In our increasingly information-driven world, big data has become a point of emphasis for many businesses. However, simply having data isn’t enough – and you could make the argument that mismanaging data could potentially leave you worse off than not having any data to begin with. As a result, having an effective data management strategy has become a necessity for many businesses.
And as global management consulting firm McKinsey and Company puts it, “as data-driven strategies take hold, they will become an increasingly important point of competitive differentiation.” Here are some specific ways that having the right data management strategy can put you ahead of your competitors.
Better Understand Existing Customers’ Patterns and Preferences
By accumulating data and managing it properly, you can gain valuable insights into your existing customers’ buying habits and identify overarching trends. In turn, you’re able to determine what their preferences are and have access to their buying history whenever you need it.
This is incredibly beneficial because you’ll have a clear idea of what their unique needs are, which allows you to upsell and give relevant suggestions of products or services that might interest them. When you have organized information at your fingertips, it can also help you get the most out of your promotions, and you’re likely to see more repeat customers.
Effective Customer Segmentation
Often in business, a company will have multiple customer groups with each one requiring a different marketing approach. When you utilize the right data management strategy, you can gather information and use it to divide your customers into various groups in which each group shares similar characteristics.
This can come in handy because it allows you to create targeted marketing campaigns where you can connect with existing customers and prospects on a deeper level. Rather than taking a one size fits all approach, you can develop more customized campaigns and ultimately increase your conversion rate.
Optimize Information Architecture
Finally, an effective data management strategy will enable you to develop a solid information infrastructure. This will ensure that you’re only using data that’s genuinely helpful, and you’re not merely taking up storage space with irrelevant data. For example, it will provide a system that manages the flow of information from the time it’s initially uploaded and stored until the time that it becomes obsolete and is deleted.
It will also ensure that you’re able to quickly locate the information you’re looking for to minimize wasted search time. So when you look at the long-term impact of efficient information architecture, it tends to result in increased productivity and profitability.
Although big data is becoming more and more commonplace in numerous industries, this doesn’t mean that all businesses are using their data effectively. When you’re able to develop the right data management strategy, it definitely gives you a one up from a competitive standpoint. And the interesting thing about proper data management is that it can bridge the gap between industry titans and those lower on the totem pole. So even if you’re relatively small, you can definitely claim your share of the market with proper data management.