Achieve Customer Relationship Management Success
Achieve Customer Relationship Management Success
So, how do you ensure that the data your firm will be importing to a marketing database or CRM environment is accurate? Our experience has shown that incorporating sound data hygiene and integration practices into your CRM system design is vital.
Definition of Data Integration:
Let’s first define Data Integration. We define Data Integration as any process that results in cleaner, more accurate customer and/or prospect data. These processes can range from simple data hygiene tools, such as National Change of Address (NCOA) that have been available to marketers for years, to merge/purge deduplication to relatively new, referential data linking services.
Let's look at each one of these services in a little more detail.
Data Hygiene: This category includes the U.S. Postal Services products available from all of the leading data processing firms, as well as supplementary services often offered in conjunction with the USPS clean-up services.
• National Change of Address (NCOA): This is a file of movers who’ve filled out a change of address form at their local post office. While extremely valuable, it’s important to note that a good percentage of moving consumers and businesses do not take the time and effort to submit this form.
• Supplementary Change of Address services: Many of the NCOA service providers also compile additional sources of address changes (such as those provided by magazine publishers or cataloguers). Additionally, many of the NCOA suppliers have developed programs where they are able to identify more Nixies (bad addresses) even if they cannot provide you with the current address. These types of services can be an excellent addition to the USPS NCOA service.
• Delivery Sequence File (DSF): Another USPS product offered from a handful of large data processing firms, DSF is a file of every delivery point in the country. You can use this tool to understand simple deliverability of your address data. Additionally, you can obtain a better understanding of your address data by examining DSF flags around address type (i.e.: commercial, residential, vacant, and seasonal addresses).
• Locatable Address Conversion System (LACS): Yet another USPS offering—this process converts rural route addresses to a physical street address, enhancing the deliverability of that address.
• Address Standardization and ZIP Code Correction Processes: The leading service bureaus, over time, have fine-tuned these processes. Through rigorous editing of input addresses, they are able to maximize the number of records where a ZIP+4- code can be applied. Additionally, they can often employ services that correct elements of the address or append apartment numbers if this data is missing in your input file.
Merge/Purge De-duplication Services: This is the process of comparing multiple input files and searching for duplicates. Service providers employ either off-the-shelf software or highly customized proprietary logic to maximize data matching. Many can process both consumer and business data in one process. Other key considerations when evaluating merge/purge providers are: 1) their flexibility in reporting and 2) your ability to customize the matching algorithms. Additional benefits of an effective merge/purge solution are the identification of Prison, APO/FPO and DMA Do Not Solicit addresses. But the most important consideration when choosing your service provider is their matching ability. Does the selected firm identify the maximum number of duplicates? And, are those duplicates accurate?
Referential Linking: Referential data matching is offered by data compilers that maintain a reference database of historical and current views of a customer, such as prior addresses, aliases and other name variations. These referential linking providers (Experian and Acxiom are the two biggest) use the power of their rich data stores to maximize the accuracy of matching and linking data on disparate databases, thereby providing the view to your total customer relationship.
The primary benefit of Referential Linking is that it assigns a unique and persistent identifier to each record. This persistent ID is vital if you are maintaining a customer/prospect database environment. Additionally, you’ll benefit from additional matches that merge/purge does not recognize. Further, Referential Matching providers also facilitate real-time data access, as they commonly offer real-time data access and matching services.
How do I implement these services?
Now, that we’ve provided an overview of available Data Integration tools, let’s review which tools are necessary for your specific business needs. We’ll discuss how to use the available address hygiene services, when simple de-duplication processes are sufficient, and provide a check-list of business needs that may point you in the direction of exploring more sophisticated referential data linking. Finally, we’ll point out some of the pitfalls realized in our experience in working on some complex programs.
How Do I Take Advantage of Address Hygiene Services?
• We recommend using all or most of these services regardless of your other data integration processes and needs. The address hygiene tools are inexpensive and easy to integrate with either merge/purge de-duplication and/or referential linking services. In fact, they are typically a standard component of these other services.
• In regards to frequency of the tools, we’d recommend minimally quarterly processing of your complete data files. On top of that, we’d recommend running the processes prior to a marketing campaign to enhance delivery and response.
When is Merge/Purge enough?
• When you don’t need the ability to track data over time.
• When it supports a one-time marketing program (such as a direct mail campaign or a outbound telemarketing program).
• When the focus is on keeping customer acquisition costs down, as opposed to retaining and tracking the data.
When do I need to consider Referential Data Linking?
• You need this service if you are serious about understanding the complete customer relationship. For example, if your firm has experienced acquisitions and mergers, this service is imperative. Your customers expect you to be aware of the entire relationship you enjoy with them. Oftentimes, if your organization is organized into product or segment silos, these relationships are not clearly understood. You need to use sophisticated Linking services to identify and link the business relationships.
• When you’ll be importing customer and/or prospect data into a marketing or operational database. As stated previously, if you’re investing significant resources into a CRM system, you need to have an accurate understanding of your customers and prospects. Plus, the persistent identifier that is provided by these linking technologies allows for easier data management.
• When you know that your data is old and out-of-date. Because the Referential Data Linking services include historical versions of names and addresses, they will actually match on your out-of-date information. You can then obtain a current, best name and address, allowing you to update your customer/prospect data.
Pitfalls to Avoid:
In summary, there are a variety of tools available to ensure data integrity. Referential Data Linking is by far, the most accurate and lends itself well to a CRM environment. However, the technology is relatively new. There are pitfalls to be aware of. Following are some questions you should ask yourself and your chosen service provider:
• How does the system handle commercial addresses? It’s a fact that Referential Data Linking technologies were developed in the consumer environment. And, it’s a fact that there are hundreds more sources of consumer data than there are sources of business data. The leading providers are still in their infancy of fine-tuning business matching, and the lack of data makes matching even more difficult. If you are a b2b marketer, we recommend that you employ rigorous data testing prior to choosing a service provider to ensure that these services will meet your needs.
• Do you have the infrastructure in place to manage data changes? The benefits of a persistent identifier can only be realized if you have the internal abilities to maintain and tract prospects and customers. If this environment doesn’t exist in your firm, extra costs involved in Referential Data Linking may not be justified.
• Does your provider commit the resources to support the project from the design through implementation of the solution? Because every company is different, these solutions usually need to be somewhat customized, depending upon your specific requirements. Ensure that your provider is not only able to bring out their “A” team during the sales and design process, but that that team or a reasonable facsimile of it, remains dedicated to your process after implementation -- as your firm begins to fully use the process in your environment.
• Does your provider fully understand your needs? It seems simple but we’ve seen many cases where the project is in the testing stage and it is discovered – at this late date prior to production – that there are “issues.” If your provider has done a good job in the design process, fixing the problems should be simple “tweaks” to the system. If this turns out to not be the case, you can lose valuable time in re-design and re-test prior to getting a solution that delivers the expected benefits.
Achieve Customer Relationship Management Success - To learn more about this author, visit Nancy Arter's Website.
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In the Customer Relationship Management (CRM) landscape, we’ve seen a shift in focus from pure technology to an emphasis on data content and quality. Companies of all sizes have found that no matter what they invest in technology, if the data input to a marketing database or to a CRM system is incorrect, then the benefits of a CRM implementation can never be realized.
So, how do you ensure that the data your firm will be importing to a marketing database or CRM environment is accurate? Our experience has shown that incorporating sound data hygiene and integration practices into your CRM system design is vital.
Definition of Data Integration:
Let’s first define Data Integration. We define Data Integration as any process that results in cleaner, more accurate customer and/or prospect data. These processes can range from simple data hygiene tools, such as National Change of Address (NCOA) that have been available to marketers for years, to merge/purge deduplication to relatively new, referential data linking services.
Let's look at each one of these services in a little more detail.
Data Hygiene: This category includes the U.S. Postal Services products available from all of the leading data processing firms, as well as supplementary services often offered in conjunction with the USPS clean-up services.
• National Change of Address (NCOA): This is a file of movers who’ve filled out a change of address form at their local post office. While extremely valuable, it’s important to note that a good percentage of moving consumers and businesses do not take the time and effort to submit this form.
• Supplementary Change of Address services: Many of the NCOA service providers also compile additional sources of address changes (such as those provided by magazine publishers or cataloguers). Additionally, many of the NCOA suppliers have developed programs where they are able to identify more Nixies (bad addresses) even if they cannot provide you with the current address. These types of services can be an excellent addition to the USPS NCOA service.
• Delivery Sequence File (DSF): Another USPS product offered from a handful of large data processing firms, DSF is a file of every delivery point in the country. You can use this tool to understand simple deliverability of your address data. Additionally, you can obtain a better understanding of your address data by examining DSF flags around address type (i.e.: commercial, residential, vacant, and seasonal addresses).
• Locatable Address Conversion System (LACS): Yet another USPS offering—this process converts rural route addresses to a physical street address, enhancing the deliverability of that address.
• Address Standardization and ZIP Code Correction Processes: The leading service bureaus, over time, have fine-tuned these processes. Through rigorous editing of input addresses, they are able to maximize the number of records where a ZIP+4- code can be applied. Additionally, they can often employ services that correct elements of the address or append apartment numbers if this data is missing in your input file.
Merge/Purge De-duplication Services: This is the process of comparing multiple input files and searching for duplicates. Service providers employ either off-the-shelf software or highly customized proprietary logic to maximize data matching. Many can process both consumer and business data in one process. Other key considerations when evaluating merge/purge providers are: 1) their flexibility in reporting and 2) your ability to customize the matching algorithms. Additional benefits of an effective merge/purge solution are the identification of Prison, APO/FPO and DMA Do Not Solicit addresses. But the most important consideration when choosing your service provider is their matching ability. Does the selected firm identify the maximum number of duplicates? And, are those duplicates accurate?
Referential Linking: Referential data matching is offered by data compilers that maintain a reference database of historical and current views of a customer, such as prior addresses, aliases and other name variations. These referential linking providers (Experian and Acxiom are the two biggest) use the power of their rich data stores to maximize the accuracy of matching and linking data on disparate databases, thereby providing the view to your total customer relationship.
The primary benefit of Referential Linking is that it assigns a unique and persistent identifier to each record. This persistent ID is vital if you are maintaining a customer/prospect database environment. Additionally, you’ll benefit from additional matches that merge/purge does not recognize. Further, Referential Matching providers also facilitate real-time data access, as they commonly offer real-time data access and matching services.
How do I implement these services?
Now, that we’ve provided an overview of available Data Integration tools, let’s review which tools are necessary for your specific business needs. We’ll discuss how to use the available address hygiene services, when simple de-duplication processes are sufficient, and provide a check-list of business needs that may point you in the direction of exploring more sophisticated referential data linking. Finally, we’ll point out some of the pitfalls realized in our experience in working on some complex programs.
How Do I Take Advantage of Address Hygiene Services?
• We recommend using all or most of these services regardless of your other data integration processes and needs. The address hygiene tools are inexpensive and easy to integrate with either merge/purge de-duplication and/or referential linking services. In fact, they are typically a standard component of these other services.
• In regards to frequency of the tools, we’d recommend minimally quarterly processing of your complete data files. On top of that, we’d recommend running the processes prior to a marketing campaign to enhance delivery and response.
When is Merge/Purge enough?
• When you don’t need the ability to track data over time.
• When it supports a one-time marketing program (such as a direct mail campaign or a outbound telemarketing program).
• When the focus is on keeping customer acquisition costs down, as opposed to retaining and tracking the data.
When do I need to consider Referential Data Linking?
• You need this service if you are serious about understanding the complete customer relationship. For example, if your firm has experienced acquisitions and mergers, this service is imperative. Your customers expect you to be aware of the entire relationship you enjoy with them. Oftentimes, if your organization is organized into product or segment silos, these relationships are not clearly understood. You need to use sophisticated Linking services to identify and link the business relationships.
• When you’ll be importing customer and/or prospect data into a marketing or operational database. As stated previously, if you’re investing significant resources into a CRM system, you need to have an accurate understanding of your customers and prospects. Plus, the persistent identifier that is provided by these linking technologies allows for easier data management.
• When you know that your data is old and out-of-date. Because the Referential Data Linking services include historical versions of names and addresses, they will actually match on your out-of-date information. You can then obtain a current, best name and address, allowing you to update your customer/prospect data.
Pitfalls to Avoid:
In summary, there are a variety of tools available to ensure data integrity. Referential Data Linking is by far, the most accurate and lends itself well to a CRM environment. However, the technology is relatively new. There are pitfalls to be aware of. Following are some questions you should ask yourself and your chosen service provider:
• How does the system handle commercial addresses? It’s a fact that Referential Data Linking technologies were developed in the consumer environment. And, it’s a fact that there are hundreds more sources of consumer data than there are sources of business data. The leading providers are still in their infancy of fine-tuning business matching, and the lack of data makes matching even more difficult. If you are a b2b marketer, we recommend that you employ rigorous data testing prior to choosing a service provider to ensure that these services will meet your needs.
• Do you have the infrastructure in place to manage data changes? The benefits of a persistent identifier can only be realized if you have the internal abilities to maintain and tract prospects and customers. If this environment doesn’t exist in your firm, extra costs involved in Referential Data Linking may not be justified.
• Does your provider commit the resources to support the project from the design through implementation of the solution? Because every company is different, these solutions usually need to be somewhat customized, depending upon your specific requirements. Ensure that your provider is not only able to bring out their “A” team during the sales and design process, but that that team or a reasonable facsimile of it, remains dedicated to your process after implementation -- as your firm begins to fully use the process in your environment.
• Does your provider fully understand your needs? It seems simple but we’ve seen many cases where the project is in the testing stage and it is discovered – at this late date prior to production – that there are “issues.” If your provider has done a good job in the design process, fixing the problems should be simple “tweaks” to the system. If this turns out to not be the case, you can lose valuable time in re-design and re-test prior to getting a solution that delivers the expected benefits.
Achieve Customer Relationship Management Success - To learn more about this author, visit Nancy Arter's Website.
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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Dianne CramptonDianne Crampton is an executive leadership coach, team culture consultant, author and president of TIGERS Success Series, Inc. Dianne has been helping CEO's and Executives connect their employees to their core values and goals for over 20 years using the trademarked TIGERS team culture process, which stands for trust, interdependence, genuineness, empathy, risk and success. To download a free white paper on behaviors that build strong teams and behaviors that will predictably tear them down go here. Dianne's contribution to the 2010 Pfeiffer Consulting Journal (an imprint of John Wiley and Sons Publishers) entitled TIGERS Hearted Teams is available in November 2009. Her new book TIGERS Among Us: 5 Winning Business Team Cultures And Why, Three Creeks Publishing will release in March 2010. To receive publishing discounts, subscribe to the free TigerTracks Newsletter here. - Visit Dianne Crampton's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
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