Improving Customer Master Data Quality: The Key to Success in the Digital Age
How many customers does your business have? This is a simple question, but not one that's always easy to answer accurately. Do customer accounts with multiple addresses count only once, or are they listed multiple times in your customer relationship management (CRM) system? What happens when someone moves, a company goes out of business, a new contact in a different department begins to purchase from you, or there's additional change?
In this era of instant gratification, both business clients and consumers have come to expect personalization. They're looking for relevant digital content, expect that sales, account management and customer service teams will remember their names, and appreciate highly targeted marketing messages tailored to their individual needs and pain points.
Improve Customer Master Data Quality to Create Better Personalization
When it works well, personalization can reduce acquisition costs by 50 percent, boost revenues by 15 percent, and increase the return on marketing spend by 30 percent.
Call your customers by the wrong names, mistake their addresses, or accidentally contact them multiple times for the same purpose, however, and you risk appearing insensitive, clumsy, or careless. You also risk giving them a long-lasting negative impression of your brand—one that could permanently cost you their business.
If you're like most business leaders—whether you sell B2B or direct to consumers—you're likely well aware that personalization is the key to success with consumers in the digital age. But you may not realize how critical high-quality customer master data is to all your personalization efforts. In fact, maintaining an accurate, consistent, and universal customer master data model is key to building strong relationships with everyone who buys from you today.
Better Customer Master Data Quality Gives You a 360° View of Your Customers
It's not just sales and marketing managers who benefit from having access to comprehensive and error-free customer records. In fact, nearly every line of business of your company can gain insights that improve performance and avoid costly or time-consuming mistakes by using better quality data.
Regardless of which CRM tool you have in place, you won't maximize its value to your business if the trends it's detecting or the customer segments it's identifying are based on inaccurate information. Data management solutions for sales and marketing can help you remove duplicate or outdated records. Not only does this help you understand who your customers are, how many there are, and where they are located, but it can also increase the accuracy of financial reporting—and thus enable better forecasting as well.
Additional benefits of better-quality customer master data
Every business unit or department that has direct or indirect contact with customers can reap the rewards of improved customer master data quality in multiple ways. These include the following:
- smoother technology transformation projects, including easier enterprise resource planning (ERP) system upgrades and migrations, e.g. to SAP S/4HANA
- simplified mergers and acquisitions, with more accurate due diligence reporting and quicker system integrations (e.g. of different SAP systems)
- reduced risk of financial losses and fraud due to bank account number errors
- more accurate tax reporting, financial planning, and analysis
- better understanding of the world in which you do business
Today's advanced data management software solutions, as CDQ Data Management Services, make it easy to improve customer master data quality by automating the creation and updating of customer master data records within existing ERP and CRM Systems (like SAP and Salesforce). They also improve deduplication and cleaning procedures, provide comprehensive quality reports, and even integrate with public records and third-party data sources to ensure that your data remains accurate. It's a fact: the higher the quality of your data, the better you can personalize messaging, support sales, and provide tailored customer experiences—ultimately driving revenue and business results.
Bayer uses Data Sharing to consolidate business partner data after Monsanto merger
"When Bayer and Monsanto merged in August 2018, we had to consolidate a decade of vendor and customer data from two companies into one database. Both companies were probably selling to the same customer and we need to ensure a smooth one face to the customer. CDQ helped us with their cloud-based solution in record time. They analyzed over 1.3 million records, suggested quality improvements, pointed out double entries, and ran a series of workshops where we tackled one region after the other. In total, we eliminated over 80 thousand duplicates and improved data quality in over 1 million records in a time span of 10 weeks.
A merger of this size needed the best data management approach we know. With CDQ, we could deliver against much faster and much better! We are happy to embark on the next part of our data quality journey with them!”."
Gerhard Gripp, Global data lead - M&A, Bayer Business Services GmbH
Want to learn more about improving customer master data for your company? Check out our comprehensive portfolio of Data Management Solutions.