Building Success

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Building Success

• Presentation to IRMAC
• May 27, 2004

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Denial, Anger, Acceptance, Resolution
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Business Perils of Ignoring Sound CDM Principles
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Simple Input Data
Name Mr. John Smith Sr. Address 10 Wolfe
Crescent N. RR2 Geography Bolton ON L7E
5R8 Telephone [phone] Birth
Date 03/14/1963 SIN 478 827 905
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We know with certainty only when we know
little, with knowledge doubt increases. J.W. von
Goethe
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Multitude of Components
Street data House number Street title Primary
street type Secondary street type Primary street
direction Secondary street direction Additional
Street Line Data Route name, number, type Box
name, number, type Dwelling1 name, number,
type Dwelling2 name, number, type Complex name,
type Geographic data Country name Neighbourhood
name City name, Postal Code State/province/county
name
Miscellaneous Personal Data Social Insurance
Number Bell/Cellular Number Date of Birth Email
Address Name Data Number of names Name form (P,
B, R) Prefix title First Name Middle Name 1, 2,
3 Last Name Suffix secondary title Generation
Jr., Sr., III, etc. Gender M, F, N Connector
and, or, etc. Relationship Executor,
Beneficiary Candidate Codes for each name
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Average Customers

• 1. One Household
• 2. Two Customers
• 3. Three Legal Entities
• John Single
• Jane Single
• John/Jane Joint
• 4. Three Accounts

John Smith 10 Wolf Cres.
Jane Smith 10 Wolf Cres.
Chequing 1,000
Chequing 1,000
Savings (j) 1,000
Savings (j) 1,000
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Best Customers Highly Complex Matching
John Smith Individual 1234
Jane Smith Individual 1235
John Smith Jr. Individual 1236
Jack Smith Individual 2345
Single--DDA
Single--DDA
Single--DDA
Single--MMA
Single--MMA
Single--RSP
Single--RSP
Single--Gold CC
Single--Mutfund
Single--MutFund
Single--SDB
Joint--Mortgage
Joint--Mortgage
Joint--LOC
Joint--LOC
Joint--DDA
Joint--DDA
Joint--Credit Cd
Joint--Credit Cd
Contributor-RSP
RSP--(Spousal)
I.T.F.--RESP
RESP (I.T.F.)
P.A.--DDA
DDA (P.A.)
P.A.--Savings
Savings (P.A.)
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Business Imperatives

• Profitability
• Segmentation
• Direct Response
• Cross-Selling
• Upselling
• Retention
• Activation
• Bundling
• Service Quality
• Internet Banking

• Propensity Models
• Pricing
• Fraud Detection
• Compliance
• Telemarketing
• Event Triggers
• GIS Applications
• RFM Analysis
• Product Penetration

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Duplicate Customers?
Customer ID 333 John Smith 10 Wolf
Crescent Bolton ON L7E 5P5 Term
RSP 150,000 Mutual Funds 175,000 Assets
325,000
Customer ID 222 John Smith 10 Wolfe
Crescent Bolton ON L7E 5P5 Chequing 1,700 Savi
ngs 2,000 Mortgage 55,000 LOC 10,000 Credit
Card 1,200 Assets 3,700 Liabilities 66,200
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Consolidate Duplicate Customers
Customer ID 333 John Smith 10 Wolf
Crescent Bolton ON L7E 5P5 RSP 150,000 Mutual
Funds 175,000 Chequing 1,700 Savings 2,000
Mortgage 55,000 LOC 10,000 Credit
Card 1,200 Assets 328,700 Liabilities 66,2
00
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Marketing Implications
Customer ID 333 John Smith 10 Wolf
Crescent Bolton ON L7E 5P5 RSP 150,000 Mutual
Funds 175,000 Chequing 1,700 Savings 25,000
Mortgage 55,000 LOC 10,000 Credit
Card 1,200 Assets 328,700 Liabilities 66,20
0

• How is profit score now affected?
• What is risk profile now?
• What now represents best cross-sell opportunity?
• What is now the next best product to upsell?
• How should service strategy be tuned?
• How does segmentation assignment differ?

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Joint Account Treatment
John Smith 10 Wolf Cres.
Jane Smith 10 Wolf Cres.
Chequing 1,000
Chequing 1,000
Savings (j) 1,000
Savings (j) 1,000
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Decision Point Joint Account Processing

• Ownership and balance assignment for marketing
  metrics
• Double Count Dollar Values for both Owners?
• Assign Dollar Value to First Name on the Account?
• Split Value 50/50 between Owners of Account?
• IS RECONCILIATION IMPORTANT?

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Decision Point Joint Account Processing

• Ownership and balance assignment for marketing
  metrics
• Double Count Assets and Liabilities?
• John 2,000 Jane 2,000
• Assign Value to First Name on the Account?
• John 2,000 Jane 1,000
• Split Value 50/50 between Owners of Account?
• John 1,500 Jane 1,500

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The Players
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the data access issue, the query tool issue,
the data integrity issue ...given the
universality of these issues, it is strange
that entire industries are being organized around
the first two issues but the third issue seems to
be something that we dont want to talk
about. Ralph Kimball, DBMS September 1996
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Data Cleansing and Linking Software
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Core Software Capabilities

• Data Conversion
• Data Profiling
• Name and Address Parsing
• Address Verification and Correction
• Data Enrichment
• MatchingHousehold Individual Business

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Trillium Software System

• Trillium Software Division of Harte-Hanks Inc.
• Market Co-Leader
• Launched 1994
• Strongest Canadian Presence
• StrengthsParsing Matching

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Firstlogic IQ Insight Information Quality Suite

• Market Co-Leader
• Founded in 1984 (Postal Soft idCentric)
• Privately Held
• Limited Canadian Presence
• StrengthsData Profiling Name Parsing SERP II
  verification correction

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Ascential Software QualityStage

• Acquired Valitys Integrity Software 2002
• Public Company
• Diminishing Canadian Presence
• StrengthsData Investigation Ascential DataStage
  bundle

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Enterprise-Wide CDM Strategy
Data Cleansing Linking Software
Callable
CIF
MTG
Cards
MFD
TD
SDB
INV
DEP
LOC
Trust
LNS
Data Cleansing Linking Software
Batch
Entity Keys OCV MCV BCV HHLD
Cards
Compliance
Profitability


EDW
SME
Consumer
Scores/Promotion History Feedback Loop to CIF
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Steps to a successful implementation of a
customer centric database
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Steps to Success

• Business Requirements
• Best of Breed Software
• Data Discovery Investigation
• Functional Specifications using a proven
  methodology
• Iterative Development
• Quality Assurance
• Ownership of Business Rules

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Business Requirements

• Face-to-face working sessions
• Gather specific requirements without getting into
  solutions
• Business Users may not know or be able to
  articulate exactly what they want, but they will
  know it when (they) see it..
• Provide guidance
• Do research beforehand
• Use Cases and Diagrams
• Comprehensive documentation for the benefit of
  the clients supplemented with Use Cases
• High level overview of solution
• Confirmation and sign-off
• To be continued.

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Best-of-Breed Software

• Do your research
• Knowing the questions to ask
• Experience - get an expert
• A compilation of issues and points gleaned from
  vendors and integrators who operate in this space
• Proof-of-concept using your own data
• Canadian experience
• Market leaders with the best software and a deep
  heritage in this space also offer a proven
  methodology and out-of-the-box rules to fast
  track your implementation
• Dont just ask will it.. ask how..
• References make sure they are recent
• Poor man cant afford to buy cheap

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Data Investigation

• Its worth it!
• Discover the true contents and quality of your
  data before you start on a full development cycle
• Give your developers a hands-on experience with
  software
• Refine the business requirements and provide
  meaningful project timelines
• Full file processing!
• Youre now ready to do the Functional
  Specifications

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Functional Specifications

• More than a necessary evil
• It is a vital communication vehicle between the
  Business Analyst and the Developers and Project
  Managers
• Helps the Business Users validate that their
  requirements have been correctly translated
• Supplement with Diagrams, Tables and robust Use
  Cases
• It is the documentation that will survive and be
  referenced by future users
• Must be subject to a rigorous review process that
  includes analysts, developers, business users and
  project managers
• Can be adapted to an Iterative Development
  approach

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Iterative Development Approach

• What is it?
• Why is it required if you have comprehensive
  Functional Specifications?
• Why is effective?
• When is it not appropriate?
• Do you believe?

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Quality Assurance

• Involve your QA team from the beginning
• Involve expert users and analysts from the
  Business in the testing
• Be involved with your QA team
• Experience counts and subject matter experience
  counts even more
• Full file processing!
• Predefined Control and Balancing with significant
  input from the Business Analyst
• End to end User Testing
• If possible, do multiple cycle runs with real
  data in parallel

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CDMS Top 5 Keys Technical Success Factors in
building a Customer Centric Information Database
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1. Parsing Technology

• The Parsing technology is the single most
  important factor in creating cleansed
  standardized customer data for successfully
  Address verification and correction and superior
  Matching
• What to look for
• Robust out of the box rules
• Significant Canadian content
• Flexibility to add and modify rules specific to
  your data

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2. Addressing Technology

• The Name and Address is the cornerstone of a
  building a linked consolidated database
• The Address is entered in a myriad of ways and
  prone to error
• The Address Validation and Correction Technology
  (in conjunction with the Parsing Technology) will
  provide significantly superior matching results
• What to look for
• Canada Post Certification
• Built by Vendor not a third part add-on
• Tight integration for a total solution

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3. Multiple Match Passes

• Using a single match (typically Name and Address)
  is insufficient to build a robust linked profile
  of your customers and household
• Leverage all information available to the
  organization
• Customer/Department/Subsidiary Ids
• Telephone Numbers
• Identification Numbers
• Payment Methods
• Ownership Identifiers
• Linked Accounts
• What to look for
• Provision for independent multiple matchers
• Ready facility to reconcile and consolidate the
  results of each matcher

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4. Control of Match Scores

• Must be able to explain precisely why records are
  matched
• Must be able to control and tune the rules at the
  token level
• Work with a baseline (from vendor) and enhance
  the rules to meet the needs of your firm
• Must have ability to create potential or suspect
  matches as part of the development cycle
• What to look for
• Ability for users to score data elements and
  build rules
• Interface that is easy to add, delete and modify
  rules
• Method to review and evaluate the results of each
  rule

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5. Key Management

• The least understood and most underestimated
  module
• Select convenience over true requirement
• Driven by customized organization needs that
  cannot often be met by a canned approach
• Flat File or Database
• Multiple inter-dependant hierarchy
• Track changes over time
• Survivorship rules
• Business owners will have difficulty articulating
  their requirements
• Requires professional guidance

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Contact Information

• Jeff Mehlenbacher
• Telephone [phone]
• Cellular 416-662-7092
• Email Address jeff.mehlenbacher_at_customerdms.com
• Dan Bulsara
• Telephone [phone]
• Cellular 416-738-1357
• Email Address dan.bulsara_at_customerdms.com

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