Concerted effort needed to keep data up-to-date

OTOi, Marketing Services Team | One To One Interactive
July 30, 2002

Accurate and relevant information is one of the most valuable assets of any organization. More specifically, clean and up-to-date data, as well as properly maintained customer profile information, enables an organization to market more effectively, increase return on marketing investment, build brand loyalty and prevent customer alienation. Quality data can enable an organization to make more informed business decisions as a whole. So why are so many companies slow to implement rigorous data quality processes and procedures? In many cases, it is due in large part to the roadblocks that exist within the organization itself. First, let's take a look at some of those roadblocks and then ways to get around them.

Many organizations still operate in product silos. Due to a short-term profit and product focus, data needs are often evaluated at the business unit level and do not tie into the broader strategic business process of the entire organization. Thus, it is difficult for business unit heads to justify data initiatives that only affect one small piece of the business. Senior management is often not fully supportive of data quality initiatives because they are not aware of the implications surrounding poor data quality and/or do not believe they have data quality issues. Many senior managers assume that since they have poured hundreds of thousands of dollars into CRM initiatives (which for the most part have yet to show value) data quality and data hygiene should be part of the process. Or, they simply may not feel justified in allocating additional funds earmarked specifically for data cleansing, given that the return on investment (ROI) has not been proven at the strategic level.

IT departments are often reticent to support initiatives that will place more of a burden on already overtaxed resources.

And finally, many organizations are not certain what data they should be collecting and/or have not determined what data is most valuable. Thus, data collection procedures continue to change, remain disparate, and are often not tied to an organizational objective. In the online arena, data collection initiatives are still in their infancy and subject to the privacy concerns of the medium.

So what is an organization to do?

Establish a "Data Council" with senior level representation from each business unit. This council should be responsible for the development of an overarching data strategy that crosses business units and ties in with the overall strategic business needs of the organization. This strategy should include a cost-benefit analysis to the organization outlining the ROI and potential brand impact associated with proper data quality processes and procedures. In addition, this group should create formal documentation that addresses online data standards that comply with both industry and company privacy guidelines.

Appoint a head of "Data Quality" whose responsibility it is to maintain the integrity of data across the organization, as well as develop ongoing data hygiene processes and procedures that are to be adhered to across all data sources.

Enlist the help of a senior management sponsor. Educate him/her on the importance and bottom-line impact of a good/poor data quality process and use this individual as your champion within the organization. This individual should be heavily involved with the Data Council, as well as work with other senior managers to make data initiatives a priority throughout the organization.

To minimize the impact on IT resources, employ a data service bureau to assist in cleaning and updating your company's data. Many firms are now offering online data cleansing and hygiene services. Most of these newer services require no minimum order quantities and offer users the option of paying for the cleaning and updating of data when it is used, as opposed to charging costly yearly subscription fees.

Develop a data collection strategy that outlines how and what data should be collected, at what time intervals and across which channels. Make sure the information collected is information that is valuable to the organization. Do not collect data you are not going to use. Customers are quickly turned off when they realize the information they have provided has been largely neglected.

In summary, many companies face internal organizational challenges to implementing their data initiatives. These challenges include the lack of a single corporate wide data strategy that ties into larger organizational objectives, an unclear understanding by senior management of the issues surrounding data quality, IT department overload, and unclear strategies on data collection procedures. In order to overcome these challenges, marketers need to work across business units to demonstrate the strategic value of quality data to the organization. In addition, gaining the support of a Senior Management sponsor and placing one individual in charge of corporate wide data initiatives are key to gaining organizational acceptance. Finally, clear data collection procedures including what, where, when, why and how to collect information from customers must be developed so that data integrity is maintained across the organization.

back to White Papers