'Relationship' is the key word in any e-CRM strategy
Without accurate customer data, can a true
'relationship' with  customers really exist? 

by Kurt Konow 
Customer Relationship Strategist, Document Messaging Technologies

Businesses are embracing e-CRM strategies with near-religious fervor today. Survey after survey shows that more than 50 percent of the Fortune 1000 companies are planning to migrate at least a portion of their selling efforts to a web-based business model. 

As part of this huge shift to e-commerce, these businesses are focusing increasingly on e-CRM strategies as way to reach customers and foster continued growth. And for good reason. 

It's widely known that selling to existing customers is much easier than selling to new ones. So focusing on the existing customers should yield superior returns. 

But what is not widely known is that accurate data is the very cornerstone of an effective e-CRM strategy. And that poor quality or inaccurate data can actually impede the customer relations effort and hinder a firm's overall e-CRM strategy. 

How? Imagine yourself in the following three examples and see if you can determine how data accuracy can influence a relationship. 

A relationship or a one-time sale?
In the first example, you enter your favorite restaurant where you are a frequent and well-known customer. You are greeted warmly by someone who knows you by sight and name, and is ready to serve your favorite beverage without being asked. You feel comfortable, like a guest in a friend's home, rather than just a business customer. 

Now, consider two other 'relationships' that occur in the e-business world when you buy a product or service either online via the Internet or through an Intranet-based Inbound Call Center or 'help desk' application.

Data Quality and the Internet 
In the online example, regardless of how many times you may have purchased products previously, you are still required to enter your name, address and shipping information, along with the 'optional' demographic and financial data. 

But what happens if you are in a rush -- as everyone is today -- or aren't very good at typing? If you misspell your street name, or forget to include your apartment number, or balk at including the 'optional' personal information, the data will be inaccurate and completion of the order will be slowed, either in processing or delivery. 

The whole point of technology is to speed-up and simplify the routine. This information could easily be available, but countless organizations overlook this fact in their zeal to attract 'new' customers. 

Data Quality and the Intranet 
It isn't much better when you place a call to an Inbound Call Center in the Intranet environment. If your call is handled by a customer service representative (CSR) who does not have access to accurate and comprehensive data, the experience is not pleasant. 

These CSRs don't know you or your situation, they often can't pronounce your name, let alone spell it, and they know nothing about your previous purchases or how you might use this product or any other product or service more effectively. 

Since all sales and all customers are alike to these CSRs, there's no need for them to deviate from the tedious script they follow unthinkingly. You are not really a 'person' or a 'customer' to them but rather an 'order number.' Now, which of the three relationships is likely to endure and flourish?

Data impacts relationships
Every time an e-business interaction occurs, the accuracy of the customer data, the ease with which the data is accessible to those who are dealing with the customer, and the manner in which the data is utilized, such as in the Intranet example, all contributes to either building or eroding the relationship. 

And because there is far less chance for positive human interaction in the fast-paced and increasingly impersonal world of Internet-based e-commerce, the need for accurate customer data becomes even greater. 

Plus, aside from the impact on the overall 'tone' of the relationship -- which is significant by itself -- there are other key benefits to using accurate and up-to-date data when communicating with customers. 

These enable e-businesses to: 

• Shorten or eliminate the amount of unproductive time spent gathering routine information from customers. 
  
• Eliminate the possibility of introducing new data-entry errors on the part of either employees or customers.
  
• Spend more 'quality' time building the relationship and 'making a connection' with customers.
  
• Capitalize on the opportunity to cross-sell and up-sell more quickly and more comprehensively.
  
• Initiate highly personalized 1:1 marketing efforts within minutes of making contact with customers.

A process, not a quick fix
The real hurdle for many organizations rushing to implement the new e-commerce models is in understanding that strong customer relationships are not achieved via a quick fix or fast sale. 

Customers are attracted to the speed of e-commerce. But they still want to be treated like customers whose time and satisfaction -- as well as money -- is valued by the e-business they choose to deal with. 

E-businesses that use accurate data to simplify and enhance every customer interaction demonstrate clearly that they value the customer and want to build a strong and lasting relationship. 

And while an effective data quality solution must involve all the key functions of a business that interact with customers or generate data related to customers -- which for many e-businesses encompasses just about the entire organization -- the rewards in terms of speed, efficiency and effectiveness far outweigh the costs. No more delays or errors 

The time and effort required to record routine data manually is simply wasted. Plus, it affords an opportunity for errors to be entered, which can cause a problem with the current order or trigger subsequent costs downstream. 

When the data entry function is performed by CSRs, it requires concentration on the data rather than the customer, which runs counter to building a 'relationship.' And when the data entry is performed by the customer, it slows completion of the sale, which can cause irritation if not frustration, especially if the desired product is unavailable. 

Plus, what customer really wants to provide the "optional" personal and financial data that is often requested, such as household income level? 

Automatic updating When a customer places an order over the Internet, wouldn't it be simpler and easier to have the customer complete just one or two simple questions, such as name and address, and have all the other relevant data -- such as delivery preferences, buying history and other demographic and psychographic profile information -- automatically updated and retrieved? 

Similarly, when the order is handled by a CSR working in an Intranet environment, a complete data profile of the customer can be made available online and in real-time. This data can provide the CSR with the ability to build an instant 'relationship' with the customer, and interact with the customer just like the maitre de in the favorite restaurant. 

And with a relationship established, a far more focused selling effort can begin in minutes if desired. In fact, having the ability to populate customer records with additional data enables e-businesses to take their CRM a step further to grow the customer relationship. 

The updated data -- in both the Internet and Intranet examples -- can be formatted into a follow-up contact by mail, phone or e-mail to check on customer satisfaction, or to extend a special promotional offer related to the previous transaction. 

Help in detecting fraud The vast majority of customers are honest, but there are always a few that aren't. So businesses must strike a balance. They can't completely ignore the risk of fraud just as they can't force 100 percent of customers to endure the "third degree" style of interrogation needed to locate the one or two percent with fraudulent or criminal intentions. 

A far better strategy is to quickly separate the good customers from those that present a risk, allow the valid transactions to proceed unimpeded, and focus more closely on the potentially bad transactions to determine if they really are a problem. Accurate customer data help achieve that goal. 

Since all pertinent information about a customer can be accessed virtually instantaneously, a CSR -- or the program controlling the online transaction -- can begin asking additional questions to better qualify the customer and determine if fraud is a possibility. 

Simply inquiring about discrepancies in shipping and mailing addresses, or unusual changes in spending, can uncover fraudulent intentions. But without access to the full range of customer data, a CSR is little more than an 'order taker' and the opportunity to fight fraud has been lost. 

As more businesses migrate to the web, and transactions become more automated, the need for data accuracy -- as well as the opportunity to benefit from the use of accurate customer data -- will continue to increase. Anonymous cash-based transactions are fast becoming a thing of the past. 

Organizations that are able to capture and utilize accurate customer data online will have a distinct edge in retaining customers, increasing sales per customer and growing the business.