Customer Data Integration: Reaching a Single Version of the Truth

ENDNOTES

1 Recency, frequency, and monetary analysis, otherwise known as RFM, is a classic marketing technique that indicates how recently a customer interacted with the company, how frequently she does so, and how much money she spends. Although such analysis has been replaced at many firms with more sophisticated lifetime value scoring, RFM analysis remains a prevalent way for many companies to determine the relative value of their customers.

2 Survey conducted by Baseline Consulting at The Data Warehousing Institute World Conference, Orlando, Florida, in November 2005. Full survey results can be seen at www.baseline-consulting.com/resources/default.aspx?doc=Nov2005CDISurvey.htm&section=surveysresource.htm&offer=empty.htm.

3 For instance, a 2005 Information Week research survey asked 120 business technology professionals the major reason for the adoption of a new technology. Half chose the reason: “Legacy systems couldn’t be cost-effectively integrated.”

4 A 2004 study from Rochester Institute of Technology found that personalized marketing drove response rates 34 percent faster than the average rate of response; a 48 percent increase in repeat orders; and a 32 percent increase in overall revenue.

5 Jill wrote about cross-selling and up-selling as part of a wider marketing automation effort in The CRM Handbook: A Business Guide to Customer Relationship Management (Addison Wesley, 2002). See pages 31-32.

6 For more information on ROMI, see Sunil Gupta and Donald R. Lehmann’s ...