Common frustrations of poor data
Data is the lifeblood of a business. It is fundamental to business processes. Unhealthy data or poor data leads to stagnant workflows, siloed thinking, inefficiencies and ultimately poor decisions. Unhealthy data is really "sick data," and if the data is sick, the business suffers too. True, you could still make sales, engage audiences, manage risk and comply with regulations, but consider all the extra effort it requires, and the missed opportunities, when the data is not as optimal as it could be. It's as if a company, metaphorically speaking, is huffing and puffing as it climbs a few flights of stairs. It gets there in the end, but it hurts.
Poor data, like poor health, can lead to serious problems. Misguided definitions, lack of internal standards, disparate data sources and multiple workflows converge to hinder growth, leading to stress and frustration.
Fortunately, there is a cure for poor data.
Good data, like good health, requires proper management. But make no mistake: it takes effort. There is no magic pill. You have to take a look at your customer data; it's probably scattered across multiple departments (sales, marketing, finance, operations), different geographic locations (local, regional, global) and a myriad of systems (ERP, CRM, MDM, MarTech, AdTech). If your company is like most companies, you probably have very few healthy standards and could benefit from a solid dose of well-managed data.
But just as many of us don't start a diet or exercise routine until our weight and cholesterol levels have reached unhealthy levels, proper data management usually doesn't start until we realize it's actually needed. That doesn't happen overnight. Here are the five stages many companies experience before implementing a master data strategy. Do you recognize your organization in any of them?
Denial: "Is this really happening?"
Your sales manager will adamantly assert, "We know our customers better than anyone else." But being close to customers doesn't mean that the data we have on them is anywhere near correct. Can a seemingly simple question like "who are our top customers" be easily answered?
Whether we're talking about customers, suppliers or partners, the master file depends on the consistent habits of everyone in the company. How many ways are used to identify "Wal-Mart"? Is Wal*Mart, Wal Mart, Wal-mart, Walmart and/or WM used? Hmmm...seems like a lot of work ahead to consolidate all those "Walmart" records and get an accurate view of sales. What about all the companies Walmart owns - are they your customers too? You have to open your eyes and face the question head on.
Anger: "Who did this?"
Trying to keep track of multiple business styles of a global customer is enough to stress anyone out. Seeing 100 variations of a customer's name would make anyone angry. But before you lambast employees for not keeping that straight, keep in mind that they are torn between maintaining data and selling your product.
As a leader of a company, what stresses more, low data quality or not hitting targets? What stresses the sales team more, low data quality or low commissions?
Negotiation: "We can fix this ourselves."
You might think: "We can implement a management program ourselves." Go for it! Try to deploy the necessary resources to formulate a strategic plan that ensures everyone enters the word "STREET" the same way or enters a phone number like XXX-XXX-XXXXXX.
After all, isn't everyone's responsibility for quality and consistency? Meanwhile, the competition is making connections, building relationships and increasing market share while our team is frustrated because they can't focus on what they were really hired to do. Is good spelling or good sales wanted?
Depression: "This is a disaster".
The more customers you have and the more data you collect, the more the problems will multiply. There is nothing worse than a customer saying that the view we have about them is incorrect. They want us to have a hierarchy that reflects the way they see themselves. But we don't, and it never seems to get it right.
Acceptance: "Okay, we need help."
Business moves fast...too fast. Thousands of companies open and close every month. Hierarchies and relationships are constantly changing. You can't keep up. How do you expect to keep up? You have to get in touch with those who understand this situation.
A shortcut to mastering your data
Healthy data makes for a healthy business. You have to embrace it and get to stage 5 as quickly as possible. Once we can begin to implement a consistent data structure, one that connects the entire enterprise universe of our business and is of a quality that can be trusted, our business can begin its journey to recovery and maximum health.
Data is the lifeblood of a business. It is fundamental to business processes. Unhealthy data or poor data leads to stagnant workflows, siloed thinking, inefficiencies and ultimately poor decisions. Unhealthy data is really "sick data," and if the data is sick, the business suffers too. True, you could still make sales, engage audiences, manage risk and comply with regulations, but consider all the extra effort it requires, and the missed opportunities, when the data is not as optimal as it could be. It's as if a company, metaphorically speaking, is huffing and puffing as it climbs a few flights of stairs. It gets there in the end, but it hurts.
Poor data, like poor health, can lead to serious problems. Misguided definitions, lack of internal standards, disparate data sources and multiple workflows converge to hinder growth, leading to stress and frustration.
Fortunately, there is a cure for poor data.
Good data, like good health, requires proper management. But make no mistake: it takes effort. There is no magic pill. You have to take a look at your customer data; it's probably scattered across multiple departments (sales, marketing, finance, operations), different geographic locations (local, regional, global) and a myriad of systems (ERP, CRM, MDM, MarTech, AdTech). If your company is like most companies, you probably have very few healthy standards and could benefit from a solid dose of well-managed data.
But just as many of us don't start a diet or exercise routine until our weight and cholesterol levels have reached unhealthy levels, proper data management usually doesn't start until we realize it's actually needed. That doesn't happen overnight. Here are the five stages many companies experience before implementing a master data strategy. Do you recognize your organization in any of them?
Denial: "Is this really happening?"
Your sales manager will adamantly assert, "We know our customers better than anyone else." But being close to customers doesn't mean that the data we have on them is anywhere near correct. Can a seemingly simple question like "who are our top customers" be easily answered?
Whether we're talking about customers, suppliers or partners, the master file depends on the consistent habits of everyone in the company. How many ways are used to identify "Wal-Mart"? Is Wal*Mart, Wal Mart, Wal-mart, Walmart and/or WM used? Hmmm...seems like a lot of work ahead to consolidate all those "Walmart" records and get an accurate view of sales. What about all the companies Walmart owns - are they your customers too? You have to open your eyes and face the question head on.
Anger: "Who did this?"
Trying to keep track of multiple business styles of a global customer is enough to stress anyone out. Seeing 100 variations of a customer's name would make anyone angry. But before you lambast employees for not keeping that straight, keep in mind that they are torn between maintaining data and selling your product.
As a leader of a company, what stresses more, low data quality or not hitting targets? What stresses the sales team more, low data quality or low commissions?
Negotiation: "We can fix this ourselves."
You might think: "We can implement a management program ourselves." Go for it! Try to deploy the necessary resources to formulate a strategic plan that ensures everyone enters the word "STREET" the same way or enters a phone number like XXX-XXX-XXXXXX.
After all, isn't everyone's responsibility for quality and consistency? Meanwhile, the competition is making connections, building relationships and increasing market share while our team is frustrated because they can't focus on what they were really hired to do. Is good spelling or good sales wanted?
Depression: "This is a disaster".
The more customers you have and the more data you collect, the more the problems will multiply. There is nothing worse than a customer saying that the view we have about them is incorrect. They want us to have a hierarchy that reflects the way they see themselves. But we don't, and it never seems to get it right.
Acceptance: "Okay, we need help."
Business moves fast...too fast. Thousands of companies open and close every month. Hierarchies and relationships are constantly changing. You can't keep up. How do you expect to keep up? You have to get in touch with those who understand this situation.
A shortcut to mastering your data
Healthy data makes for a healthy business. You have to embrace it and get to stage 5 as quickly as possible. Once we can begin to implement a consistent data structure, one that connects the entire enterprise universe of our business and is of a quality that can be trusted, our business can begin its journey to recovery and maximum health.