Fueled by data, the Fourth Industrial Revolution is undergoing modern technological disruptions. High-quality data has become the most lucrative asset in the 21st century, surpassing gold, oil, and other treasured minerals.
The world is generating ginormous volumes of data. In 2020, global data creation and consumption reached 64.2 zettabytes. By 2025, Statista forecasts data creation and consumption to reach 181 zettabytes worldwide.
For businesses, more data means more money — only if they know how to use it.
Gartner reports that business leaders can increase their business value by 2.6X if they carefully set their goals and strategies based on data and analytics as to the core business function. Business leaders need to ask a few basic questions.
Are they collecting relevant data and using it productively? Can they extract more value from the data? Do they need to collect more (diverse) data to offer better services? Which parts of the customer journey can be improved by using data?
Before we understand what goes into managing an efficient data strategy, we need to know what makes high-quality data. Ensuring the standards for maintaining high-quality data results in improved business operations. Some of these standards are:
- Accuracy: Data must be domain relevant, reliable, and error-free.
- Auditability: Any changes to the data must be traceable to ensure transparency and accessibility.
- Completeness: Nothing is missing, and the available data can effectively solve the targeted business problem.
- Consistency: Data features, labeling, and annotation are uniform across the entire database or multiple data sources.
- Orderliness: Data must be structured and formatted to perform data analysis and derive customer insights.
- Timeliness: Customer trends are constantly changing. The available data must be in accordance with the real-time trends.
- Uniqueness: Duplicate data can result in faulty data analysis. The data must have unique values for each category.
Regardless of the business domain, the effective use of high-quality data has many benefits. Companies are making customer-centric data policies that increase the business ROI. Customer-centricity puts customers at the heart of every business decision rather than the products and services.
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Benefits of Making Customer-Centric Data Strategies
If your business collects zero-party or first-party consumer data by providing products and services — you are in for a treat.
Improved Products and Services: Customers give feedback for products and services via various channels like emails, phone calls, messages, and online feedback, etc. It is vital for companies to identify customer pain points and collectively analyze these reviews to satisfy future customers. Their feedback can also fill the gaps by identifying potential business expansion opportunities.
Improved Marketing Strategies: Great marketing and advertisement strategies are paramount for the success of a business. Marketers are leveraging Artificial Intelligence (AI) and automation to analyze consumer data and deliver personalized ad campaigns. They are learning more about consumer preferences every day to customize products promotions and discounts.
Reduce Churn Risk and Fraud: Using advanced AI techniques, companies can analyze customer data to predict customer churn. This is vital information as the cost of acquiring new customers is five times greater than retaining existing customers. Loyal customers are likely to spend more on a brand, but companies need to maintain the standards of their products and offer new ones at the same time to keep the customers engaged.
Efficient data analysis can also reveal potentially fraudulent activities, and timely intervention can save the business from any considerable losses. Increase Business ROI: Businesses can increase their ROI by targeting prospects who are more likely to become customers, ultimately generating more sales. Data enables them to provide a better customer service experience by precisely predicting their desires and intentions.
Now, the critical question is — how? How can leaders leverage data to improve their businesses? The answer lies in data management.
Why Data Management Matters?
Companies need reliable data management services to store, organize, transform, integrate and govern the consumer data created or collected. In return, the company can expect reliable customer reporting and business recommendations.
Data management services employ tools like Tableau and Power BI to manage big data efficiently. They provide interactive data visualization and reporting techniques. Real-time reporting dashboards allow the business executives to make quick decisions, giving them an advantage over their competitors.
With advances in AI technology, data management tools offer predictive modeling and segmentation of customer data, enabling business leaders to make better-informed decisions.
Data management allows consumer information to live in a secure environment. Most data management services use modern cloud service providers like Azure, AWS, and Google Cloud to ensure security and automated data backup.
Data management on the cloud enables a pay-as-you-go model for hosting a company’s data assets. Once enabled, the cloud infrastructure can instantly provision resources like virtual machines (VMs) and database servers to allow easy access. The data infrastructure can be scaled automatically, allowing cost optimization.
Data management services can perform ETL (Extract, Transform, and Load) processes. Companies can easily migrate data between servers and locations. This includes migration from on-premise data infrastructure to cloud infrastructure. More raw data can be integrated with existing data after careful formatting and restructuring. Migrations are also responsible for aligning all data sources and making them useful for the companies products and services.
Data management systems perform regular data quality checks to identify any irregularities. Intelligent systems can identify anomalies in real-time as well.
In the last five years, consumers have started taking their data privacy quite seriously. It is also crucial for data management services to ensure customer data privacy according to GDPR and CCPA policies. Browser like Mozilla has blocked third-party data access, with Chrome following suit soon. Managed and compliant data services make sure that all existing and new data sources are conformable to the changing privacy trends, ultimately increasing customer trust and transparency.
Are you looking for a completely automated and reliable data management service? Please book an appointment now to start your digital transformation journey with us at weblytical.solutions.