1 BGS Customer Relationship Management Chapter 6 Technology and Data Platforms Chapter 6 Technology and Data Platforms Thomson Publishing 2007 All Rights Reserved

2 Outline Technology Evolution Marketing Technology Development Path – Mass communication – Database marketing – Integrated marketing Considerations when Deciding on Technical Complexity

3 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

4 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

5 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

6 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

7 Figure 6.1

8 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

9 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

10 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

11 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

12 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

13 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

14 Other Database Construction Considerations Data recovery requirements – Priority – Timing – Ownership of process Contingency requirements – Which data and priority – Offsite redundancy – Cost issues

15 Other Database Construction Considerations Scalability requirements – Hardware – Software License issues Capacity issues – Communication and interfacing technologies

16 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

17 Figure 6.3

18 Marketing Integration Consumer interaction – Computer telephony – Web – Kiosks – Mobile – POS – Self-service – Identification mediums (RFID, fingerprint, palm print, retinal scan)

19 Marketing Integration Analytical mediums – Data mining – Statistical activity – Data marts – Sales automation – EIS, EMS, DSS – Dashboards

20 Marketing Integration Operational environment – Core-competency – ERP – Legacy systems – Value chain

21 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 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