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REVIEW PAPER On CUSTOMER INTELLIGENCE SYSTEM
Under the Guidance of Dr. Deepali Singh (Professor)
Submitted By: Ashish Dudeja (2010MBA-03) Ashish Kumar (2010MBA-04)
need and objectives of customer intelligence system are discussed. . In this. Finally it shows that how the CIS concept may contribute towards improving the quality of customer strategies in any organisation.the three I¶s. And then it discuss about the various examples of different companies who are focussing on customer intelligence system is discussed because Organisations primary focus has shifted to the customers because organizations can enhance their marketing by evolving to a customer-centric business model that focuses on insight. Further the paper presents a number of research evidences that have been conducted to understand the applications and advantages of customer intelligence under µLiterature Review¶.Executive Summary The paper gives a brief introduction of the Customer Intelligence System presenting it as one of the key elements to implement Customer Relation Management successfully in an organization. sound decision making. better customer service and some increase in customers¶ loyalty. interaction and improvement . This paper discuss about the basic process that leverages the capabilities of business intelligence in the context of customer relationship management and entails developing a full view of the customer and using not only the traditional business intelligence.
available on demand. You must earn their goodwill with every interaction. processes. This change is driven by intensified competition. . Your innovative product or service can be quickly copied to become tomorrow¶s undifferentiated commodity. is one of the most important processes of customer relationship management. thereby raising customer expectations.Introduction Customer intelligence is the data and insight from and about your existing and potential customers. and channels to the ultimate source of immediate and long term profitability²the customers. and saturation of market segments. Increasing marketing complexity: The proliferation of customer channels and touch points makes it harder than ever to manage and synchronize the customer experience. they can compare your offerings to competitors worldwide. Last. globalization. though not least. The emphasis is shifting from transactions. as such. With a few clicks of a mouse. which offers a bonanza of choices online. The analysis and use of this informs many of the decisions taken by businesses and. products. deregulation. this change is driven by the Internet. The growing diversity of media channels fragments the audience and dilutes your advertising messages. There are some reasons of new marketing scene as follows: Customers are empowered: They have more choices and channels. and they can publish opinions that sway millions of other consumers. Need of Customer intelligence Most businesses are now on a mission to become more customer centric.
Demand for accountability: CEOs. it has become essential for companies to find new ways to attract new customers. . Who can blame them. online purchases. Objectives y Ability to aggregate in a single view all the data you have about a customer.) and through multiple points of contact or ³touch points´ (customer support centre. and to retain the most profitable ones. when marketing budgets can represent as much as 20 percent of revenues? Marketers that don¶t have empirical evidence to justify their spending face shrinking budgets and diminished clout in the organization. you can gain great insight into the customer¶s needs and desires at any given moment. etc. CFOs and shareholders are demanding greater transparency and proven ROI from marketing investments. In this new ruthless environment. to maximize the value of each existing customer. By tracking. y Ability to segment the customer base in such a fine grained way that you can implement pure one-to-one marketing. resellers. observing. It means having a full view not only of their purchase history. but also understanding what they want at a particular moment in time. This can be achieved by: y Knowing the customers better than the competition does²not only knowing who they are and what they have purchased. but also of all their interactions with your company. marketing programs. Numerous studies show that it is easier and as much as six times less expensive to sell to an existing customer than to acquire a new one. and so on). sales force interaction. and analyzing these interactions. Interactions can happen through multiple sales channels (direct sales.
personalized. as well as his or her expectations and preferences.y Exploiting that knowledge to create the best possible customer interaction²informed. Building switching costs into the customer relationship. y To accomplish all of the above. . With this knowledge you can then determine the customer¶s lifetime value to your organization. and insightful. This will allow you to understand the customer¶s profitability. but not intrusive²and then increase customer satisfaction. you will need to collect and analyze all the pieces of information available to your organization that relate to the customer.
the Area Manager has learned how to process customer service with the success and reliability that consistency offers. 2.LITERATURE REVIEW This paper divides the research on customer intelligence into three types: 1. The writer looks at how Blanchard presents a plot related to developing success and consistency in customer service relations in the business community through realizing the three . The writer points out that this is the final premise of 'Raving Fans: A Revolutionary Approach to Customer Service' by Ken Blanchard. data warehouse and data mining cover everything. See defined marketing data intelligence as ways of utilizing data-driven technique to promote the understanding and the knowledge of customers. 3.Research on the role and content of customer intelligence Mark Allen Smith (2001) equals customer intelligence to customer analysis. He said that the analysis of the components included by business intelligence such as OLAP. There are many research papers on customer intelligence like: A book report of 'Raving Fans: A Revolutionary Approach to Customer Service ' By Ken Blanchard which includes that in making adjustments and adaptations to the particular business environment. Research customer intelligence correlation theories. product and transaction data to help users use CRM to make strategy decisions. Paul Clark of BO Company (2001) depicts the relationship between customer intelligence and CRM as: customer intelligence is the brain behind CRM. Emma Chablo (1999) considered customer knowledge an important component of CRM while marketing data intelligence as the part of CRM that offers true customer knowledge. Research on customer intelligence realization Jim Berkowitz (2000) is of the opinion that business intelligence is the base of CRM.
By analyzing the character of the golfer in relation to his fairy godmother. customer needs. it is important that teams be constructed and managed in such a way that they work together for the common good. manufacturer of vitamins. The paper also seeks to establish a KM and aCRM based framework using data mining (DM) techniques. as well as incremental steps needed to apply these criterion in customer relations. This study reviewed the way in which Sisu. Charlie. Abstract Customer service is extremely important in today's business world so much so that companies need to shift to being "customer-centered"." Another research paper "Using "Cross-Departmental Teams Memorandum Research Report" on organizational response to increasing customer expectations of exceptional service. The purpose of the paper is to provide a thorough analysis of the concepts of business intelligence (BI). Companies are increasingly using teams to change organizational behaviour. knowledge management (KM) and analytical CRM (aCRM) and to establish a framework for integrating all the three to each other. whom she sponsors. In this instalment of our Creating Customer Value . The first aspect of vision is essential the lesson that the fairy godmother. Another research paper by Martha Rogers Peppers & Rogers Group founding partner which includes that Call center agents can have a big impact on customer profitability and build customer value for their organization.aspects of vision. However." A research paper named as role of knowledge management and analytical CRM in business: data mining based framework. which helps in the enterprise decision-making. enhanced customer service by using cross-departmental teams. presents to an "Area Manager". The objective is to share how KM and aCRM can be integrated into this seamless analytics framework to sustain excellence in decision making using effective data mining techniques and to explore how working on such aCRM system can be effective for enabling organizations delivering complete solutions. there is a storyline that reflects all of these principles in presenting a solid forum for customer service excellence. Blanchard reveals the secrets of success for "Raving Fans" or customers.
Phan & Douglas R. a conceptual framework for a library management information system based on a data warehouse that links external and internal data to support strategic planning processes is introduced here. St. the second largest catalogue mail order company in the U. impacts of CRM and/or BI systems on catalogue and online retailing businesses & successful outcome model for catalogue and online businesses. Content-related and technical aspects of customer intelligence in academic libraries are outlined and analogies are drawn to commercial enterprises to motivate the conceptual reflections. . in 1999. University of Bielefeld. The suggested approach can serve as a basis for the development of data-based decision support systems focusing on the tracking of the usage of library services and customer preferences over time. The paper sensitizes to the advantages of systematically generating customer knowledge in academic libraries for strategic planning and customer orientation. Germany) concentrates on requirements and conditions of implementing customer intelligence in academic libraries.podcast series. A research paper by Dien D. discusses the difference between inbound call center agents and outbound call center agents in handling customer interactions and gives tips for leveraging predictive analytics technology to build profitable customers. presents case studies on the success and failure of customer relationships and business and addresses the following: impacts of price discrimination on customer relationships.. USA) discusses a model of customer relationship management and business intelligence systems for catalogue and online retailers. Moreover.S. Vogel (Information Systems Department. Peppers & Rogers Group founding partner Martha Rogers explains how companies can encourage call center agents to focus on customer profitability. Another research paper by Reinhold Decker and Michael Ho¨ppner (Department of Business Administration and Economics. Cloud State University. The paper identifies strategies and the successes and failures at Fingerhut Inc. The paper closes with two examples that demonstrate how multifaceted the data pool for customer intelligence can be in librarianship.
LAYERS OF CUSTOMER INTELLIGENCE SYSTEM Customer intelligence is an aggregation of concept. The customer intelligence architecture shown in Figure1 can help you understand the definition with five layers explored. 1) Theoretical foundation: The theoretical foundation of customer intelligence is a guide for how the enterprise makes customer related decisions. method. It is about the innovation and the use of customer knowledge. customer satisfaction and profitability analysis. With index measures and weights placed on variables such as consumption behavior. a scientific and logical decision is obtained. and how to promote the decision ability towards optimizing customer relationship and the whole operations process. process and software. 2) Information system layer: . It may include not only theory and the methods the enterprise uses to analyze and treat customer but also value analysis from both customer?s and enterprise?s view.
It helps transform data to information. ERP. it provides all kinds of members throughout the enterprise with knowledge to make decisions on strategy and enterprise tactics. tools and models. Through capturing. 4) Knowledge discovery layer: Like the data analysis layer. this layer includes a series of algorithms. draw conclusions. methods and processes utilizing information from several data sources. tools and models help people analyze the data or information. information to knowledge after discovery or information to knowledge directly. sales automation and business campaign management systems. It is characterized as an information system platform oriented to special application fields with strong analysis and decision functions. form hypothesis and validate the hypothesis automatically or through a manual process. 3) Data analysis layer: This includes a series of algorithms. qualified data or information must be obtained. Firstly. Note that this is different from an operational MIS system in that a CI architecture can offer decision functions such as analysis and trend prediction. experience and hypothesis to promote decision ability of enterprise. 5) Strategy layer: This layer puts information or knowledge to use in promoting decision-making and enterprise modeling. managing and analyzing data. Then these algorithms. It is an aggregation of concepts. tools and models. . such as CRM.This layer is defined as a physical basis for the customer intelligence architecture.
As mentioned above. insurance or stock trading. REDUCED LOSSES Business Intelligence solutions are imperative in order to prevent and reduce losses. but also millions of dollars.Benefits of Customer Intelligence System TIME SAVINGS The process of looking for and interpreting disparate sets of data amounts to an incredible cumulative amount of time lost. Time. . area also lost when up-to-the-minute market information isn't available. and respond appropriately before losses are incurred. especially in industries such as technology. Being able to monitor inventory and supply and compare that data to the sales and marketing information allows companies to tightly and efficiently manage resources. Most companies see a very quick and profitable Return on Investment (ROI) after investing in Business Intelligence applications. Executives and managers can be informed automatically as soon as a specific performance metric goes above or below a certain threshold. Losses can also be prevented by utilizing automated alerts. shortening the reaction time to unforeseen events can save not only time. easily navigable and user-friendly web portals that paperlessly bring all kinds of customer and product information to employee fingertips. thereby shortening the reaction time. for example -when events happen. and therefore profits. LOWER OVERHEAD COSTS Business Intelligence vendors can provide single. Business Intelligence solutions save time by combining information into quickly and easily accessible and interpretable formats. thereby reducing overhead costs and saving both the organization and client time and money. Risks and events can be appropriately managed if acted upon in a timely manner and if accurate information is applied. Business Intelligence systems also saves time by enabling managers to be immediately notified -via phone or emailed to their PDA. Risk is also reduced if information is more accurately represented.
These results can be used to change the behavior of your customer facing systems for the better. The reason for this paradox is that technology for generating. it is possible to segment customers in a way that will surface trends and future needs. credit and payment history. including external sources. and potentially other systems. wishes. Yet few businesses use this data effectively. returns. and more. purchase history. support and service incidents. By analyzing these behaviors. CRM. fulfillment history. Sources of this information include ERP. The integrated view of the customer includes information about opportunity pipeline. The integrated view of the customer enables various types of in-depth customer analysis including: y Customer Segmentation / Profiling y Customer Churn / Retention / Loyalty Analysis y Customer Lifetime Value Analysis y Customer Profitability Analysis y Customer Credit Analysis y Customer Fulfilment Performance Analysis y Customer Service Analysis IDENTIFY PATTERNS AND CREATE PREDICTIVE MODEL Companies have plenty of detailed customer interaction data about browsing behaviour. ecommerce sites. call center. capturing. Customer intimacy gives companies the ability to understand and act on observed customer behaviors in order to better serve them. complaints. purchase behaviour. and storing . sales order status.BUILD MORE DYNAMIC CUSTOME RELATIONSHIP Organizations can create long-lasting and dynamic customer partnerships by gaining greater insight into the needs of customers. GET AN INTEGERATED VIEW OF CUSTOMER The integrated view of the customer provides a 360° perspective of key information related to the customers¶ demographics and interactions with the organization. and relevant market demographic information.
more intense testing to . These tests can serve as system compatibility proof-points. integrated environment. Constant vigilance. analyze. Our broad experience includes business planning as well as technical competencies. By IBM IBM CI systems solutions have been developed to address our customers demanding expectations. having access to the right information can make the difference between prosperity or merely survival.data has far outpaced the human capacity to understand. Data-mining technology applies algorithms to sets of data to help identify interesting patterns and predictive models of behaviour. and exploit it for maximum impact. we test interoperability and scalability at various levels. including tuning and monitoring of these systems. helps maintain a sharp focus for overall enterprise effectiveness. Data collection methods. reporting or Web posting. multimedia files and rapidaccess tools that grow and adjust as needed create this dynamic system. We begin with a customer-centric orientation so that we can understand customer needs and then match them with our state-of-the-art hardware and software tools while working to minimize implementation disruption. Base-level interoperability tests examine functional compatibility with the IBM DB2®suite and select IBM Business Partner software for analytics. Examples of companies implementing Customer Intelligence System In today¶s competitive business environment. This functionality offers some of the greatest potential for enabling businesses to use data resources most effectively for strategic business success. Sometimes. CI requires information on demand²achieved by combining multidimensional data analysis and data mining with advanced statistical and analytical functions in a real-time. For CI software on IBM hardware. CI systems can help track the pulse of vital performance factors.
storage Management ISV: industry leader¶s data warehousing. and the IBM DB2 suite of database products. tools. software. UNIX. an offering designed to help provide a flexible framework that matches your dynamic workload requirements. network. we work with best-of-breed software vendors to provide a selection of pretested options. Windows 2000 and Linux operating systems. data warehouse. IBM Total Storage® disk and tape products. IBM offers ~ systems for IBM z/OS®. IBM offers IBM Capacity Upgrade on Demand (CUoD). IBM OS/400®. to help you address your organization¶s storage needs. In addition. and tomorrow as your needs change. For example. tools Interoperability Proof of performance Hardware. Analytics Scalability Proof of performance Hardware. Many products available in the marketplace provide ³point solutions´ that address only a few of the important aspects of BI solutions. data Warehouse. software. IBM provides solutions in each of the areas today. The IBM product families and offerings span the capacity. Using customer workloads and patterns of queries and reporting.emulate specific enterprise environments is the only acceptable path when the future of the enterprise may be at risk. enabling you to select products and services that are right for your needs² today. Windows NT. analytics software as well ISV tools. By enabling you to proactively size your capacity . Customer database administrators and IT managers routinely participate to gain system insights for fine-tuning and optimizing performance. We routinely conduct such tests at our labs with IBM hardware and Skills CI business practices by industry Technical infrastructure Integration Software IBM: data warehousing. we stretch the system to monitor peak performance workloads and choke-points. performance and cost spectrum. ETL.
including powerful parallel processing systems. BY ORACLE Oracle Customer Intelligence (OCI) is a customer information viewer that enables you to access enterprise-wide (360-degree) view of customer information. customer loyalty and customer lifecycle that . advanced search features. Other products offer functions similar to other point solutions. The strength of IBM CI solutions has been fuelled by technology advancements. customer retention. so you can search for and view detailed enterprise-wide customer information. You can search for a specific customer through simple.needs. customer profitability. these solutions can help provide the flexibility to stay a step ahead of your actual storage requirements. OCI provides graphical representation of results from analytics for customer acquisition. IBM solutions for managing DB2 and Oracle data warehouse environments provide high functionality. or alpha (A to Z) listing of customers. database and analytical software and consulting services that address CI needs from all angles. but with an important difference²they are integrated. self-managing server and storage technologies. rather than their spending time integrating point solutions from different vendors and continually supporting them. analysis and data mining. integrated software products from leading vendors in the relational database management marketplace. These solutions comprise server and storage hardware. customer satisfaction. self-diagnosing infrastructures. OCI provides you with information viewing tool. versatile and innovative data storage systems and the creation of new algorithms for data protection. providing perhaps the greatest advantage of all: your IT professionals can address your organization¶s business needs. That is. IBM products are designed to operate in a heterogeneous environment to support both IBM and other vendors¶ servers. Comprehensive CI solutions from IBM can help combine business applications with superb technical performance and reliability. they are designed and tested to work together and are supported by one vendor.
Archi ctural Overview of Oracle Customer Intelli ence Client Personal Home Page Web/Reports server Mid-Tier Report Views DB BIS Core BIS Product Schema Workflow Schema Applications alerts Schema Applications Customer Intelligence¶s is based upon a summary table driven architecture. Customer . lifecycle.you can vi at a hi h l vel You can get detailed information by drilling down to group of customer for a specific period and eventually to an individual customer. loyalty. in addition. customer intelligence uses a web-enabled front-end applications for complex analysis. The summary tables store key measures of customer acquisition. retention. one must access the PHP (Personal Home Page) architecture. and information from other CRM and ER databases using collection programs to ensure timely retrieval of data. Included in the Homepage are the Performance Measures area. For security and logging into Customer Intelligence. profitability. satisfaction. One can use the information in the summary tables to refresh collection programs at any frequency that is set up. but the minimum granularity of data stored will be monthly. One can configure the Homepage and allow users to view the information that is considered most important. Each user will be given a PHP to access all Oracle BIS applications. Navigator (to access other BIS products).
which are web enabled. .Intelligence uses Oracle Reports 6.0 to build reports. One can view the reports using a standard browser.
gcem.e raldinsight.c m/systems/res urces/systems_storage_s olutions_business_intelligence_pdf_business-intel.asp?id=119 y Role of knowledge management and analytical CRM in business: data mining based framework.pdf y http://www.REFERENCES y http://www.org/eng/content_details.charter-uk.html y http://www.biz/businessintelligence-systems-benefits.thewise y www.com/customer_intelligence.jsp?contentid=1308&subjectid=2 y A report of 'Raving Fans: A Revolutionary Approach to Customer Service' By Ken Blanchard y "Using "Cross-Departmental Teams Memorandum Research Report" ete .business-intelligence-software. y Research paper by Martha Rogers Peppers & Rogers Group founding partner.c /fe tures/re .ibm.asp y http://www. .c y http://www03.
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