BGS Customer Relationship Management

1. BGSCustomer Relationship Management Chapter 6 Technology and Data Platforms Thomson Publishing 2007 All Rights Reserved

2. Outline • Technology Evolution • Marketing Technology Development Path • Mass communication • Database marketing • Integrated marketing • Considerations when Deciding on Technical Complexity

3. Technology Evolution • Some organizations still using technology from the 1980s and 1990s • Gain understanding of current technology objectives • New technology perceived as CRM solution • Organizations frequently need to “phase-in” new technology

4. Marketing Technology Development Path • Three phases • Mass communication • Database marketing • Integrated marketing • Organizations usually move through these phases over time and find themselves simultaneously utilizing functions in more than one phase

5. Mass Communication • Emphasis on list rental, sequential nonintegrated “push” strategy • Program based with little or no synchronization among programs • Predict consumer behavior • Technology inefficient and sub-optimal

6. Database Marketing • Sophisticated data collection and management used to promote dialogue with “push” and inefficient “pull” strategy • Programs supported by statistical models • Predicting and attempting to change consumer behavior • Complex databases, some distributed technology, enhanced data communication, online processing

7. Figure 6.1

8. Database Marketing Entities • Data preparation (CDI steps) • Operational data store (ODS) • Designed to contain limited amount of information used for current marketing activity • Quick data trivial capability • Easy access from multiple touch points • Integrated with data preparation (real-time and batch) and data warehouse

9. Database Marketing Entities • Data warehouse (DW) • Designed as a repository for all customer, prospect, product/service, and related marketing information • Depth and breadth of historical information is organization and industry dependent • Integrated with one or more ODSs and data marts

10. Database Marketing Entities • Data marts (DM) • Subsets of data warehouse • Designed to work efficiently with specific decision support software • Integrated with one or more ODSs and data marts • Business discipline specific application

11. Logical Data Model • Logical Data Model (LDM) is a diagram that defines the entities to be defined in a database. • Two step process: • Create LDM, which is a blueprint for a database design • Use the LDM as a guide to create the physical database

12. Other Database Construction Considerations • Number of individuals accessing the database concurrently • Access requirements related to speed of access and information display requirements • Export requirements for accessed data • Internal and external security requirements

13. Other Database Construction Considerations • Privacy requirements and adherence to current privacy regulations, planning for pending legislation, and anticipation of future legislation • Database update requirements (i.e., adds, deletes, and changes) • Timing • Volume • Critical path

14. Other Database Construction Considerations • Data recovery requirements • Priority • Timing • Ownership of process • Contingency requirements • Which data and priority • Offsite redundancy • Cost issues

15. Other Database Construction Considerations • Scalability requirements • Hardware • Software • License issues • Capacity issues • Communication and interfacing technologies

16. Integrated Marketing • Increase in internal and value chain real-time environment applications; interactive consumer applications enhance “pull” strategy • Optimal marketing efforts with dynamic LTV measurement • Increasing ability to change consumer behavior • Technology: costs decreasing, easier to implement and maintain, more capabilities

17. The Customer Collaborative Touch Points Tele- marketing Person to Person Interaction Technical Interaction Wireless/ Internet Mail/Fax Personalization Analytical Product Support Sales Relationship Management Service Delivery Marketing CRM Process Integration Customer & Prospect Information Operational Data Mining & BI Business Integration Data Marts/ Warehouse Core Enterprise Operations (ERP) Supply Chain Integration Human Resource Management Industry Core Systems Data Transformation Supply Chain Management Financial Systems e-business IT Infrastructure Figure 6.3

18. Marketing Integration • Consumer interaction • Computer telephony • Web • Kiosks • Mobile • POS • Self-service • Identification mediums (RFID, fingerprint, palm print, retinal scan)

19. Marketing Integration • Analytical mediums • Data mining • Statistical activity • Data marts • Sales automation • EIS, EMS, DSS • Dashboards

20. Marketing Integration • Operational environment • Core-competency • ERP • Legacy systems • Value chain

21. Considerations when Deciding on Technical Complexity • Amount of data captured • Frequency of data capture • Amount of data enhancement activity • Amount of information to be kept and made available • Frequency of data access • Number of personnel accessing data • Response requirements for data retrieval • Human and financial resources needed for development, training, implementation and ongoing maintenance, and support of the environment • Customer requirements for inquiry and transaction activity • CRM strategic objectives