BGS Customer Relationship Management Chapter 6 Technology and Data Platforms Chapter 6 Technology and Data Platforms Thomson Publishing 2007 All Rights

BGSCustomer Relationship

Management

BGSCustomer Relationship

ManagementChapter 6

Technology and Data Platforms

Chapter 6Technology and Data

Platforms

Thomson Publishing 2007 All Rights Reserved

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

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

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

copyright pending Robert Galka

Data Flow Environment

DataWarehouse

Sources

Datamart

DataprepReporting

200120001999

Jan Feb Mar

Statistics

Campaign Mgmt

Legal

Other Disciplines

Survey

Responses

Other

ReturnAddress

CustomerAddressAddress 22222

Mail

CouponRedemption

POS TransactionsOperationalData Store

Rule-basedProcessing

Data

PreperatIon

Communicationto Consumer

TM

Web

Data Mining &Reporting

Accounting/Financial

Figure 6.1

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


• 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


• 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

Logical Data Model

• Logical Data Model (LDM) is a diagram that defines the entities to be defined in a database.

• Two step process:1. Create LDM, which is a blueprint for a

database design 2. Use the LDM as a guide to create the

physical database

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


• 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


• Data recovery requirements– Priority– Timing– Ownership of process

• Contingency requirements– Which data and priority– Offsite redundancy– Cost issues


• Scalability requirements– Hardware– Software

• License issues• Capacity issues

– Communication and interfacing technologies

The CustomerThe Customer

Business Integration Business Integration

Core Enterprise Operations (ERP)Core Enterprise Operations (ERP)

CRM Process IntegrationCRM Process Integration

SalesSales

MarketingMarketing

ProductProductSupportSupport

ServiceServiceDeliveryDelivery

Industry Core Industry Core SystemsSystems Financial Financial

SystemsSystems

Human Resource Human Resource ManagementManagement Supply Chain Supply Chain

ManagementManagement

Supply Chain Supply Chain IntegrationIntegration

Customer & Customer & Prospect Prospect InformationInformation

Data Data Mining & Mining & BIBI

Data Marts/Data Marts/WarehouseWarehouse

DataDataTransformationTransformation

Relationship Relationship ManagementManagement

e-business IT Infrastructuree-business IT Infrastructure

Wireless/ Wireless/ InternetInternet

Tele- Tele- marketingmarketing

Technical Technical InteractionInteraction Mail/FaxMail/FaxPerson to PersonPerson to Person

InteractionInteraction

Touch PointsTouch Points

PersonalizationPersonalization

Collaborative

Analytical

Operational

Figure 6.3

Marketing Integration

• Consumer interaction– Computer telephony– Web– Kiosks– Mobile– POS – Self-service– Identification mediums (RFID,

fingerprint, palm print, retinal scan)


• Analytical mediums – Data mining– Statistical activity– Data marts– Sales automation– EIS, EMS, DSS– Dashboards


• Operational environment – Core-competency– ERP– Legacy systems– Value chain

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

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

Documents

BGS Customer Relationship Management Chapter 6 Technology and Data Platforms Chapter 6 Technology and Data Platforms Thomson Publishing 2007 All Rights