Creating and maintaining a central client profile has been a top-3 challenge for marketers for many years, according to the survey of the DDMA (Data-Driven Marketing Association). A part of the customer profile is almost always missing, and the quality is insufficient to reach goals in analytics and customer activation optimally.
Especially for organisations with legacy systems, processes and culture, this can be a challenge. Data and insight are often spread across multiple applications, the view is incomplete, and personalisation cannot be adequately performed.
Jan Hendrik Fleury, Chairman of the DDE Committee and Commercial Director at Crystalloids, emphasizes the necessity of centralizing data to achieve a unified Customer 360 view. When data is centrally available, actions taken in one channel can seamlessly enhance engagement or analytics in another, providing a holistic view of customer interactions.
Research by Econsultancy in 2018 reveals that leading data-driven organizations now assign the responsibility for managing customer data to their marketing teams, a shift from the previous norm of IT departments holding this role. This change highlights the increasing importance of having a Customer 360 view to drive marketing strategies.
Does marketing have to handle this alone? Absolutely not. Achieving a comprehensive Customer 360 view requires agile collaboration between marketing, IT, and other departments. New functionalities and solutions can be delivered iteratively to meet the evolving needs of both the business and the customer. This collaboration occurs across three crucial areas: technology and data, human factors, and processes.
To centralize data effectively, various solutions are available, each with its own focus. The goal is to achieve a unified Customer 360 view, where all data points contribute to a comprehensive understanding of each customer. Here’s an overview of some solutions:
Customer Data Platforms (CDPs): These platforms specialize in unifying customer data, offering the highest possible recognition of customers and prospects. CDPs come in various types, focusing on different aspects such as data integration, decision-making, or campaign management. It’s not uncommon for organizations to use multiple CDPs, such as combining a data warehouse with decision engines and campaign functionalities.
Data Management Platforms (DMPs): While DMPs can centralize data, their scope is often limited to second and third-party data like cookies, IP addresses, and device IDs. With the decline in third-party data availability due to major changes in browser settings and cookie regulations, the relevance of DMPs is waning. However, they still offer value when integrated with first-party data from sources like Google.
Jan Hendrik Fleury identifies three critical elements for successfully achieving a Customer 360 view:
Organizations lacking expertise in these areas should consider engaging specialists to ensure a robust implementation.
Jan Hendrik Fleury offers these eight critical takeaways for organizations aiming to build a unified Customer 360 view:
Thoroughly Map Customer and Business Journeys: Start by conducting an extensive mapping of both customer and business journeys. This will provide clarity on what you need from your data and how it should be used to meet your goals.
Align Applications with Data: Design your data strategy so that applications and tools are tailored to work seamlessly with your data. This approach ensures that data drives application functionality rather than forcing data to fit into existing applications.
Foster Cross-Functional Collaboration: Encourage close cooperation between marketing, sales, IT, and data specialists. A united team ensures that data is leveraged effectively across all functions to enhance the Customer 360 view.
Adopt Agile Methodologies: Implement agile practices such as DataOps, DevOps, and SCRUM to facilitate continuous improvement and adaptability. This allows your organization to swiftly address changes and new requirements in data management and customer engagement.
Avoid Vendor Lock-In: Select solutions that offer flexibility and avoid dependency on a single vendor. This strategy helps maintain control over your data infrastructure and reduces costs associated with vendor constraints.
Design with Data in Mind: Integrate data-centric strategies into your design processes. By considering data from the outset, you can build systems and processes that efficiently handle and utilize information.
Prioritize Privacy and Security: Ensure that privacy and security measures are embedded into your data management practices from the beginning. This approach protects customer information and builds trust.
Monitor Data Ecosystem: Regularly review your data flows, data quality, system connectors, and associated costs. Continuous monitoring helps identify and address issues promptly, ensuring the integrity and efficiency of your Customer 360 view.
By focusing on these takeaways, organizations can effectively centralize their data, improve customer insights, and drive more impactful marketing strategies.
See below the whole DDMA presentation, including Nationale Nederlanden and CDP Institute.