An Integrated IMC Data Framework

An Integrated IMC Data FrameworkDMEF Direct/Interactive Marketing Research Summit: October 13-14,

2012Las Vegas, NV

James Peltier

Professor of MarketingUniversity of Wisconsin, Whitewater

Marketing DepartmentCollege of Business and Economics

Debra Zahay

Associate Professor of Interactive MarketingMarketing Department

Northern Illinois University

Anjala S. KrishenAssistant Professor

Department of Marketing, Lee Business SchoolUniversity of Nevada, Las Vegas

Agenda

• Background/Motivation• Prior Work• Hypotheses• Method• Results• Implications

Managerial View of the Learning Organization

1. Generate

2. Remember

3. Disseminate

4. Interpret

Learning Activities

Competitive Advantage

Zahay, Peltier and Krishen (2012) Examined a Hierarchical Framework for IMC Data

Offers and Communications

Customer Info and Collection Points

Relationships Supported in General, Transactional, Contact Data More Important in Relation to Customer

Data Quality, Touchpoint Data Less So

The Strategic CRM Context (Payne and Frow 2005)

Multi-Stage Research Method & Analysis

• Qualitative Study• Pre-Test• Final Survey• Exploratory Factor analysis, correlation

analysis, Coefficient Alphas, CFA• SEM to determine relationship between use

of customer data types and CRM Data Quality

Method: Survey Data Collection• Data Collection:– 525 mailed– Three waves, one mail wave, one including $2 bill and

one telephone follow up wave– 32 % response rate

• 170 Executives in Financial Services– 50% primarily b2b and 40% b2c, rest other trade

relationships– 50% had retail relationships, 27% relied on outside sales– 10% online sales– Executives had typically twenty years of experience

• 166 useable surveys• Response: Percent of Time Data Collected

What is CRM System Quality (α = .76)?Overall, Data is of high quality when it reflects perceived reality. In our context, we measured managers’ perception of:

1.Overall Quality of Internet and Email data2.Overall Quality of Loyalty/Retention Data3.Overall Quality of Contact Management Data and 4.Overall Quality of CRM data capabilities

• 5-Point Scale• 5=Strongly Agree• 1=Strongly Disagree

Customer Performance Measured by Long-Term Customer Profitability

Customer Performance (α = .76): 1. Customer Retention on an annual basis, 2. Cross-Selling, and 3. ROI on a customer basis.

“To the best of your knowledge, please rate your business unit’s performance in the past 2-3 years relative to the competition” on a 1 = lower to 5 = higher scale.

• 5-Point Scale• 5=Higher• 1=Lower

Independent Variables Measured Percent of Time Data Types Collected

• Personalization/Tracking Data (α = .89): 1. Tracking marketing offers/messages

made to customers, 2. Tracking marketing offers/messages

responded to by customers3. Tracking method of contact for

marketing offer• Pyscho-Demographic Data (α = .75):

1. Lifestyle data2. Psychographics3. Demographics

• Customer Touchpoint Data (α = .76) : 1. Email2. Service 3. Internet4. Telephone

• RFM/Transactional Data (α = .83): 1. Last purchase date,2. Revenue by product,3. Total Revenue from Customers4. Length of time as customer

• Message/Offer Personalization Data (α = .82):1. Tailor marketing offers to

customers2. Tailor communications to

customers3. Tailors communications to

prospects

Implications

• Performance link from Data Quality • Firms need to be more vigilant than ever in

tracking transactional and psych-demographic data

• Personalization and Content data leads to increased customer touchpoint data

• Touchpoint data eventually leads to CRM system Quality, CRM Performance, completing the loop, validating the cycle

Contacts and Questions James PeltierUniversity of Wisconsin, Whitewater262-472-5474peltierj@uww.edu

Debra ZahayNorthern Illinois University815-753-6215zahay@niu.edu

Anjala S. KrishenUniversity of Nevada, Las Vegas540-588-3961anjala.krishen@unlv.edu

“Building the foundation for customer data quality in CRM Systems for financial services firms,” Journal of Database Marketing and

Strategy Management, Volume 19, Number 1, pages 5-16

Peltier, J.W., Zahay, D.L. and Lehmann, D.L. (2012 Forthcoming), "Organizational Learning and CRM Success: A Model for Linking Organizational Practices, Customer Data Quality, and Performance," Journal of Interactive Marketing.