Data integration was once an issue for companies integrating data across borders, but it has become an even bigger problem since the advent of the internet.
The internet is a cost-efficient and effective way of capturing customer data, providing huge benefits to marketers. But this has also become a double-edged sword as marketers struggle to work out how, or if, they should integrate this data with their offline data, and how this process should be managed.
Of course technology has developed rapidly over the past few years to ensure that data integration is easier, but we are still finding that people do not invest enough time up-front in developing a strategy. The technology is the driver and the competitive advantage is in the thinking.
But there are a number of experts in this area whose job it is to help companies achieve this integrated utopia, although this relies on companies initially being able to establish they have a 'real' need. Data is the same, regardless of the collection channel, and it is the single most important asset an organisation has. Without good customer data there is no business and the cost of misuse is enormous.
Data integration is complex and unfortunately there is no magic solution.
The decision to integrate your data from any channel should be dependent on what you are trying to achieve. And there are a number of things that need to be taken into consideration.
Do you need a single customer view?
You may have read numerous articles recently about the importance of having a single view of your customer, but you need to decide if having a single view is really right for your business.
To support this decision you need to analyse what you are selling and who you are selling to and decide why and how it will be beneficial to integrate the data you have. A major consideration will be if you have existing databases that need to be taken into consideration, as there may be legislative issues related to data protection or internal issues that mean the data must be kept separately. It is important to consult all users of the customer data before making the decision to integrate.
Audit your data
Once you have made the decision to integrate, it is essential to analyse carefully who you are targeting and why are you targeting them.
Careful consideration should be given to how your customers want to be contacted. For example, are they registered with the MPS but still happy to receive email communications?
All these factors are crucial when defining your data strategy. Undertaking a data audit at this early stage will enable you to define what data you need in the first place and what channels to use for data collection and customer communication. Secondly, it sounds obvious, but you must ensure that your data strategy ultimately meets your long-term business objectives.
Integrating your data is an expensive exercise, and one which should only be undertaken if it offers long-term return on investment.
Be aware of the channels you use to collect data
Nowadays there are numerous media used for data capture and one of the common pitfalls is not being aware of all the channels you already use to collect data.
Analyse where you collect data at present. Look carefully at what you collect and how and why it is used. This will aid you in your decision to integrate online and offline and help define your objectives for doing so.
If you are collecting data across different channels and want to integrate them, make sure it is compatible in terms of the fields.
Be clear on ownership issues
You must be clear on who owns the channels you will be using for collection. What charges will you incur? Will you need to outsource back-end functions for data input?
If so, you must be sure to communicate to them your complete data strategy - they need to be aware of the bigger picture to be able to provide you with exactly what you need.
Jo Short, business development director, Alchemetrics
CASE STUDY: THE TELEGRAPH GROUP
The Telegraph Group publishes The Daily Telegraph, The Sunday Telegraph, The Spectator and the telegraph.co.uk network of websites.
The group generates consumer information through in-paper promotions, competitions, events, quarterly surveys and registration data captured via the website.
To ensure useable data through all channels, the group's integrated approach ensures all information requests are standard across all channels, yet all outgoing communications to customers are tailored to customers' preferred channels.
To ensure that its data strategy was integrated through all channels to meet its business objectives, The Telegraph with the help of Alchemetrics, adopted the following changes.
- Development of the database to enable it to gain greater insight to customers to generate improved revenues as a result of better targeted promotions, competitions, events, partnerships and surveys.
- Deployments of enhanced data management processes to improve data quality and accuracy across 75 data feeds, containing in excess of 500,000 transactions.
- Online integration of SPSS modelling scorecards to facilitate faster, more efficient marketing campaign planning and execution.
- Provision of increased systems flexibility and scalability.
- Delivery of web-enabled, intuitive and fast querying and campaign management application to marketing users.
- Enable secure, online access to data for unlimited analysis and data extracts.
- Technique is sponsored by Global Address, the data quality specialist. Contact Catherine McFarland on +44 (0) 117 915 4018 or visit www.globaladdress.net.