More efficient Marketing thru up-to-date client data

Update your client data with an externalpartner? Vivium shows an approach and talks about the results

Bob Rongé, ViviumSophie Angenot, WDM Belgium

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6Question to Bob Rongé

Can you define« good data »?

7What is Data Quality ?

Completeness : Is all necessary data present ?

Validity : Do data values fall within acceptable ranges defined by the business ?

Consistency : Are data elements consistently defined and understood ?

Accuracy : Does the data accurately represent reality ?

Integrity : Is the structure of data maintainedconsistently ?

[Timeliness] : Is data available when needed ?[Accessibility ]: Is data easily accessible and usable ?

8Basic DQ-needs when dealing with consumers

� Name� First name� Date of birth� Address

> Identification of a unique person

9Why 4 elements for identification?

� On individual level :� 50% of the Belgians do not have an unique family name and

first name � 10% of the Belgians can not be uniquely identify based on their

family name, first name and year of birth� Even on family name, first name and date of birth, there are

more than 12.000 doubles ….

� NEEDS OF A REFERENTIAL DATABASE

10Why 4 elements for identification?

� On family level :� 150.000 family splits or new families are identified each year

11The WDM Belgium Referential files

� STREET REFERENTIAL, updated 4 times a yearwith :� 140.000 streets� 1.800.000 alias

12The WDM Belgium Referential files

� NAME & FIRST NAME REFERENTIAL� How many different family names and first names do we have

in Belgium ?

� 396.540 different family names� 137.697 different first names

� Do first names with 2 letters exist ?� More than 20.000 persons do have a first name with only 2

letters� More than 20.000 persons do have a first name with more

than 14 letters

13Sources for addresses: complete range

� FULL REFERENTIAL

Multi-Source Privacy law conform

Historysince 1994

Mutapost & Domymove

14Data quality per sector

15Question to Bob Rongé

When and why didVivium start to invest

in DQ?And why with an

external partner?

16Why are qualitative data important for marketing?

�Creation of a single customer view� Improve your image� Reduce costs� Develop customer-strategy

�Correct addresses� Avoid postal returns : reduce costs� Keep in touch with your customer� Avoid payment-problems

17Why are qualitative data important for marketing?

�Correct date of birth � Correct identification of your customer� Tarification

�Correct names� Improve your image� Avoid mistakes on sensitive matter� Help identify duplicates

18Quick wins for marketing, example 1

Direct Marketing cost savings calculation

Cost of postageper piece

Cost of Marketing

material per Mailings per year

Percentage of mail not

delivered

Annualwasted direct

mail costOriginal DQ: ( 0,40 € + 0,35 € ) x 2.000.000 x 11% = 165.000 €

Improved DQ: ( 0,40 € + 0,35 € ) x 2.000.000 x 4% = 60.000 €

Annual cost savings from data quality (DQ) initiative: 105.000 €

19Quick wins for marketing, example 2

Call center cost savings calculation

Hourly fullyloaded cost of call center rep

Number of reps in call

center

Calls per rep per

hour

Percentage of calls with falsecustomer data

Time tocorrect record

Hourlywasted callcenter cost

Original DQ: 30,00 € x 200 x 12 x 11% x 2 minutes = 264,00 €

Improved DQ: 30,00 € x 200 x 12 x 4% x 2 minutes = 96,00 €

Hourly cost savings from DQ initiative: 168,00 €

Hours per week: 38

Weeks per year: 52

Annual cost savings from DQ initiative: 331.968 €

20Question to Bob Rongé

How did you startyour journey to data

quality?

21How to measure your data quality?

WDM Belgium Data Quality Audit

� Step 1: Formatting and standardizing the data

� Step 2 : Split possible multi-persons-records (Eg. Corne-Claessen)� Step 3 : Match combination of name – firstname – date

of birth - address with 3 WDM Belgium referentials� Known individuals with current data� Address fluxes from over 17 years � People we have known and have dissapeared from our files (= Gones)

� Step 4 : Qualification of the match(es) found

� Step 5: Decision on integration or not

22Identification method

« Gones »

MovingsFlows

Actives

Customer

Record� Name� First Name� Birth Date� Address

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Identification Method WDM BelgiumReferential file

Data Qualification (mask + ponderation) + Keys AttributionSingle customer view / Single household view

Matching Code+ Value

23Question to Bob Rongé

After 1 year all the Vivium records were

treated. What was your next step?

24From reactive DQ to proactive DQ

Reactive = send your client data to WDM to be cleaned

Proactive = receive signals from WDM that help youmanage the changes in your data

25Use of key’s

The WDM Belgium Individual key� Unique id linked to a person, independent from his / her address� Stable in time (a same person keeps the same key during all his

or her life)� A record will receive an individual key if the input data are

sufficient to identify a person

Name Firstname Birthdate Sexe Street Number CP Locality KeyLambert Nathalie f ijzerstraat 8 1560 Hoeilaart IMP5ULambert Nathalie f rue de la gare 10 1310 La Hulpe IMP5UBertrand Bénédicte f rue de Pervyse 24 1040 Etterbeek ABD8G

26Use of key’s

The WDM Belgium household key� The Household key is a unique id linked to a GROUP of persons� Stability ?

� The Household key is stable in the time as long that the group of persons stays the same

� When something changes in the group of persons (new birth, a child leaves the house, …), the household key will change

Name Firstname Birthdate Sexe Street Number CP Locality Key GkeyLambert Nathalie f ijzerstraat 8 1560 Hoeilaart IMP5U STH1QLambert Nathalie f rue de la gare 10 1310 La Hulpe IMP5U STH1QBertrand Bénédicte f rue de Pervyse 24 1040 Etterbeek ABD8G VGR4P

27How to achieve permanent Data Quality?

Client Database+

WDM Individual key+

WDM household key

WDM Belgium Database

CHANGE TRACK = Weekly procedure

WDM individual key of all movers

Delivery of new addresses by WDM

Matched WDM individual keys

Result = permanent up to date client database

28Question to Bob Rongé

Can you tell us about the results of your

investment?

29Added value ?

� Your database is :� Automatically enhanced with the Moved flag :� Permanently up to date : automatic merge perge on individual

basis � Better customer view � analysis, decision

� No double mailing

� Improve your image

� You buy the new addresses only when you need them

30ROI & Data Quality

� Costs which are “easily” measurable :� Improved customer retention� Reduced mailing costs� Reduces postal return � Improved promotion and marketing mailing success rate� Reduced tele-marketing costs� Faster customer data processing� Churn analysis� Fraud detection� …

31ROI & Data Quality

� Costs which are difficult to evaluate :� More accurate analytics will facilitate the decision� Loss of credibility� Customer dissatisfaction� Employee dissatisfaction� Degrading image� Declining competitive position� …

32Question to Bob Rongé

Do you have some good advice for

colleagues who want to start a DQ

project?

33Conclusion

Larry English

« ... The business costs of nonquality data, includingirrecoverable costs, rework of products and services, workarounds, and lost and missed revenue may be as highas 10 to 25 percent of revenue or total budget of an organization. »