Last month's column introduced the concept of a multi-relationship architecture (see Figure 1). This architecture provides a framework for optimizing the interactions with and between constituent groups which comprise an enterprise value web. These constituents include customers, suppliers, alliance partners, investors and the enterprise workforce who are relevant to operating in the connected economy. The business intelligence implications are significant for implementing this connected value web. Each interaction with each constituent must be viewed analytically, not anecdotally as was the usual case in the past. This implies robust information management capabilities within the relationship architecture to measure, apply and trend over time key performance attributes of the various business interactions. This column outlines the core capabilities for implementing this multi-relationship architecture.
Recall that the mission of this architecture component is putting in place the right strategy, measures, organization and decision support infrastructure to maximize the return of value to enterprise owners. Key capabilities include:
Strategy Development and Alignment: Collaboration with stakeholders on a strategic vision and supporting plan to be rolled out to all parts of the enterprise and value web constituents. The strategy should express the expectations, roles and primary value proposition of each constituent participating in the value web.
Performance Scorecard: Comprehensive but manageable set of financial and nonfinancial metrics to provide the right incentives to keep the business and related constituent activity aligned with the strategy.
Consolidated Modeling and Valuation: Enterprise-wide valuation model methodology to measure the value of the business based on other subordinate models in the organization, such as asset models or relationship models.
Consolidated View of Relationship and Product/Service Performance: Analysis views and underlying architecture to allow cross-enterprise analysis of all constituent relationships and all product/service results.
Ad Hoc Behavior-Based Segmentation: Modeling capability to facilitate discovery of new segments or constituents who may be attractive targets for future business interactions.
Enterprise Process Management: Monitor for key processes in the enterprise value web which are common across multiple relationships and business areas and which should be executed consistently.
Figure 1: Multi- Relationship Architecture
Resource Allocation and Coordination: Consolidated view of enterprise resources (financial, capital, human) and cross- enterprise resource allocation processes to ensure effective use of resources across the value web.
Business Rules Governance: Central development and monitoring of business rules to maintain business value and quality of delivery.
Measuring and monitoring the economic benefits of constituent relationships is the primary goal of relationship optimization. Developing effective channel strategies, offers, campaigns and investment priorities is achieved through this component of the relationship architecture. Capabilities include:
Segment and Subsegment Discovery and Definition: Identifying compelling behavior correlations through data mining and other associative modeling techniques to define new specific subsegments to influence.
Profit-Impacting Behavior Identification and Targeting: Activity-based profitability models to determine the value of constituent behaviors/activities and to learn from campaigns and other research activity which key behaviors can be influenced and through what means.
Relationship Modeling and Valuation: Expressing each constituent relationship on a quantitative and a qualitative basis using value on past performance, current activity and expected future potential. Also, disseminating this analysis to help guide other operational decisions about level of service, type of service, offer development, etc.
Offer Development and Evaluation: An enterprise-wide resource model, a market- learning repository and an enterprise-wide profitability model to do what-if analysis regarding potential offers for a given constituent and how those offers may impact overall enterprise value creation.
Constituent Investment Guidelines: Marketplace learnings, behavior modeling output, strategic guidelines and metrics, and constituent value information to make targeted investments that encourage revenue-generating behaviors and discourage cost-generating behaviors and ultimately maximize constituent contribution to the bottom line.
Constituent Profile Tracking: Capturing all necessary data related to constituent identity, preferences, needs and behaviors in a common repository or integrated environment to facilitate a single consolidated view of all activities and traits of a given constituent.
The objective of experience management is to monitor and map all constituent interactions to ensure consistency and appropriate levels of personalization, customization and influence over desired behaviors. This is accomplished by implementing features in the relationship architecture which include:
Behavior Tracking: Collecting data points through transaction history and interaction history on constituent identity, preference and other behaviors to feed decision making about how to influence constituent behavior.
Real-Time Constituent Identification: Connecting front- and back-office infrastructure to allow the enterprise touchpoint, whether it be a call center representative or a Web page, to know in real time who the visiting constituent is.
Real-Time Cross-Channel Integration: Seamless touchpoint-to-touchpoint integration so a constituent can move smoothly from one channel to another and with the ability for constituent identity to travel with interaction paths; for example, allow movement between Web, e-mail and phone to enable a constituent to find the optimal means of communication and interaction.
Touchpoint Delivery Coordination: Enable all channels to know the visitor and offer the same level of service for that given constituent as determined by relationship optimization analysis.
Versioned Delivery at Touchpoints for Varying Segments: Scoring constituents based on value, channel preference and other key behaviors to spend more enterprise resources satisfying greater value-generating constituents and fewer resources catering to lower value constituents.
Collection of Constituent Feedback: Listening posts and other feedback mechanisms to enable proactive and reactive collection of constituent feedback which is key to building the relationship management profile.
Optimizing the value of an organization's customer franchise is vital to enterprise growth. However, that is only the first step toward operating effectively in today's marketplace. Business is rapidly moving from a model of linear relationships to that of a value web of n-dimensional relationships between various enterprise constituents. Imple-ment a multi- relationship architecture to position your organization for sustainable success.
Special thanks Heidi Wisbach who contributed significantly to this article. Wisbach leads CGEY's CRM analytics initiatives.
Register or login for access to this item and much more
All Information Management content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access