Master data management (MDM) is defined as “a comprehensive method of enabling an enterprise to link all of its critical data to one file, called a master file, that provides a common point of reference” is one way that businesses make big data more efficient. By using a master file, companies can improve both the quality of information, and it can serve as a value driver. Let’s now look at some specific ways this is accomplished.
Consistency Equals Better Efficiency
In order for big data to truly do a business any good and have any tangible results, there needs to be consistency. For example, if customer data is fragmented, inaccurate or there are duplicates, it’s going to make it more difficult to effectively upsell or cross-sell –not to mention it can throw a wrench in the supply chain. But when MDM is integrated, it tends to result in more consistent data and more cohesion. In turn, managers and employees can utilize business applications and software with more efficiency, and they’re less apt to make needless mistakes.
In the case of upselling and cross-selling, MDM would increase the likelihood that customers would receive promotions for products/services that they are genuinely interested in, and a company could avoid sending multiple promotions to a single customer. When it comes to supply chain management, MDM can help a company improve distribution and the flow of goods so that it could better meet demand.
When you look at the long-term impact of this added efficiency, it means one thing – a business often becomes more profitable. Here are two examples to prove how:
- A business that uses MDM to govern its data could become better skilled at upselling and cross-selling and would likely see a higher conversion rate and get the most out of promotions. They would also be able to build stronger relationships with their existing customers, which would lead to repeat sales and more word of mouth advertising. In turn, the business would see a better ROI and become more profitable in general.
- A company that uses MDM for handling the data from its supply chain management would be able distribute products more quickly and with less friction than it would if it were lacking a solid data management system. This means that it would be able to keep up with customer demand more easily and be poised to capitalize on its most profitable products while they’re popular. As a result, it could streamline the distribution process and reduce supply chain costs, which again means more profitability.
- And as the amount of data that a business accumulates continues to grow, it becomes even more essential to incorporate MDM. That way it’s better equipped to establish an effective information infrastructure that keeps nearly all aspects of operations running smoothly. So when you look at the big picture, MDM allows a business to function like a well-oiled machine while simultaneously improving the customer experience for a win-win situation.