Transcript Database Marketing Sophisticated data collection and management

BGS
Customer Relationship Management
Chapter 6
Technology and Data Platforms
Thomson Publishing 2007 All Rights Reserved
6.2 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
6.3 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
MKT Technology Development Path:
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
MKT Technology Development Path:
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
Data Flow Environment
Statistics
Sources
Survey
Responses
POS Transactions
Return
Address
Customer
Address
Address 22222
Mail
Coupon
Redemption
Datamart
2001
2000
1999
Data Mining &
Reporting
D
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P
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p
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Operational
Data Store
Rule-based
Processing
Jan Feb Mar
Campaign Mgmt
Data
Warehouse
Accounting/Financial
Reporting
Web
Dataprep
Legal
Other
TM
Other Disciplines
copyright pending Robert Galka
Figure 6.1
Communication
to Consumer
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
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
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
Other Database Construction
Considerations
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•
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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
Other Database Construction
Considerations
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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
Other Database Construction
Considerations
•
Data recovery requirements
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•
Priority
Timing
Ownership of process
Contingency requirements
– Which data and priority
– Offsite redundancy
– Cost issues
MKT Technology Development Path:
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
The Customer
Collaborative
Touch Points
Wireless
/ Internet
Telemarketing
Technical
Interaction
Product
Support
Relationship
Management
Marketing
Sales
CRM Process Integration
Customer &
Prospect
Information
Business Integration
Core Enterprise Operations (ERP)
Industry Core
Systems
Financial
Systems
e-business IT
Figure 6.3
Service
Delivery
Operational
Data
Mining &
BI
Data
Transformation
Mail/Fax
Personalization
Analytical
Data Marts/
Warehouse
Person to Person
Interaction
Human Resource
Management
Supply Chain
Management
Infrastructure
Supply Chain
Integration
Marketing Integration
• Consumer interaction
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–
–
–
–
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Computer telephony
Web
Kiosks
Mobile
POS
Self-service
Identification mediums (RFID, fingerprint, palm
print, retinal scan)
Marketing Integration
• Analytical mediums
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–
–
–
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Data mining
Statistical activity
Data marts
Sales automation
EIS, EMS, DSS
Dashboards
Marketing Integration
• Operational environment
– Core-competency
– ERP
– Value chain
Considerations when Deciding on
Technical Complexity
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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
Considerations when Deciding on
Technical Complexity
• 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
Summary
• Not all technical environments need to be
complex
• Database entities can be combined and
provide multiple functions
• Different OEMs provide different strategies,
and organizations need to select the optimal
solutions