© 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
3
IBM Software
Retail Innovation Days | Confidential © 2006 IBM Corporation
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
Retail Innovation Days | Confidential © 2006 IBM Corporation
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
Retail Innovation Days | Confidential © 2006 IBM Corporation
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
Retail Innovation Days | Confidential © 2006 IBM Corporation
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
Retail Innovation Days | Confidential © 2006 IBM Corporation
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
Is a consumer differentiated at all
touch points?
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IBM Software
Retail Innovation Days | Confidential © 2006 IBM Corporation
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
Is promotion adoption rate measurable?
9
IBM Software
Retail Innovation Days | Confidential © 2006 IBM Corporation
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
Is consumer information available
at store level?
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IBM Software
Retail Innovation Days | Confidential © 2006 IBM Corporation
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
Is consumer information accurate?
11
IBM Software
Retail Innovation Days | Confidential © 2006 IBM Corporation
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
Is consumer privacy
respected?
12
IBM Software
Retail Innovation Days | Confidential © 2006 IBM Corporation
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
Can we link consumer to store
to product?
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IBM Software
Retail Innovation Days | Confidential © 2006 IBM Corporation
Disconnected Consumer Information
Data Warehouse
Address
X-Sell / Up-Sell
Preferences
Sales History
Customer Value
Name
Back Office
Campaign
Management
Data Quality 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
Data Quality 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
Web Site Contact Center Store
Address
Sales History
Name
Address
Preferences
Name
Address
Sales History
Name
Customer Value
Front Office / Touch Points
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
Data Quality 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
14
IBM Software
Retail Innovation Days | Confidential © 2006 IBM Corporation
Agenda
Retail Challenges
Master Data Management - Customer Data Integration
Retail Case Study
Questions and Answers
15
IBM Software
Retail Innovation Days | Confidential © 2006 IBM Corporation
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
Retail Innovation Days | Confidential © 2006 IBM Corporation
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
Data Quality Management
Event Management
WebSphere Customer Center™
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IBM Software
Retail Innovation Days | Confidential © 2006 IBM Corporation
Agenda
Retail Challenges
Master Data Management - Customer Data Integration
Retail Case Study
Questions and Answers
18
IBM Software
Retail Innovation Days | Confidential © 2006 IBM Corporation
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
Retail Innovation Days | Confidential © 2006 IBM Corporation
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