Do you remember my promise in the first installment of this series (December 2002)?: “The ultimate goal will be to teach you how to use strategic and tactical tools to successfully answer the questions that arise when it really matters: How do I retain my current customers and acquire new ones profitably?” Well, a promise is a promise. And I'm going to start with the basics, the “first floor”: the key role of data. And I'm going to take a liberty. I'm going to reproduce a presentation entitled “CRM, by Builders,” which I'm sure will help you understand the “keys to the first floor”:
"The CRM, by bricklayers. Introduction"
"Last week, I landed unexpectedly at a seminar for marketing managers, which was a huge success in terms of attendance, a 'rare bird' these days.
While enjoying that legendary conference breakfast (coffee and pastries, very good, by the way), I glanced through the program—brave me! My hand started trembling and the coffee began to spill onto the tiny saucer: CRM, e-CRM, Analytical CRM, Operational CRM, Business Intelligence, e-Business Intelligence, multichannel strategies, Business Performance, Artificial Intelligence applied to Marketing… An executive who was preoccupied with his pastries—because he was an executive, and from marketing, no doubt!—pounced on me and introduced himself: “Good morning, I’m so-and-so, Marketing Data Intelligence Manager at XXX SA. And you?” I swallowed hard and then… the truth is, I didn’t dare tell him the truth, that I was a lifelong Direct Marketing guy. In the end, I could only stammer fearfully: “Antonio Soto, and I help my clients sell and build loyalty more profitably.” I don't know what my interlocutor thought, but he gave me a strange look, that much is clear.
Today, from the relative tranquility of my office, I ask myself: What remains of what I learned back in the early 90s, in those first Direct Marketing courses organized by FECEMD? And what about what my "old masters" Juan Viñuales, Joost Van Nispen, Santiago Rodríguez, Miguel Lucas, and others taught me, or rather tried to teach me (thank you for your patience)? Well, you can rest easy, masters, because despite this "Anglophile semantic storm," you are more relevant than ever. I learned from you, and that's what we at Schober try to pass on to our increasingly younger team, and, modestly, to the new generations in the sector in general:
Marketing, Marketing with a capital M, stripped of all semantic embellishment, is based, especially in periods of economic downturn and fierce competition like the one we are experiencing, on the duality of acquiring new, high-potential customers profitably and retaining them, with profitability for both parties. And after more than a decade dedicated to this market, I have no doubt: the best tool is Direct Marketing, Database Marketing, Relationship Marketing, One-to-One Marketing…CRM.
CRM understood as comprehensive knowledge of the Customer/Prospect + profitable acquisition and retention strategy – that is, Database Direct Marketing – + IT. The concrete: data, as the embryo of profitable information and knowledge. And for the embryo to germinate successfully, it must be of good quality from the start and must be nurtured and cared for during its development. Before our CRM tool begins to move data, process it, manage information, and gain knowledge… at that first step of any CRM project, in the foundation phase, I would like to recommend four fundamental data “masonry” techniques:
Standardization: Imagine an apartment building where each unit has its own dimensions, its own type and size of door, its own type and size of windows… And a housing development where each apartment building follows its own urban design model. That would present certain problems, wouldn't it? Our database must have a homogeneous architecture, a single, standard, and logical format.
Validation: We've just taken possession of the apartment and it's the same old story: "The doors don't close properly, the kitchen tiles are coming loose, the living room parquet isn't the same color as the rest of the floor... I'm not paying!" Before we begin, let's verify the accuracy of our information; for example, let's correct any incorrect postal codes or telephone area codes.
Standardization: Now let's think about a builder with a batch of bricks of different sizes and dimensions for his building: what a mess, right? Have you ever found the same street or town written in different ways in your records? And in different languages? I'm sure you have; so, let's write them all the same way based on a standard!
Deduplication: Now, imagine that in our apartment the builder puts in 5 bathrooms instead of 1; what a waste! Although what a waste of cleaning! The same in our database, imagine that we have Customer X, 5 times, with their own history as a Customer and we don't know it.
Consequences of not monitoring these pillars:
• Ineffective information management.
• Partial and fragmented knowledge of the potential Client/Market.
• Difficulties in personal interaction with Clients/Prospects. Interference in the relationship.
• MORE SPENDING + LESS EFFICIENCY = LOWER PROFITABILITY.
That's enough for today, right? In future presentations, I will try to develop each of the 4 pillars above, in greater depth and with effective practical examples.
Thank you so much for your patience. See you soon, marketers.
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