[{"@context":"http:\/\/schema.org","@type":"Article","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/04\/20\/customer-data-management-strategy-best-practices\/#Article","articleBody":"Shifting business models and increased customer expectations make growth in the age of massive data sets complex, to say the least. Customer data management by definition is having systems in place not just for collection, but also for the protection and use of data. Having a customer data management strategy has grown beyond previously designed tools, and is crucial for brand success in marketing, sales, CX, and more. \nDefining your strategy for customer data management is mission-critical, as is finding the right solution for it.\nStart with the customer data management (CDM) definition\nCustomer data management definition is the operation of gathering, organizing, and drawing insights from customer data across multiples sources and filtered through specific qualifiers in order to create unified customer profiles. This process creates valuable information to build upon across diverse departments in an enterprise with a dual-pronged end goal of improving customer experience and revenue.\nUnderstanding why you are collecting data, really thinking through the end-use, helps to create a process of combining planning and data to achieve goals. Customer experience is actually a part of the customer data management definition because as data is more closely regulated and customers expect more personalization, your data collection needs a plan.\nWhat is customer data management strategy?\nA customer data management strategy is defined as the practice of collecting, storing, and using customer data. It allows a brand to better understand, target, and serve its customers \u2013 and its importance cannot be underestimated \u2013 experts estimate the cost of poor quality data to be several trillion dollars per year. \nResearch shows the vast majority of consumers are more likely to make purchases from brands that offer personalized experiences.\u00a0\n \nThe future of omnichannel: Manufacturing, D2C, data in e-commerce era\n   Whether B2B or B2C, it's no longer enough to survey customers. To engage, retain, and earn customers, brands must understand buying habits and behavioral patterns.  \nCustomer data management strategy: 7 best practices for success\nThe thing is, a successful customer data management strategy is not simply about the technology that supports it. It includes automation-driven software that aggregates and organizes customer data across devices and channels and eliminates silos, building unified customer profiles that reflect the entire path-to-purchase.\u00a0\nThe customer data management definition clearly lays out a need for processes and guidelines. Brands need to adopt 7 best practices around a customer data management strategy to help define an overall plan and goals:\u00a0\nUnderstand the business objectives\nCleary define the data strategy use cases\nUnderstand data governance standards \u2013 before you start\nIdentity must be at the core of your customer data management strategy\nRecognize that data privacy betters the experience for brands and customers\nDefine who has control over the customer data internally\nSelect technology that\u2019s real-time, data-driven, and best for your sector\n \nAs third party cookies crumble, IT teams must seize 3 opportunities\n   With the upcoming end of third-party cookies, IT teams have a unique opportunity to\u00a0amplify their impact\u00a0on revenue growth and customer experience.\u00a0Read more to find out why\u2026\u00a0\u00a0  \nOrganizations should focus on business objectives to craft a customer data strategy\nTo focus on business objectives, you need to understand them. Here are two questions you should ask: \nWhat are you looking for customer data management strategy to do for your brand? \nWhat are the business goals and objectives you\u2019re trying to achieve? \nWhether it is to foster personalized experiences, improve privacy and accuracy, or boost the bottom line, figure out what\u2019s driving attention and investment in this area.\u00a0\n \nCustomer data management\u2014Best practice and CDP\n   Customer data management is customer service you can't see with results you really can measure. CDPs deliver exceptional customer data management solutions.  \nData strategy use cases should be clearly defined\nCustomer data management use cases should be defined to reflect the different ways that teams and departments will benefit. \nFor example: \nMarketers may want to set up parameters for known customer behaviors to trigger personal engagements. \nSales may want to integrate customer data with other tools to determine buyer intent. \nCustomer service organizations want the full context of a customer\u2019s experience with a product or service at their fingertips.\u00a0\n \nModern marketing: The fundamentals have changed \u2013 have you?\n   The definition of marketing is moving goods and services from the source of tools, channels, and mechanics to the consumer, but most marketers haven't adapted for digital - and that's a BIG problem.  \nIn today\u2019s online marketplaces, data governance standards are required\nFor successful customer data management, it\u2019s essential to establish a framework of policies and standards that address compliance, regulations, and handling of data across the enterprise. \nWith the right data governance standards in place, brands can:\nImprove decision-making\nAvoid collecting bad data\nBoost security\nIdentity should be at the core of any customer data management strategy\nKnowing your customer is a primary goal for any customer data management strategy. That means honing in squarely on identity. The brand must unify customer data around a foundational identity in order to create holistic, first-party profiles.\n \nHow a living profile can build customer trust with data\n   What is a living profile? How can it build customer trust? Learn how to give consumers the ability to create their own personalized experiences via data platform solutions.  \nData privacy serves the interests of both customers and brands\nYour customer\u2019s interests should be at the heart of customer data management strategy, which, in turn, helps boost the brand. That includes respecting data privacy. \nAfter all, According to Gartner, 65% of the world\u2019s population will have its personal information covered under modern privacy regulations in 2023.\nBrands should make sure their customer data management tools fully address consent and permissions.\nCustomer data ownership should align with goals\nDifferent teams may use customer data management for various use cases, but brands should make sure to determine who has responsibility and ownership over customer data. \nIs it marketing operations? Sales? IT? Does a member of the management team play a key role? \nThere\u2019s no right answer, but the decision should align with the organization\u2019s goals.\u00a0\nChoose technology based on real-time customer data management \nData-driven insights help brands understand their customers, engage with them confidently, and deliver on brand promises. \nCustomer data management requires best-in-class technology that provides real-time solutions to activate useful insights at just the right moment. Your investments should focus on tools that offer accurate engagement across every touchpoint.\u00a0\n \nAs third party cookies crumble, IT teams must seize 3 opportunities\n   With the upcoming end of third-party cookies, IT teams have a unique opportunity to\u00a0amplify their impact\u00a0on revenue growth and customer experience.\u00a0Read more to find out why\u2026\u00a0\u00a0  \nCustomer data management strategy for omnichannel engagement success\nEvery brand needs to elevate their customer experiences if they want to stand out in a fiercely competitive landscape. \nWhether that\u2019s related to e-commerce, brick-and-mortar POS, B2B sales, or customer service, how organizations tackle the vast data sets that help them understand customers more deeply can make the difference between long-term loyal customers and cart abandonment. \nFocusing on the best practices that enhance holistic, unified customer data management is a must for any brand looking to unlock omnichannel customer engagement.\u00a0\nTaking these seven principles and employing them in your customer data management strategy is a surefire way to accelerate your journey to success.\nStand out from the crowd by understanding your customers, keeping your promises, and protecting consumer data. Learn how HERE.","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/04\/20\/customer-data-management-strategy-best-practices\/#Article_Person","image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/04\/20\/customer-data-management-strategy-best-practices\/#Article_Person_ImageObject","url":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/uploads\/2019\/08\/Sharon-Goldman-150x150.jpg"},"name":"Sharon Goldman","sameAs":["https:\/\/twitter.com\/sharongoldman","https:\/\/www.linkedin.com\/in\/sharongoldman\/"],"url":"https:\/\/www.the-future-of-commerce.com\/contributor\/sharon-goldman\/"},"dateModified":"2021-11-09T03:27:15+00:00","datePublished":"2021-04-20T05:06:07+00:00","description":"7 key principles for customer data management strategy support brands' data goals. 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