1to1 - Spring 2009 - (Page 29) By Jeremy Nedelka dollars Six ways to boost your bottom line using customer insight The last thing a customer wants is to be treated like a faceless number in a database. Ironically, that number may be connected to a wealth of information that instead helps companies provide personal service, more relevant communication, and a better experience—all while allowing those same organizations to increase wallet share and boost the ROI of their customer-focused initiatives. According to a recent survey by 1to1 Media, companies’ three primary uses of customer data are understanding customer value and profitability, crafting marketing messaging, and creating up- and cross-sell offers. But those goals are just the beginning when it comes to spinning data into profit. Here are six other approaches to consider when endeavoring to capitalize on customer data. They range from building customer trust to rethinking Web analytics to empowering employees with better data access. All have one lesson in common: Data can make or break your customer relationships—and your bottom line. one: Share Ownership Creating a single version of the truth and harmonizing that vision throughout an organization is imperative to getting the most profit out of data, according to Jill Dyche, a partner with Baseline Consulting and coauthor of Customer Data Integration: Reaching a Single Version of the Truth. Companies must have a plan for the data they collect if they are to link customer-based initiatives to an increase in revenue or profitability. Yet silos and departmental disconnects still stand in the way, as Dyche discusses with 1to1: What Customer Data Would You Like to Collect That You Don’t Now? Psychographic 11% Demographic 9% None 9% Competitive information 6% Customer needs and preferences 6% Web activity 5% Source: 1to1 Media 1to1: What’s the biggest data challenge companies today face? JD: It continues to be siloed systems; as much as people talk about it, the problem just isn’t going away. As soon as companies integrate data they bring in new applications and systems that generate even more [information], and have to start the process over again. They lack the process for onboarding new systems in a sustainable way, and technology can’t solve that problem. It’s a cultural issue, and management still focuses on technology spending instead of data accuracy. 1to1: What problems does data create for sales and marketing teams? JD: Unfortunately, sales and marketing believe that to reach a single view of the customer they have to agree on a single definition. Sales may see a customer as someone who has paid for a product, whereas marketing may say it’s someone on the company’s mailing list. Most businesses today think they have to make a choice, meaning someone will win and someone will lose, but that’s not true. The key is provisioning data to divisions so that each can look at the same data in their own way. There only needs to be a single version of the truth as far as the customer records, not which data can be accessed. 1to1: Should companies hire a chief data officer to spearhead these initiatives? JD: I don’t recommend having a data czar, or CDO, or whatever companies want to call that person. Businesses tend to gravitate toward organizational solutions for process problems, and it doesn’t work. They need to get the strategic importance of data into the company culture first so that when a data czar is hired, everyone knows what that person will do, what value they create, and what they’re accountable for. The few times I’ve seen a CDO, it’s been too early in the process. I’ve seen many more failures than successes. www.1to1media.com Spring 2009 29 http://www.1to1media.com/view.aspx?itemid=29293 http://www.1to1media.com/view.aspx?DocID=31412&PreviewMode=full http://search.barnesandnoble.com/booksearch/isbnInquiry.asp?r=1&ISBN=9780471916970&ourl=Customer%2DData%2DIntegration%2FDon%2DPeppers http://www.1to1media.com
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