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 Copyright by Debra Zahay 2013
Organizing for
Customer Data
Management
Dr. Debra Zahay
Professor and President, Zahay, Inc.
 Copyright by Debra Zahay 2013
Starting Question: What is the
relationship between Customer
Information Management and
Firm Performance?
 Copyright by Debra Zahay 2013
Customer Information
Management Breeds Success
 Copyright by Debra Zahay 2013
My Journey Studying Customer
Data Management
Information
Systems
Sales/Marketing
/Databases
IMC &
More Databases
????
Ph.D.
 Copyright by Debra Zahay 2013
Research Scope 1998-2013
• Over 400 companies
• Over ten years of research
• B2B and B2C
• Qualitative and Quantitative
• 20 academic papers
• Over 500 citations (Debra Zahay on Google
Scholar)
 Copyright by Debra Zahay 2013
Over 500 Article Citations
 Copyright by Debra Zahay 2013
Editor: Journal of Research in
Interactive Marketing
 Copyright by Debra Zahay 2013
Textbook Co-Author
 Copyright by Debra Zahay 2013
Titles have changed, basics are the
same
Buzzwords: Database Marketing, Direct Marketing
Payton, F. & Zahay, D. L.
(2003). Understanding Why
Marketing Doesn't Use the
Corporate Data Warehouse
for CRM Applications.
Journal of Database
Marketing, 10 (4), 315-326.
Zahay, D. L. & Griffin, A.
(2003). Information
Antecedents and
Consequences of
Personalization and
Customization in Business-
to-Business Service Markets.
Journal of Database
Marketing, 10 (3), 255-271-
326.
 Copyright by Debra Zahay 2013
We want to find best customers,
treat segments differently
Buzzwords: Customer Relationship Management/Marketing
Zahay, D., Peltier, J., &
Krishen, A. (2012). Building
the Foundation for
Customer Data Quality in
CRM Systems for Financial
Services Firms, Journal of
Database Marketing and
Customer Strategy
Management formerly
Journal of Database
Marketing, Vol. 19 (1), pp. 5-
16.
 Copyright by Debra Zahay 2013
Data Analytics is “Now”
Buzzwords: Marketing Data Analytics, Big Data
Peltier, J., Zahay, D.
& Krishen, A.
(2013). A
Hierarchical IMC
Data Integration
and Measurement
Framework. The
Journal of
Marketing
Analytics, formerly
Journal of Database
Marketing and
Customer Strategy
Management, Vol. 1,
1, 32-48.
 Copyright by Debra Zahay 2013
Research Issues Covered
• Customer Data Management Practices and
Measurement
• Data Management/Performance
Relationship
• Customer Data Quality
• Organizing for data quality
• Personalization and customization
• Transactional vs. relational data, differences,
contribution to performance
 Copyright by Debra Zahay 2013
Study No. Description
1 Quantitative survey with 209 insurance and software b2b
marketers of customer information management
practices and link to strategies and performance
2 Series of focus groups in a single health care payer
regarding implementation of a corporate data warehouse
for marketing purposes
3 Follow-on qualitative study with respondents to Study 1
and one other firm, uncovered organizational factors in
customer information management to test in Study 4
4 Quantitative pre-test of important organizational factors
in customer information management success in 43 firms
across all industries
5 Series of interviews with marketers in the new product
area, primarily, software and chemical, on customer
information management needs, follow on survey
6 Quantitative survey 166 executives in Financial Services,
both B2B and B2C, included organizational factors, data
quality and performance (Latest work)
 Copyright by Debra Zahay 2013
Companiesmustconsiderhavingthreecapabilitiesto
manage customerinformationwell:
1. A corporate strategy consistent
with data collected
2. A clear mission and vision for data
collection and use
3. Shared data and organizational
cooperation
 Copyright by Debra Zahay 2013
Companiesmustconsiderhavingthreecapabilitiesto
manage customerinformationwell:
1. A corporate strategy consistent
with data collected
2. A clear mission and vision for data
collection and use
3. Shared data and organizational
cooperation
 Copyright by Debra Zahay 2013
BasicResearchProcedure:
1. Create a theoretical framework
2. Develop hypotheses
3. Determine how to measure
 Copyright by Debra Zahay 2013
Managing CustomerInformation
Customer Information System
1. Get
3. Move
2. Store
4. Use
1. Acquisition, Specificity and Quality
3. Dissemination
2. Addressability
4. Shareability
Competitive Advantage
Managerial Focus
 Copyright by Debra Zahay 2013
StrategyTrumps All in Termsof Performance
.38**
.19**
.14* .25**
* p <.05, 2 tailed
** p < .01, 2-tailed
.30**
.20**
.17**
.17**
.17**
Strategic
Excellence
Personali-
zation
Customi-
zation
CIS
Customer
Performance
Business Unit
Performance
N=206
 Copyright by Debra Zahay 2013
CIS
Thirty-item Customer Information System
(CIS) Scale4. Shareability
3. Dissemination
2. Addressability
1a.Specificity 1b. Quality
Person
Specific
- Sales
Quality
Time
Specific
Person
Specific-
Marketing
Database
Capabilities
Knowledge of
Share of
Wallet
Shareability
Info
Within
Unit
 Copyright by Debra Zahay 2013
Is Data Quality Bigger than Big Data?
• 53% of companies in the recent TDWI (The Data
Warehousing Institute) study reported they have suffered
losses, problems, or costs due to poor data quality (Quaero,
December 2012)
• Moveo Integrated Branding, February 2013
• Customers report 23% undeliverable emails
• 11% Duplicate records
• 54% phone numbers “unconnectable”
• Poor quality data is the biggest barrier to effective email
marketing: Econsultancy Report, April 2013
 Copyright by Debra Zahay 2013
So if everyone knows data
quality is important, why isn’t
it being done?
 Copyright by Debra Zahay 2013
Companiesmustconsiderhavingthreecapabilitiesto
manage customerinformationwell:
1. A corporate strategy consistent
with data collected
2. A clear mission and vision for
data collection and use
3. Shared data and organizational
cooperation
 Copyright by Debra Zahay 2013
WhereDataQualityFitsintheOrganization
Organizational
Culture
Data
Quality
Cross-
Functional
Cooperation
Customer
Performance
Business
PerformanceData
Sharing
Marketing/IT
Integration
 Copyright by Debra Zahay 2013
1. Overall data quality?
2. Data quality of transactions,
touchpoints, interactions?
3. Overall quality of
contact/loyalty/satisfaction data?
How do you rate in Customer Data Quality?
 Copyright by Debra Zahay 2013
1. Customer Retention
2. Customer Satisfaction
3. Cross-selling
What is Customer Performance?
 Copyright by Debra Zahay 2013
1. Do you have an agreed vision for managing Customer
information?
2. Is there a common purpose?
2. Is the vision shared?
3 Do you use cross-functional teams?
Do you reward teams for good performance?
How should you organize for Customer
Information Management?
 Copyright by Debra Zahay 2013
Companiesmustconsiderhavingthreecapabilitiesto
manage customerinformationwell:
1. A corporate strategy consistent
with data collected
2. A clear mission and vision for data
collection and use
3. Shared data and organizational
cooperation
 Copyright by Debra Zahay 2013
1. Can you store it in one place?
2. Can you query it?
3. Can your employees get at it?
Three Questions Assess Customer Data
Sharing
 Copyright by Debra Zahay 2013
Starting Question: What is the
relationship between Customer
Information Management and
Firm Performance?
Research suggests that
Customer Information
Management is a multi-faceted
organizational operation and
that strategy, shareability and
quality data each play a key role.
 Copyright by Debra Zahay 2013
Contact information
• Dr. Debra Zahay-Blatz
• http://www.zahay.com
• Best email debrazb22@gmail.com
• Cell 630-300-8838
• THE BLOG: datadrivendigitalmarketing.blogspot.com
• The G+ Community Data-Driven Digital Marketing
• Watch for the Data Book!

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Organizing for Customer Data Management

  • 1.  Copyright by Debra Zahay 2013 Organizing for Customer Data Management Dr. Debra Zahay Professor and President, Zahay, Inc.
  • 2.  Copyright by Debra Zahay 2013 Starting Question: What is the relationship between Customer Information Management and Firm Performance?
  • 3.  Copyright by Debra Zahay 2013 Customer Information Management Breeds Success
  • 4.  Copyright by Debra Zahay 2013 My Journey Studying Customer Data Management Information Systems Sales/Marketing /Databases IMC & More Databases ???? Ph.D.
  • 5.  Copyright by Debra Zahay 2013 Research Scope 1998-2013 • Over 400 companies • Over ten years of research • B2B and B2C • Qualitative and Quantitative • 20 academic papers • Over 500 citations (Debra Zahay on Google Scholar)
  • 6.  Copyright by Debra Zahay 2013 Over 500 Article Citations
  • 7.  Copyright by Debra Zahay 2013 Editor: Journal of Research in Interactive Marketing
  • 8.  Copyright by Debra Zahay 2013 Textbook Co-Author
  • 9.  Copyright by Debra Zahay 2013 Titles have changed, basics are the same Buzzwords: Database Marketing, Direct Marketing Payton, F. & Zahay, D. L. (2003). Understanding Why Marketing Doesn't Use the Corporate Data Warehouse for CRM Applications. Journal of Database Marketing, 10 (4), 315-326. Zahay, D. L. & Griffin, A. (2003). Information Antecedents and Consequences of Personalization and Customization in Business- to-Business Service Markets. Journal of Database Marketing, 10 (3), 255-271- 326.
  • 10.  Copyright by Debra Zahay 2013 We want to find best customers, treat segments differently Buzzwords: Customer Relationship Management/Marketing Zahay, D., Peltier, J., & Krishen, A. (2012). Building the Foundation for Customer Data Quality in CRM Systems for Financial Services Firms, Journal of Database Marketing and Customer Strategy Management formerly Journal of Database Marketing, Vol. 19 (1), pp. 5- 16.
  • 11.  Copyright by Debra Zahay 2013 Data Analytics is “Now” Buzzwords: Marketing Data Analytics, Big Data Peltier, J., Zahay, D. & Krishen, A. (2013). A Hierarchical IMC Data Integration and Measurement Framework. The Journal of Marketing Analytics, formerly Journal of Database Marketing and Customer Strategy Management, Vol. 1, 1, 32-48.
  • 12.  Copyright by Debra Zahay 2013 Research Issues Covered • Customer Data Management Practices and Measurement • Data Management/Performance Relationship • Customer Data Quality • Organizing for data quality • Personalization and customization • Transactional vs. relational data, differences, contribution to performance
  • 13.  Copyright by Debra Zahay 2013 Study No. Description 1 Quantitative survey with 209 insurance and software b2b marketers of customer information management practices and link to strategies and performance 2 Series of focus groups in a single health care payer regarding implementation of a corporate data warehouse for marketing purposes 3 Follow-on qualitative study with respondents to Study 1 and one other firm, uncovered organizational factors in customer information management to test in Study 4 4 Quantitative pre-test of important organizational factors in customer information management success in 43 firms across all industries 5 Series of interviews with marketers in the new product area, primarily, software and chemical, on customer information management needs, follow on survey 6 Quantitative survey 166 executives in Financial Services, both B2B and B2C, included organizational factors, data quality and performance (Latest work)
  • 14.  Copyright by Debra Zahay 2013 Companiesmustconsiderhavingthreecapabilitiesto manage customerinformationwell: 1. A corporate strategy consistent with data collected 2. A clear mission and vision for data collection and use 3. Shared data and organizational cooperation
  • 15.  Copyright by Debra Zahay 2013 Companiesmustconsiderhavingthreecapabilitiesto manage customerinformationwell: 1. A corporate strategy consistent with data collected 2. A clear mission and vision for data collection and use 3. Shared data and organizational cooperation
  • 16.  Copyright by Debra Zahay 2013 BasicResearchProcedure: 1. Create a theoretical framework 2. Develop hypotheses 3. Determine how to measure
  • 17.  Copyright by Debra Zahay 2013 Managing CustomerInformation Customer Information System 1. Get 3. Move 2. Store 4. Use 1. Acquisition, Specificity and Quality 3. Dissemination 2. Addressability 4. Shareability Competitive Advantage Managerial Focus
  • 18.  Copyright by Debra Zahay 2013 StrategyTrumps All in Termsof Performance .38** .19** .14* .25** * p <.05, 2 tailed ** p < .01, 2-tailed .30** .20** .17** .17** .17** Strategic Excellence Personali- zation Customi- zation CIS Customer Performance Business Unit Performance N=206
  • 19.  Copyright by Debra Zahay 2013 CIS Thirty-item Customer Information System (CIS) Scale4. Shareability 3. Dissemination 2. Addressability 1a.Specificity 1b. Quality Person Specific - Sales Quality Time Specific Person Specific- Marketing Database Capabilities Knowledge of Share of Wallet Shareability Info Within Unit
  • 20.  Copyright by Debra Zahay 2013 Is Data Quality Bigger than Big Data? • 53% of companies in the recent TDWI (The Data Warehousing Institute) study reported they have suffered losses, problems, or costs due to poor data quality (Quaero, December 2012) • Moveo Integrated Branding, February 2013 • Customers report 23% undeliverable emails • 11% Duplicate records • 54% phone numbers “unconnectable” • Poor quality data is the biggest barrier to effective email marketing: Econsultancy Report, April 2013
  • 21.  Copyright by Debra Zahay 2013 So if everyone knows data quality is important, why isn’t it being done?
  • 22.  Copyright by Debra Zahay 2013 Companiesmustconsiderhavingthreecapabilitiesto manage customerinformationwell: 1. A corporate strategy consistent with data collected 2. A clear mission and vision for data collection and use 3. Shared data and organizational cooperation
  • 23.  Copyright by Debra Zahay 2013 WhereDataQualityFitsintheOrganization Organizational Culture Data Quality Cross- Functional Cooperation Customer Performance Business PerformanceData Sharing Marketing/IT Integration
  • 24.  Copyright by Debra Zahay 2013 1. Overall data quality? 2. Data quality of transactions, touchpoints, interactions? 3. Overall quality of contact/loyalty/satisfaction data? How do you rate in Customer Data Quality?
  • 25.  Copyright by Debra Zahay 2013 1. Customer Retention 2. Customer Satisfaction 3. Cross-selling What is Customer Performance?
  • 26.  Copyright by Debra Zahay 2013 1. Do you have an agreed vision for managing Customer information? 2. Is there a common purpose? 2. Is the vision shared? 3 Do you use cross-functional teams? Do you reward teams for good performance? How should you organize for Customer Information Management?
  • 27.  Copyright by Debra Zahay 2013 Companiesmustconsiderhavingthreecapabilitiesto manage customerinformationwell: 1. A corporate strategy consistent with data collected 2. A clear mission and vision for data collection and use 3. Shared data and organizational cooperation
  • 28.  Copyright by Debra Zahay 2013 1. Can you store it in one place? 2. Can you query it? 3. Can your employees get at it? Three Questions Assess Customer Data Sharing
  • 29.  Copyright by Debra Zahay 2013 Starting Question: What is the relationship between Customer Information Management and Firm Performance? Research suggests that Customer Information Management is a multi-faceted organizational operation and that strategy, shareability and quality data each play a key role.
  • 30.  Copyright by Debra Zahay 2013 Contact information • Dr. Debra Zahay-Blatz • http://www.zahay.com • Best email debrazb22@gmail.com • Cell 630-300-8838 • THE BLOG: datadrivendigitalmarketing.blogspot.com • The G+ Community Data-Driven Digital Marketing • Watch for the Data Book!