Customer Data Integration
Encyclopedia
In data processing
, customer data integration (CDI) combines the technology, processes and services needed to set up and maintain an accurate, timely, complete and comprehensive representation of a customer
across multiple channels, business-lines, and enterprises — typically from multiple sources of associated data in multiple application systems and databases. It applies data-integration
techniques in this specific area.
In the larger sense, customer data can become very complex; for example, it may require anywhere from six to twelve or more fields to represent just a personal name. For example, some typical fields associated with a customer "name" may include:
Address entries have their own complexities (for example: primary address number, pre-directional (N, S, E, W,) street name, street suffix, post-directional, secondary identifier (building, suite, apt,) secondary number, city, state, ZIP, and ZIP+4(R))
Add in phone numbers, social security numbers, email addresses, tracking (customer number, account number), relationship, risk-level, purchase history, service history, demographic, socio-economic, lifestyle, consumer-behavior segmentation and privacy preferences, just to name a few.
This information varies constantly, whether due to changes, entry-errors, corrections, or fraud. And many medium-to-large organizations store this sort of data in several different places: different departments, different locations, in different formats, etc.
To put this statistic into perspective, assume that a company or charity has 500,000 customers, donors or prospects in its databases. Cumulatively, if 2% of these records become obsolete in one month, 10,000 records go stale per month; or 120,000 records every year. Within two years about half of all the records may become obsolete if left unchecked.
Peppers and Rogers call the problem, "an ocean of data". Jill Dyche and Evan Levy, gurus in this field, have boiled the challenges down to five primary categories:
and GartnerGroup coined the term "customer data integration" (CDI). The process of CDI, as Acxiom and Gartner described it, includes:
, service providers deliver CDI as a hosted solution in batch volumes, on demand using a software as a service (SaaS) model, or on-site as licensed software in companies and organizations with the resources to drive their own data integration processing. CDI enables companies to optimize merchandizing (assortment, promotion, pricing and rotation) based on demographics
, lifestyle and life-stage, to ensure inventory turn and to reduce waste. CDI also aids companies and organizations in choosing the best location for new branch offices or outlets.
CDI commonly supports both customer relationship management
and master data management
, and enables access from these enterprise applications to information confidently describing everything known about a customer
, donor, or prospect, including all attributes and cross references, along with the critical definition and identification necessary to uniquely differentiate one customer from another and their individual needs.
Data processing
Computer data processing is any process that a computer program does to enter data and summarise, analyse or otherwise convert data into usable information. The process may be automated and run on a computer. It involves recording, analysing, sorting, summarising, calculating, disseminating and...
, customer data integration (CDI) combines the technology, processes and services needed to set up and maintain an accurate, timely, complete and comprehensive representation of a customer
Customer
A customer is usually used to refer to a current or potential buyer or user of the products of an individual or organization, called the supplier, seller, or vendor. This is typically through purchasing or renting goods or services...
across multiple channels, business-lines, and enterprises — typically from multiple sources of associated data in multiple application systems and databases. It applies data-integration
Data integration
Data integration involves combining data residing in different sources and providing users with a unified view of these data.This process becomes significant in a variety of situations, which include both commercial and scientific domains...
techniques in this specific area.
The difficulty of identifying customers
Given two sets of data that differ slightly, perhaps with a nickname ("Barb" instead of "Barbara") or with a cell-phone number, how can a computer distinguish between different aspects of the same customer and two distinct individuals?In the larger sense, customer data can become very complex; for example, it may require anywhere from six to twelve or more fields to represent just a personal name. For example, some typical fields associated with a customer "name" may include:
- Name prefix (Mr., Mrs., Dr., Captain)
- Given nameGiven nameA given name, in Western contexts often referred to as a first name, is a personal name that specifies and differentiates between members of a group of individuals, especially in a family, all of whose members usually share the same family name...
(a.k.a. "first name" or "Christian name" in some cultures) - Family name
- Middle name(s)
- Name Suffix (Jr., Sr., II, III)
- Initials
- Nickname
- Maiden name
- Married name
- Professional title
- Academic title
Address entries have their own complexities (for example: primary address number, pre-directional (N, S, E, W,) street name, street suffix, post-directional, secondary identifier (building, suite, apt,) secondary number, city, state, ZIP, and ZIP+4(R))
Add in phone numbers, social security numbers, email addresses, tracking (customer number, account number), relationship, risk-level, purchase history, service history, demographic, socio-economic, lifestyle, consumer-behavior segmentation and privacy preferences, just to name a few.
This information varies constantly, whether due to changes, entry-errors, corrections, or fraud. And many medium-to-large organizations store this sort of data in several different places: different departments, different locations, in different formats, etc.
Techniques for managing complexity
Attributes and their values can become extremely complex and dynamic due to the many changes individuals go through. Multiply all these fields by the millions of records a business or organization may have in its data sources, then factor in how quickly and how often this information changes. The results can intimidate. The Data Warehousing Institute (TDWI) says: “The problem with data is that its quality quickly degenerates over time. Experts say 2% of records in a customer file become obsolete in one month because customers die, divorce, marry and move.”To put this statistic into perspective, assume that a company or charity has 500,000 customers, donors or prospects in its databases. Cumulatively, if 2% of these records become obsolete in one month, 10,000 records go stale per month; or 120,000 records every year. Within two years about half of all the records may become obsolete if left unchecked.
Peppers and Rogers call the problem, "an ocean of data". Jill Dyche and Evan Levy, gurus in this field, have boiled the challenges down to five primary categories:
- completeness – organizations lack all the data required to make sound business or organizational decisions
- latency – it takes too long to make the data valuable: by the time of use, too much has become obsolete or outdated (slowed by operational systems or extraction methods)
- accuracy
- management – data integrationData integrationData integration involves combining data residing in different sources and providing users with a unified view of these data.This process becomes significant in a variety of situations, which include both commercial and scientific domains...
, governance, stewardship, operations and distribution all combine to make-or-break data-value - ownership – the more disparate the owners of the data-source owners, the more silos of data exist, and the more difficult it becomes to solve problems
History of customer data integration
In the late 1990s AcxiomAcxiom
Acxiom is a global interactive marketing services company that uses consumer data, analytics, information technology, data aggregation, data integration, and consulting solutions to help companies conduct direct marketing programs...
and GartnerGroup coined the term "customer data integration" (CDI). The process of CDI, as Acxiom and Gartner described it, includes:
- cleansing, updating, completing contact-data
- consolidating the appropriate records, purging duplicates and linking records from disparate sources to enable customer or donor recognition at any touch-pointTouchpointTouchpoint is the interface* of a product,* a service or* a brand...
- enriching internal and transactional data with external knowledge and segmentation
- ensuring compliance with contact suppression to protect the individual and the organization
, service providers deliver CDI as a hosted solution in batch volumes, on demand using a software as a service (SaaS) model, or on-site as licensed software in companies and organizations with the resources to drive their own data integration processing. CDI enables companies to optimize merchandizing (assortment, promotion, pricing and rotation) based on demographics
Demographics
Demographics are the most recent statistical characteristics of a population. These types of data are used widely in sociology , public policy, and marketing. Commonly examined demographics include gender, race, age, disabilities, mobility, home ownership, employment status, and even location...
, lifestyle and life-stage, to ensure inventory turn and to reduce waste. CDI also aids companies and organizations in choosing the best location for new branch offices or outlets.
CDI commonly supports both customer relationship management
Customer relationship management
Customer relationship management is a widely implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing,...
and master data management
Master Data Management
In computing, master data management comprises a set of processes and tools that consistently defines and manages the non-transactional data entities of an organization...
, and enables access from these enterprise applications to information confidently describing everything known about a customer
Customer
A customer is usually used to refer to a current or potential buyer or user of the products of an individual or organization, called the supplier, seller, or vendor. This is typically through purchasing or renting goods or services...
, donor, or prospect, including all attributes and cross references, along with the critical definition and identification necessary to uniquely differentiate one customer from another and their individual needs.
See also
- Identity resolutionIdentity resolutionIdentity resolution is an operational intelligence process, typically powered by an identity resolution engine or middleware stack, whereby organizations can connect disparate data sources with a view to understanding possible identity matches and non-obvious relationships across multiple data silos...
- Enterprise Architecture framework
- Enterprise Master Patient IndexEMPIEnterprise Master Patient Index , are Master Patient Indexes which link several smaller organization level MPIs together.Many software vendors use EMPI and MPI synonymously.- Definition :...