The added value of an Integrated Customer ViewEmile van de Klok

Brussel, March 2009Sr. Product Manager – Human Inference

An integrated customer view?

Inbound Logistics

OperationsOutboundLogistics

Marketing&

SalesService

Technical Infrastructure & Development

Procurement

Human Resources

Margin

Bu

sin

es

s U

nit

A /

La

be

l A

Bu

sin

ess

Un

it C

/ L

abel

C

Bu

sin

ess

Un

it B

/ L

abel

B

Based on Value Chain, Porter 1985

Why a decentralized customer view:- Business processes / departments- Business Unit’s / (product) labels- Customer role’s (b2c, b2b) - Communication channels- Multiple entry by employees- M&A’s

What do we need?

• CRM : the vision

• CDI (MDM for Customer Data) : the reality

How to create an integrated customer view?

Move customer datato one single system

Accept current infrastructure:

Example MDM for Customer Data

OperationalSystem

A

OperationalSystem

B

OperationalSystem

C

ESB

CDI Database

Data model

Cre

ate

Re

ad

Up

da

te

De

lete

A - 113 B - 76 C - 986

Romford 113A Gubbins LaneJ. Jameson

Romford, RM3 5TH76B Gubbins LaneJ.H. Jameson

Romford, RM3 5TH986C 1, Gubbins LaneJohn H. Jameson

A - 113 B - 76 C - 986

Record: System B - 76

Name: J.H. Jameson Address: Gubbins LaneCity: RomfordPostal code: RM3 5TH

Record: System C - 986

Name: John H. Jameson Address: 1, Gubbins LaneCity: RomfordPostal code: RM3 5TH

Record: System A - 113

Name: J. Jameson Address: Gubbins LaneCity: RomfordPostal code:

RomfordJ.

CDI

Gubbins LaneJameson

Source records (keys and attributes)

Golden Record

Marketing / Sales Finance Service

Customer Data Records

12 1 RM3 5TH H.

What is the value of an integrated customer view?

Source: Gartner, Creating the Single Customer View with Customer Data Integration, January 2006

Scenario 1 – Inbound Call Center

• Without an integrated customer view

Call Center EmployeeCustomer

Order AdminOperational

SystemAA - 113

Call Center Portal

Bill Degado Search

System: Order Admin Record: A – 113- 5 laptops, delivery status: sent today

RING

RING

Good morning,

how can I help you?

Good morning,

Bill Delgado speaking.

When can I expect my laptops?

Please hold on the line sir,

I’ll check the order.

Search Bill Degado

We have send the laptops today so I expect you to receive them tomorrow.

Ok that’s great! Thanks for your call and have a nice day.

Another thing. I sent you my broken router and it took a week before it was fixed, while I needed it to be fixed straight away. I’m not too happy about that.

I’m sorry to hear that, but I can’t help you with that. You can call our Service Department on telephonenumber: 0123456789

Ehmm. OK.

William Delgado, 34 Legget DriveEhmm… Did he say Degado or

Delgado?

Lets try Degado…

I’m sorry but I can’t find you in our system. Could you please spell your name?

It’s D E L G A D O Once again, thanks for your call and have a nice day.

System: Order Admin No Match Found

Delgado

Scenario 2 – Inbound Call Center

• With integrated customer view

Call Center EmployeeCustomer

Communication Infrastructure

DataStorag

e

Single Customer View Order AdminOperational

SystemA

ServiceOperational

SystemB

MarketingOperational

SystemCC - 986A - 113 B - 76

Call Center Portal

Bill Degado Search

System: Order Admin Record: A – 113- 5 laptops, delivery status: sent today

System: Service Record: B – 76- 1 Router, service status: fixed 3 days ago

System: Marketing Record: C – 986- Mailing Subject: “Express Service” Mailing Sent: yesterday

RING

RING

Good morning,

how can I help you?

Good morning,

Bill Delgado speaking.

When can I expect my laptops?

Please hold on the line sir,

I’ll check the order.

Search Bill Degado

Request detailed Info Source SystemsA-113, B-76, C-986

Return detailed Info Source SystemsA-113, B-76, C-986

We have send the laptops today so I expect you to receive them tomorrow.

Ok that’s great! What about your router? I see it has been fixed a couple of days ago. Does everything work fine now?

Yes, thanks for asking! Only problem is it took a week before it was fixed, while I needed it to be fixed straight away.

I’m sorry to hear that, but have you received our mailing we sent yesterday about our new offering “Express Service” - repair within 24 hours?

Yes sound actually very attractive.

Would you like me to register you for this service Mr. Delgado?

William Delgado, 34 Legget Drive

William Delgado

A-113

B-76

C-986

Ehmm… Did he say Degado or

Delgado?

Lets try Degado…

Is your address:

“34 Legget Drive”?

That’s right!

William Delgado

A-113

B-76

C-986

- Bill is a nickname for William

- Degado should be Delgado

Yes please. Ok. Thanks for your call and have a nice day.

Advantages scenario

Customer focuses instead of product / department focused

• Improved customer experience• Cross and up-sell opportunities• Efficiency• Customer retention• Cost reductions (time reductions)

• Reduce risks (credit risks, black list)

Where to start?A Single Customer View within: - organization level- business unit / label level- department level

Impact on:- lead time- risk (cancellation / financial)- feasibility (data governance / technical

complexity)- required investment- added value- commitment (top)

• Terugkoppeling naar value chain. Moet je nou bedrijfsbreed doen of eerst op een business unit of op afdelingsniveau

• Begin klein • Logische stappen (organisatie, BU, (poel)

afdeling(en)) haalbaarheid (data governance, technisch), (afbreuk) risico, impact, investering (tijd en geld), complexiteit, commitment top

1203600

Simple value calculationThis example only includes one of the many value generators within the call center scenario

Hourly wage

call centeremployee

€35,- 100

Averagenumber of concurrentcall centeremployeeslogged in

X X 12

Calls per hour per

employee

15%X

Percentage calls

delayed byincorrect,

fragmented or multiple

customer data

Average delay

X

Without integrated customer

view

With integratedcustomer

view

Wasted call

centerCost per

hour

€210=

€35,- 100X X 12 3%X 1003600X €35=

Cost reduction per hour by integrated customer view:

€175

Hours per year (40 * 52): 2080

Yearly cost reduction call center: € 364.000

hours

hours

Summary• Combination of strategy and implementation = key to

success• Value chain to map decentralized customer view• MDM for Customer Data accepts current database

infrastructure• Scenario’s to identify the real value • Start implementation smart and leverage the success• Simple ROI doesn’t give you a complete picture but a

quick insight