran Product Marketing. The company looked at Salesforce.com to help streamline our sales operations  and improve how we marketed and serviced our customers.  The existing CRM system was from the early 90’s and though it did what the company needed it to do, it was heavily customized, costly to operate, and served its life. It was time to upgrade, to help grow the business, improve business productivity, and enhance customer relationships.

After 90 days of rolling out SFDC, we ran into some old familiar problems across the business.  Sales reps continued to struggle in knowing who was a current customer using our software, marketing managers could not create quality mailing lists for prospecting purposes, and call center reps were not able to tell if the person on the other end was a customer or prospect. Everyone wondered why this was happening given we adopted the best CRM solution in the market.  You can imagine the heartburn and ulcers we all had after making such a huge investment in our new CRM solution.  C-Level executives were questioning our decisions and blaming the applications. The truth was, the issues were not related to SFDC but the data that we had migrated into the system and the lack proper governance and a capable information architecture to support the required data management integration between systems that caused these significant headaches.

During the implementation phase, IT imported our entire customer database of 200K+ unique customer entities from the old system to SFDC. Unfortunately, the mortgage industry was very transient and on average there were roughly 55K licenses mortgage brokers and lenders in the market and because no one ever validated the accuracy of who was really a customer vs. someone who had ever bought out product, we had a serious data quality issues including:

  • Trial users  who purchased evaluation copies of our products that expired were tagged as current customers
  • Duplicate records caused by manual data entry errors consisting of companies with similar but entered slightly differently with the same business address were tagged as unique customers
  • Subsidiaries of parent companies in different parts of the country that were tagged again as a unique customer.
  • Lastly, we imported the marketing contact database of prospects which were incorrectly accounted for as a customer in the new system

We also failed to integrate real-time purchasing data and information from our procurement systems for sales and support to handle customer requests. Instead of integrating that data in real-time with proper technology, IT had manually loaded these records at the end of the week via FTP resulting in incorrect billing information, statement processing, and a ton of complaints from customers through our call center. The price we paid for not paying attention to our data quality and integration requirements before we rolled out Salesforce.com was significant for a company of our size. For example:

  • Marketing got hit pretty hard. Each quarter we mailed evaluation copies of new products to our customer database of 200K, each costing the company $12 per to produce and mail. Total cost = $2.4M annually.  Because we had such bad data,  we would get 60% of our mailings returned because of invalid addresses or wrong contact information. The cost of bad data to marketing = $1.44M annually.
  • Next, Sales struggled miserably when trying to upgrade a customer by running cold call campaigns using the names in the database. As a result, sales productivity dropped by 40% and experienced over 35% sales turnover that year. Within a year of using SFDC, our head of sales got let go. Not good!
  • Customer support used SFDC to service customers, our average all times were 40 min per service ticket. We had believed that was “business as usual” until we surveyed what reps were spending their time each day and over 50% said it was dealing with billing issues caused by bad contact information in the CRM system.

At the end of our conversation, this was my advice to my friend:

  • Conduct a data quality audit of the systems that would interact with the CRM system. Audit how complete your critical master and reference data is including names, addresses, customer ID, etc.
  • Do this before you invest in a new CRM system. You may find that much of the challenges faced with your existing applications may be caused by the data gaps vs. the legacy application.
  • If they had a data governance program, involve them in the CRM initiative to ensure they understand what your requirements are and see how they can help.
  • However, if you do decide to modernize, collaborate and involve your IT teams, especially between your Application Development teams and your Enterprise Architects to ensure all of the best options are considered to handle your data sharing and migration needs.
  • Lastly, consult with your technology partners including your new CRM vendor, they may be working with solution providers to help address these data issues as you are probably not the only one in this situation.

Looking Ahead!

CRM systems have come a long way in today’s Big Data and Cloud Era. Many firms are adopting more flexible solutions offered through the Cloud like Salesforce.com, Microsoft Dynamics, and others. Regardless of how old or new, on premise or in the cloud, companies invest in CRM not to just serve their sales teams or increase marketing conversion rates, but to improve your business relationship with your customers. Period! It’s about ensuring you have data in these systems that is trustworthy, complete, up to date, and actionable to improve customer service and help drive sales of new products and services to increase wallet share. So how to do you maximize your business potential from these critical business applications?

Whether you are adopting your first CRM solution or upgrading an existing one, keep in mind that Customer Relationship Management is a business strategy, not just a software purchase. It’s also about having a sound and capable data management and governance strategy supported by people, processes, and technology to ensure you can:

  • Access and migrate data from old to new avoiding develop cost overruns and project delays.
  • Identify, detect, and distribute transactional and reference data from existing systems into your front line business application in real-time!
  • Manage data quality errors including duplicate records, invalid names and contact information due to proper data governance and proactive data quality monitoring and measurement during and after deployment
  • Govern and share authoritative master records of customer, contact, product, and other master data between systems in a trusted manner.

Will your data be ready for your new CRM investments?  To learn more:

Follow me on Twitter @DataisGR8

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Posted in Architects, Cloud, Cloud Application Integration, Cloud Computing, Cloud Data Integration, Cloud Data Management, CMO, Customer Acquisition & Retention, SaaS | Tagged , , , , , , , , , | Leave a comment

A Guide for Using Cloud Integration to Load Data into Amazon Redshift: Establishing Connections

Amazon Redshift, one of the fast-rising stars in the AWS ecosystem has taken the data warehousing world by storm ever since it was introduced almost two years ago. Amazon Redshift operates completely in the cloud, and allows you to provision nodes on-demand. This model allows you to overcome many of the pains associated with traditional data warehousing techniques, such as provisioning extra server hardware, sizing and preparing databases for loading or extensive SQL scripting.

However, when loading data into Redshift, you may find it challenging to do so in a timely manner. To reduce the time taken to load this data, you may have to spend a tremendous amount of time writing SQL optimization queries which takes away the value proposition of using Redshift in the first place.

Informatica Cloud helps you load this data quickly into Redshift in just a few minutes. To start using Informatica Cloud, you’ll need to establish connections from Redshift and your other data source first. Here are a few easy steps to help you get started with establishing connections from a relational database such as MySQL as well as Redshift into Informatica Cloud:

  1. Login into your Informatica Cloud account, go to Configure -> Connections, click “New”, and select “MySQL” for “Type”
  2. Select your Secure Agent and fill in the rest of the database details:
    Amazon Redshift Step 2
  3. Test your connection and then click ‘OK’ to save and exit
    Amazon Redshift
  4. Now, login to your AWS account and go to Redshift service page
  5. Go to your cluster configuration page  and make a note of the cluster and cluster database properties: Number of Nodes, Endpoint, Port, Database Name, JDBC URL. You also will need:
    • The Redshift database user name and password (which is  different from your AWS account)
    • AWS account Access Key
    • AWS account Secret Key
  6. Exit the AWS console.
  7. Now, back in your Informatica Cloud account, go to Configure -> Connections and click “New”.
  8. Select “AWS Redshift (Informatica)” for “Type” and fill in the rest of the details from the information you have from above
    Redshift step 3
  9. Test the connection and then click ‘OK’ to save and exit
    Redshift Step 4

As you can see, establishing connections was extremely easy and can be done in less than 5 minutes. To learn how customers such as UBM used Informatica Cloud to deliver next-generation customer insights with Amazon Redshift, please join us on September 16 for a webinar where we’ll have product experts from Amazon and UBM explaining how your company can benefit from cloud data warehousing for petabyte-scale analytics using Amazon Redshift.

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Posted in Cloud, Cloud Data Integration, Data Integration, Data Integration Platform | Tagged , , | Leave a comment

The Need for Specialized SaaS Analytics

SaaS

SaaS companies are growing rapidly and becoming the top priority for most CIOs. With such high growth expectations, many SaaS vendors are investing in sales and marketing to acquire new customers even if it means having a negative net profit margin as a result. Moreover, with the pressure to grow rapidly, there is an increased urgency to ensure that the Average Sales Price (ASP) of every transaction increases in order to meet revenue targets.

The nature of the cloud allows these SaaS companies to release new features every few months, which sales reps can then promote to new customers. When new functionalities are not used nor understood, customers often feel that they have overpaid for a SaaS product. In such cases, customers usually downgrade to a lower-priced edition or worse, leave the vendor entirely. To make up for this loss, the sales representatives must work harder to acquire new leads, which results in less attention for existing customers. Preventing customer churn is very important. The Cost to Acquire a Customer (CAC) for upsells is 19% of the CAC to acquire new customer dollars. In comparison, the CAC to renew existing customers is only 15% of the CAC to acquire new customer dollars.

Accurate customer usage data helps determine which features customers use and which are under utilized. Gathering this data can help pinpoint high-value features that are not used, especially for customers that have recently upgraded to a higher edition. The process of collecting this data involves several touch points – from recording clicks within the app to analyzing the open rate of entire modules. This is where embedded cloud integration comes into play.

Embedding integration within a SaaS application allows vendors to gain operational insights into each aspect of how their app is being used. With this data, vendors are able to provide feedback to product management in regards to further improvements. Additionally, embedding integration can alert the customer success management team of potential churn, thereby allowing them to implement preventative measures.

To learn more about how a specialized analytics environment can be set up for SaaS apps, join Informatica and Gainsight on April 9th at 10am PDT for an informational webinar Powering Customer Analytics with Embedded Cloud Integration.

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Hybrid IT and the Latest Informatica Cloud Release

In a recent Information Management blog post, Alex Bakker from Saugatuck Technology noted:

“There is an underlying problem facing many, if not most enterprise IT leaders and organizations: these technologies [Cloud, Mobile, Social, Analytics and Integration] have developed much faster than enterprise IT groups and practices have been able to adopt and manage them.”

Sound familiar? Gartner (and others) have referred to the new reality of enterprise IT as Hybrid IT. At Informatica World next month, we have an entire track on this topic.

The good news is a topic that was once considered the “Achilles heel of cloud computing” is increasingly being recognized as the key enabler of cloud success:  integration and data management. With that in mind, Informatica rolled out our Summer 2013 release this week. Here are some highlights and useful resources. (more…)

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Posted in Cloud Computing, News & Announcements, PaaS, SaaS | Tagged , , , , , , | 1 Comment

A Big Hairy Audacious Vision

Integration technologies have been around for 20 years (as long as Informatica has been in business) and have proliferated in corporate IT. We are now at an inflection point in the business needs and maturity of integration best practices which we can call Next Generation Data Integration (DI). If we’re going to talk about the next generation, then first we need to put a stake in the ground to describe the current, or prior generation. Furthermore, for it to be a “generational” change, it needs to be a significant step-function improvement in how the work is done and in the business value generated by data assets. Or as Jim Collins said in Built to Last: Successful Habits of Visionary Companies, we need a Big Hairy Audacious Goal. (more…)

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Posted in Big Data, Business Impact / Benefits, Business/IT Collaboration, CIO, Data Governance, Data Integration Platform, Enterprise Data Management, Integration Competency Centers | Tagged , , , , , , , | 9 Comments

Announcing Informatica Cloud Spring 2013

On Wednesday we announced our latest cloud integration release – Informatica Cloud Spring 2013. It’s a major step forward in terms of breadth and depth for our software as a service (SaaS) solution. Why, you ask?

Well, yes…but…there are a few aspects to today’s announcement that I think are particularly noteworthy. Here’s a summary.

(more…)

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Posted in Application ILM, Cloud Computing, Data masking, Data Quality, Master Data Management, Mergers and Acquisitions, News & Announcements, PaaS, SaaS | Tagged , , , , , | Leave a comment

Data Chaos: Public Enemy Number One

This year marks the 20th anniversary for Informatica. Twenty years of solving the problem of getting data from point A to point B, improving its quality, establishing a single view and managing it over its life-cycle. Yet after 20 years of innovation and leadership in the data integration market, when one would think the problem had been solved, all data had been extracted, transformed, cleansed and managed, it actually hasn’t — companies still need data integration. Why?  Data is complicated business. And with data increasingly becoming central to business survival, organizations are constantly looking for ways to unlock new sources of it, use it as an unforeseen source of insight and do it all with greater agility and at lower cost. (more…)

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Posted in Big Data, CIO, Data Integration, Data Integration Platform, Data Warehousing | Tagged , , , , , , , | Leave a comment

Salesforce.com Recognizes Informatica for Cloud Data Integration

This week we got the news that for the fifth year in a row, Informatica Cloud has won the 2012 Salesforce.com AppExchange Customer Choice Award.  Informatica Cloud Integration for Salesforce was recognized as the winner in the very crowded IT and Administration category, which includes administration and IT, data cleansing, integration, IT management and other applications.These awards are based on the number and quality of customer reviews on the AppExchange.  (more…)

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Posted in Business Impact / Benefits, Cloud Computing, Customers, Data Quality, Data Synchronization, Marketplace, News & Announcements, PaaS, SaaS | Tagged , , , , , , | Leave a comment

2013 Cloud Data Management Predictions

Ok, I know it’s a little late to post 2013 technology predictions, but with so many good ones published already, I figured I’d sandbag a little and not only post a few of my own but also share a few of my favorites so far. For me, it starts with Mary Meeker’s Internet Trends presentation. 2013 is going to be a year of “re-imagining” enterprise software, from social, to mobile, to cloud, to Big Data and Analytics.

I summarized my 2012 predictions in an earlier post and Informatica already posted some great predictions from the world of data. Here are my 2013 cloud data management predictions. (more…)

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Posted in Business/IT Collaboration, CIO, Cloud Computing, Enterprise Data Management, Integration Competency Centers, Master Data Management, PaaS, SaaS | Tagged , , , , , , , , , | 1 Comment

Informatica Cloud Summer 2012 Release Advances Integration PaaS

Informatica Cloud integration platform as a serviceToday we announced Informatica Cloud Summer 2012, the latest release of our cloud integration applications and integration platform as a service. With this release our continued focus is on building out the cloud platform, which is ideally suited for hybrid IT organizations seeking to keep up with the rapid pace of software-as-a-service (SaaS) application adoption, while ensuring the highest possible return on data – whether it’s cloud-based, social, mobile or on premises. This week and next we’ll be posting a series of articles that will focus on the growing recognition of the importance of data integration to cloud computing success as well as highlighting a few of the new features that will be available to all Informatica Cloud customers with the August upgrade. But to get started, here’s a brief overview of what’s new.  (more…)

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Posted in Cloud Computing, Data Integration Platform, Data Synchronization, PaaS, SaaS | Tagged , , , , , , , , , , | Leave a comment