1	Customer Information Management It’s All About Data Timothy J. Anglum
2
3	What Is Information Management? Centralized asset management of customer information Reasoned strategy for collection and retention of data Assurance of responsible use of customer data Unified approach to data quality and integrity Administration of risk management strategies Implementation of standards, policies and procedures Identification and evaluation of new opportunities, services, vendor partners Execution of privacy laws and industry standard practices
4	More Specifically, It Is . . . Developing business rules that direct data usage and meaning Administration of data and collection policies for all customer touchpoints Creating and finding new data sources and elements Evangelizing ‘data respect’ at all levels of the organization Coordination of cross-functional policies and procedures Educating new and existing users on meaning of information Monitoring quality, consistency and completeness Developing detailed security requirements Assuring information is used to its fullest capacity Communication of notification and use policies
5	Definition Main Entry: stew·ard·ship Pronunciation: 'stü-&rd-"ship, 'styü-; 'st(y)u(-&)rd- Function: noun Date: 15th century 1 : the conducting, supervising, or managing of something; especially : the careful and responsible management over an asset that one does not own <stewardship of our natural resources> 2 : the office, duties, and obligations of a steward
6	What The Experts Are Saying . . .
7	What Other Companies Are Doing It?
8	Why Is It Important?
9	Why Is It Important To You? Customer focused initiatives dependent on customer data New level of business sophistication mandates it Millions of dollars spent building existing capability Essential for effective collection of additional new data Necessary component to execute privacy initiatives Legislation will mandate changes in the way we do things Store employees will have greater confidence in the data and will be motivated by greater data quality
10	Strategic Benefits of Information Management Strategic and tactical decisions based upon sound, accurate and complete data Increased customer satisfaction from more knowledgeable customer interactions Greater ability to collect new data (and augment existing data) more accurately and efficiently More effective personalization on-line and off-line Higher ROI resulting from less over-promoted or under-promoted customers Increased revenue and greater customer intimacy leading to higher loyalty and retention
11	Tactical Benefits of Information Management Quality data is an asset, poor data is a liability Easier to respond to privacy regulations Lower cost of maintenance and faster processing Accurate and complete data reduces risk of litigation Ability to manage customer preferences Reduces potential fraud liability Ability to identify more cross-sell and up-sell opportunities
12	Measuring Information Management Seven practitioner’s of Information Quality measured and documented $576,925,000 in savings¹ A 1% increase in mail delivery could produce $2.5 million annual increase in revenue² Visa CISP regulations could jeopardize sales Violations of Consumer Privacy Protection Act 2003 could yield civil penalties double FTC standard fines Legal settlements, fines and attorney fees could be huge Walgreens $160,000 Avenue A $925,000 DoubleClick $459,000 Wal-Mart $1,600,000
13	Marketplace Situation Significant customer focused short-term goals Strong desire to learn more about core segments Existing customer database and tools Intensive utilization of existing data/capabilities Expectations and requirements of your customer capability have risen substantially in past six months Valuable customer data resides with vendors that is not integrated to existing databases Data is not consolidated to provide a 360^ocustomer view Lots of people driving heads down toward aggressive customer focused goals
14	Marketplace Situation Emphasis on data consolidation and application integration Strategy for collecting new data and supplementing existing information has not been a priority Customer capability not yet maximized Policies and procedures incomplete Data Access Use Sharing Data Retention Liability exists from inadequate risk management plan
15	Risks of Not Improving Information Management Potential to erode your credibility with customers Inability to identify or fully recognize best customers PR fiasco could be costly and detrimental to brand Increased customer “aggravation factor” Additional costs of printing, email, postage and processing Customers perceive you as not worthy of relationship Conflicting and irrelevant marketing messages Missed sales and marketing opportunities Higher fraud liability Over-spending on existing database
16	Impact on Collecting More Data Better quality allows more accurate matching leading to more identification of customers Cleaner data provides more opportunities to match customers - identifying existing unknown customers Fosters more customer trust making them more willing to share data Appending demographic data is made easier allowing for greater depth of information on each customer Customer management of preferences offers additional appropriate ways to contact them
17	Current Challenges Data collection done largely without consent of customer Potential rejection of your relationship from the customer Users of customer data are not fully trained and sensitive to information collection and usage policies Inefficiency results without mapping of customer data collection, access, interactions, contacts and usage Business units beyond Marketing are not fully aware of available customer information and potential applications SPAM clutters mailbox of relevant communication Customer are bombarded with information and advertising
18	What Is Needed Dedicated effort and resources responsible for: Vision for customer identification opportunities Development and execution of short and long-term strategy for data collection, use, retention, quality and integrity On-going management of responsible use of customer information assets Strategy, application and management of comprehensive information risk management plan Creation, communication and lasting enforcement of policies and procedures to all employees and customers Continued evaluation of new opportunities, services and vendor partners to augment current capabilities Enduring and independent initiative to maintain and enhance customer capabilities
19	Why This Approach Is Needed Now Tremendous current demands of running and transforming the business into customer segments Existing situation requires concentrated and dedicated full-time resource Allows business experts to concentrate on current tasks Marketing needs to remain focused on the customer Requires unique combination of technology and business skills to lead this initiative Reactionary mode exposes you to ill-advised level of risk The customer needs an unbiased, objective advocate
20	Information Management Role
21