When talking about customer data management, we’re usually referring to first-party data, meaning data collected by your company and used by your company. Customer data management encompasses the tools businesses use to collect and analyze customer data, the ethical framework of acquiring customer data, and the security measures involved with storing and accessing this data. What is customer data management?Ĭustomer data management is the process of acquiring, organizing, and using customer data to better understand customers and ultimately increase conversions and retention. The first step to building your guidelines for customer data management is understanding what customer data management is and the principles behind it. You’ll get a lot more functionally out of your data if you have set guidelines for customer data management. The end result is too much useless data, which often leads to data security issues and confusion about what your company is doing with the data it’s collecting.Ī good customer data management strategy can help you avoid confusing data like this. That can lead to each department collecting the same data point as another department, collecting data in the wrong ways, or collecting more data points than they need. Companies often have multiple departments collecting many different data points on individual customers, from demographics to individual data. The reason these companies have dirty data in the first place is that data collection can get confusing very quickly. That means the majority of data-driven companies are relying on dirty data to make decisions.īy paying close attention to data quality and ensuring they use clean data, companies can make smarter decisions-and they’ll see the improvement in their bottom line. Customer Data Management: How to Perfect Your CDMĪccording to an IBM report, 83% of companies suffer from data inaccuracy.
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