CRM CH 3

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around this box] CHAPTER
3
Customer Knowledge
Subtopics:-
3.1 Definition of customer knowledge
3.2 The Value of Customer Knowledge
3.3 The Utilization of Data as an Asset
3.4 From data to Customer Knowledge
3.5 Privacy Policy
3.6 Personal Data Protection
3.7 Information Policy
3.1 Definition of Customer knowledge
Data are details; the date on which a prospect became a customer, the value of the last
purchase, the term within which payment was made and the customer’s address
Data become information as soon as a user assigns a meaning to them
Information becomes knowledge as soon as action is taken on the basis of this

information; because the customer’s profile is known
The pitfall should be avoided in which the attention becomes too singularly focused on
the collection, maintenance and analysis of the data
19 | P a g e C h a p t e r 3 : C u s t o m e r K n o w l e d g e
3.2 The Value of Customer Knowledge
3.2.1 Data Quality
Data Quality Defined:
Customer knowledge relies on the quality of the customer data
Incomplete, inaccurate, outdated data will not help us the customer
Data Quality Defined:
3.2.2 Spending money on data quality
Reason to spend on gaining quality data are:
Relevant customer data need to be gathered and their quality needs to be

managed
Information on the identity and profile of the customers, ex-customers and

prospects has to be collected and registered.
Data have to be compiled from different sources and need to be retrieved
To compile data from different sources
3.2.3 The Waste Resulting from Poor Quality
ARE YOU ABLE TO SPECIFY THE WASTE THAT OCCUR AS A RESULT OF A LACK OF DATA
QUALITY?
3.2.4 The earning stemming from data quality
In order to convince those members of management charged with making decisions

on investments in data of the importance of data quality, it can be interesting to
present them with the expenses that result from the lack of quality in data
• Return mail items

Identification • Double mail items
Error • E-mail that is returned or sent twice
• Incoming telephone call
Profile Errors •Company background, history, trend, business nature
3.3 The Utilization of Data as an Asset
• It is important to utilize data efficiently to avoid time and cost wastage
3.3.1 Common problems with data utilization:
• - Strategy
• - Knowledge of Data Resources
• - Access
• - Quantity
• - Quality
• - Need for new data
• - Use
• -Security
• -Privacy
• -Organization
3.3.2 The Organization of Data Management
Growth stages in database management
Stage 1 : The Pioneering Phase
• Creation of the first address file done by a marketer
Stage 2 : The Specialization Phase
• The successes that are achieved as a result of the first step from the
justification for further investment in database management
• More information is gathered and recorded, in many situations without
people having a clear idea of marketing analyses that they hope to perform
and the customer profile that they would like to create
Stage 3 : The Multifunctional Teams
• A period of review starts in which the organization of the database

management is modified
• People realize that close teamwork must exist between the marketers,
database specialist and the front office staff who actually make contact with
customers
Stage 4 : System Integration
• There are no options for correcting any errors made

• This stage of the system integration is often referred to as the moment of truth
Stage 5 : One-to-one Communication
• Independent of time and place, communication is facilitated between

customers and the company.
• The systems are designed so that they can support and initiate many types of
incoming and outgoing contacts
3.4 From Data to Customer Knowledge
The use of different sources of information to create a complete customer profile
3.5 Privacy Policy
The utilization of data requires a well devised privacy policy
3.6 Personal Data Protection
Customer data which are developed into customer information which may be acted upon
form one of the most importing building blocks of CRM
3.7 Information Policy
Without customer knowledge, the relationship policy will lack substance and focused
communication based on customer profiles cannot occur

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3.1 Definition of Customer knowledge

Data become information as soon as a user assigns a meaning to them

Information becomes knowledge as soon as action is taken on the basis of this

3.2.1 Data Quality

Data Quality Defined:

Customer knowledge relies on the quality of the customer data

Incomplete, inaccurate, outdated data will not help us the customer

Data Quality Defined:

3.2.2 Spending money on data quality

Reason to spend on gaining quality data are:

Relevant customer data need to be gathered and their quality needs to be

Information on the identity and profile of the customers, ex-customers and

Data have to be compiled from different sources and need to be retrieved

To compile data from different sources

3.2.4 The earning stemming from data quality

In order to convince those members of management charged with making decisions

• Return mail items

Profile Errors •Company background, history, trend, business nature

• It is important to utilize data efficiently to avoid time and cost wastage

3.3.1 Common problems with data utilization:

3.3.2 The Organization of Data Management

Growth stages in database management

• Creation of the first address file done by a marketer

Stage 2 : The Specialization Phase

Stage 3 : The Multifunctional Teams

• A period of review starts in which the organization of the database

• There are no options for correcting any errors made

Stage 5 : One-to-one Communication

• Independent of time and place, communication is facilitated between

3.4 From Data to Customer Knowledge

The use of different sources of information to create a complete customer profile

The utilization of data requires a well devised privacy policy

3.6 Personal Data Protection

3.7 Information Policy

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