Every organization has various sources of data, and every data source contains different data that’s used for a variety of purposes. Having fragmented data requires organizations to depend on developers to pull data together for insights. This becomes very expensive, and the lack of a single source of truth prevents a comprehensive view of all data and each customer. The challenge, therefore, is for organizations to centralize data.
A holistic view is essential for cross collaboration between business units. Gathering valuable insights and delivering personalized experiences are not possible without a single source of truth. Even if insights can be learned, fragmented data makes it impossible to create the personalized experiences that customers demand. But all data sets have key identifiers that make it possible for companies to seam the data together. The trick is finding the data keys and taking a big-picture approach to truly harvest meaningful insights.
The Challenge with Data Structure
The way data is stored in various platforms can be unique to the platform, with every source having its own structure. Typically, a CRM system contains various offline “internal” user details like transaction data, demographic data, geo location, purchase history, loyalty ID, and more. In comparison, marketing systems contain data from external parties, with the data typically more concentrated on wider audience segments and focused on the sales funnel. Click stream data, another data set, is equally important to CRM or marketing data systems, as it includes all of a customer’s online behavior usage data.
All of these different data sets make it challenging to have a centralized view. But combining these data sets is necessary to provide a comprehensive view that allows companies to meet the expectations of today’s customers.
Centralizing Data Yields Valuable Insights
Bringing data together has several benefits. It allows companies to create a centralized data schema that includes data governance and compliance. It becomes faster and easier to use smart tools like AI/ML models to get insights. And consolidation lets companies read the story their data is telling, reduces the time and effort required to extract insights, and improves the quality of the insights.
It’s necessary to look at the data with an enhanced approach. Start by identifying and analyzing all data and data sources. Determine the key and unique identifiers that can bind data from one source to another. This task is not just about identifying the keys; it includes harvesting data into a single source.
Once there is a single source of truth, all user data can be combined to create complete user profiles. Analyzing user behavior and transaction patterns gives companies deep insights into developing trends, which ultimately facilitates building customized user experiences.
Consolidated Data is the Key to Personalized Experiences
Consolidated data provides visibility into new approaches that can increase customer engagement. Start by prioritizing user segments for targeting and retargeting campaigns. Strategies should include planning and executing site and social media personalization, as personalization is a key driver in customer engagement. In fact, 80% of consumers are likely to purchase from brands that provide highly personalized experiences.
Now more than ever, customers want and expect personalized experiences online. Companies providing these experiences are finding it possible to thrive in this hyper-competitive marketplace – 88% of marketers report measurable improvements from personalized engagement efforts. This means data centralization is the future for any organization. The ability to see all user and behavioral patterns enables companies to provide the real-time personalized experiences that drive higher engagement, higher conversions, and customer loyalty.