Interoperability and ecosystems: Assembling the industrial metaverse
Data Ireland: Essential Steps
1. Making the most of your
customer data
Morgan Nolan
Account Director
Data Ireland
30th May 2012
2. Sorting out my data is just too big a challenge
30th May 2012
3. Importance of a customer database
• The better businesses manage their relationships with customers the more successful they
will become and a good CRM database is the first stage in developing a these relationships.
• In a shrinking economy there is less opportunity to win new business and the focus on
maximising value from existing customers has become increasingly important for the
survival and future growth of businesses.
30th May 2012
4. 10 reasons to have a customer database
So what are the reasons for having a customer database:
1. Retain existing customers
2. Build loyalty by providing personalised service and communication
3. Generate referrals from satisfied customers
4. Provide insight to growing your business from external sources
5. Analyse sales data and customers information
6. Focus your marketing activities more precisely
7. Target special offers to key groups of customers
8. Measure the effectiveness of your marketing activity
9. Increased sales to existing customers through cross-selling activity to analysed
segments of your customer base showing the highest propensity to increase their
purchases
10. Improved marketing communications
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5. Building your customer database
1 • Define the database functions
2 • Define the information requirements
3 • Identify the information sources
4 • Select the database technology
5 • Populate the database
6 • Maintain the database
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6. Customer information fields
CONTACTS
Account Number 12345678 TRANSACTIONS
Title Mr
ADDRESSES Date Account Number Product Qty Value
Account Number 12345678
01/02/2012 12345678 AW390-12 2 €1,000.00
Forename Joe
Company Name ABC Ltd
01/05/2012 12345678 AW078-04 8 €400.00
Surname Duffy
Address 1 19 Andrew Street
Job Title Managing Director
Address 2
Telephone +353 (0)1 8584864
COMMUNICATIONS
Town Dublin 2 Account Number Type Code Date Response
Mobile +353 (0)86 1234567
County 12345678 OBTM OC0112 01/2012 Sale
Email Joe.duffy@abcltd.ie
Country Ireland 12345678 DM DC0312 03/2012 Sale
00184786 DM DC0312 03/2012
00184786 IBTC 03/2012 Suppress
30th May 2012
8. Data information sources
• Purchase History
• Contact Details
• Buying Criteria
Sales • Terms of Trade
• Competitors Used
Customer
Information
• Satisfaction Levels Customer • Payment History
• Complaints Finance • Credit Rating
• Communication History
Services
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9. Gathering basic data – common pitfalls
• Requiring a postcode on web application forms for Irish addresses.
Fields Record 1 Record 2 Record 3 Record 4 Record 5
Address 1 12 The Mews 12 The Mews 12 The Mews 12 The Mews 12 The Mews
Address 2 Clonsilla Rd Clonsilla Rd Clonsilla Rd Clonsilla Rd Clonsilla Rd
County Dublin Dublin 15 Dublin 15 Dublin 15 Dublin 15
Postcode 15 D15 N/A 00000 Dublin 15
30th May 2012
11. Other common pitfalls
• Not providing enough space for email addresses on paper forms.
• Not requesting a street for business records.
Company Name Data Ireland Data Ireland
Address 1 Dublin 2 19-24 St Andrew Street
Address 2 Dublin 2
• Recording age groups rather than dates of birth. In 2 years time someone categorised as
25-34yrs could anywhere between 27 and 36.
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12. Pitfalls in gathering data from paper forms
• Allowing free entry of address data on paper forms.
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13. Some basic maintenance tips
• Control the quality of data entering the database – especially name and address details.
An Post - Business Customers
• A hastily taken name & address can lead to duplicates, poor deliverability, damage to your
business’ image and make it difficult to complete analysis.
• Record privacy preferences.
• Record changes in details such as applying changes of address both from customers and
external sources.
• Flag suppressions – e.g. record undelivered mail.
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14. Find the hot shots
Recency Frequency Monetary
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15. Lifetime Value
Best Customers Average Customers
Purchase per year 2 2
Average order value €70 €50
Annual revenue €140 €100
Gross profit margin 10% 10%
Gross profit €14 €10
Acquisition cost €8 €4
Net profit €6 €6
30th May 2012
16. Lifetime Value
Best Customers Average Customers
Life expectancy 3 years 2 years
Year 1 revenue €140 €100
Year 2 revenue €110 €60
Year 3 revenue €85 €0
Lifetime revenue €335 €160
Gross profit margin 10% 10%
Lifetime gross profit €33.50 €16
Acquisition costs €8 €4
Lifetime net profit €25.50 €12
It’s a bit like the difference between declaring success after a one night stand and a
long term relationship.
30th May 2012
17. Prospecting – where to find them
• Armed with an in-depth understanding of your customers and market characteristics you are
better placed to focus acquisition spend in the most profitable areas.
• Buying or renting external lists is an easy way to target new customers.
• There are several sources for these lists and many can be segmented to provide a finely
tuned list of prospects.
• When buying data you are not just buying a list. You’re buying an audience.
30th May 2012
18. Prospecting – where to find them
Business Lists Consumer Lists
Industry sectors Lifestyle preferences
Specific job titles Socio-economic groups
Geographic location Age groups
Company size Geographic location
~€250 per 1,000 records ~€170 per 1,000 records
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19. Some key questions to ask your data supplier
• Is the data for single or multiple use?
• How recent is the data?
• Has it been collected in a compliant manner?
• Is there a returns policy?
• Does the data need to be used by a particular date?
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20. Data Protection
Considerations
Text/Email Phone Marketing Phone Marketing
Postal Marketing Fax Marketing
Marketing to Landlines to Mobile Phones
Opt-0ut (provided
Individual
Opt-Out similar product or Opt-Out Opt-Out Opt-Out
Customer
service)
Individual Non- Opt-In if on NDD,
Opt-Out Opt-In Opt-In Opt-In
Customer Opt-Out otherwise
Business Contacts
Opt-In if on NDD, Opt-In if on NDD,
(Customer & Non- Opt-out Opt-Out Opt-In
Opt-Out otherwise Opt-Out otherwise
Customer)
www.dataprotection.ie
30th May 2012
21. Conclusion
• The long term effectiveness of adopting a strategic approach to your customer database,
analysis and understanding will be seen in increased revenue, lower costs, better insight and
increased customer retention.
• Set up correctly and well maintained, it will help deliver sustainable profitable customer
marketing actions and will also provide confidence in using external resources to find new
customers.
• Questions?
30th May 2012
Notes de l'éditeur
Explain – story – if you don’t have a customer DB what you can’t do – renewal dates, lapsed, ….
Explain – story – if you don’t have a customer DB what you can’t do – renewal dates, lapsed, ….
Explain – story – if you don’t have a customer DB what you can’t do – renewal dates, lapsed, ….
Give an example of what some knowledge of your customer base will deliver.E.g. general communication versus high value comms – small group of high value customers.
Give an example of what some knowledge of your customer base will deliver.E.g. general communication versus high value comms – small group of high value customers.
Give an example of what some knowledge of your customer base will deliver.E.g. general communication versus high value comms – small group of high value customers.
Give an example of what some knowledge of your customer base will deliver.E.g. general communication versus high value comms – small group of high value customers.
Give an example of what some knowledge of your customer base will deliver.E.g. general communication versus high value comms – small group of high value customers.
Give an example of what some knowledge of your customer base will deliver.E.g. general communication versus high value comms – small group of high value customers.
Give an example of what some knowledge of your customer base will deliver.E.g. general communication versus high value comms – small group of high value customers.
Mention business.ie here – how it can lead to more business. Story – identified homogenous group of profitable customers so target lookalikes..Consumer side – can target to very specific geographic locations (e.g. catchment area around cable network, people who are due to renew their car insurance next month, new young mothers who are going through a range of purchasing and switching decisions.
Mention business.ie here – how it can lead to more business. Story – identified homogenous group of profitable customers so target lookalikes..Consumer side – can target to very specific geographic locations (e.g. catchment area around cable network, people who are due to renew their car insurance next month, new young mothers who are going through a range of purchasing and switching decisions.
Mention business.ie here – how it can lead to more business. Story – identified homogenous group of profitable customers so target lookalikes..Consumer side – can target to very specific geographic locations (e.g. catchment area around cable network, people who are due to renew their car insurance next month, new young mothers who are going through a range of purchasing and switching decisions.
