Carphone Warehouse expects 12-month ROI on CRM project

Mobile phone retailer The Carphone Warehouse is aiming for a return on investment within 12 months, after placing data integrity...

Mobile phone retailer The Carphone Warehouse is aiming for a return on investment within 12 months, after placing data integrity at the heart of a customer relationship management initiative.

 

The move reflects the increasing focus on data quality among IT directors, who want to avoid the pitfalls of previous CRM implementations, said Andy Bitterer, vice-president at Meta Group.

 

“The typical large investments for enterprise application initiatives, such as CRM or ERP, regularly fail to yield the expected results for a lack of attention to data quality issues and corresponding low user adoption rates,” he said.

 

“Chief information officers are, increasingly, recognising the importance of data profiling and cleansing across the organisation and we expect the market to grow to £270m over the next two to three years.”

 

The Carphone Warehouse, which has 1,140 stores across Europe, is rolling out Trillium CRM software and Discovery data profiling software, from supplier Harte-Hanks, to improve efficiency and boost its marketing campaigns.

 

The two applications, which will be rolled out across the retailer’s European operations over the next year, are designed to allow the firm to improve its customer data management and to link into back-end systems to provide a “single customer view”.

 

“We hold customer data from various transactional systems and we want to understand the data better - it was bad-to-medium before,” said Rob Kent, CRM programme manager at The Carphone Warehouse. “The software will improve the accuracy of our targeted marketing and give us a clearer view of the customer.”

 

The Discovery software will highlight data quality trouble spots in the retailer’s Informatica database, such as information that might be missing or incorrect, for example if a customer has moved house, he said.

 

The Trillium software will then standardise the customer records, and enrich the data where possible, such as with geographical or third-party information, providing a more rounded view of the customer.

 

“The software enables us to launch CRM initiatives that will improve customer service, intelligence on sales opportunities and stronger marketing campaigns,” Kent said. “We expect to recoup total project costs in around 12 months.”

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