Retailers Lack of Data Strategy Hindering Marketing Initiatives
The level of investment isn't necessarily the problem, it's where the investment is being made. Departmental or siloed approaches to data quality won't work in an environment where information needs to be analyzed quickly and will be used to inform strategic endeavors. A centralized and consistent approach is needed to fulfil the desires of data nirvana.
Many larger organizations are starting to realize this. The title of chief data officer (CDO) is appearing more and more as organizations look to move away from a technical approach to data quality and focus more on the needs of the business user. In fact, of those who do manage their data quality centrally, management most often resides with this relatively new title.
While a retailer doesn't need to go out and hire a CDO to be successful with its data, central management is really key. Need convincing? Companies that have enjoyed significant increase in profits in the last year are more likely to manage their data quality strategy in a centralized way, with ownership resting with a single director.
So often, companies are quick to invest in a piece of technology that will solve every problem they have. While the technology is still certainly needed and essential to managing large quantities of data, the people element and organizational structure are often overlooked.
As retailers look to gain more insight from their data, they need to be sure it's accurate and accessible. For that to be realized, the right mix of technology, process and people is needed to achieve success.
Thomas Schutz is senior vice president, general manager, at Experian Data Quality, a provider of contact data management solutions.