Customer Information Data Management Systems
Improving the customer experience with a Single View
Every organization is under pressure to provide a truly customer-oriented experience. But in order to improve the customer experience, organizations must get to know their customers.
"An organization’s ability to establish unique, accurate entities can eliminate conflicts that arise across an organization. " Richard Stocks
Director Software Solutions
In today's Information Age, consumers demand a customer experience that is not only adequate, but exemplary. And their ability to publicly decry a business is just a Tweet away. Every organization is under pressure to provide a truly customer-oriented experience.
But in order to improve the customer experience, organizations must get to know their customers. And the problem facing many businesses is that keeping track of its customer data can be incredibly complicated. From decentralized storage to duplicate or inaccurate records, there is a trove of mishandled data spanning multiple departments within an organization.
This disorganization can not only disrupt the company's relationship with its consumers (for example, by mishandling communication) but it can also result in financial consequences (such as creating more work for an already overworked team and dropping the ball on cross-sell opportunities).
For certain industries – such as banking – the issue of data quality control extends beyond an exemplary customer service experience. Organizations within these industries must also maintain compliance with national and international regulations, as well as monitor for illegal activity.
Organizations are all competing internally for limited resources, especially when it comes to undermanned and overworked technology. We often see that conflicts arise in three customer areas, particularly for heavily-regulated industries:
- Growth: A business needs to increase revenues from customers and clients. Should its marketing efforts focus on acquisition, activation, retention or increasing share of wallet? Each of these strategies represents an investment that must be prioritized for "profitable growth."
- Regulations: For businesses in heavily-regulated industries like banking, with its know your customer (KYC) regulations, it's important to know whether this applicant is already a customer. Are they a new customer or already a customer in another area of the company? Are they a good actor or bad? Are they under watch? Are they sanctioned? It takes tremendous effort to document regulations like KYC at the time of onboarding. It's often an even greater challenge to monitor and manage regulation efforts over time as customer profiles change, data degrades and new information comes to life.
- Transaction Monitoring: Segmentation criteria, thresholding and tuning activities are in constant conflict. On one hand, financial institutions have the regulatory need to eliminate false negatives so you can detect all suspicious activities. On the other hand, they have the desire to decrease the burden on investigative units by decreasing the high number of false positives.
Not only do these areas involve conflicts on their own, they often conflict with one another. Fortunately, organizations have a new tool to overcome these conflicts so they can improve the customer experience – all while managing growth, risk and compliance – with greater confidence. It starts with unique, accurate entity resolution, or in simpler terms, a single customer view.
Driven by a global unique identifier, a single view of the customer is more than data attributes. It's a living, breathing customer record complete with current, correct, consistent and complete information including documentation. Accessible at the touch of a button and fit for purpose at any time, a unique, accurate entity lies at the heart of conflict resolution.
- Growth: Entity resolution, including name and address validation, adds value at every step to maximize profitable growth. Organizations can tailor communications, improve the omnichannel customer experience, price existing products and introduce new services based on a prospect's risk and financial propensity profiles. The same data insights can inform acquisition, up-sell, cross-sell and retention.
- Regulations: When businesses know their customers uniquely, they can augment, update, cleanse and enrich records, even linking relevant documents. They can also build automated risk-rescoring processes that are based on external events and transactional behaviors, determining when (and if) to contact customers. The end result: greater compliance, lower risk and an improved customer experience.
- Transaction Monitoring: For the banking industry, for example, TMS is the lifeblood of its compliance programs. When customer profiles are unique, accurate and complete - with all relationships identified and linked - they can retune thresholds to optimize performance and eliminate false positives/negatives from the customer onboarding phase through the customer lifecycle journey. The same tools can be applied in case management, so they can aggregate cases that consist of multiple alerts for a single party or counter-party, increasing productivity at every step.
An organization's ability to establish unique, accurate entities can eliminate conflicts that arise across an organization. This "single view of the truth" can drive efficient growth as well as reducing costs and, in the finance and insurance industries, improve operational/compliance risk. Solve it once and use it across the enterprise.