Customer Data Management is the discipline of managing the value of customer data. Coupled with the application of customer data to make informed decisions, customer data management is employed by companies to improve their customer experience and maximize customer value.
As a matter of fact, opportunities to improve the management and governance of customer data have grown over the past decade thanks to innovations in big data, cloud computing and artificial intelligence.
From databases to data marts
It’s no longer necessary to manage data in structures like relational databases. In light of the low cost of data storage flat file structures are adequate to manage data.
Why customer data management has become a hot potato around the boardroom table
Say nothing of the missed sales growth opportunities lost by NOT understanding your customers through their data interactions, managing customer data has become essential in protecting businesses against non-compliance fines. Comparatively small customer data loss events can have a seismic impact on companies if they relate to personal data. The General Data Protection Regulation (GDPR) of the European union imposes fines to the tune of up to £4 million or 4% of global company turnover if organizations are seen to be non-compliant.
Where it fits in the context of customer experience and the customer data science discipline
Customer Data Management is a key aspect of modern Customer Data Science; the business discipline of using data to develop an appreciation of customers, their challenges, touch-points, buying preferences, behaviors and metrics. It is an aspect of Customer Experience. Without doubt, business leaders see it as an important topic these days with so much emphasis placed on data-driven decision making. Additionally, customer experience is an important aspect of creating an above and beyond customer experience.
Customer Experience is a term used to describe the relationship a customer has with a business. Customer experience refers to the total of all experiences the customer has with the business, based on all interactions and thoughts about the business. Equally important, it is an all-encompassing term.
It includes communications touch-points, communications, emotional experience, behavior, data management, customer data platforms and technology ecosystems, and business model design implications. NDMC Consulting is an expert consultancy business specializing in customer experience strategy, management and customer data platforms.
NDMC has delivered projects focused around the subject of Customer Data Science since 2003. Many of our clients required more clarity over their customer profitability and buying behaviours. Furthermore, they found the use of many different software tools as being unhelpful in decision making. In the light of cloud computing advances, it’s now possible to create overarching digital platforms to harvest, process and analyze customer-related data. As a matter of fact, most data used in the enterprise is customer-related – it just takes a re-invention of data architectures to realize it!