Compiling Profiles of Customers

Compiling Profiles of Customers

Minwir Al-Shammari (University of Bahrain, Bahrain)
Copyright: © 2009 |Pages: 22
DOI: 10.4018/978-1-60566-258-9.ch007
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Abstract

Whether companies are engaged in B2B or B2C transactions, they need to understand their customers. Once customer data are captured and stored in ODSs or DWs, they are then subject to further customer-centric intelligence processing in a manner that facilitates the execution of complex query performance and the competition on ‘analytics’ (Davenport, 2006). It is certainly not true that companies with the most data always win; the success lies in processing the existing data to learn about trends and attitudes of customers. This chapter, as well as the coming chapter, discusses the strategic, or analytical, side of CKM. The term ‘analytical CKM’ is used in this book to refer to both information and knowledge discovery tools. The views presented in this chapter are from the ‘information management’ perspective, whereas the coming chapter adopts a ‘knowledge management’ perspective.
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Conceptual Foundations

The new millennium has witnessed several turbulent and discontinuous environmental changes on one hand, and a proliferation of information/knowledge seeking organizations on the other, in the search for achieving SCA. This section provides discussion of the role of customers in the new economy, the concept of ‘customer information’, customer-centric information discovery process and systems, and an example of setting customer profiling and up-selling rules.

The Information Age: All Power to the Customer

National economies are engaged in a competition for a larger share of global markets and economic wealth. In the 21st century, the information age, the wealth of nations depends on how well a society can organize information and knowledge. The national wealth of an information-based economy will depend upon the efficiency and effectiveness of information workers and strategic utilization of ICT systems.

The increasing demand of customers for higher quality, innovative, and customized products and services puts companies under pressure. Effective design and development of CKM enable organizations to ‘do right things right’ by leveraging DCCs, investing heavily in CK to understand customers better, and by adding value for specific segments of customers in the search for achieving SCA. Discovering best-target customers requires extensive, comprehensive, and reliable customer-profile information to customize effectively marketing programs. Planning and implementing a particular campaign for one segment of customers, or a specific customer, requires understanding of the demographic characteristics, lifestyle behaviors, product preferences, and channel preferences that drive their buying decisions. Customer-profile information helps companies find new customers for their businesses by extracting prospective customers that match the profile for current customers, and who are more inclined to buy certain products or services.

The Concept of ‘Customer Information’

Compiling profiles for customers takes place by converting customer data into customer information. Information is a descriptive entity that relates to past and present events (Camerer and Johnson, 1991; Dubin, 1996). It is a set of data in context that is relevant to one or more entities at a particular point in time or for a period of time. Information is data in context with respect to giving meaning to facts. It is data filled with meaning, relevance and purpose. A set of data in context is a message that only becomes information when one or more persons are ready to accept that message as relevant to their needs (Brackett, 1999).

Customer information may represent the number of residential or business customers (age groups, living areas, etc.); products which may represent the number of mobile or fixed telephone lines; traffic that may relate to the usage behavior of customers (in terms of volume, duration, and time of calls per each category of customers, products, age groups, or living areas); or revenue that may refer to the amount of money generated per category by customers, products, age groups, or living areas.

Information refers to data, plus meaning and understanding of patterns and relationships that take place through the following five major functions (5Cs) identified by Awad and Ghaziri (2004):

  • Condensation: summarizing in more concise form and unnecessary depth is eliminated.

  • Contextualization: knowing why the data were collected.

  • Calculation: analyzing data.

  • Categorization: grouping of data; the unit of analysis is known, such as customer value.

  • Correction: errors have been removed.

Complete Chapter List

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Table of Contents
Foreword
Luciano Batista
Acknowledgment
Minwir Al-Shammari
Chapter 1
Minwir Al-Shammari
In today’s dynamic business environment, change is omnipresent. Organizations have to develop sound change management strategies in order to counter... Sample PDF
Setting a CKM Strategy
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Chapter 2
Minwir Al-Shammari
The only constant in life is change, and business organizations are not different. Environmental uncertainties made transition to knowledge-based... Sample PDF
Spotting Environmental Drivers
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Chapter 3
Reorganizing People  (pages 63-104)
Minwir Al-Shammari
The ability of an organization to compete in rapidly changing business environments is contingent upon its ability to develop competitive strategies... Sample PDF
Reorganizing People
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Chapter 4
Retooling ICT Systems  (pages 105-135)
Minwir Al-Shammari
Regardless of the type of organization or operation, the evolving nature of organizational ICT systems helps organizations to live up to changing... Sample PDF
Retooling ICT Systems
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Chapter 5
Redesigning Processes  (pages 136-167)
Minwir Al-Shammari
In today’s turbulent and complex business environments, the focus has shifted from products to services. As a result, services have become a new... Sample PDF
Redesigning Processes
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Chapter 6
Minwir Al-Shammari
The customer is a strategic element in a company’s downstream supply chain. In the new economy, customers, whether they are individual consumers or... Sample PDF
Capturing Data from Customers
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Chapter 7
Minwir Al-Shammari
Whether companies are engaged in B2B or B2C transactions, they need to understand their customers. Once customer data are captured and stored in... Sample PDF
Compiling Profiles of Customers
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Chapter 8
Minwir Al-Shammari
Increasingly, knowledge is becoming a primary engine of growth in the globalized business world and is making nations more competitive as they shift... Sample PDF
Creating Knowledge about Customers
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Chapter 9
Minwir Al-Shammari
Efforts to improve the experience of customers do little to boost customer satisfaction and loyalty if they fail to connect with customers and... Sample PDF
Maximizing Value for Customers
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Chapter 10
Minwir Al-Shammari
Effective development of customer products and/or services requires valid and up-to-date CK in order to target the right customer with the right... Sample PDF
Measuring Return on Relationships with Customers
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Chapter 11
Minwir Al-Shammari
The previous chapter focuses on creating value-added products and/or services to customers..As the management of a CKM change is a journey, not a... Sample PDF
Managing Learning throughout CKM Change
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