Does Your Customer Data Strategy Contain These Three Factors?
In his post, How To (Not) Get Smart About Big Data, Wim Rampen points out that organizations attempting to harness Big Data need to move into “strategic mode” in order to make sense out of the increasing flow of data. I believe his post applies not only to those moving into “Big Data,” but equally to anyone who doesn’t have an updated plan for managing existing data.
Wim proposes five questions you should answer to help you get into this strategic mode. I agree with him as far as he goes, but there are also three other important factors that need to be addressed.
Resources
I rarely see any discussion in the blogosphere around how data gets into your CRM or similar database. The assumption seems to be that it’s either all automated or it just appears via magic. For us, it’s not and it doesn’t. We have individual account managers who key account updates directly into the software. If we expand the amount of data we collect, we’re going to have to give them additional time to key it. That means they’ll have to give up something else. That leads us to the second factor
Change Management
Adding new data fields (and taking away some old ones) results in changes, both large and small. For senior managers, changing the data means that their monthly reports might change and that for the baseline year, it may not be possible to get year to year comparisons to last year. They are probably perfectly happy with their current management reports. Just as important, their team members are already complaining about spending too much time in administrative tasks. Now you want them to collect more data which will take more time to key? How will you address that?
Data Integrity
How accurate is your data? If you’re going to expand the type or amount of data you collect, how will you ensure that the new data is accurate? NASA refers to inaccurate data as “ratty data.” You don’t want to be making decisions based upon ratty data. Try launching a new texting strategy if you can’t differentiate between a cell phone number and a home or office number.
There are seven different ways to get data into our organization’s CRM software. We use scannable forms, online registration from our Web site and a third party event site, a centralized data entry department, and more. Each source has potentials for mistakes resulting in inaccurate or duplicate records. Each needs continual oversight.
Back to Wim’s point, I agree with him. He calls it “strategic mode,’ I call it a "Data Integrity Strategy” which must be aligned with your overall CRM, Customer, or SCRM Strategy. It should:
• Identify the resources you’ll need
• Contain an internal communications plan (which includes a business case) to address change management
• Prioritize the data you’ll collect
• Provide for analysis
• Determine what you’ll do with that analysis
• And include processes to ensure your data is accurate
Consider both the components above and the questions Wim poses. As he pointed out, moving to big data (or just updating your data needs) involves much more than purchasing new technology. I strongly believe you need a data strategy, if only to monitor data accuracy.
If you’re going to change your needs, first consider the demand upon resources, the change management issues, and how you’ll prevent ratty data before you create your plan.
Regards,
Glenn
You might find some bad puns, but you won’t find any ratty data when you follow me on Twitter. I’m @txglennross.
