Being an MDM manager certainly means being in demand and at the center of attention. The reason is as simple as it is awe-inspiring: as an MDM manager, you’re leading the charge for providing high-quality data, developing the master data strategy and overseeing system acquisitions and integrations. You collaborate with a variety of stakeholders – planners, program managers, product developers, marketing professionals, supply chain managers, senior management and executives. If your organization has a chief data officer (CDO), it’s likely your work contributes to the decisions that person is making.
As a cross-enterprise facilitator, you need efficient tools that provide a quick time-to-value.
Through streamlining and consolidating master data, the MDM system supports an array of critical business operations and enables digital business initiatives.
MDM systems play a vital role in:
- Mergers and acquisitions, where disparate data systems must be integrated
- Managing traceability of products through increased data visibility
- Achieving compliance with standards and regulations
- Increasing supply chain capabilities and optimizing logistical processes
Critical as these operations may be, they are also ongoing long-term projects that should be measured under the total cost of ownership of an MDM solution.
If you seek rapid time-to-value for your MDM investment, start looking at mastering data from a more hands-on, results-focused perspective such as cleansing customer data in order to drive more effective customer experiences. This is an opportunity to achieve fast and tangible success and positive attention from the stakeholders.
De-duping and cleansing customer data
The value of having high-quality customer data and product data can’t be overrated.
Every customer is a physical entity that has a digital twin. Controlling that digital twin enables you to optimize processes related to products and provide exceptional customer experiences. For the same reason, bad customer data is particularly damaging for any organization.
Bad customer data has several negative impacts:
- Duplicate customer data can weaken customer support; if several different customer records in the CRM system represent the same physical customer, your ability to provide accurate, differentiated service diminishes
- Campaigns and newsletters miss their targets if customer data is not consolidated and names, addresses and shopping history are not aligned
- Shipments may be returned if customer addresses are outdated – or worse, not returned leading to lost inventory and displeased customers
The overall problem is not just efficiency losses caused by the need for double-checking information and repeating processes. The much bigger problem is customer churn and the dwindling loyalty resulting from bad data.
An MDM system for customer data can solve these issues in several ways. The MDM system doesn’t replace a CRM solution, it enhances the CRM by de-duplicating data through a matching and linking process and presenting a “golden record” based on the most trusted source.
Correct customer data is the foundation for a better marketing experience because it ensures a more personal experience and minimizes bounce rates. You diminish customer affinity if you fail to recognize their change of address or don’t get their name right. Customers today expect brands to know them in near real-time and to build rapport with them.
Customer MDM not only facilitates accuracy of records within the CRM, it also sources data from other systems and services, thus validating and enriching customer records. Improving the customer data quality with additional attributes is the foundation for optimizing the customer service by providing immediate access to a single source of truth that includes all of that customer’s encounters with the company, as well as their preferences.
To deliver success as an MDM manager, focus on having accurate, enriched customer data. This will quickly show results whether you’re in retail, banking, insurance, manufacturing, B2C or B2B.
The business case for improving customer data is based on the fact that it’s expensive to acquire new customers whereas retaining existing customers is much cheaper. Investing in customer retention is therefore much more likely to pay off.
Do you want to know more about driving time-to-value for key stakeholders? Read part two of this series on minimizing the product backlogs.