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Whitepaper Gaining The Data Edge


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Whitepaper Gaining The Data Edge

  1. 1. August 2012WHITE PAPERGaining the Data EdgeHow ongoing data maintenancespurs growthCompanies today are bombarded with an explodingvolume of data in corporate applications and throughsocial media. Not surprisingly, data accuracy is at anall‑time low.
  2. 2. August 2012INTRODUCTIONAt a time when companies are scrutinizing the ROI of everyexpenditure, why invest in data quality?Accurate and complete data yields a singular view Harnessing the exponential explosion of dataof your customers and prospects. This wealth The sheer volume of data entering corporations faster and in more waysof intelligence enables you to strengthen customer is overwhelming. The accelerating pace of data degradation exacerbates data-quality issues. According to the Sales & Marketing Instituterelationships and improve the effectiveness of International and D&B’s research, up to 96 percent of email addressescustomer acquisition campaigns, ultimately fueling and contact data within customer files and CRMs are growth. CRM degradation approaches two percent per month. This means any business activity that hinges on accurate data is compromised, causingAccording to The Gartner Group, poor data quality waste and hindering results.negatively impacts a company’s bottom line by The following chart illustrates the challenge of maintaining data accuracyan average of $8.2 million annually in operational due to the dizzying rate of change:inefficiencies, lost sales and unrealized new opportunities.1 INSTANCES PER * NNUALIZED AIn addition, a Forrester research study2 reveals that BUSINESS CHANGE 30-MINUTE NUMBER OFonly 12 percent of companies actually use customer PERIOD CHANGESintelligence to drive key business functions and Business addresses 120 499,200corporate strategy. That means that 88 percent are Telephone numbers 75 312,000putting up with the waste, inefficiencies and lostopportunities that dirty data creates. Company names 15 62,400Companies that commit to data quality use their New businesses formed 30 124,800knowledge of customers and prospects to maximize Businesses closed 10 41,600top-line and bottom-line results. CEOs leave their job 20 83,200 * alculation based on an 8 hour workday, 5 weekdays, 52 weeks. CData quality is a business issue, executive to endorse an internal data-quality initiative.not an IT issue Department leaders ensure that data and process- change decisions support business delivery. IT playsCompanies that find the most success from a data- a consultative role in recommending options to helpdriven strategy place responsibility for data quality the implementation team define and meet its datawith a C-level executive. A senior champion, along objectives. Broad representation offers those teamswith a cross-functional group of department leaders with the most to gain from a data-driven strategy—and IT experts, creates an effective team to sell, educate credit management, sales, marketing and businessand drive improvements in how data is collected development—the opportunity to have a voiceand maintained across an organization. Nearly half at the table.the firms in Forrester’s research study enlist a C-level 2
  3. 3. August 2012 updates addresses for accuracy and recency and then “ line were fearfulpeople notthe Service reps and sales front about on being matches to a database that includes all known aliases and other address combinations. The benefit is the elimination of all types of duplicates—even those that able to be customer-responsive… look nothing alike—by appending each record with but that was quickly offset by the a global-unique business identifier. This persistent key improved data quality and the overall also links corporate-family hierarchies and makes it elimination of time-consuming, possible to append additional demographic, contact non-value-added activity that incorrect and predictive information. data causes. ” Ritch Cushway, Global Customer Financial Services Manager, The Cost of Poor Data Quality Dow Corning It is far more cost-efficient to prevent data issues than to resolve them. If a company has 500,000 records and 30 percent are inaccurate, then it would need to spend $15 million to correct the issues versus $150,000 BUSINESS IMPACT to prevent them. Consider the benefit to your bottom line if you: Prevention Resolution Correction • mprove cash flow by reducing DSO (Days Sales I Outstanding) to 2-3 days $1X $10X $100X • horten sales cycle time from 120 days to 108 days S per record per record per record • ncrease customer retention by 4-5 percent I • educe time reps spend on comp adjustments by R 2-3 percent In addition, companies should select a data cleansing provider that can offer both transactional (API-based) and batch processing. Application programming interface (API) solutions are ideal for companies thatData quality is a process, not a are seeking real-time data verification, de-duplicationone-time event and enrichment, such as enhancing the quality ofData-quality initiatives require a third-party referential Web form leads. Batch cleansing is ideal for companiesdata set—a single source of truth—to be able to intel- requiring periodic updates of their customer and prospectligently consolidate the many disparate customer and databases and campaign lists to protect against dataprospect records that exist in multiple internal systems. churn and decay.Many businesses use multiple names or “tradestyles,” BUSINESS IMPACTand have both a P.O. box and physical address for asingle location. Solutions that merely look for similarity Consider the benefit to your bottom line if you:between input records actually overlook many • mprove cash flow in customer and prospect Iduplicate company records, and cause communications databases by 10-20 percentto be addressed to “prospects” who are already existingcustomers. A foolproof solution first corrects and 3
  4. 4. August 2012Settle for nothing less than a 360-degree footprint of ideal customers coupled with industrycompany view intelligence, companies can mine data to find prospects with a similar profile.A single-company view forms the foundation tosupport all activities and processes across an account •  horough account intelligence provides a roadmap Tlifecycle. For most companies, customer, prospect and of how to best serve customers. With any sizeablesupplier data reside in silos—obscuring a clear view customer, true insight into the relationship isof current reality and future potential, and thwarting typically elusive. How many ways can Americanoperational efficiency. To achieve a single view, every Telephone and Telegraph (or ATT) be capturedsource of data—from internal and external sources— inside enterprise systems, and how many subsid-must be validated. This includes cleaning, consolidating iaries with unrelated names belong to the sameand enriching each record with key insight, including corporate family? How big is the account in total?the identification of relationships among companies. What are they buying? What is their risk profile? A global‑unique identifier ties together all company related activities and insights for efficient andACT+C: The Standard for Data Quality effective account management. Gone are the days of the manual roll up. A A ccuracy—the right information on the right identity C ompleteness—information reflects all relevant attributes •  Customer intelligence drives business strategy— C of the entity and creates a competitive advantage. Companies T T imeliness—the most up-to-date, current that value quality data as a corporate asset are information available able to leverage it to create a competitive advantage. + C ross-border consistency—no conflicting information Having a 360-degree understanding of your C across a global organization business portfolio provides fact-based direction on profitable new strategies. Not having it stacks the deck in favor of competition that does.Superior data quality yields a thorough understandingof customers and how best to serve them—a keyfactor to business success, particularly in today’s globaleconomy. Consider the outcomes of leveraging “Data struggled with for several we have quality is something that years.customer intelligence: Because data lived in disparate systems •  Integrated account information maximizes revenue from existing customers and uncovers across the organization, we could not new prospect opportunities. The complexities get a true picture of our customer… of multiple customer offices, branches, divisions, The way we housed and maintained subsidiaries and contacts around the globe are enterprise information made it eliminated when a global-unique identifier impossible to get one holistic view provides one unified view of a corporate family. of what we were selling and how we Armed with a holistic picture of each account and its buying trends, informed companies were servicing customer accounts. ” can identify cross-sell and up-sell opportunities Laura Avent, Manager of Customer Master Data Governance, Lexmark among related companies. And, with an accurate 4
  5. 5. August 2012 BUSINESS IMPACT with prospects and customers—conversations that win new business and strengthen existing relationships. Consider the benefit to your bottom line if you: Customer intelligence is indispensable to marketing and • ncrease up‑sell/cross‑sell opportunities by 2-3 percent— I sales’ success in this data-rich marketplace. a conservative estimate Regular data maintenance is a leap ofIn today’s data-driven world, sales faith that brings measurable resultsand marketing success and quality data It is virtually impossible to overestimate the valueare inextricably linked of quality data. To understand and serve customers optimally, a company must depend on accurate,Not only have on-demand access to information and recent and complete information and make it accessiblemarketing automation raised customers’ expectations across internal applications. Overcoming the inherentfor relevant and timely information, but they have challenges to a data-driven strategy— legacy systemalso redefined the way marketing and sales can work silos, the exploding volume and types of informationtogether to increase revenue and reduce costs. Data- sources, and the need to harness rapidly-developingdriven marketers are able to maximize ROI on marketing technologies that support custom informationspend by profiling customers and then targeting, delivery—is achievable with organizational focusnurturing and handing “buy-ready” leads to the right and commitment and a trusted data partner.salesperson. They systematically shepherd the leadsthrough the buy process and hand them off to sales One CIO explained managing customer data quality thisat the point that makes the most of their valuable way: “When I eat I don’t measure the ROI of food. I simplycustomer face-time. need to eat or I will starve. The same goes for managing customer data quality—we simply need it. If we don’t manage our customer information well, we are starving “Marketing is all about personalization. With the precision that you need our company of potential dollars. For some things I don’t need an ROI calculation. The benefits are obvious.”3 to bring to marketing today, you can’t BUSINESS IMPACT get away with anything less than the purest and the best data. Quality Consider the benefit to your bottom line if you: data also links all of a customer’s • mprove deliverability/connectivity by 1-2 percent I digital and physical multi-channel • ncrease response rate by 1-2 percent I activities together. ” • ift win rate by 4-5 percent L Sue Turnbull, Worldwide Marketing Operations, Ricoh Production Print Solutions 1 Gartner GroupNow armed with a 360-degree view of a customer across 2 Assessing Your Customer Intelligence Quotient, Forrester, Assessing+Your+Customer+Intelligence+Quotient/fulltext/-/E-RES53622?docid=53622divisions, geographies and corporate-family-tree relation- Ziff Davis Media Custom Publishing, Data Management Dynamics: THE ROI from 3ships, sales can have more relevant, targeted conversations Data Quality 5
  6. 6. August 2012About DBDB (NYSE:DNB) is the world’s leading provider of commercial information and insight on businesses, enabling companies to Decide with Confidence® for 171 years. DB’sglobal commercial database contains more than 205 million business records. The database is enhanced by DB’s proprietary DUNSRight® Quality Process, which providesour customers with quality business information. This quality information is the foundation of our global solutions that customers rely on to make critical business decisions.DB provides solution sets that meet a diverse set of customer needs globally. Customers use DB Risk Management Solutions™ to mitigate credit and supplier risk, increasecash flow and drive increased profitability; DB Sales Marketing Solutions™ to increase revenue from new and existing customers; and DB Internet Solutions to convertprospects into clients faster by enabling business professionals to research companies, executives and industries. For more information, please visit© Dun Bradstreet, Inc., 2012 (DB-3335 08/12) 6