Tag: Analytics

Posted on

A question of value

The concept of value chains, originally introduced by Michael Porter in the field of strategic management, has meaningful application in the context of customer data management.

While the traditional value chain model encompasses activities from inbound logistics to service, focusing primarily on physical product flows, the essence of value creation can be extrapolated to the realm of data without emphasizing the logistical elements.

Consider then, how the principles of value chains apply to data management, examine the stages of the data lifecycle and the parallel philosophy that emerges, and determine for yourself just how much value your customer is, or could be adding to your organization and ultimately customers themselves.

The Data Lifecycle

Data Lifecycle Management (DLM) serves as a comprehensive framework for managing data from its inception to its eventual retirement. In the absence of logistical considerations, the Data Lifecycle emphasizes the holistic progression of data through various stages, each contributing to the overall value derived from data assets.

Similar to the inbound logistics phase of the value chain, data creation marks the genesis of value in the Data Lifecycle. At this stage, raw data is sourced from diverse channels, such as sensors, databases, and external feeds. The quality and relevance of data at its creation lay the foundation for subsequent value extraction.

In the operational phase, akin to operations and outbound logistics in the value chain, data undergoes ingestion, processing, and storage. This stage involves transforming raw data into a structured format, cleaning inconsistencies, and storing it in repositories like data lakes or databases or the case of customer master data, in a customer master data management (CMDM) system or customer data platform (CDP). The efficiency of these operations significantly influences the overall effectiveness of the data management practice.

Drawing parallels with marketing and sales activities in the value chain, data processing and analysis represents the extraction of value from raw information; business data-based techniques such as analytics, machine learning (ML), and statistical modeling uncover patterns, trends, and insights, turning data into actionable intelligence. Pretectum CMDM mostly undertakes this as part of the synchronization process with sources but it also bears fruit in the data quality, deduplication and profiling process stages.

The importance of data lifecycle management

Comparable to the service phase in the value chain, data distribution, or what we refer to as syndication, involves sharing analyzed insights or the finished product with system end-users, decision-makers, or other systems. Whether through reports, dashboards, or real-time data feeds, this phase ensures that the value extracted from data is effectively disseminated across the organization to best effect.

In data management activities, there are practices related to data archiving and retention that align with the procurement and infrastructure aspects of the value chain. This stage ensures that valuable data is appropriately stored, secured, and available for future use, contributing to the overall data governance strategy.

Similar to human resource management in the value chain, data governance and compliance focus on establishing policies and practices to ensure data quality, security, and regulatory adherence. This stage is crucial for maintaining the integrity and reliability of data assets. In this vein, you can consider how you control the distribution and access to data and how you establish your role-based access and control policies.

In the service and infrastructure aspects of the value chain, data destruction aligns with the retirement or disposal of data. This critical stage ensures that obsolete or redundant data is securely and ethically eliminated, preventing potential risks associated with retaining unnecessary information.

Beyond the Value Chain

While the Data Lifecycle serves as a structured framework for data management, a parallel philosophy emerges, emphasizing the interconnectedness of various data-related activities. This philosophy extends beyond the linear progression of stages and considers the dynamic relationships between different facets of data management.

Collaboration and Integration opportunities within a value system serve as a parallel philosophy in data management that encourages breaking the typical data management silos that seem so ubiquitous in many organizations and in turn fosters collaboration between different departments and functions. Recognizing the interconnected nature of data and its usage potential allows organizations to derive more comprehensive insights and drive informed decision-making.

Just as the value system considers interactions between multiple firms, the parallel philosophy in data management extends beyond organizational boundaries. Organizations can benefit from understanding how data interacts with partners both internally and externally, data suppliers, and the broader industry ecosystem. This perspective enhances opportunities for collaboration, data sharing, and ecosystem-wide innovation.

Aligning with the strategic use of customer master data in the value chain, the parallel philosophy underscores the importance of leveraging customer data for competitive advantage. Organizations need to identify areas where customer data can contribute to operational efficiency, customer relations, insights, or innovation, then align data strategies with broader business objectives.

Just as the value chain explores opportunities for monetizing physical assets, the parallel philosophy in data management encourages organizations to explore the monetization of data assets. Here we’re not advocating for selling customer data, rather we’re suggesting that the availability of augmented data has a value placed in mind depending on the application. This could involve selling data to external entities through data partnerships, but really it is often about creating value-added services or even developing new revenue streams through innovative use of customer data such as fee-pay loyalty and membership programs.

Mirroring the feedback loops for continuous improvement in the value chain, the parallel philosophy in data management emphasizes the importance of feedback loops. Analyzing data usage, performance metrics, and user feedback allows organizations to iteratively improve data management processes, ensuring ongoing optimization and adaptability.

The principles of value chains from the world of logistics, when applied to customer data management, reveal the possibilities for a parallel philosophy centered on the interconnected stages of DLM. This holistic approach emphasizes not only the sequential progression of data but also the dynamic relationships, collaborations, and strategic considerations that contribute to the overall value derived from data assets.

Recognizing the parallels between the value chain and data management, organizations can develop a more nuanced understanding of how customer master data creates value throughout its lifecycle. This, in turn, enables informed decision-making, efficient resource allocation, and the development of data strategies that align with broader business objectives. In our heavily data-centric world, where information is a critical organizational asset, embracing this parallel philosophy ensures that the full potential of data is harnessed for sustainable competitive advantage and innovation.

Posted on

Navigating the Customer Experience Landscape

A customer-centric business strives to create a positive, consistent, and memorable customer experience at every touchpoint, which leads to customer loyalty, advocacy, and ultimately, business growth.

Customer-centric businesses foster a culture that prioritizes customer satisfaction and values customer feedback with every employee, from top management to frontline staff, understanding the importance of the customer and their role in delivering exceptional experiences. Such businesses invest in gaining a deep understanding of their customers, including customer preferences, pain points, and behaviors. By using data from systems like the Pretectum CMDM accompanied by customer data insights, they are able to segment their customer base and tailor their products, services, and marketing strategies accordingly.

Such a business offers personalized experiences through personal product recommendations, marketing messages, and interactions to make customers feel valued and understood. Customer feedback is actively sought and used for driving continuous improvement through mechanisms like customer complaints and suggestions, addressing issues promptly, and making enhancements to offerings based on customer input.

Walmart founder, Sam Walton succinctly put it, “There’s only one boss; the customer.” These words reverberate through the hallways of companies that handle consumer data, as they signify the central role customers play in shaping a company’s trajectory. However, it’s essential to understand that customers are not just passive entities; they are active partners in the company’s mission.

A seamless and consistent experience across multiple channels, including in-store, online, mobile, social media, and customer support is important in supporting customers in interacting with the business through their preferred channel, and their history and preferences are accessible to employees across all touchpoints. The end goal is the cultivation of long-term relationships where, rather than focusing solely on short-term transactions, customer-centric businesses aim to build long-term relationships with their customers. This requires understanding that customer loyalty and lifetime value are more valuable than one-time sales.

Shep Hyken, a customer service and experience (CX) expert and keynote speaker and CAO (Chief Amazement Officer) designate of Shepard Presentations, a company that helps organizations create an amazing customer-focused culture suggests that “All of your customers are partners in your mission,” therein underscoring the point that customer data management is not merely about recording transactions; it’s about forging enduring relationships. When customers are seen as partners, the data collected becomes a means to strengthen this partnership, rather than a mere record of transactions.

Such businesses are adaptable and responsive to changing customer preferences and market dynamics. They are willing to pivot their strategies and offerings to meet evolving customer needs and they use metrics and measurements to be customer-centric businesses. They use metrics like Net Promoter Score (NPS), Customer Satisfaction (CSAT), and Customer Lifetime Value (CLV) to measure their success in delivering exceptional customer experiences. These metrics help them to track progress and make data-driven decisions.

Feedback and listening are integral to understanding and meeting customer needs. Actively seek feedback from customers through surveys, social media, and other channels. Demonstrating that you value their opinions and acting on their feedback shows responsiveness and care.

Jeff Bezos, the visionary behind Amazon, recognized that “Focusing on the customer makes a company more resilient.” This recognition links customer-centricity with a company’s ability to adapt to market disruptions. Effective customer data management builds a loyal and adaptable customer base, a strategic asset that can help companies weather various challenges.

This is more generally only achievable by prioritizing transparency and building trust with customers by being honest about product offerings, policies, and pricing. Trust is considered a foundational element of the customer relationship. These all form part of the customer experience (CX).

Customer experience and employee engagement Stan Phelps is the founder of PurpleGoldfish.com, a think tank of customer experience and employee engagement experts based at the Frontier in Research Triangle Park. Phelps highlights an often-overlooked aspect of customer experience: “Customer experience isn’t an expense. Managing customer experience bolsters your brand.” This perspective emphasizes that investing in data management isn’t a financial burden; it’s an investment that enhances the brand’s reputation and fosters customer loyalty.

Founder and CEO of CX Journey Inc., a boutique consulting firm that helps clients ground and frame their customer experience strategies in/via customer understanding, Annette Franz further underscores this by noting that “In a world where products and services are becoming more and more commoditized, customer experience is the only true differentiator.” Your business is likely facing fierce local and foreign competition, your existing customer data is the key to creating customer experiences that will set your brand apart from that of others.

Beyond mere record-keeping, data should be harnessed to identify pain points, improve products and services, and drive innovation, however, the effective use of customer data also necessitates a strategic approach. Your business needs effective strategy and planning, you cannot simply have and use your data. Without a data strategy, the data is rudderless; it may have potential, but it lacks direction.

Coaxing lifetime loyalty from data

Coaxing lifetime loyalty from daily transactions is a multifaceted process that involves creating exceptional customer experiences consistently. Steve Curtin defines Customer Experience Management (CXM) as “The art and science of coaxing lifetime loyalty from daily transactions” This perspective emphasizes the long-term focus of effective data management. It’s not just about short-term gains; it’s about nurturing enduring relationships with customers.

Personalization means tailoring interactions and offerings to match each customer’s unique preferences and history using customer data. You can offer personalized recommendations and promotions by recognizing loyal customers with personalized gestures like special discounts or exclusive access to products can go a long way in fostering loyalty.

Ensuring a consistent experience across all customer touchpoints, whether online, in-store, or through customer support, is vital. Customers should have a uniform experience that aligns seamlessly with your brand’s values and promises. Training and empowering your employees to provide outstanding service is essential for success in this area. Encourage a customer-first mindset throughout your organization, and make resolving issues promptly and fostering positive interactions a top priority. Loyalty programs can help in that they reward customers for their repeat business might include point systems, tiered rewards, and exclusive benefits for loyal customers.

Unexpected discounts, personalized thank-you notes, or small freebies with their purchases can create positive emotional connections that lead to lasting loyalty. After a purchase or interaction, engage in prompt follow-up. This would be in line with American entrepreneur, investor, and computer scientist Larry Page’s mantra, “Always deliver more than expected,” Page is best known for co-founding Google. Doing something like checking with customers to ensure they are satisfied with their experience and trying to address any concerns promptly demonstrates your commitment to their satisfaction.

Help customers understand the value your products or services bring to their lives and assist them in maximizing the benefits and features of what you offer. Building customer loyalty requires a thoughtful, multifaceted approach that prioritizes the customer’s needs and experiences. Dharmesh Shah American entrepreneur, investor, author co-founder, and CTO of HubSpot, advises “Improve the experience, and everybody wins,” this statement encapsulates the essence of customer-centricity. When companies prioritize the customer experience and use data to drive improvements, it benefits not only the customers but also the business as a whole.

If you provide an experience that is both useful, usable, desirable, and differentiated you reinforce the utility, desirability, and differentiation of your products and services and brand as a whole.

In conclusion, effective customer master data management transcends mere record-keeping. It’s a strategic imperative that shapes a company’s ability to deliver exceptional customer experiences. By embracing the wisdom of thought leaders in customer experience and customer management, businesses can navigate the complex landscape of consumer data with a customer-centric approach. In an age where the customer’s voice holds unparalleled power, data is the compass that guides companies toward meaningful, consistent, and differentiated experiences that foster loyalty, drive growth, and empower customers to become brand advocates.

Posted on

Is an email address, key customer contact data?

Email has become an integral part of our daily lives, it’s hard to fathom a reality without it. Billions of people across the globe rely on email for communication, and businesses and organizations have embraced it as a fundamental tool. Email has not only replaced traditional mail and phone calls but has also paved the way for the automation of critical business processes.

Unlocking the Potential of Email Addresses

While key customer master data is crucial for business operations, there’s one element that stands out as paramount: the email address itself. An email address serves as a unique identifier for accounting departments at vendors or customers. No two individuals in the world share the same email address except by intent, making it an unparalleled means of personalized communication.

With a person’s email address, you have the power to connect and interact with them from almost anywhere on the planet. Virtually every adult in the connected world, regardless of gender or age, possesses an email address. This universality enables the automation of communications, promotes a paperless environment, and initiates email-based workflow. In essence, an email address is a linchpin that enables automation, eliminates inefficient manual tasking, and can bolster relationship management. It’s the cornerstone of doing modern-day business.

Email addresses hold the potential to revolutionize profile management for customer master data. With an email address, you can seamlessly integrate automated solutions, including:

Profile Management to gain access to accurate and comprehensive customer master data. Leading to more efficient business processes and accelerated engagement.

Onboarding Sequences that streamline operational and financial processes, enhancing overall transactional efficiency.

Automated Communications can facilitate more effective and efficient interactions, smoothing out various transactional and engagement interactions.

Self-service portals empower customers to manage their accounts effortlessly, eradicating cumbersome manual centralized back office procedures.

Email: A Cornerstone of Account Management

In the realm of accounting, an email address is an invaluable asset. It serves as the gateway to digitization, enabling the automation of accounting processes and communication. Automated credit and collection solutions harness the power of email addresses, reducing reliance on paper-based workflows and optimizing automation.

The transition to a paperless and automated business environment need not remain an unrealistic aspiration. A connected accounting solution, tailored for Accounts Receivable (AR) teams, can catalyze this transformation and unlock the benefits of office automation.

Consider then, how your accounting solution could benefit from the Pretectum CMDM for Customer Master Data Management with customer email identifiers in the following tasking and process flows.

Digital Onboarding: Collect master data directly from your customers as zero-party or first-party data streamlining the onboarding process.

Invoicing and Billing: Email addresses are vital for sending invoices, receipts, and payment reminders electronically to customers. This accelerates the billing process and ensures customers receive accurate and timely records of their transactions.

Payment Notifications: Accounting relies on email to notify customers when their payments have been received and processed. This confirmation helps customers keep track of their financial commitments.

Payment Reminders: Email addresses enable the accounting department to send friendly payment reminders or overdue notices to customers who have outstanding balances. This can expedite the collection process and reduce the number of late payments.

Financial Statements: Email is a convenient channel for distributing monthly or periodic financial statements, allowing customers to review their account activity and balances, which is especially important for credit or subscription-based services.

Communication for Account Inquiries: When customers have questions or concerns about their accounts, they often use email to contact the accounting department. Email addresses serve as a direct line of communication for addressing customer inquiries efficiently.

Transaction Confirmations: For important financial transactions such as refunds or adjustments, email notifications provide customers with written confirmation, enhancing transparency and trust.

Document Sharing: Accounting may need to request or share documents with customers, such as tax forms or compliance-related documents. Email facilitates the secure exchange of such sensitive information.

Account Updates: Customers may need to update their contact information, including email addresses. Accounting relies on email to communicate these changes, ensuring that customer data remains accurate.

Newsletter and Promotions: Some companies use email addresses to send newsletters or promotional offers related to financial services or products, which can enhance customer engagement and retention.

Surveys and Feedback: Accounting departments may seek customer feedback or conduct surveys through email to improve their services and processes.

The customer email address is an indispensable tool for the accounting department in customer master data management. It can enhance data accuracy, streamline communication, and ultimately contribute to the department’s efficiency and effectiveness in managing financial transactions and customer relationships.