Benefits of Master Data Management for your Business
Master data management (MDM) was born out of the need for businesses to improve the quality of their data, as well as that of the insights they can derive from that data.
We can no longer say that we don’t have enough data to make informed decisions. Quite the opposite, in fact. Most companies are drowning in data that they can’t properly leverage. Using this large volume of data, if it isn’t managed, cleaned, and interpreted properly, can actually hurt your business more than “going with your gut.”
So what can you do? It’s 2020, so we know there’s a better solution than choosing between half-assed data and “the gut feeling.”
What Is Master Data Management?
Master data management is the process that manages, organizes, centralizes, localizes, synchronizes, and categorizes all your data, across departments and according to certain predefined rules.
Master data management is an early output of many companies’ data governance efforts. While data governance is the higher-level, strategic approach a company wraps around its data, MDM is one of the tactics for reaching data governance goals.
Imagine a huge pile of books from every possible genre. A librarian would sort through that pile and take the time to categorize each book and then arrange them alphabetically, by genre, or using the beloved Dewey Decimal System.
This is what MDM does for the data in your business: It organizes and categorizes it so you know where the information you need is and so you can trust that the information is being stored and managed in a way that makes it most useful for decision-making. With proper MDM, your data becomes more and more valuable—you can easily access it, use it, and leverage it for better campaigns, customer service, or improved business processes.
Top Benefits of Master Data Management
What can master data management really do for you?
Overall, your data management efforts enable seamless integration between your departments and offer your customers exactly what they want: a unified, smooth experience with your business.
1. Cross-sell Services
When your data is no longer siloed, you have a bird’s eye view over every customer or account. You can then easily send them only relevant offers instead of annoying them with countless promotions and emails for products they will never buy.
2. Better Customer Service
The moment one of your customers calls or emails your support department, the rep will know all there is to know about that person’s history with the company, without having to browse multiple systems or ask a colleague in a different department.
Your customers are happier and your team is more efficient and effective (and likely happier as well).
3. Seamless Business Processes
Forget all about inputting data manually or migrating it from one system to another. With master data management, the goal is to get to the point where all your data is updated in the data warehouse automatically.
Let’s follow up on the address change example above. According to the rules you create, when a customer changes their address and the sales rep updates it in Salesforce, it can automatically be updated in the data warehouse, which then updates it in the accounting and other systems as well.
The beauty of master data management is that it’s 100% customizable and adaptable to your business processes and your needs. And as with everything we do, it can be implemented iteratively with the highest-priority items being tackled first.
4. Get to Know Your Organization Better
It can be surprising to learn how many gems lie hidden in unused and/or improperly analyzed data. With the right master data management processes, you can answer your most pressing questions and make more effective and timely decisions.
Which department has the most efficient processes?
How much time are your team members spending on repeatable manual tasks instead of focusing on growing the business?
Which leads are ready to buy and which are simply annoyed by your campaigns?
Data can answer any question you have as long as you know how to leverage it.
Source: Far Reach