Data Errors and The Damage Done Why mistakes in name and address data upset customers and how to sto

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Data Errors and The Damage DoneWhy mistakes in
name and address data upset customers and how to
stop doing it.

• Jon Paterson Sales Manager,
• Global Solutions Alliances, Capscan Ltd

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Agenda

• Importance of Data e-Commerce Channel.
• Name and Address Data Errors.
• Why do these errors upset customers?
• Damage to your organisation.
• How can these issues be prevented?
• Case Study Virgin Wines.
• Top Tips.
• Summary.

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Importance of Data e-Commerce Channel

• Highly Competitive / Rapidly Growing Marketplace
• Online sales are expected to double and account
  for 20 of all retail sales by 2010.
• This year, an estimated 860 million parcels will
  be shipped to the UKs 26mn customers.
• International sales could be the next growth
  area, with global internet shopping worth more
  than 250bn this year.
• UK online sales will double by 2010, its
  international e-retail trade is expected to
  increase by 1,000 in the same period.
• Source IT Week/IMRG 2007

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Importance of Data e-Commerce Channel

• Highly Competitive / Rapidly Growing Marketplace
• Effective e-Commerce Strategy
• 1) Gain new customers. 2) Retain existing
  customers.
• Acquiring new customers can cost five times more
  than satisfying and retaining current customers.
• Source Murphy, E Murphy, M (2002)
• By retaining just 5 more customers, online
  companies can boost their profits by 25 to 95.
• Source Reichheld Schefter (2000)
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Importance of Data e-Commerce Channel

• Highly Competitive / Rapidly Growing Marketplace
• Effective e-Commerce Strategy
• 1) Gain new customers. 2) Retain existing
  customers.
• Loyalty Drivers vital to Customer Retention
  Repeat Orders.
• Research by Dell Computer 3 Key Drivers to
  Customer Loyalty
• Order Fulfilment
• Product Performance
• Post Sales Service and Support
• Source Reichheld Schefter (2000)
• Customer Satisfaction and Brand Perception
  Impacts customer retention Repeat Orders.

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Importance of Data e-Commerce Channel

• Highly Competitive / Rapidly Growing Marketplace.
• Effective e-Commerce Strategy
• 1) Gain new customers. 2) Retain existing
  customers.
• Loyalty Drivers vital to Customer Retention
  Repeat Orders.
• Poor Name and Address Data Quality Impact on
  Fulfilment Service.
• Customer Satisfaction and Brand Perception
  Impacts retention repeat orders.

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Importance of Data e-Commerce Channel

• Highly Competitive / Rapidly Growing Marketplace.
• Effective e-Commerce Strategy
• 1) Gain new customers. 2) Retain existing
  customers.
• Loyalty Drivers vital to Customer Retention
  Repeat Orders.
• Poor Name and Address Data Quality Impact on
  Fulfilment Service.
• Reduced Satisfaction and Damaged Brand Impacts
  retention repeat orders.

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Name Address Data Errors

• Mis-spelt details Badly formatted address
  details
• Structural Name and Address Errors Missing
  elements
• Duplicates Vanity Addressing

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Name Address Data Errors
p turner Fishponds Road ,Hitchin Herts SG5 1NS
Mr Paul Turner Ivy Cottage Fishponds
Road HITCHIN Herts SG5 1NR
X
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Name Address Data Errors
12 Via Massa Florence 50142
Via Massa 12 50142 FIRENZE FI
X
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Why do these errors upset customers?

• Its Personal!
• Incorrect details gives impression that customer
  is not valued.
• Poor perception created.
• Personal reaction Incorrectly spelt or
  formatted name.
• Loss of confidence lack of care.
• People always remember the errors hygiene
  factor.

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Why do these errors upset customers?

• Service and Delivery do not live up to client
  expectations.
• Delay in payment authorisation.
• Miss-deliveries.
• Time spent waiting for replacement goods.
• Inefficient or inappropriate customer
  service/complaints response.
• Poor customer experience.

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The scale of the delivery problem?

• Postwatch claims 12.4m letters are lost each year
  
• Of these, 60 are delivered to the wrong house
• One in 10 people complain to Royal Mail
• Royal Mail says 322m items were undeliverable in
  2002/3
• About 12m items a year are posted with only the
  first name or surname
• The amount of undeliverable mail has gone up by
  50 in five years
• Postwatch, 2004

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Damage To Your Organisation

• Poor perception created.
• Loss of confidence - Damage to Brand.
• Additional costs associated with miss-deliveries
  and customer complaint handling.
• Fewer repeat orders.
• Less customer loyalty.

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How can these issues be prevented?

• Review and Audit Data Processes and Issues.
• Who is responsible for customer data?
• Board and senior management buy-in essential.
• Set Objectives for Improvements.
• Select suitable strategies for each business data
  area.
• Agree targets.
• Measure and review progress.

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Review Data Data Costs in the Business
INCOMING
OUTGOING
INTERNAL
Data from Acquisitions Prospecting Lists
Contact/Call Centres Customer Services
Store/Branch Users
Product Deliveries Parts Shipping
Website Info Requests Web Shop
Direct Marketing Promotional Mailings Invoicing
General Correspondence
Customer/Sales Analysis Customer Profiling
Business Decisions Compliance/Blacklists
Location Intelligence Route Planning GIS
Field Representatives SMS/Text Campaigns
On-site Engineers
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Front-end Touch Points
INCOMING

• Options for capturing more accurate data in
  e-Commerce
• Ensure data entry screens are well designed,
  clear, and simple. Consider - Mandatory
  Fields. - What countries need to be
  considered. - Local salutation options. -
  Individual fields for individual elements. -
  Basic Data Validation.
• Implement Address Verification Functionality.
  Options Include - In-house software for data
  capture. - Hosted address verification
  services. Consider - Datasets required now
  in the future.
• Implement Name and Salutation formatting
  technology.

Contact/Call Centres Customer Services
Store/Branch Users
Website Info Requests Web Shop
Field Representatives SMS/Text Campaigns
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Existing Data Maintenance
INTERNAL

• Options for reviewing existing customer
  information.
• Data Audit Current Accuracy Levels.
• Manual Data Correction Very low data volumes.
• Batch Name Address Cleansing Tools -
  Verify, cleanse, format historic data. - Apply
  postal authority data updates. - Enhance data.
• Batch De-Duplication Tools.

Data from Acquisitions Prospecting Lists
Customer/Sales Analysis Customer Profiling
Business Decisions Compliance/Blacklists
Location Intelligence Route Planning GIS
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Case Study Virgin Wines

• The Background - Launched in the summer of year
  2000, Virgin Wines is Richard Branson's venture
  into the business of online wine ordering.
• It currently offers the largest range of wine for
  sale in the world with a list of over 17,500
  wines.
• It provides a highly personalized service to
  develop a person's own wine profile and
  recommends wines that it guarantees the consumer
  will really enjoy.
• It remembers your likes and dislikes and provides
  a service 24 hours a day, 365 days a year .

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Case Study Virgin Wines

• The Problem - All the customer addresses were
  checked only when orders reached the warehouse.
• The fallout from this affected up to 2 of all
  orders that then need to be manually edited by
  call centre agents.
• This was a laborious process, taking up
  considerable time and resources.
• Virgin Wines decided to implement Capscans
  Matchcode Address Data Capture software for their
  website.

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Case Study Virgin Wines
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Case Study Virgin Wines
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Case Study Virgin Wines
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Case Study Virgin Wines

• The Benefits
• As a result of installing Matchcode Webnet,
  Virgin Wines will make savings of more than
  10,000 per annum.
• With the correct address, Virgin Wines can
  guarantee that orders are delivered to the right
  depot and ultimately speed up successful
  deliveries to the customer.
• Virgin Wines, as well as being able to verify
  addresses, can also offer consumers a simple and
  stress-free way of entering their details on
  their website.
• Increase orders through the gift section
  unexpected benefit.

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Top Tips For Data Quality

• Regard data quality as a vital aspect of your
  e-Commerce, CRM, and database management
  programme.
• Establish clear aims and objectives for quality
  management programme.
• Get management buy-in.
• Consider the data elements of your database and
  how things are recorded.
• Parse, standardise, validate and augment data.
• Conduct data audits and measure the quality of
  your data.
• Keep the data up-to-date with regular cleansing.
• Collect good data in preference to correcting bad
  data.

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Top Tips For Data Quality

• Keep track of cost and ensure your data is
  compliant.
• Adopt cutting edge tools and technologies.
• Measure and review your programme of changes.
• Apply common sense.

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In Summary

• Inaccurate name and address data can have a
  significant impact on customer retention,
  customer experience, and repeat orders.
• e-Commerce can have its own data strategy, but
  should be considered in relation to corporate
  data strategy.
• Review Audit of existing processes and data is
  vital.
• Name and address management technology can help
  ensure accuracy of data at point of capture or in
  a batch environment.

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In Summary

• Key benefits to resolving data issues.
• More timely deliveries.
• Reduced costs associated with returns.
• More automatic credit card approvals.
• Improved Single Customer View.
• Improved Customer Experience.
• Improved customer satisfaction with fulfilment
  and support.
• Drive loyalty, customer retention, and repeat
  business.
• Maintain and increase revenue and profits.

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• Thank you for listening!
• Any questions?
• Capscan can help you with your UK and
  International customer data issues.
• Please visit us at stand 164 for further
  information and a copy of this presentation.