[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/04\/20\/customer-data-management-strategy-best-practices\/#BlogPosting","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2021\/04\/20\/customer-data-management-strategy-best-practices\/","headline":"Customer data management strategy: 7 keys to growth, CX, loyalty","name":"Customer data management strategy: 7 keys to growth, CX, loyalty","description":"Brands need to adopt these 7 key principles around customer data management to help define their overall data strategy and goals.","datePublished":"2021-04-20","dateModified":"2023-03-24","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/contributor\/sharon-goldman\/#Person","name":"Sharon Goldman","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/sharon-goldman\/","identifier":375,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/c9eebd6834021cf0fd56c2bc8914605e8ceacdb288e6547052cda5eb176992c0?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/c9eebd6834021cf0fd56c2bc8914605e8ceacdb288e6547052cda5eb176992c0?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"The Future of Commerce","logo":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","width":172,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/04\/7principles_1200x375.jpg","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/04\/7principles_1200x375.jpg","height":375,"width":1200},"url":"https:\/\/www.the-future-of-commerce.com\/2021\/04\/20\/customer-data-management-strategy-best-practices\/","about":[{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/cdp-customer-data-platform-solution\/","name":"CDP: Customer Data Platform","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_data_platform"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/cdp-customer-data-platform-solution\/cdp-customer-data-platform-general\/","name":"CDP: Customer Data Platform","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_data_platform"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/customer-experience\/customer-data\/","name":"Customer Data","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_data","http:\/\/www.wikidata.org\/entity\/Q56278300"]},"Customer profiles: Customer Identity + Access Management (CIAM) for B2B and B2C",{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/uncategorized\/","name":"Uncategorized","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Categorization","http:\/\/www.wikidata.org\/entity\/Q5884621"]}],"wordCount":1263,"keywords":["CDM | Customer Data Management","CDP | Customer Data Platform","Chief Data Officer | CDO","CIAM | Customer Identity and Access Management","Consent Data Management","Customer Data Strategy","Customer Experience | CX","Data Strategy","Digital Identity","GDPR"],"articleBody":"Shifting business models and increased customer expectations make growth in the age of massive data sets complex, to say the least. Customer data management by definition is having systems in place not just for collection, but also for the protection and use of data. Having a customer data management strategy has grown beyond previously designed tools, and is crucial for brand success in marketing, sales, CX, and more.Defining your strategy for customer data management is mission-critical, as is finding the right solution for it.Start with the customer data management (CDM) definitionCustomer data management definition is the operation of gathering, organizing, and drawing insights from customer data across multiples sources and filtered through specific qualifiers in order to create unified customer profiles. This process creates valuable information to build upon across diverse departments in an enterprise with a dual-pronged end goal of improving customer experience and revenue.Understanding why you are collecting data, really thinking through the end-use, helps to create a process of combining planning and data to achieve goals. Customer experience is actually a part of the customer data management definition because as data is more closely regulated and customers expect more personalization, your data collection needs a plan.What is customer data management strategy?A customer data management strategy is defined as the practice of collecting, storing, and using customer data. It allows a brand to better understand, target, and serve its customers – and its importance cannot be underestimated – experts estimate the cost of poor quality data to be several trillion dollars per year. Research shows the vast majority of consumers are more likely to make purchases from brands that offer personalized experiences.\u00a0      The future of omnichannel: Manufacturing, D2C, data in e-commerce era                Whether B2B or B2C, it's no longer enough to survey customers. To engage, retain, and earn customers, brands must understand buying habits and behavioral patterns.      Customer data management strategy: 7 best practices for successThe thing is, a successful customer data management strategy is not simply about the technology that supports it. It includes automation-driven software that aggregates and organizes customer data across devices and channels and eliminates silos, building unified customer profiles that reflect the entire path-to-purchase.\u00a0The customer data management definition clearly lays out a need for processes and guidelines. Brands need to adopt 7 best practices around a customer data management strategy to help define an overall plan and goals:\u00a0Understand the business objectivesCleary define the data strategy use casesUnderstand data governance standards – before you startIdentity must be at the core of your customer data management strategyRecognize that data privacy betters the experience for brands and customersDefine who has control over the customer data internallySelect technology that’s real-time, data-driven, and best for your sector      As third party cookies crumble, IT teams must seize 3 opportunities                With the upcoming end of third-party cookies, IT teams have a unique opportunity to\u00a0amplify their impact\u00a0on revenue growth and customer experience.\u00a0Read more to find out why\u2026\u00a0\u00a0      Organizations should focus on business objectives to craft a customer data strategyTo focus on business objectives, you need to understand them. Here are two questions you should ask: What are you looking for customer data management strategy to do for your brand? What are the business goals and objectives you’re trying to achieve? Whether it is to foster personalized experiences, improve privacy and accuracy, or boost the bottom line, figure out what’s driving attention and investment in this area.\u00a0      Customer data management\u2014Best practice and CDP                Customer data management is customer service you can't see with results you really can measure. CDPs deliver exceptional customer data management solutions.      Data strategy use cases should be clearly definedCustomer data management use cases should be defined to reflect the different ways that teams and departments will benefit. For example: Marketers may want to set up parameters for known customer behaviors to trigger personal engagements. Sales may want to integrate customer data with other tools to determine buyer intent. Customer service organizations want the full context of a customer\u2019s experience with a product or service at their fingertips.\u00a0      Modern marketing: The fundamentals have changed – have you?                The definition of marketing is moving goods and services from the source of tools, channels, and mechanics to the consumer, but most marketers haven't adapted for digital - and that's a BIG problem.      In today’s online marketplaces, data governance standards are requiredFor successful customer data management, it’s essential to establish a framework of policies and standards that address compliance, regulations, and handling of data across the enterprise. With the right data governance standards in place, brands can:Improve decision-makingAvoid collecting bad dataBoost securityIdentity should be at the core of any customer data management strategyKnowing your customer is a primary goal for any customer data management strategy. That means honing in squarely on identity. The brand must unify customer data around a foundational identity in order to create holistic, first-party profiles.      How a living profile can build customer trust with data                What is a living profile? How can it build customer trust? Learn how to give consumers the ability to create their own personalized experiences via data platform solutions.      Data privacy serves the interests of both customers and brandsYour customer\u2019s interests should be at the heart of customer data management strategy, which, in turn, helps boost the brand. That includes respecting data privacy. After all, According to Gartner, 65% of the world\u2019s population will have its personal information covered under modern privacy regulations in 2023.Brands should make sure their customer data management tools fully address consent and permissions.This content is hosted by a third party ( player.simplecast.com ).To view the content, either update your cookie preferences or view it in a new browser window.Cookie PreferencesNew WindowCustomer data ownership should align with goalsDifferent teams may use customer data management for various use cases, but brands should make sure to determine who has responsibility and ownership over customer data. Is it marketing operations? Sales? IT? Does a member of the management team play a key role? There\u2019s no right answer, but the decision should align with the organization\u2019s goals.\u00a0Choose technology based on real-time customer data management Data-driven insights help brands understand their customers, engage with them confidently, and deliver on brand promises. Customer data management requires best-in-class technology that provides real-time solutions to activate useful insights at just the right moment. Your investments should focus on tools that offer accurate engagement across every touchpoint.\u00a0      As third party cookies crumble, IT teams must seize 3 opportunities                With the upcoming end of third-party cookies, IT teams have a unique opportunity to\u00a0amplify their impact\u00a0on revenue growth and customer experience.\u00a0Read more to find out why\u2026\u00a0\u00a0      Customer data management strategy for omnichannel engagement successEvery brand needs to elevate their customer experiences if they want to stand out in a fiercely competitive landscape. Whether that’s related to e-commerce, brick-and-mortar POS, B2B sales, or customer service, how organizations tackle the vast data sets that help them understand customers more deeply can make the difference between long-term loyal customers and cart abandonment. Focusing on the best practices that enhance holistic, unified customer data management is a must for any brand looking to unlock omnichannel customer engagement.\u00a0Taking these seven principles and employing them in your customer data management strategy is a surefire way to accelerate your journey to success.  Customer identity, consent, and authentication \u2013 simplified.The future starts HERE."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2021","item":"https:\/\/www.the-future-of-commerce.com\/2021\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"04","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/04\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"20","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/04\/\/20\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"Customer data management strategy: 7 keys to growth, CX, loyalty","item":"https:\/\/www.the-future-of-commerce.com\/2021\/04\/20\/customer-data-management-strategy-best-practices\/#breadcrumbitem"}]}]