Based on the concept of the learning organization and that learning may be the only true way companies can distinguish themselves, this presentation describes the capabilities, such as top management vision and data sharing, that the organization must have to mange customer information effectively.

1. Copyright by Debra Zahay 2013
Beyond Big Data:
Organizing for Customer
Information Management
Dr. Debra Zahay
Full Professor of Marketing at Aurora University
and President, Zahay, Inc.
Chicago Booth Alumni Roundtable: September 25, 2013
Gleacher Center

2. Copyright by Debra Zahay 2013
Starting Question: What is the
relationship between Customer
Information Management and
Firm Performance?

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Customer Information
Management Breeds Success

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My Journey Studying Customer
Data Management
Information
Systems
Sales/Marketing
/Databases
IMC &
More Databases
????
Ph.D.

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Starting Question: What is the
relationship between Customer
Information Management and
Firm Performance?

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Learning Organization: Information
and its management are intangible
assets that can create a competitive
advantage which can lead to
improved company performance.

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Research Scope 1998-2013
• Over 400 companies
• Over ten years of research
• B2B and B2C
• Qualitative and Quantitative
• 20 academic papers
• Over 500 citations (Debra Zahay on Google
Scholar)

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Results: Over 600 Article Citations

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Editor: Journal of Research in
Interactive Marketing

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Textbook Co-Author

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Titles have changed, basics are the
same
Buzzwords: Database Marketing, Direct Marketing
Payton, F. & Zahay, D. L.
(2003). Understanding Why
Marketing Doesn't Use the
Corporate Data Warehouse
for CRM Applications.
Journal of Database
Marketing, 10 (4), 315-326.
Zahay, D. L. & Griffin, A.
(2003). Information
Antecedents and
Consequences of
Personalization and
Customization in Business-
to-Business Service Markets.
Journal of Database
Marketing, 10 (3), 255-271-
326.

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We want to find best
customers, treat segments
differently
Buzzwords: Customer Relationship Management/Marketing
Zahay, D., Peltier, J., &
Krishen, A. (2012). Building
the Foundation for
Customer Data Quality in
CRM Systems for Financial
Services Firms, Journal of
Database Marketing and
Customer Strategy
Management formerly
Journal of Database
Marketing, Vol. 19 (1), pp. 5-
16.

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Data Analytics is “Now”
Buzzwords: Marketing Data Analytics, Big Data
Peltier, J., Zahay, D.
& Krishen, A.
(2013). A
Hierarchical IMC
Data Integration
and Measurement
Framework. The
Journal of
Marketing
Analytics, formerly
Journal of Database
Marketing and
Customer Strategy
Management, Vol.
1, 1, 32-48.

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Research Issues Covered
• Customer Data Management Practices and
Measurement
• Data Management/Performance
Relationship
• Customer Data Quality
• Organizing for data quality
• Personalization and customization
• Transactional vs. relational
data, differences, contribution to
performance

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Successful CRM Hinges On Data
Quality
Innovative Systems, Inc.
Author: Jeffrey Canter, VP of Operations

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Successful CRM Hinges On Data
Quality
Innovative Systems, Inc.
Author: Jeffrey Canter, VP of Operations
May 2002 Issue of CRM Magazine

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Why Do CRM Projects Fail?
• Silent killer: lack of accurate customer
information (Gartner Group report)
• Ensuring accurate customer information is
a difficult task
• High CRM spends will not protect companies
from losing sales opportunities and valued
customers and many CRM Projects will fail

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The Solution…
• CRM applications need to present a unified, real-time, view
of the customer and to achieve this goal customers need a
comprehensive CDQ
Customer Data Quality
Management Program

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So if everyone knows data
quality is important, why isn’t
it being done?

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8 Gartner CRM Building
Blocks
• CRM Vision: Leadership, Market Position, Value Proposition
• CRM Strategy: Objectives, Segments, Effective Interaction
• Valued Customer Experience
• Organizational Collaboration
• Culture and Structure
• Customer Understanding
• People: Skills, Competencies
• Incentives and Compensation
• Employee Communications
• Partners and Suppliers
• Processes: Customer Lifecycle, Knowledge Management
• Information: Data, Analysis, One View Across Channels
• Technology: Applications, Architecture, Infrastructure
• Metrics: Value, Retention, Satisfaction, Loyalty, Cost to Serve

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FactorsInfluencing Success of Digital
Outcomesare Managerial
• Senior management buy-in (32%)
• Internal leadership (30%)
• Alignment between organizational structure and
initiative’s goals (21%)
• Good management of and sufficient organizational
support for the initiative (also 21%)
• Source: McKinsey and Company via Marketing Charts 850 C-Level executives
asked about digital engagement of customers, big data, digital engagement of
employees, automation, and digital innovation of products

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FactorsContributingto Failures of Digital
Outcomesare Also Managerial
• Lack of senior management buy-in 23%
• Lack of technology infrastructure and IT
systems (22%)
• Quality data (21%),
• Absence of internal leadership (17%).
• Source: McKinsey and Company via Marketing Charts 850 C-Level executives asked about
digital engagement of customers, big data, digital engagement of employees, automation, and
digital innovation of products

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Companiesmustconsiderhavingthreecapabilitiesto
manage customerinformationwell:
1. A corporate strategy consistent
with data collected
2. A clear mission and vision for data
collection and use
3. Shared data and organizational
cooperation

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Study No. Description
1 Quantitative survey with 209 insurance and software b2b
marketers of customer information management practices and
link to strategies and performance
2 Series of focus groups in a single health care payer regarding
implementation of a corporate data warehouse for marketing
purposes
3 Follow-on qualitative study with respondents to Study 1 and
one other firm, uncovered organizational factors in customer
information management to test in Study 4
4 Quantitative pre-test of important organizational factors in
customer information management success in 43 firms across
all industries
5 Series of interviews with marketers in the new product area,
primarily, software and chemical, on customer information
management needs, follow on survey
6 Quantitative survey 166 executives in Financial Services, both
B2B and B2C, included organizational factors, data quality and
performance (Latest work)

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Is Data Quality Bigger than Big Data?
• 53% of companies in the recent TDWI (The Data
Warehousing Institute) study reported they have suffered
losses, problems, or costs due to poor data quality
(Quaero, December 2012)
• Moveo Integrated Branding, February 2013
• Customers report 23% undeliverable emails
• 11% Duplicate records
• 54% phone numbers “unconnectable”
• Poor quality data is the biggest barrier to effective email
marketing: Econsultancy Report, April 2013

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Companiesmustconsiderhavingthreecapabilitiesto
manage customerinformationwell:
1. A corporate strategy consistent
with data collected
2. A clear mission and vision for
data collection and use
3. Shared data and organizational
cooperation

28. Copyright by Debra Zahay 2013
Companiesmustconsiderhavingthreecapabilitiesto
manage customerinformationwell:
1. A corporate strategy consistent
with data collected
2. A clear mission and vision for data
collection and use
3. Shared data and organizational
cooperation

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Organizational
Capability
“Ideal” Company Reality
Use Data to Create Value
(Strategy Formation is
important to the organization,
data supports strategy, Study 1
Selects strong competitive strategy
and develops customer
information management
capability to support that strategy.
Many firms have no strategy or an
average customer information
management capability.
Establish Quality standards
(Information quality
management processes are in
place, Study 1, 2, 4
Organization speaks the language
of data quality and quality data is
an organizational priority, with
processes in place to manage.
Organization complains about data
quality but does not have
processes to manage data and to
create quality.
Involve Functional
Departments
(Functional areas are involved
and work together, Study 2, 3,4
Functional areas, particularly
marketing, are involved in the
development of data warehouse
and applications. Marketing and IT
areas work together to manage
customer information.
Customer information
management is responsibility of
each functional area
Use Relational and
Transactional Data
(Both Relational and
Transactional Data are
collected and integrated;
Systems/Data Integration,
Study 1,4
Company is organized
to integrate data, as
the highest form of knowledge
management, using appropriate
systems; relational as well as
transactional data is emphasized.
Informational ‘silos’ and multiple
systems abound and not all
systems can talk to each other; no
central data repository or way to
access data, emphasis is on
integration of transactional data

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Organizational
Capability
“Ideal” Company Reality
Organize for Success I
Organization includes
Teamwork, Top
Management
Vision/Support, Study 3,4
Company uses a dedicated
team to develop a new
approach to managing
customer information in the
firm; people are given leave
from their jobs to work on
team. Middle management
plays a key role as it translates
for Top Management. Top
Execs in turn support effort and
are able to understand it due to
sales/marketing background.
Team may be established but is
not dedicated; people try to
create new vision while
working in current positions.
Middle management does not
translate well and top
management has little
understanding of the need to
manage customer information
in the organization
Organize for Success II
Middle-Management has
input to Strategy
Formation, Study 2,4
Middle management has
strong input to strategy
function, bringing the need for
customer information
management to top
management’s attention;
interactively, they create
customer-based strategy
Middle management is not
involved in decision-making in
terms of bringing customer
information management
needs to the attention of upper
management
Use Data to Create Future
Value
New Product Development
integration with Customer
Information Systems, Study
5
Information about the
customer from information
systems as well as other
sources is integrated into the
NPD effort, often held in a
single repository.
Customer data is scattered
throughout the organization
and not integrated into NPD
efforts.

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TheKeyRoleoftheTopExecutive
Organizational
Culture
Data
Quality
Cross-
Functional
Cooperation
Customer
Performance
Business
PerformanceData
Sharing
Marketing/IT
Integration

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1. Do you have an agreed vision for managing Customer
information?
2. Is there a common purpose?
2. Is the vision shared?
3 Do you use cross-functional teams?
Do you reward teams for good performance?
How should you organize for Customer
Information Management?

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1. Overall data quality?
2. Data quality of
transactions, touchpoints, interactions?
3. Overall quality of
contact/loyalty/satisfaction data?
How do you rate in Customer Data Quality?

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1. Customer Retention
2. Customer Satisfaction
3. Cross-selling
What is Customer Performance?

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1. Can you store it in one place?
2. Can you query it?
3. Can your employees get at it?
Three Questions Assess Customer Data
Sharing

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Starting Question: What is the
relationship between Customer
Information Management and
Firm Performance?
Research suggests that
Customer Information
Management is a multi-faceted
organizational operation and
that strategy, shareability and
quality data each play a key role,
but that results must be driven
by the executive suite.

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Contact information
• Dr. Debra Zahay-Blatz
• http://www.zahay.com
• Best email debrazb22@gmail.com
• dzahayblatz@aurora.edu
• Cell 630-300-8838
• THE BLOG: datadrivendigitalmarketing.blogspot.com
• The G+ Community Data-Driven Digital Marketing
• Watch for the Data Book!