(continued from Internet Retailer: Do You Know Me? Part 3 of 8)
The following is an excerpt from the Internet Retailer article "Do You Know Me?", by Don Davis.
20 Touchpoints
Just slightly ahead of Petco in implementing a cross-channel customer data strategy is Recreational Equipment Inc., which expected its new customer data warehouse to go live last month. Project planning began three years ago, and implementation took 18 months.
The REI project was more complicated than most because the company had customer data in 20 databases. Not only did REI store data separately for store, web and catalog, but also for its Adventure tour business, clinics and other activities.
A customer could be in one database with an old address and e-mail address, and another database with newer information. And, like most companies, much of the information was flawed, with names misspelled, invalid addresses or duplicate data, such as a customer identified as Jim in one file and James in another. AMR Research Inc. estimates 30% to 50% of customer data in multiple systems across retail companies is dirty, and REI’s data quality was on that order, says Jennifer Cofer, business intelligence analyst for the customer data warehouse project.
“We had to clean all that data, so it’s standardized,” Cofer says. “It’s been a bit of a nightmare. But the end result is nirvana.”
Once fully functional, the data store will let REI deliver highly targeted messages, such as to a customer who signs up for an Adventure canoe trip. “We’ll know what supplies they’ll need and from their transaction history we’ll know what they’ve already purchased from REI,” Cofer says. “Then we can target e-mail them to let them know what they might need for the trip, along with promotional coupons.”
“Before we could see this information, but we couldn’t tie it together,” says Ben Viscon, online merchandising manager. “We could see what you bought online, but to see what you bought from retail we’d have to look into separate places.” REI can track most store purchases to an individual by member number because the 3.4 million active REI co-op members—who receive annual dividends based on their purchases—account for about 85% of transactions.
The data store will maintain the last six years of transaction data, plus the current year’s. Members eventually will be able to access their data online, perhaps next year, Cofer says. Four full-time REI staffers will maintain the database, ensuring data quality and helping REI departments use it effectively.
Implementation required 15 to 20 REI employees and outside consultants, including six working full-time. To facilitate easy communication, the company moved the team into a single building and tore down cubicle walls to create an open space.
“We all just sat next to each other, with a big table down the middle. If we needed to have a meeting, we just turned our chairs around and rolled in,” Cofer says.
