Beyong Big Data: Organizing for Customer Information Management
•
1 like•1,321 views
Based on the concept of the learning organization and that learning may be the only true way companies can distinguish themselves, this presentation describes the capabilities, such as top management vision and data sharing, that the organization must have to mange customer information effectively.
Recommended
Recommended
More Related Content
What's hot
What's hot (20)
Viewers also liked
Viewers also liked (18)
Similar to Beyong Big Data: Organizing for Customer Information Management
Similar to Beyong Big Data: Organizing for Customer Information Management (20)
More from St. Edward's University
More from St. Edward's University (20)
Recently uploaded
Recently uploaded (20)
Beyong Big Data: Organizing for Customer Information Management
- 1. Copyright by Debra Zahay 2013 Beyond Big Data: Organizing for Customer Information Management Dr. Debra Zahay Full Professor of Marketing at Aurora University and President, Zahay, Inc. Chicago Booth Alumni Roundtable: September 25, 2013 Gleacher Center
- 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 Starting Question: What is the relationship between Customer Information Management and Firm Performance?
- 6. Copyright by Debra Zahay 2013 Learning Organization: Information and its management are intangible assets that can create a competitive advantage which can lead to improved company performance.
- 7. 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)
- 8. Copyright by Debra Zahay 2013 Results: Over 600 Article Citations
- 9. Copyright by Debra Zahay 2013 Editor: Journal of Research in Interactive Marketing
- 10. Copyright by Debra Zahay 2013 Textbook Co-Author
- 11. 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.
- 12. 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.
- 13. 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.
- 14. Copyright by Debra Zahay 2013
- 15. 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
- 16. Copyright by Debra Zahay 2013 Successful CRM Hinges On Data Quality Innovative Systems, Inc. Author: Jeffrey Canter, VP of Operations
- 17. Copyright by Debra Zahay 2013 Successful CRM Hinges On Data Quality Innovative Systems, Inc. Author: Jeffrey Canter, VP of Operations May 2002 Issue of CRM Magazine
- 18. Copyright by Debra Zahay 2013 Why Do CRM Projects Fail? • Silent killer: lack of accurate customer information (Gartner Group report) • Ensuring accurate customer information is a difficult task • High CRM spends will not protect companies from losing sales opportunities and valued customers and many CRM Projects will fail
- 19. Copyright by Debra Zahay 2013 The Solution… • CRM applications need to present a unified, real-time, view of the customer and to achieve this goal customers need a comprehensive CDQ Customer Data Quality Management Program
- 20. Copyright by Debra Zahay 2013 So if everyone knows data quality is important, why isn’t it being done?
- 21. Copyright by Debra Zahay 2013 8 Gartner CRM Building Blocks • CRM Vision: Leadership, Market Position, Value Proposition • CRM Strategy: Objectives, Segments, Effective Interaction • Valued Customer Experience • Organizational Collaboration • Culture and Structure • Customer Understanding • People: Skills, Competencies • Incentives and Compensation • Employee Communications • Partners and Suppliers • Processes: Customer Lifecycle, Knowledge Management • Information: Data, Analysis, One View Across Channels • Technology: Applications, Architecture, Infrastructure • Metrics: Value, Retention, Satisfaction, Loyalty, Cost to Serve
- 22. Copyright by Debra Zahay 2013 FactorsInfluencing Success of Digital Outcomesare Managerial • Senior management buy-in (32%) • Internal leadership (30%) • Alignment between organizational structure and initiative’s goals (21%) • Good management of and sufficient organizational support for the initiative (also 21%) • Source: McKinsey and Company via Marketing Charts 850 C-Level executives asked about digital engagement of customers, big data, digital engagement of employees, automation, and digital innovation of products
- 23. Copyright by Debra Zahay 2013 FactorsContributingto Failures of Digital Outcomesare Also Managerial • Lack of senior management buy-in 23% • Lack of technology infrastructure and IT systems (22%) • Quality data (21%), • Absence of internal leadership (17%). • Source: McKinsey and Company via Marketing Charts 850 C-Level executives asked about digital engagement of customers, big data, digital engagement of employees, automation, and digital innovation of products
- 24. 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
- 25. 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)
- 26. 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
- 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 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
- 29. Copyright by Debra Zahay 2013 Organizational Capability “Ideal” Company Reality Use Data to Create Value (Strategy Formation is important to the organization, data supports strategy, Study 1 Selects strong competitive strategy and develops customer information management capability to support that strategy. Many firms have no strategy or an average customer information management capability. Establish Quality standards (Information quality management processes are in place, Study 1, 2, 4 Organization speaks the language of data quality and quality data is an organizational priority, with processes in place to manage. Organization complains about data quality but does not have processes to manage data and to create quality. Involve Functional Departments (Functional areas are involved and work together, Study 2, 3,4 Functional areas, particularly marketing, are involved in the development of data warehouse and applications. Marketing and IT areas work together to manage customer information. Customer information management is responsibility of each functional area Use Relational and Transactional Data (Both Relational and Transactional Data are collected and integrated; Systems/Data Integration, Study 1,4 Company is organized to integrate data, as the highest form of knowledge management, using appropriate systems; relational as well as transactional data is emphasized. Informational ‘silos’ and multiple systems abound and not all systems can talk to each other; no central data repository or way to access data, emphasis is on integration of transactional data
- 30. Copyright by Debra Zahay 2013 Organizational Capability “Ideal” Company Reality Organize for Success I Organization includes Teamwork, Top Management Vision/Support, Study 3,4 Company uses a dedicated team to develop a new approach to managing customer information in the firm; people are given leave from their jobs to work on team. Middle management plays a key role as it translates for Top Management. Top Execs in turn support effort and are able to understand it due to sales/marketing background. Team may be established but is not dedicated; people try to create new vision while working in current positions. Middle management does not translate well and top management has little understanding of the need to manage customer information in the organization Organize for Success II Middle-Management has input to Strategy Formation, Study 2,4 Middle management has strong input to strategy function, bringing the need for customer information management to top management’s attention; interactively, they create customer-based strategy Middle management is not involved in decision-making in terms of bringing customer information management needs to the attention of upper management Use Data to Create Future Value New Product Development integration with Customer Information Systems, Study 5 Information about the customer from information systems as well as other sources is integrated into the NPD effort, often held in a single repository. Customer data is scattered throughout the organization and not integrated into NPD efforts.
- 31. Copyright by Debra Zahay 2013 TheKeyRoleoftheTopExecutive Organizational Culture Data Quality Cross- Functional Cooperation Customer Performance Business PerformanceData Sharing Marketing/IT Integration
- 32. 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?
- 33. 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?
- 34. Copyright by Debra Zahay 2013 1. Customer Retention 2. Customer Satisfaction 3. Cross-selling What is Customer Performance?
- 35. 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
- 36. 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, but that results must be driven by the executive suite.
- 37. Copyright by Debra Zahay 2013 Contact information • Dr. Debra Zahay-Blatz • http://www.zahay.com • Best email debrazb22@gmail.com • dzahayblatz@aurora.edu • Cell 630-300-8838 • THE BLOG: datadrivendigitalmarketing.blogspot.com • The G+ Community Data-Driven Digital Marketing • Watch for the Data Book!
Editor's Notes
- Discovery & AnalysisData Conversion & CleansingData Quality MaintenanceCDQ in Enterprise-wide CRM
- So the answers are still somewhat down in the details, still see merge/purge, dedup, etc. in practitioner solutions.
- This research shows a link between managing data well (especially data quality) and company performance and is vetted through a rigorous review process.
- http://quaero.csgi.com/blog/456-data_quality_still_bigger_than_big_dataPoor quality data is the biggest barrier to effective email marketing: reportby David Moth 24 April 2013 13:08 0 comments PrintWhat I like about this question is that it brings the conversation back to what I study and what I think is important, dq.
- This research shows a link between managing data well (especially data quality) and company performance and is vetted through a rigorous review process.
- This research shows a link between managing data well (especially data quality) and company performance and is vetted through a rigorous review process.