Inaccurate Customer Inactivation: A Case Study
This case study examines a situation where a company’s system failed to accurately inactivate customers and explores the solution implemented to resolve the issue.
(a) Challenges
- A client’s ERP system was not properly inactivating customers. Customers who should have been labeled inactive, such as those who had not made recent purchases, remained listed as active.
- The system’s failure to inactivate customers was particularly noticeable on Sundays.This pattern led to the initial impression that the system was malfunctioning specifically on Sundays.
- The inaccurate data impacted various aspects of the business, including sales reporting, marketing strategies, and inventory management. Using inaccurate customer data can lead to flawed decision-making.
- The root of the problem lay in the system’s method for handling dates. The specific way the system determined customer inactivity was flawed, particularly when certain purchase dates were involved.
(b) Solution and Benefits
- To resolve the issue, the team implemented an ‘invoice value criteria. This criteria established a minimum spending amount within a defined timeframe. If a customer did not meet this criterion, they would be flagged as inactive.
- Implementing this solution required careful modification of the system’s code, followed by rigorous testing.The team needed to ensure that the changes accurately inactivated appropriate customers without mistakenly affecting active customers.
- The solution successfully addressed the inaccurate customer inactivation, eliminating the Sunday-specific errors.The system now accurately reflects customer activity, providing reliable data for business operations.
Benefits:
- Accurate Customer Data: The primary advantage is the availability of reliable and up-to-date customer data.
Improved Decision-Making: Accurate data facilitates better decision-making across various departments, including sales, marketing, and inventory management.
- Enhanced Efficiency: By ensuring accurate customer status, the system contributes to streamlined business processes and improved overall efficiency.