Customer data can be extremely beneficial to any organization, be it big or small. But this is only possible if said data is properly utilized.
In 2018, small businesses are likely to face a variety of challenges when it comes to effectively managing the customer data at their disposal. Some of the more prominent of said challenges are listed below.
Lack of a Data Strategy
This particular challenge isn’t new but the problems it poses maybe more pronounced in 2018 among smaller businesses as larger businesses are dedicating more and more resources to formulating cost-effective and high yielding data strategies.
A data strategy is essentially a roadmap that outlines how a company will gather, manage, and store data. In the absence of a data strategy, a company may struggle not only with how to gather data but also with what to do with it once it is in their possession. Therefore, as a means of helping develop an effective data strategy, small businesses can consider using resources like TagDataTrust, which can provide necessary tools, followed by guidance for managing data accurately and securely.
Data management involving multiple departments
The sooner small businesses realize no single individual or department is solely responsible for data management, the better. Departments such as marketing, legal and compliance, and even management, all in some way contribute to how data is managed and utilized in an organization. The number of parties involved and the technology being used can all complicate the data management process, especially if using legacy systems that are inflexible and difficult to use.
The solution to this complication would be to ensure cooperation among all departments when it comes to data management in order to ensure that the data is effectively utilized to care for the needs of clients. Alternatively, you can use data management software to collectively save all the data and provide centralized data access to a different department to streamline data sharing. If you need more information on such services and tools, go to these guys or contact a company that provides data governance products.
Where data is stored
Once data is collected, a company has to store it somewhere. Small businesses may opt for cloud solutions that can save data online and provide necessary security measures to keep sensitive data safe. But multinational companies and big enterprises require a big system to manage data. Thanks to data centres and cloud computing, data storage can be relatively cheap these days. But looking for a data storage facility that’s just cheap isn’t the way forward. Small businesses must keep an eye out for storage facilities that offer affordable services as well as have a reputation for solid encryption and the highest security levels. Also, data is better stored on a trustworthy platform that is scalable and expandable in order to be able to satisfy your company’s future needs – Should your company need sufficient and reliable data storage, it could be beneficial to look at the likes of 4d data centres and others that could offer storage solutions for large volumes of data.
GDPR is probably the biggest issue
The General Data Protection Regulation (GDPR) implementation that’s coming on May 25th, 2018 is a big worry for many small businesses. This is because many of such organizations are uncertain if their internally held or third-party customer data will be GDPR compliant by May. If compliance isn’t ascertained before GDPR officially comes into play, customer data management can pose a variety of problems for small businesses.
Poor data quality
And last but not least is the quality of data at the disposal of small businesses. Several businesses have complained over the years that the customer data at their disposal is often of poor quality due to out-of-date information, incomplete data, spelling mistakes, or data entered into incorrect fields. The solution in this scenario would be to validate data through automation to ensure good quality data. This is where tools such as Excel add-ins can play a crucial role in this process by providing tools that automate data cleaning and validation. These add-ins can help identify and correct errors, standardize data entry, and ensure that businesses maintain accurate and reliable customer information.
Effective customer data management is vital for small businesses aiming to thrive in a competitive market. The challenges of data quality, integration, security, accessibility, and compliance can seem overwhelming, but they are not insurmountable. By adopting strategic approaches and leveraging available tools, such as customer relationship management (CRM) systems and data analytics software, small businesses can enhance their data practices significantly. Embracing these solutions not only helps in overcoming the hurdles but also empowers businesses to build stronger relationships with their customers, make informed decisions, and ultimately drive growth. As the business landscape continues to evolve, staying proactive in managing customer data will be key to achieving long-term success and maintaining a competitive edge.
Is your business facing any other major customer data management challenges? Please share with us in the comment section.
