customer data management in retail - ibm data management in retail ... retail innovation days ......

© 2006 IBM Corporation

Customer Data Management in Retail

From Product to Customer Centric

Enterprise Master Data Management

September 2006 | Retail

2

IBM Software

Retail Innovation Days | Confidential © 2006 IBM Corporation

Agenda

Retail Challenges

Master Data Management - Customer Data Integration

Retail Case Study

Questions and Answers

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IBM Software


Retail Challenges

Consumer churn & loyaltyCompetitionBrand differentiationCustomer serviceCostsEfficiency

The ability to understand and foster a relationship with the endconsumer can help retailers differentiate their products & services.

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IBM Software


Differentiation through Consumer Services

Base: 1000Source: IBM US Shopper Survey, April 2005

Reasons for Consumer Loyalty% of responses

8%

11%

14%

15%

25%

32%

34%

55%

59%

1%

5%

0% 20% 40% 60% 80% 100%

Don't know/No answer

Helps me make good buying decisions

Remembers who I am and what I bought

Offers relevant promotions or rewards

Stores keep up with my changing needs

Checkout is easy

Products are easy to find

Store is organized and clean

Employees are helpful

Reasonable pricing

Location of store is convenient

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IBM Software


Managing Consumer Information

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,…

The ability to understand and foster a relationship with the endconsumer can help retailers differentiate their products & services.

So does our data allow us to do this?

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IBM Software


Disconnected Consumer Information

Web Site Contact Center Data Warehouse

Store

Address

Sales History

Name

Address

Preferences

Name

Address

Sales History

Name

Address

X-Sell / Up-Sell

Preferences

Sales History

Customer Value

Name

Customer Value

Front Office / Touch Points

Back Office

Campaign

Management

Data Quality Management

Loyalty

Management

Analytics

Management

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IBM Software




Store

Address

Sales History

Name

Address

Preferences

Name

Address

Sales History

Name

Address

X-Sell / Up-Sell

Preferences

Sales History

Customer Value

Name

Customer Value


Back Office

Campaign

Management


Loyalty

Management

Analytics

Management

Is a consumer differentiated at all

touch points?

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IBM Software




Store

Address

Sales History

Name

Address

Preferences

Name

Address

Sales History

Name

Address

X-Sell / Up-Sell

Preferences

Sales History

Customer Value

Name

Customer Value


Back Office

Campaign

Management


Loyalty

Management

Analytics

Management

Is promotion adoption rate measurable?

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IBM Software




Store

Address

Sales History

Name

Address

Preferences

Name

Address

Sales History

Name

Address

X-Sell / Up-Sell

Preferences

Sales History

Customer Value

Name

Customer Value


Back Office

Campaign

Management


Loyalty

Management

Analytics

Management

Is consumer information available

at store level?

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IBM Software




Store

Address

Sales History

Name

Address

Preferences

Name

Address

Sales History

Name

Address

X-Sell / Up-Sell

Preferences

Sales History

Customer Value

Name

Customer Value


Back Office

Campaign

Management


Loyalty

Management

Analytics

Management

Is consumer information accurate?

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IBM Software




Store

Address

Sales History

Name

Address

Preferences

Name

Address

Sales History

Name

Address

X-Sell / Up-Sell

Preferences

Sales History

Customer Value

Name

Customer Value


Back Office

Campaign

Management


Loyalty

Management

Analytics

Management

Is consumer privacy

respected?

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IBM Software




Store

Address

Sales History

Name

Address

Preferences

Name

Address

Sales History

Name

Address

X-Sell / Up-Sell

Preferences

Sales History

Customer Value

Name

Customer Value


Back Office

Campaign

Management


Loyalty

Management

Analytics

Management

Can we link consumer to store

to product?

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IBM Software



Data Warehouse

Address

X-Sell / Up-Sell

Preferences

Sales History

Customer Value

Name

Back Office

Campaign

Management


Loyalty

Management

Analytics

Management

Data Warehouse

Address

X-Sell / Up-Sell

Preferences

Sales History

Customer Value

Name

Back Office

Campaign

Management

Data Quality ManagementData Quality Management

Loyalty

Management

Analytics

Management Data Warehouse

Address

X-Sell / Up-Sell

Preferences

Sales History

Customer Value

Name

Back Office

Campaign

Management


Loyalty

Management

Analytics

Management

Data Warehouse

Address

X-Sell / Up-Sell

Preferences

Sales History

Customer Value

Name

Back Office

Campaign

Management


Loyalty

Management

Analytics

Management

Web Site Contact Center Store

Address

Sales History

Name

Address

Preferences

Name

Address

Sales History

Name

Customer Value


Is consumer recognised across

brands and services?

Brand ONE

Brand TWO

Brand THREE

Data Warehouse

Address

X-Sell / Up-Sell

Preferences

Sales History

Customer Value

Name

Back Office

Campaign

Management


Loyalty

Management

Analytics

Management

Data Warehouse

Address

X-Sell / Up-Sell

Preferences

Sales History

Customer Value

Name

Back Office

Campaign

Management


Loyalty

Management

Analytics

Management

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IBM Software


Agenda

Retail Challenges


Retail Case Study


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IBM Software


The complete 360 degree customer view

Jane F. Smith

WebSphere Customer Center™

Address: Home - 123 Main StBilling – 437 Easy St

Privacy Preferences: Solicitation - No

Sales History: Product 1234, 5748, 6574

Customer Value: High

Name: Jane F. Smith Interaction History:Service Issue 4/23/06Web Order 2/2/06Store Order 1/5/06

RelationshipsHousehold:

Daughter – Jenny Husband – John

Employer – IBM

Life Events:Daughters BirthdayWedding Anniversary

Demographics:Income - €100,000Interests - RunningAge - 41

Identifier IDs

Products & Contracts:Loyalty Card 1234Credit Card 97XX6Travel ServicesWhite Goods

X-Sell Up-Sell: Items 5432, 4355

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

– Customer Value

Aligns customer data between the different applications while maintaining specific views to different business units

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IBM Software


IBM WebSphere Customer Center

Provides current, accurate and complete customer data to all systems and channels

Manages the complete 360degree 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

Web Site Contact CenterData

WarehouseStore

Address

X-Sell / Up-Sell

Sales History

Customer Value

Name

Preferences

Address

X-Sell / Up-Sell

Sales History

Customer Value

Name

Preferences

Address

X-Sell / Up-Sell

Sales History

Customer Value

Name

Preferences

Address

X-Sell / Up-Sell

Sales History

Customer Value

Name

Preferences

Complete Customer Profile

Privacy & Security Management


Event Management

WebSphere Customer Center™

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IBM Software


Agenda

Retail Challenges


Retail Case Study


18

IBM Software


Case Study:

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, withan enhanced view into their customer data (currently Citi only sees basic account data)

Business Problem

Leading retailer of office products for SMB$16.1bn Sales, North America, Asia, Europe20 Million Customers (loyalty card member)

Benefits

Solution

Sustainable, customer-centric environmentFacilitates the development of future key initiatives such as Easy Returns…, Competitive advantage in the Retail CRM spaceCompliant with Federal regulations

Profile

Staples chose IBM Software to create a single view of their retail customers across all their channels, enterprise wide.

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IBM Software


Software Vendor Interaction Processes

Non

-sal

es C

ust

omer

Tou

ch p

oin

ts -

Mar

keti

ng

CustomerService

Web Systems

Contract / Direct

Retail POS

Yantra

Reporting

Marketing

Merchandising

Copy/Ship Center

Ope

ratio

nal s

uppo

rt S

yste

ms

Credit Services

APPLICATIONS

Services Brokering Integration

REPORTING

ANALYTICS

WCC OperationRepositoryWCC

Services

Data Q

uality

WCCHistory

Repository

META

DATA

BROKER

Application Specific Data Stores

ExistingEDW

Existing ETL

CMIS

Call Centers

LoyaltySystems

Retail

PresidentialComplaints

PLCC

Tax Exempt

E5 Delivery

Telemarketing

EnterpriseCust Model

Open VMS

Easy Returns

Contract Cust Set-up

Single View of the CustomerOperational Systems

Proposed

ODS / ORS

EDW - ODS ORS

Proposed EDH for SVC (WCC)

Case Study:

© 2006 IBM Corporation

From Product to Customer Centric

Customer Data Management in Retail

Enterprise Data Management

September 2006 | Retail

customer data management in retail - ibm data management in retail ... retail innovation days ......

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