Module 10 - Managing and Evaluating Customer Data R

Module 10Managing and Evaluating Customer Data : 

Module 10Managing and Evaluating Customer Data Sri Beldona, Ph.D. HRIM 140 Information Technology in Services Management

Importance of Customer Data : 

Importance of Customer Data Customer data and information are critical to business success Importance of Customer-Relationship Management and Business Intelligence Hotels provide a wide range of services - Accommodations, spas, athletic facilities, shops, restaurants, outdoor activities etc. Gathering data on customer interests and preferences can help better attract and induce re-patronage

The Economic Characteristics of Information : 

The Economic Characteristics of Information Information is costly to produce. Needs substantial investment in IT infrastructure Information is cheap to reproduce Information is inexpensive to distribute. Information is not consumed by use. Not perishable like physical products. Information is that it can be reused multiple times.

Repurchase and Customizability: The Dimensions of Decision Making - I : 

Repurchase and Customizability: The Dimensions of Decision Making - I Repurchase frequency: The regularity with which the average customer acquires goods and services offered by the firms in the industry or segment of interest. If a firm in an industry characterized by high theoretical repurchase frequency has very few returning customers, this is a signal that the company is missing an opportunity.

Repurchase and Customizability: The Dimensions of Decision Making - II : 

Repurchase and Customizability: The Dimensions of Decision Making - II Degree of customizability: Represents extent to which the product or service the firm offers can be tailored to the specific needs and requirements of individual customers or a segment of customers. A function of the complexity of the service being offered. More commoditized an industry, lesser is the potential for customization. For e.g., airlines.

Industry analysis – Overall Customer Data Strategies : 

Industry analysis – Overall Customer Data Strategies

Degree of Unobtrusive Data Capture : 

Degree of Unobtrusive Data Capture

The Information System Cycle : 

The Information System Cycle

Customer Data Initiatives : A Methodology : 

Customer Data Initiatives : A Methodology Identify relevant transaction processing systems Inventory data currently available in these systems Conceptualize initiatives that use the available data Prioritize the selected initiatives

I - Identify Relevant Transaction Processing Systems : 

I - Identify Relevant Transaction Processing Systems Narrow the scope of the analysis Focus on the systems that are most likely to hold relevant data. Recognize that function managers typically have limited areas of influence

II - Inventory Available Data : 

II - Inventory Available Data Explore the system’s reporting functions. Focus not so much on the analyses that the reports yield, but instead on the underlying data that are collected in the natural course of business. Needs consensus based on discussions between service staff and IT support staff

III- Conceptualizing Initiatives : 

III- Conceptualizing Initiatives What information should be extracted? There is no substitute here for creativity and insight. Focus here should be on generating ideas without worrying about feasibility or financial viability Quality of above initiatives formally evaluated later in the prioritization stage

IV – Prioritization Stage : 

IV – Prioritization Stage Evaluate feasibility of data initiatives Upside potential: Assessment of the financial benefits associated with the initiative in terms of revenue lift or cost reduction effectiveness-focused initiatives - designed to improve revenues efficiency-focused initiatives - designed to reduce costs

Initiative Prioritization Matrix : 

Initiative Prioritization Matrix

Conclusion : 

Conclusion Power of information and the value creation potential offered by customer data in the hospitality industry. Generate valuable IT-dependent strategic initiatives.