Tag Archives: total customer relationship
Let’s face it, building a Data Governance program is no overnight task. As one CDO puts it: ”data governance is a marathon, not a sprint”. Why? Because data governance is a complex business function that encompasses technology, people and process, all of which have to work together effectively to ensure the success of the initiative. Because of the scope of the program, Data Governance often calls for participants from different business units within an organization, and it can be disruptive at first.
Why bother then? Given that data governance is complex, disruptive, and could potentially introduce additional cost to a company? Well, the drivers for data governance can vary for different organizations. Let’s take a close look at some of the motivations behind data governance program.
For companies in heavily regulated industries, establishing a formal data governance program is a mandate. When a company is not compliant, consequences can be severe. Penalties could include hefty fines, brand damage, loss in revenue, and even potential jail time for the person who is held accountable for being noncompliance. In order to meet the on-going regulatory requirements, adhere to data security policies and standards, companies need to rely on clean, connected and trusted data to enable transparency, auditability in their reporting to meet mandatory requirements and answer critical questions from auditors. Without a dedicated data governance program in place, the compliance initiative could become an on-going nightmare for companies in the regulated industry.
A data governance program can also be established to support customer centricity initiative. To make effective cross-sells and ups-sells to your customers and grow your business, you need clear visibility into customer purchasing behaviors across multiple shopping channels and touch points. Customer’s shopping behaviors and their attributes are captured by the data, therefore, to gain thorough understanding of your customers and boost your sales, a holistic Data Governance program is essential.
Other reasons for companies to start a data governance program include improving efficiency and reducing operational cost, supporting better analytics and driving more innovations. As long as it’s a business critical area and data is at the core of the process, and the business case is loud and sound, then there is a compelling reason for launching a data governance program.
Now that we have identified the drivers for data governance, how do we start? This rather loaded question really gets into the details of the implementation. A few critical elements come to consideration including: identifying and establishing various task forces such as steering committee, data governance team and business sponsors; identifying roles and responsibilities for the stakeholders involved in the program; defining metrics for tracking the results. And soon you will find that on top of everything, communications, communications and more communications is probably the most important tactic of all for driving the initial success of the program.
A rule of thumb? Start small, take one-step at a time and focus on producing something tangible.
Sounds easy, right? Well, let’s hear what the real-world practitioners have to say. Join us at this Informatica webinar to hear Michael Wodzinski, Director of Information Architecture, Lisa Bemis, Director of Master Data, Fabian Torres, Director of Project Management from Houghton Mifflin Harcourt, global leader in publishing, as well as David Lyle, VP of product strategy from Informatica to discuss how to implement a successful data governance practice that brings business impact to an enterprise organization.
If you are currently kicking the tires on setting up data governance practice in your organization, I’d like to invite you to visit a member-only website dedicated to Data Governance: http://governyourdata.com/. This site currently has over 1,000 members and is designed to foster open communications on everything data governance. There you will find conversations on best practices, methodologies, frame works, tools and metrics. I would also encourage you to take a data governance maturity assessment to see where you currently stand on the data governance maturity curve, and compare the result against industry benchmark. More than 200 members have taken the assessment to gain better understanding of their current data governance program, so why not give it a shot?
Data Governance is a journey, likely a never-ending one. We wish you best of the luck on this effort and a joyful ride! We love to hear your stories.
In a previous life, I was a pastry chef in a now-defunct restaurant. One of the things I noticed while working there (and frankly while cooking at home) is that the better the ingredients, the better the final result. If we used poor quality apples in the apple tart, we ended up with a soupy, flavorless mess with a chewy crust.
The same analogy can be applied to Data Analytics. With poor quality data, you get poor results from your analytics projects. We all know that companies that can implement fantastic analytic solutions that can provide near real-time access to consumer trends are the same companies that can do successful targeted marketing campaigns that are of the minute. The Data Warehousing Institute estimates that data quality problems cost U.S. businesses more than $600 billion a year.
The business impact of poor data quality cannot be underestimated. If not identified and corrected early on, defective data can contaminate all downstream systems and information assets, jacking up costs, jeopardizing customer relationships, and causing imprecise forecasts and poor decisions.
- To help you quantify: Let’s say your company receives 2 million claims per month with 377 data elements per claim. Even at an error rate of .001, the claims data contains more than 754,000 errors per month and more than 9.04 million errors per year! If you determine that 10 percent of the data elements are critical to your business decisions and processes, you still must fix almost 1 million errors each year!
- What is your exposure to these errors? Let’s estimate the risk at $10 per error (including staff time required to fix the error downstream after a customer discovers it, the loss of customer trust and loyalty and erroneous payouts. Your company’s risk exposure to poor quality claims data is $10 million a year.
Once your company values quality data as a critical resource – it is much easier to perform high-value analytics that have an impact on your bottom line. Start with creation of a Data Quality program. Data is a critical asset in the information economy, and the quality of a company’s data is a good predictor of its future success.
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?
I love exploring new places. I’ve had exceptional experiences at the W in Hong Kong, El Dorado Royale in the Riviera Maya and Ventana Inn in Big Sur. I belong to almost every loyalty program under the sun, but not all hospitality companies are capitalizing on the potential of my customer information. Imagine if employees had access to it so they could personalize their interactions with me and send me marketing offers that appeal to my interests.
Do I have high expectations? Yes. But so do many travelers. This puts pressure on marketing and sales executives who want to compete to win. According to Deloitte’s report, “Hospitality 2015: Game changers or spectators?,” hospitality companies need to adapt to meet consumers’ increasing expectations to know their preferences and tastes and to customize packages that suit individual needs.
In this interview, Jeff Klagenberg, senior principal at Myers-Holum, explains how one of the largest, most customer-focused companies in the hospitality industry is investing in better customer, product, and asset information. Why? To personalize customer interactions, bundle appealing promotion packages and personalize marketing offers across channels.
Q: What are the company’s goals?
A: The executive team at one of the world’s leading providers of family travel and leisure experiences is focused on achieving excellence in quality and guest services. They generate revenues from the sales of room nights at hotels, food and beverages, merchandise, admissions and vacation club properties. The executive team believes their future success depends on stronger execution based on better measurement and a better understanding of customers.
Q: What role does customer, product and asset information play in achieving these goals?
A: Without the highest quality business-critical data, how can employees continually improve customer interactions? How can they bundle appealing promotional packages or personalize marketing offers? How can they accurately measure the impact of sales and marketing efforts? The team recognized the powerful role of high quality information in their pursuit of excellence.
Q: What are they doing to improve the quality of this business-critical information?
A: To get the most value out of their data and deliver the highest quality information to business and analytical applications, they knew they needed to invest in an integrated information management infrastructure to support their data governance process. Now they use the Informatica Total Customer Relationship Solution, which combines data integration, data quality, and master data management (MDM). It pulls together fragmented customer information, product information, and asset information scattered across hundreds of applications in their global operations into one central, trusted location where it can be managed and shared with analytical and operational applications on an ongoing basis.
Q: How will this impact marketing and sales?
A: With clean, consistent and connected customer information, product information, and asset information in the company’s applications, they are optimizing marketing, sales and customer service processes. They get limitless insights into who their customers are and their valuable relationships, including households, corporate hierarchies and influencer networks. They see which products and services customers have purchased in the past, their preferences and tastes. High quality information enables the marketing and sales team to personalize customer interactions across touch points, bundle appealing promotional packages, and personalize marketing offers across channels. They have a better understanding of which marketing, advertising and promotional programs work and which don’t.
Q: What is the role did the marketing and sales leaders play in this initiative?
A: The marketing leaders and sales leaders played a key role in getting this initiative off the ground. With an integrated information management infrastructure in place, they’ll benefit from better integration between business-critical master data about customers, products and assets and transaction data.
Q. How will this help them gain customer insights from “Big Data”?
A. We helped the business leaders understand that getting customer insights from “Big Data” such as weblogs, call logs, social and mobile data requires a strong backbone of integrated business-critical data. By investing in a data-centric approach, they future-proofed their business. They are ready to incorporate any type of data they will want to analyze, such as interaction data. A key realization was there is no such thing as “Small Data.” The future is about getting very bit of understanding out of every data source.
Q: What advice do you have for hospitality industry executives?
A: Ask yourself, “Which of our strategic initiatives can be achieved with inaccurate, inconsistent and disconnected information?” Most executives know that the business-critical data in their applications, used by employees across the globe, is not the highest quality. But they are shocked to learn how much this is costing the company. My advice is talk to IT about the current state of your customer, product and asset information. Find out if it is holding you back from achieving your strategic initiatives.
Also, many business executives are excited about the prospect of analyzing “Big Data” to gain revenue-generating insights about customers. But the business-critical data about customers, products and assets is often in terrible shape. To use an analogy: look at a wheat field and imagine the bread it will yield. But don’t forget if you don’t separate the grain from the chaff you’ll be disappointed with the outcome. If you are working on a Big Data initiative, don’t forget to invest in the integrated information management infrastructure required to give you the clean, consistent and connected information you need to achieve great things.