Ignoring Master Data Can Lead to Revenue Loss

by CXOtoday News Desk    Feb 21, 2014

master data

Master data management (MDM) is essential to the success of customer relationship management (CRM) optimization, according to a report by Gartner.

The research firm said that companies need a 360-degree view of the customer that combines all data that is currently held in different places, and that this information is needed for duplicates before businesses can produce a true understanding of the customer. This unified approach, known as MDM, is seen as critical to businesses as that are becoming more customer-centric.

This calls for a “holistic, multichannel view” of a customer’s activity with a company, which it said opens lots of possibilities for improved customer service, sales, marketing, and e-commerce, says Gartner.

Gartner predicts that any company operating from now through 2017 without employing MDM will get misleading results that irritate customers and result in a 25 per cent reduction in potential revenue gains.

“Over the last several years, CRM software sales have outstripped overall IT spending,” said Bill O’Kane, research director at Gartner. “CRM leaders must understand the benefits of the MDM discipline to CRM and make it part of their CRM strategy. MDM is critical to enabling CRM leaders to create the 360-degree view of the customer required for an optimized customer experience.”

Gartner states that marketing, particularly in B2C organizations, is taking more ownership of the consolidated or 360-degree view of the customer, to help drive better customer engagement and ultimately develop improved customer experience by reducing the amount of time customer-facing staff have to spend determining the next-best action to take with a customer.

O’Kane states that MDM makes these changes feasible by providing a single point of entry for this data, which is then published automatically to the appropriate operational systems’ data stores.