Creating the Golden Record that Makes Every Click Personal
Gartner has just released its annual “Magic Quadrant for Master Data Management of Customer Data Solution”.
You can download a free copy of the report from our web site. This feels like the perfect time to share some thoughts on the market trends, highlight some of the best practices from Talend MDM customers, and introduce the latest advancements in Talend platform to turn customer data into business outcomes.
The need for single view of the customer is not new, but it has reached a new level of criticality and urgency. Most of the customer facing lines of businesses now understand the importance of being data driven, and have learned to figure out how this mandate can effectively translate into increased sales, better customer retention and reduced costs. They need to use the new digital tools that are invading our business environment and leverage them to provoke changes in the way they attract, sell, serve, and interact with their customers.
Without question, customer data is the fuel to making this happen. Unfortunately, most companies have failed as of today to build their “fuel refinery”, and this hurts them hard. In its data quality survey, Experian found that 77 percent of companies believe their bottom line is affected by inaccurate and incomplete contact data, while respondents indicate that 12 percent of revenue is wasted as a result. Sales and marketing professionals consider that the rate of inaccurate data has increased to the staggering level of 32 percent, a situation that tends to get worse over the years.
So it is no surprise that Gartner estimates that overall software revenue from the MDM of customer data solutions market segment came to $500 million in 2014, an increase of 10.3% from 2013. Although Talend experienced much higher growth rates across all MDM domains, we also see MDM of Customer Data as our most dynamic sub-market. Additionally, Customer Data was a demand booster across our product lines, especially Big Data, Data Quality and Data integration. Knowing the customer through deeper analytics, connecting with them across the different channels, interacting with them through personalized content and offers, and protecting sensitive against breaches, are extremely hot topics in any industry today.
Turning customer data into outcomes across industries
In the context of our educational campaigns around the MDM of Customer Data, we focused on documenting our customer success in vertical markets. Here are four representative examples:
The travel and tourism industry is undergoing considerable change, now that we as consumers have access to tons of travel information online through providers such as TripAdvisor, Booking.com or Airbnb. Traditional players need to differentiate from those low costs self-service options by delivering superior customer service and developing a long-term relationship with repeat business through personalized interactions. MDM of Customer Data allows TUI, the world’s number one leisure tourism business, to add value to customer interactions across the many customer touch points that makes up a customer journey, from search to bookings, and then all along the traveling experience. Take a look at this webinar or this success story to learn more about their takeaways.
Do you remember the days when you used to visit your bank’s branches on a regular basis, even to fulfill basic transactions such as a withdrawal? Now our banking experience has turned into multi-channel, from web to phone, from mobile to ATM and to branch. But we can see that our bank struggles to provide us the right offer at the right time and are increasingly at risk of customer churn. Kiva Group, a provider of CRM systems to the banking industry, is leveraging Talend MDM to face this challenge by providing customer context across the different transactions and touchpoints, from ATM to branch or contact center. See or read how they made it happen.
In the professional services and software industry, delivering targeted messages to customers has become a must, not an option, now that the mailbox of each and every potential B2B customer is overloaded. In addition, many companies in this industry grow through acquisitions, mandating best practices to rapidly reconcile customer databases from different sources into a single view. This is what Ellie Mae, another example of a company that serves serve banks, credit unions and mortgage companies, achieved with Talend MDM.
Personalization is the next big thing in the healthcare industry. Accolade’s mission is to transform healthcare one person and one family at a time. They provide “a better consumer experience and the right care the first time by combining leading technology, analytics and clinical decision support with a personalized engagement model that consumers value and trust”. To achieve this goal they are backed-up an incredibly innovative data architecture based on Talend MDM with Big Data on Amazon Web Services. Find out more of their experience in this webinar.
Making the most of your customer data with Talend
In the market section of its Quadrant, Gartner highlights the fact that many of the inquiries they receive relates to best practices on how to successfully deploy an MDM program focused on Customer Data. An MDM project is not simply about systems integration and deployment. It requires change management, strong collaboration between multiple stakeholders across organizations throughout the life cycle of the program, and to be backed-up by best practices.
One key takeaway is that MDM projects require a level of guidance, and this is why we packaged our Passport for MDM success earlier this year together with our most knowledgeable MDM partners. I blogged already on this topic, and since this approach proved to be successful to pave the way to many of our customers MDM initiatives.
With the launch of Talend 6, we have also significantly improved the implementation of data quality and MDM project focused on customer data, in the area of contact data management, identification and protection of personally identifiable information, and integration of MDM data into customer facing application. Together with Christophe Toum, we have recorded a webinar to present and demo these capabilities. Talend 6.1 will also bring new capabilities in the area of MDM modeling and Metadata Management. Stay tuned as we are less than one month away from its general availability, a couple of days before Christmas.
We also released Talend Data Fabric. When used in the context of Master Data Management, Talend Data Fabric adds Real time big data capabilities and leverages the power of Spark. In this context, MDM brings the system of record with a single view of the customers; Big Data integration connects it to the system of interaction across channels, while Big Data Analytics brings the system of insights, (for example by leveraging Spark machine-learning capabilities). Our Real Time Big Data capabilities allow users to connect this environment in real time to the system of engagement and the customer facing applications like the web or mobile applications or the applications that are used by sales representatives, the call center agents, etc. Earlier this year, we showcased how MDM can be effectively augmented with big data, by leveraging data sources such as clickstreams, integrating with advanced analytics and machine learning, and connecting in real time to web applications that drive personalized interactions and real time recommendations. See this online webinar.
As you can see, we have seen a lot progress in the recent months on how to make customer data actionable. What seemed like a very costly and risky effort a couple of months ago has now turned into a safer passage. Through packaged approaches such as the Passport for MDM success, MDM initiatives can be better planned and linked to clearer business benefits and key success factors. And through technologies such as Talend MDM and Spark, turning every customer interactions into something that is much more data driven, personalized and linked to measurable business outcomes can be achieved in a cost efficient way. Are you ready to get onboard?
 Gartner, Inc., "Magic Quadrant for Master Data Management of Customer Data Solutions” by Bill O’Kane and Saul Judah, November 11, 2015.