Managing data integrity with confidence

Rebecca ClaytonTFM

9th February, 2005

Rebecca ClaytonTFM9th February 2005

Managing data integrity with confidence

Today’s agenda

The importance of dataData decayAn effective data strategyMaintaining and enhancing your dataThe QAS approachBenefits of an operational data strategy

The importance of data

Inaccurate data costs every time it is usedData decays if not maintainedAccurate data is vital for decision-making Inaccurate data affects customer satisfaction - 31% of consumers end relationship due to inappropriate communications

Source: NOP World research and Royal Mail

Data within an organisation

87% of organisations use customer data to support strategic decisions

39%

48%

35%

37%

Board level

Senior management

Middle management

Departmental

Source: NOP World research

Organisation-wide issue

Strategic issues:capturing data consistentlymaintaining dataenhancing data

Not just about saving money but making money

Manchester United FC

Fan base : 75m in 20 territoriesAim to convert support from fan base into club revenueAccurate international data capture is vitalRegular clean and refresh policyAccurate communication = cost savings

Red Letter Days

£12m market-leading UK firmComplex multi-stage order handling and processing must run smoothlyAccurate data capture vital at each stage through all mediums including webAim to improve the customer experience

Data decay – the causes

13% of the UK public move each year – 7.7m people700,000 people die each year1.2m addresses change on PAF eachyear

Source: NOP World research and Royal Mail

Data decay – the causes

Data collection from different sources can cause duplicationsLack of budget for regular verificationLack of awareness of data accuracy solutions available

Lets do some numbers

30 pieces in one month£1 per piece +0.21p to mailOver 12 months £435.60

B2B vs B2C

“Our problem is the human error factor, we need more internal checks of the actual data inputting”

Over 5000 employees, Business Services

Data decay – the causes

“There are problems where people only put in the data relevant to

their department…they are onlythinking of themselves”

500 - 999 employees, Finance

Data decay – the causes

Improvement in data strategy

57% organisations use a single company wide database

67% of organisations now have a standard data quality policy

Source: NOP World research

13%

3%

9%

5%

1%

16%

1%

48%

Never routinely cleaned

Less than once a year

Annually

Every 6 months

Quarterly

Once a month

Weekly

Point of input

Increased routine validation*

*Still 13% without any form of validation

Good newsMore board buy inMore InvestmentMore personnel

ConcernsLack of data accuracy technology

Increased commitment

Over 80% of organisations believe inaccuratedata costs money, across the whole company

3%

5%

13%

18%

29%

29%

Wasted time

Lower productivity

Loss of cash flow

Missed sales opportunities

Damaged reputation

Wasted marketing costs

Bad data costs

Source: NOP World research

Data potential unrealised

Over 50% did not believe that they were using their customer database to full potential

Says Marketers 72%IT Managers 59%Database Managers 47%

Research shows…

Companies have moved onData quality increasingly on the Board agendaMore consolidated databasesMore investment in data quality

Still some dissatisfaction with data, affecting business decision making

Only 18% ‘Very satisfied’ with data accuracyOnly 20% ‘Very Satisfied’ with completeness

Data integrity drivers

LegislationMergers and acquisitionsUse data intelligentlyCustomer retention & growth-exceed customer expectations, CRM

Instil best practice across the enterpriseImprove cost base and reduce waste

The data integrity proposition

More than just names and addresses

Enhancing records

Suppressing records

Suppression a hot topic

DMA escalates its campaign to get industry to use Suppression as part of lessening the environmental impact of

poorly targeted DM.

David Coupe, Chairman of DMA

Suppression data

Telephone and Fax Preference Services (TPS and FPS)

Over 4 million registrationsLegal obligation to usePotential fines and adverse publicity

Mailing Preference Service (MPS)Over 1 million registrations

Suppression data

National Change of Address (NCOA)12 million records100,000 new redirections a month

Gone-away suppression18,000 people move dailyNot always togetherNot always permanently13 items of DM a month

Suppression data

Bereavement screening

700,000 people die a year£18 million wasted mailing the deceased

Duplicate detection70% consumers annoyed by duplicate mailIndividual, family or household

BT’s Operator Services Info System (OSIS)Telephone number verification, addition, formatting and ex-directory flagging50,000 changes a day

Electoral RollName verification, addition and formatting35 million records

Enhancement data

So what can we do about it ?

Data strategy – a consistent approach

Enterprise wide championsCapturing data across different customer touchpointsCleaning, maintaining and enhancingUsing data confidently

Becoming confident

Self assessment auditMeasure data quality – the complete recordSet targetsGet buy in

Measure and improve

58.6%

7.1%

12.6%

0.3%

9.3%

12.0% 0.1%

Verified correctGood matchTentative matchPoor matchMultiple matchesPartial matchUnmatched

Get your customers to help

Give customers every opportunity to manage and update their own information

Envelopes, DM, billing, web, email, phone calls, meetings

Routine contact validation

Email

Phone

Suppression

Report success

Good data is good for everyone Make it part of the culturePolicies and trainingIncentives

Why spend the time and effort ?

‘Productivity, customer satisfaction, growth, and better opportunities to up-sell and cross-sell across the customer base are

the primary benefits of improved address data quality’.

Ted FriedmanPrincipal Analyst, Gartner Research

Success over time

“We keep getting better with time, hopefully in five years time we will

be using our database more, it is an evolutionary process”

1000 - 4999 employees, Finance

We can help you with your data integrity strategy.

Visit us on stand D40 for advice and live demonstrations.

www.qas.com/uk