Empowering Your Organization with 3 Views of Customer Data
According to Accenture – 2013 Global Consumer Pulse Survey, “85 percent of customers are frustrated by dealing with a company that does not make it easy to do business with them, 84 percent by companies promising one thing, but delivering another; and 58 percent are frustrated with inconsistent experiences from channel to channel.”
Consumers expect more from the companies they do business with. In response, many companies are shifting from managing their business based on an application-, account- or product-centric approach to a customer-centric approach. And this is one of the main drivers for master data management (MDM) adoption. According to a VP of Data Strategy & Services at one of the largest insurance companies in the world, “Customer data is the lifeblood of a company that is serious about customer-centricity.” So, better managing customer data, which is what MDM enables you to do, is a key to the success of any customer-centricity initiative. MDM provides a significant competitive differentiation opportunity for any organization that’s serious about improving customer experience. It enables customer-facing teams to assess the value of any customer, at the individual, household or organization level.
Amongst the myriad business drivers of a customer-centricity initiative, key benefits include delivering an enhanced customer experience – leading to higher customer loyalty and greater share of wallet, more effective cross-sell and upsell targeting to increase revenue, and improved regulatory compliance.
To truly achieve all the benefits expected from a customer-first, customer-centric strategy, we need to look beyond the traditional approaches of data quality and MDM implementations, which often consider only one foundational (yet important) aspect of the technology solution. The primary focus has always been to consolidate and reconcile internal sources of customer data with the hope that this information brought under a single umbrella of a database and a service layer will provide the desired single view of customer. But in reality, this data integration mindset misses the goal of creating quality customer data that is free from duplication and enriched to deliver significant value to the business.
Today’s MDM implementations need to take their focus beyond mere data integration to be successful. In the following section, I will explain 3 levels of customer views which can be built incrementally to be able to make most out of your MDM solution. When implemented fully, these customer views act as key ingredients for improving the execution of your customer-centric business functions.
Trusted Customer View
The first phase of the solution should cover creation of trusted customer view. This view empowers your organization with an ability to see complete, accurate and consistent customer information.
In this stage, you take the best information from all the applications and compile it into a single golden profile. You not only use data integration technology for this, but also employ data quality tools to ensure the correctness and completeness of the customer data. Advanced matching, merging and trust framework are used to derive the most up-to-date information about your customer. You also guarantee that the golden record you create is accessible to business applications and systems of choice so everyone who has the authority can leverage the single version of the truth.
At the end of this stage, you will be able to clearly say John D. who lives at 123 Main St and Johnny Doe at 123 Main Street, who are both doing business with you, are not really two different individuals.
Customer Relationships View
The next level of visibility is about providing a view into the customer’s relationships. It takes advantage of the single customer view and layers in all valuable family and business relationships as well as account and product information. Revealing these relationships is where the real value of multidomain MDM technology comes into action.
At the end of this phase, you not only see John Doe’s golden profile, but the products he has. He might have a personal checking from the Retail Bank, a mortgage from the Mortgage line of business, and brokerage and trust account with the Wealth Management division. You can see that John has his own consulting firm. You can see he has a corporate credit card and checking account with the Commercial division under the name John Doe Consulting Company.
At the end of this phase, you will have a consolidated view of all important relationship information that will help you evaluate the true value of each customer to your organization.
Customer Interactions and Transactions View
The third level of visibility is in the form of your customer’s interactions and transactions with your organization.
During this phase, you tie transactional information, historical data and social interactions your customer has with your organization to further enhance the system. Building this view provides you a whole new world of opportunities because you can see everything related to your customer in one central place. Once you have this comprehensive view, when John Doe calls your call center, you know how valuable he is to your business, which product he just bought from you (transactional data), what is the problem he is facing (social interactions).
A widely accepted rule of thumb holds that 80 percent of your company’s future revenue will come from 20 percent of your existing customers. Many organizations are trying to ensure they are doing everything they can to retain existing customers and grow wallet share. Starting with Trusted Customer View is first step towards making your existing customers stay. Once you have established all three states discussed here, you can arm your customer-facing teams with a comprehensive view of customers so they can:
- Deliver the best customer experiences possible at every touch point,
- Improve customer segmentation for tailored offers, boost marketing and sales productivity,
- Increase cross-sell and up-sell success, and
- Streamline regulatory reporting.
Achieving the 3 views discussed here requires a solid data management platform. You not only need an industry leading multidomain MDM technology, but also require tools which will help you integrate data, control the quality and connect all the dots. These technologies should work together seamlessly to make your implementation easier and help you gain rapid benefits. Therefore, choose your data management platform. To know more about MDM vendors, read recently released Gartner’s Magic Quadrant for MDM of Customer Data Solutions.