Customer Data Management in Retail
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1 Enterprise Master Customer in Retail From Product to Customer Centric September 2006 Retail
2 Agenda Retail Challenges Master - Customer Integration Retail Case Study Questions and Answers 2
3 Retail Challenges Consumer churn & loyalty Competition Brand differentiation Customer service Costs Efficiency The ability to understand and foster a relationship with the end consumer can help retailers differentiate their products & services. 3
4 Differentiation through Consumer Services Location of store is convenient 59% Reasons for Consumer Loyalty % of responses Reasonable pricing Employees are helpful Store is organized and clean Products are easy to find Checkout is easy 55% 34% 32% 25% 15% Stores keep up with my changing needs Offers relevant promotions or rewards Remembers who I am and what I bought Helps me make good buying decisions 14% 11% 8% 5% 4 Base: 1000 Source: IBM US Shopper Survey, April 2005 Don't know/no answer 1% 0% 20% 40% 60% 80% 100%
5 Managing Consumer Information The ability to understand and foster a relationship with the end consumer can help retailers differentiate their products & services. So does our data allow us to do this? Consumer information fragmented across systems and locations Loyalty programmes, data warehouses, CRM applications, marketing applications, Web ordering,. Targeted product offerings difficult to design Profile : household, loyal consumer, new consumer Success rate : linking promotion campaign to adoption Reporting Demographics, acquisition growth, adoption, marketing success, 5
6 Disconnected Consumer Information Front Office / Touch Points Back Office Web Site Contact Center Store Campaign Loyalty Analytics 6
7 Disconnected Consumer Information Front Office / Touch Points Is a consumer differentiated at all touch points? Back Office Web Site Contact Center Store Campaign Loyalty Analytics 7
8 Disconnected Consumer Information Front Office / Touch Points Is promotion adoption rate measurable? Back Office Web Site Contact Center Store Campaign Loyalty Analytics 8
9 Disconnected Consumer Information Front Office / Touch Points Is consumer information available at store level? Back Office Web Site Contact Center Store Campaign Loyalty Analytics 9
10 Disconnected Consumer Information Front Office / Touch Points Is consumer information accurate? Back Office Web Site Contact Center Store Campaign Loyalty Analytics 10
11 Disconnected Consumer Information Front Office / Touch Points Is consumer privacy respected? Back Office Web Site Contact Center Store Campaign Loyalty Analytics 11
12 Disconnected Consumer Information Front Office / Touch Points Can we link consumer to store to product? Back Office Web Site Contact Center Store Campaign Loyalty Analytics 12
13 Disconnected Consumer Information Front Office / Touch Points Is consumer recognised across brands and services? Web Site Contact Center Store Back Office Campaign Loyalty Back Office Analytics Brand ONE Campaign Customer Loyalty Value Analytics Back Office Campaign Brand TWO Loyalty Analytics Brand THREE 13
14 Agenda Retail Challenges Master - Customer Integration Retail Case Study Questions and Answers 14
15 The complete 360 degree customer view A master customer record that provides the current, accurate and complete customer data to all systems and channels Enables deep customer understanding Relationships and Roles Complete product and service portfolio Household Life Events Aligns customer data between the different applications while maintaining specific views to different business units : Home Main St Billing 437 Easy St Privacy : Solicitation - No : Product 1234, 5748, 6574 Jane F. Smith WebSphere Customer Center : Jane F. Smith X-Sell Up-Sell: Items 5432, 4355 Interaction History: Service Issue 4/23/06 Web Order 2/2/06 Store Order 1/5/06 Relationships Household: Daughter Jenny Husband John Employer IBM : High Identifier IDs Demographics: Income - 100,000 Interests - Running Age - 41 Life Events: Daughters Birthday Wedding Anniversary Products & Contracts: Loyalty Card 1234 Credit Card 97XX6 Travel Services White Goods 15
16 IBM WebSphere Customer Center Provides current, accurate and complete customer data to all systems and channels Web Site Contact Center Store Manages the complete 360 degree customer view Capable of being the system of record full transaction processing and business logic capabilities Enables new customer centric strategies such as life and other event oriented actions Customer-Centric Business Services Complete Customer Profile Privacy & Security WebSphere Customer Center Event 16
17 Agenda Retail Challenges Master - Customer Integration Retail Case Study Questions and Answers 17
18 Case Study: Profile Business Problem Solution Leading retailer of office products for SMB $16.1bn Sales, North America, Asia, Europe 20 Million Customers (loyalty card member) Staples corporate objective : Double company size within 5 years. Strategy : Create a single view of their retail customers across all their channels, enterprise wide Reduce poor customer data and allow all channels to access accurate and enriched customer data Provide Citi bank, who processes their white label Staples Credit Card, with an enhanced view into their customer data (currently Citi only sees basic account data) Staples chose IBM Software to create a single view of their retail customers across all their channels, enterprise wide. Benefits Sustainable, customer-centric environment Facilitates the development of future key initiatives such as Easy Returns, Competitive advantage in the Retail CRM space Compliant with Federal regulations 18
19 Case Study: Non-sales Customer Touch points - Marketing CMIS Open VMS Easy Returns Loyalty Systems Contract Cust Set-up Retail Presidential Complaints Call Centers Tax Exempt E5 Delivery Telemarketing Enterprise Cust Model PLCC Existing ETL WCC Operation Repository WCC Software Vendor Services Interaction WCC ProcessesHistory Repository Proposed EDH for SVC (WCC) Existing EDW Proposed ODS / ORS M E T A D A T A B R O K E R Services Brokering Integration A P P L I C A T I O N S R E P O R T I N G A N A L Y T I C S Application Specific Stores Customer Service Web Systems Yantra Retail POS Contract / Direct Credit Services Copy/Ship Center Merchandising Marketing Reporting Operational support Systems 19 Single View of the Customer Operational Systems EDW - ODS ORS
20 Enterprise From Product to Customer Centric Customer in Retail September 2006 Retail
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