Video Transcript – Jeff Gold, Principal
How are companies making the most out of customer data?
What we're seeing is companies investing huge amounts of money implementing proper systems, purchasing external data, and integrating their internal data, so that they have a really good picture of who their most valuable customers are. This not only increases the top-line revenue growth of the organization, because the sales and marketing groups know which customers to most effectively target, but actually reduces costs as well, because it reduces the amount of manual data integration and analytics work that's required to understand who your customers are, but it also reduces a tremendous amount of waste of investment that's spent on unprofitable customers or those that aren't really going to contribute your bottom line.
A lot of organizations try to implement the perfect solution the first time, and so they end up with the scope of a project that's so enormous that it would take years—if at all—to even get it right.
What are the keys to successful customer data management?
What are the things that will have the biggest impact on our revenue growth and on our overall profitability, and maybe what aren't the most difficult to implement? And that's where that collaboration between the business and IT really comes into play. So it's not just important that IT understands the business drivers and understands what sales and marketing needs to make decisions, but it's also important for the business side to really understand and have empathy for IT.
Another thing is making sure that the design of the solution is implementable, so making sure that the processes, the data flows, the roles, [and] the governance all around the entire solution can actually be implemented within a reasonable amount of time and have a high degree of success.
Your sales force is out in the field interacting with your customers on day-to-day basis. Back at the home office, you're collecting sales information [and] sales data about those customers. There's market data available everywhere. Your competitors have access to this information—you need to be able the harness this information and really use it to make the right sales and marketing investments. Having a good customer data management solution allows you to improve your segmentation, your targeting, and collaboration, not only between the sales and marketing groups, but between the analytics groups back at headquarters and with your sales force that's out interacting with your customers on a day-to-day basis.