Profiseee Customer 360 Ebook Web
Profiseee Customer 360 Ebook Web
This article explains what the concept of a Customer 360 is, why it is important for your organization
and how you can achieve a 360-degree customer view — while identifying some of the
shortcomings of customer-specific applications like Customer Relationship Management (CRM) and
Customer Data Platforms (CDP).
Manufacturing........................................................................................................................................................................................12
Insurance ....................................................................................................................................................................................................12
Healthcare .................................................................................................................................................................................................13
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What is a Customer 360? Others also claim that customer 360s must
import or integrate with external data
The problem with the term ‘customer 360’ is sources, i.e., Dun & Bradstreet for financial
that it is a great idea that is not so well services companies. There are also customer
defined. It is a concept — all your customer 360 proponents selling the idea that it
data in one place — that has different (and involves all the above, insinuating that
oftentimes conflicting) definitions. It is one of solutions with just some of these capabilities
those things people think they will know are not sufficient.
Some vendors, customers, publications and solution in that nearly all real-world
hub with all their customer data within it. customer data and other business
Others view it as the primary domain of information like the products they
some data management tool like a master buy, locations they visit or campaigns
external data, like social media profiles, their platform can master over 100 customer
employer information and more. attributes, it will not truly add business value
if a user cannot analyze those in the context
It is often difficult to determine which data to of the 25 product attributes their customers
involves transactional data, while some say it sequentially, it is important to view them
simply requires static data — like customer holistically and consider how they together
demographic data or master data in one make up the 360-degree view of a customer.
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Which Channels Are Involved For example, Domino’s Pizza should know
consideration for implementing customer or in the cloud — even across different retail
the amount of customer data they need to important to thoughtfully consider which
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How a Customer 360 Benefits
Your Business
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The Challenges of Implementing
a Customer 360
The biggest challenges for implementing a These situations make it hard to overcome
customer 360 are fragmentation and customer data quality problems to compare
inconsistency of master data. This data is sources for the same record. Customer
often stored in different warehouses and records contain missing, overlapping,
across disparate systems — and does not conflicting, outdated and inaccurate
follow the same format or share the same information that must be resolved to achieve
dimensions, or even the same definitions. trusted and reliable data. You can fix some of
This is largely due to inconsistent these issues with automation, but others
governance and data structures within and temporarily (or permanently) require human
across sources like marketing and sales tools, efforts for data stewardship to address
Customer Relationship Management (CRM) contradictory information. These errors also
platforms and Customer Data Platforms make compound your issues with analyzing
(CDPs), which each have different ways of other data domains when trying to identify
representing information. Therefore, there is customers and understand their product
often a lack of comprehensive insight across purchase history or other associated
source systems, no single version of the truth information.
and an inability to adapt to business
conditions and market forces.
Why Should You Care about a Additionally, the increasingly distributed,
Customer 360? diverse data landscape and the broadening
IT infrastructure for business apps make it
There are many reasons you should care impossible not to care about a customer 360
about a customer 360, with the significant view as this has caused customer data to be
cost of mishandling data sitting at the top of more decentralized than ever before and has
the list. Improperly managed customer data made it extremely difficult to preserve
directly results in missed sales and marketing customer data quality. This creates a need to
opportunities and makes it exceedingly better manage absolute customer data
difficult to manage regulatory compliance quality (where fields are missing or
about how consumer data must be incorrectly populated with information) and
managed. Several regulations have emerged relative customer data quality (where fields
in this area with costly penalties for are complete, but the information is
non-compliance, and more are on the represented in different forms with
horizon. Current examples of this include the potentially different meanings and cannot be
General Data Protection Regulation (GDPR) reconciled across systems).
and the California Consumer Privacy Act
(CCPA), both of which aim to give individuals Implementing a customer 360 has several
control over their personal data while benefits, but it is also important to consider
mandating that controllers and processors of all the things you cannot do without it, like
personal data, i.e., your organization, put the properly understand the demand for things
appropriate technical measures to like products, services and supplies. You also
implement specific data-protection cannot do accurate sentiment analysis, which
principles. is critical for understanding just what
customers are saying about your company as
Companies can put their reputation well as your products and services.
and goodwill on the line when they
poorly manage customer data.
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Most of all, you cannot benefit from modern impossible to accurately conduct a
technologies like machine learning (ML) and root-cause analysis — even when
artificial intelligence (AI). These tools are recognizable issues arise, and most
amplify the old “garbage in, garbage out” interacts with these technologies in two
problem to epic proportions. If you have poor ways. It enables and supports them by
customer data quality, your training data will standardizing data for them, effectively
create faulty models. If you feed good models de-risking your data. Effective MDM also
poor-quality data, you will get the wrong uses machine learning for intelligently
results. Businesses are looking to monetize matching and grouping similar records,
these technologies and empower their helping data stewards by learning from their
employees, but without the right data actions (i.e., how to match and resolve
them, wasting resources and increasing those actions in the future to accelerate
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Why Do I Need a Customer 360 understanding is critical for improving
A customer 360 view can be considered the and increasing your marketing conversation
cost of entry for satisfying, maintaining and rates by reaching the right customer with
increasing your customer base. It gives you a the right message at the right time. For
set of universal benefits while also helping instance, understanding its customers better
industry, account and even individual relevant information about their customers,
customer, you can identify which of your customer 360 views enable companies to
customers are underperforming and work to react to situations like the COVID-19
increase your gross margins. Understanding pandemic through means of reducing costs
this helps to more accurately segment while still leveraging the most meaningful
By increasing your understanding of who reporting by giving you the right data for
your customers are, a customer 360 view also customer data analytics and Business
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How Does Customer 360 Apply in acquisition costs by capturing these
Manufacturing? primarily familial relationships for sales
opportunities. The result is lower sales
Customer 360 views primarily help and marketing costs combined with
manufacturers by modeling and unifying improved marketing effectiveness.
a potentially diverse customer base. Householding also works across personal
Manufacturing customers can include a and commercial relationships, like giving
company that is a product end-user a homeowner liability customer — who is
(B2B), a retail channel (like Best Buy) or also a business owner — a discount on a
end-users in that retail channel (B2B2C). commercial liability protection policy.
Increasingly, manufacturers are trying to
get direct relationships with Other business applications of a
end-customers in a B2C model. Still, the Customer 360 for insurance companies
goal in all these models is to get a include developing a normalized
complete picture of customer party-relationship model, where
requirements and their purchasing companies market to employees or
behavior. That way, manufacturers can owners of businesses and their
deliver better service, anticipate subsidiaries. For example, insurers can
customer needs, refine their operational use this approach to market to the
processes and deliver customized offers various locations of a specific franchisee.
to drive revenue. Such offers may require There is also potential for "super
AI and ML, which only further amplifies householding” —grouping or linking
the need for trusted, high-quality data relationships outside of a contract, i.e., if
that a Customer 360 delivers. a bank has a beneficiary notification of a
customer’s cousin who might not live
with the customer but is still related to
How Does Customer 360 Apply to
him.
Insurance?
It is important to note that Customer
Data Platforms and CRMs either cannot
Customer 360s in the insurance side of
do these householding items at all or
financial services support householding,
cannot do them well. These functions are
which is the process of identifying which
at the upper end of customer service
customers live together. Customer 360 views
and care, as opposed to the basic
resolve these customer identification issues
marketing and sales/service capabilities
by understanding the connections between
that CDP and CRM support. Although
customer records at a given address. This
householding and super householding
capability helps to decrease new customer
originated as ways to boost marketing
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and sales opportunities, they are also useful for managing patients and providers but
for helping with financial regulations and is not a complete solution.
risk-management use cases for
understanding customers. How Does Customer 360 Apply to
Banks and Credit Unions?
How Does Customer 360 Apply to reducing risk for regulatory compliance
are not modeling ‘customers’ but because financial data is often stored in
Final Rule is at the heart of the attempt and addressing these differences with
customer master data across various LexisNexis for KYC and AML further
patients, diagnoses, billing/payment files, complicate this issue and are costly and
Data Platform is poor suited for this use master data capabilities also help with
case partly because of its single-domain consuming the Dun & Bradstreet
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How Do I Get a 360 Customer Another disconnect between aspiration and
View? reality for achieving a customer 360 view can
be attributed to lofty sales pitches from CDP
Considering these numerous benefits, it is and customer 360 vendors. Since many of
understandable why organizations have them cannot achieve the full scope of MDM,
been seeking a comprehensive view of their they end up offering subsets of its customer
customers. But for all the various approaches, 360 utility as if they are the real thing. This
vendors, technologies and resources put leads to confusion about what this solution
toward achieving this objective, companies is and is not supposed to do while
often have trouble with realizing success for a contributing to wasted funding and even
few several reasons. more failed implementation attempts.
One of the main reasons for failure to The good news is it is relatively
implement a Customer 360 is a lack of straightforward to classify some of the
measurable business goals and misleading claims that different vendors are
implementation roadmap, which relates to selling about customer 360 solutions. There
the previously mentioned “I’ll know it when I are a few specific solutions routinely offered
see it” fallacy. Without defining a way to as customer 360s, but each of them only has
gauge the success of this solution, two things a few of the features that MDM brings to the
frequently derail these projects. The first is table for this particular use case.
that companies that will not actually get
started because they lack a clear end goal.
The second is they suffer from “scope creep”
that encompasses several use cases and
becomes far too impractical to ever achieve.
FPO
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Customer Data Platform (CDP)
CDP
SOURCES DESTINATIONS
There is a huge gap between perception and same or if they actually did something, like
reality when it comes to Customer Data redeem a free trial. There are even fewer
Platforms. What often happens is that capabilities for matching, de-duplicating and
people project expectations onto these supporting data stewardship, which are
solutions that are far beyond the scope and critical in arriving at a single source of truth
functionality of a CDP. A Customer Data that is available across all enterprise systems
Platform is not technically a platform; it is an and data warehouses.
application with connectors to the major
marketing databases you can use for Moreover, the power of linking and grouping
campaigns. They let you aggregate data — identifying relationships between entities
across these sources use with your customer outside of contracts or business, like familial
master data, transactions and interactions relationships or attorney-client relations —
while enabling analytics for downstream also is not supported by Customer Data
applications like targeted marketing Platforms. Significantly, most Customer Data
campaigns. Platform vendors do not even claim to do any
of these things that are important for
Although Customer Data Platforms may be establishing comprehensive customer views.
good enough for building marketing Compared to MDM, they are also notoriously
profiles, they are inappropriate for customer difficult to perform customer data
service and customer data management. integration with business applications and
They have few means of ensuring customer customer data analytics platforms.
data quality for core use cases like
determining if people are or are not the
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Salesforce Customer 360 Just like other business applications
“enhanced” for customer centricity, it will be
Salesforce’s Customer 360 is one of the best limited by the application’s data models for
examples of business application suite storage and rationalization and integrating
vendors jumping in on the comprehensive outside of the Salesforce ecosystem will be
customer view action. This offering connects exponentially more difficult for organizations.
all your Salesforce applications, which is why
it is limited to Salesforce’s internal data It also allows for only minimal data-quality
models and their integrations. Salesforce standards — you may be able to enforce a
Customer 360 gives you a single global ID minimum character limit for a company
and profile for customers across Salesforce name — and falls far short of creating a
applications, as well as a hub for connecting golden record of your customer data.
sources across clouds. Coupling this with its inability to connect
with applications outside the Salesforce
Customer data integration capabilities are ecosystem much less enforce survivorship
centered around structured internal sources rules or write data back to other source
like ERP and transactional systems, as systems, Salesforce Customer 360 will only
opposed to external (Dun & Bradstreet) or exacerbate the single-domain, siloed state of
unstructured (such as social media your enterprise data.
sentiment) sources. Salesforce Customer 360
also claims to support segmentation while
giving you mechanisms for data privacy. But
remember, this is not a generalized
customer data management tool.
CUSTOMER360
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Conventional Customer Relationship Management (CRM)
Traditional CRM is designed to administer customer or prospect interactions for sales. Like
Salesforce Customer 360, these applications do not offer either customer data management or data
governance, resulting in serious technical debt, and should not be considered the de facto systems
of record for customer data. This takes the form of suspect customer data quality, duplications and a
general lack of trust in data — resulting in issues like sales and marketing teams repeatedly
contacting the same targets because they cannot check multiple applications for the best email
address based on business functions.
The other drawback is you are unable to match or use this data with other sources in real-time,
making it hard to issue relevant recommendations across sources with machine learning. This
option also lacks support for grouping or matching.
EMAIL
INTEGRATION
CRM
RELATIONSHIP FOLLOW UP
MANAGEMENT & PROJECTS
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MARKETING
Augmented data catalogs are the newcomers on the block; they couple metadata management
with more extensive customer data management capabilities. Because they are relatively new
offerings, they cannot match MDM’s exhaustive data management functionality like matching,
merging and enforcing survivorship rules to create a trusted golden record. Additionally,
multi-domain MDM provides excellent metadata management control through creating a
metadata domain — without the need for additional, stand-alone software.
LINEAGE PEOPLE
who created & uses dataset
how the dataset is created
DATASET
CHANGE SCHEMA
how the dataset is changing
who created & uses dataset
Master Data Management without the domain-specific limitations of
the application model.
Strategic Customer Data Management Journey
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Master Data Management: Beyond Customer 360
The challenges above are often harder to address when using a Customer Data Platform for
customer 360s. It may be better than doing nothing — but with its limited data-quality capabilities
and inherent lack of multi-domain functionality, will a Customer Data Platform truly solve the
whole customer 360 problem, or will it simply limit your future growth? Although they are an
interesting proposition, Customer Data Platforms ultimately will not resolve the above challenges,
produce the above benefits and solve common data problems customer 360s should. Top-tier
MDM, however, will.
Perhaps the most important aspect of customer 360 that is missing is the vital need for a
multi-domain context. Nearly all real-world business use cases require the mastering of multiple
domains to deliver a solution — so any ‘customer 360’ is only a part of the solution.
Combining this information across domains Customer 360, then, is just a piece of the
enables an insurance company to assess risk puzzle when it comes to managing your
across the entire customer journey. It company’s data estate and leveraging it as a
provides this benefit to banks, credit unions source of competitive advantage. While your
and FinServ/FinTech players, too. immediate problem may include the lack of
a unified customer view and the inherent
Multi-domain MDM excels in providing challenges that come with that — like
multi-domain insight that simply is not knowing your most profitable customer —
possible with a Customer Data Platform. As you will need to manage your product,
you begin to address real-world business supplier, asset or location data. And you
problems, you will notice that no problem need a platform that can scale up with your
needs.
Choosing the Right Master Data Regardless of the solution you choose, you
Management Solution will need to justify your investment and gain
buy-in from stakeholders throughout your
Rather than a one-time fix, you need a organization. It is no surprise that according
trusted partner along your journey to to Gartner, the No. 1 reason that a master
building a trusted foundation of key data management program fails is the lack
enterprise data. And implementing MDM is of a structured framework to qualify and
not just a technological problem. In many quantify the value that data management
cases, organizations require fundamental creates for the organization.
changes to their business process to
maintain clean master data, and some of the Because of this, Profisee has developed what
most difficult MDM issues are more is called a Business Impact Roadmap, or BIR,
organizational than technical. to help put our customers on the path to a
successful MDM implementation and
Once you identify the need for MDM journey. It starts with a compelling business
software, you need to determine the best case that:
solution for your organization. But that in and • Clearly describes the business
of itself can be an overwhelming task, opportunity.
especially given the number of MDM • Helps prioritize initiatives and resources.
solutions available today. • Identifies key performance indicators.
• Quantifies a projected return on
To help you along this process, take a look at investment.
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Trust Your Data
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