Ch 5: Customer Knowledge Strategy

Question 1

What is data?

Answer 1

Assortment of details

Question 2

What is information? Or how does data become information?

Answer 2

By assigning meaning to data it becomes information

Question 3

How does information become knowledge?

Answer 3

Information becomes knowledge when action is taken on the basis of the information

Question 4

What are the poor data quality issues that cause wastage?

Answer 4

Identification errors
Profile errors

Question 5

What are Identification errors, and what waste can come from it?

Answer 5

These are errors in the information that can specify a customer- name, address, telephone number etc.

Waste includes Mail duplication, insufficient processing of telephone calls, Invoicing errors.

Question 6

Profile erros and their watse

Answer 6

These are errors in the information that affect the full view of the customer

You may have functional data like Name and D.O.B, but no data on preferences

Waste: Less effective communication, less ability to deepen relationship

Question 7

What earnings can you gain from data quality?

Answer 7

Influence on the effectiveness of acquisition activities: increased response rate, right offers to right customer

Influence on customer value: retention and relationship development

Question 8

True or False: Investment in data would provide future, not immediate returns.

Answer 8

True

Question 9

True or False: The quality of an offer, its communicative packaging and the promotion’s allure has just as much influence on customer response as the composition of the data list.

Answer 9

True

Question 10

What are some of the typical problems within organizations involving investments and utilization of data?

Answer 10

Strategy- business strategy and data & information strategy are not aligned

Access
Quantity
Quality
Use

Question 11

What are the four organizations according to Peelen et al. (2009) that exhibit the categories of customer intelligence?

Answer 11

Market Research Driven Organizations- the main focus is customer satisfaction, data used for internal decision making- not many data sets and analytic software

Fragmented analytics Organizations- customer-satisfaction-oriented, but use segmentation models in analytics

Database marketing-oriented Organizations- have an analytical focus on segmentation and satisfaction. Personalised support of customer contact

Analytics-driven Organizations- Customer Intelligence is used for both internal decision-making processes and in supporting customer touchpoints

Question 12

How to go from data to customer knowledge?

Answer 12

In my own words it is going from Knowing the data we need, and going beyond functional information and gathering other data to find meaning and then acting on it

Question 13

In collecting data what are three ways in which the customer can be viewed?

Answer 13

A buyer: just somone who purchases
A User: someone who experiences- requires more investment
A person/organization: someone who feels, experiences, thinks on, reacts to- requires more investment

Question 14

What are the six sources of info to make a complete customer profile?

Answer 14

Identification
Transaction History
Media Use
Customer Profile
User’s Profile
Human Profile

Question 15

What are the topics that data collected is based off of

Answer 15

Identification of the customer or prospect:
Segment:
Communication channel preferences:
Transaction history and customer value:
Communication history:
Complaint History:
Events:
Satisfaction:

Question 16

Personal Data Protection Act ^2

Answer 16

Act that requires companies to responsibly and safely handle data and prevent unauthorized use and disclosure.

Question 17

Duty to Inform

Answer 17

Inform your users that you are requesting personal data and the purpose for collecting it

Question 18

What is the difference between Opt-out and Opt-in?

Answer 18

Opt-out gives you the right to refuse being contacted through a medium (after-the-fact), Opt-in requires your permission first.

Question 19

Information Policy

Answer 19

Structure should be in place for consistent collecting and handling of accurate customer data.

Question 20

Information is a personal resource

Answer 20

True

Question 21

True or False: a supplier must exchange information with customers on a voluntary basis and during these exchange, processes must strive for customer satisfaction and the perpetuation and development of the relationship

Answer 21

True