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Transcript of BGS Customer Relationship Management Chapter 6 Technology and Data Platforms Chapter 6 Technology...
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
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
Database Marketing Entities
• 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
Database Marketing Entities
• 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
Other Database Construction Considerations
• 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
Other Database Construction Considerations
• Data recovery requirements– Priority– Timing– Ownership of process
• Contingency requirements– Which data and priority– Offsite redundancy– Cost issues
Other Database Construction Considerations
• 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)
Marketing Integration
• Analytical mediums – Data mining– Statistical activity– Data marts– Sales automation– EIS, EMS, DSS– Dashboards
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