An Integrated IMC Data FrameworkDMEF Direct/Interactive Marketing Research Summit: October 13-14, 2012 Las Vegas, NV James Peltier Professor of Marketing University of Wisconsin, Whitewater Marketing Department College of Business and Economics Debra Zahay Associate Professor of Interactive Marketing Marketing Department Northern Illinois University Anjala S. Krishen Assistant Professor Department of Marketing, Lee Business School University of Nevada, Las Vegas
Managerial View of the Learning Organization Competitive Advantage Learning Activities 4. Interpret 3. Disseminate 2. Remember 1. Generate
Zahay, Peltier and Krishen (2012) Examined a Hierarchical Framework for IMC Data
Relationships Supported in General, Transactional,Contact Data More Important in Relation to Customer Data Quality, Touchpoint Data Less So Offers and Communications Customer Info and Collection Points
The Strategic CRM Context (Payne and Frow 2005)
Multi-Stage Research Method & Analysis• Qualitative Study• Pre-Test• Final Survey• Exploratory Factor analysis, correlation analysis, Coefficient Alphas, CFA• SEM to determine relationship between use of customer data types and CRM Data Quality
Method: Survey Data Collection• Data Collection: – 525 mailed – Three waves, one mail wave, one including $2 bill and one telephone follow up wave – 32 % response rate• 170 Executives in Financial Services – 50% primarily b2b and 40% b2c, rest other trade relationships – 50% had retail relationships, 27% relied on outside sales – 10% online sales – Executives had typically twenty years of experience• 166 useable surveys• Response: Percent of Time Data Collected
What is CRM System Quality (α = .76)? Overall, Data is of high quality when it reflects perceived reality. In our context, we measured managers’ perception of: 1.Overall Quality of Internet and Email data 2.Overall Quality of Loyalty/Retention Data 3.Overall Quality of Contact Management Data and 4.Overall Quality of CRM data capabilities • 5-Point Scale • 5=Strongly Agree • 1=Strongly Disagree
Customer Performance Measured by Long-Term Customer Profitability Customer Performance (α = .76): 1. Customer Retention on an annual basis, 2. Cross-Selling, and 3. ROI on a customer basis. “To the best of your knowledge, please rate your business unit’s performance in the past 2-3 years relative to the competition” on a 1 = lower to 5 = higher scale. • 5-Point Scale • 5=Higher • 1=Lower
Independent Variables Measured Percent of Time Data Types Collected• Personalization/Tracking Data (α = .89): • RFM/Transactional Data (α = .83): 1. Tracking marketing offers/messages made to customers, 1. Last purchase date, 2. Tracking marketing offers/messages responded to by customers 2. Revenue by product, 3. Tracking method of contact for 3. Total Revenue from Customers marketing offer• Pyscho-Demographic Data (α = .75): 4. Length of time as customer 1. Lifestyle data 2. Psychographics • Message/Offer Personalization 3. Demographics Data (α = .82):• Customer Touchpoint Data (α = .76) : 1. Email 1. Tailor marketing offers to 2. Service customers 3. Internet 4. Telephone 2. Tailor communications to customers 3. Tailors communications to prospects
Implications• Performance link from Data Quality• Firms need to be more vigilant than ever in tracking transactional and psych-demographic data• Personalization and Content data leads to increased customer touchpoint data• Touchpoint data eventually leads to CRM system Quality, CRM Performance, completing the loop, validating the cycle
Contacts and Questions James Peltier University of Wisconsin, Whitewater 262-472-5474 email@example.com Debra Zahay Northern Illinois University 815-753-6215 firstname.lastname@example.org Anjala S. Krishen University of Nevada, Las Vegas 540-588-3961 email@example.com “Building the foundation for customer dataquality in CRM Systems for financial services firms,”Journal of Database Marketing and Strategy Management, Volume 19, Number 1,pages 5-16 Peltier, J.W., Zahay, D.L. and Lehmann, D.L.(2012 Forthcoming), "Organizational Learning andCRM Success: A Model for Linking OrganizationalPractices, Customer Data Quality, andPerformance," Journal of Interactive Marketing.
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