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 basically a roadmap that plots out how a company will gather, manage, and store data. In the absence of a data strategy, a company will likely be at a loss concerning not only how to gather data, but also what to do with it once it’s in their possession.
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.
Where data is stored
Once data is collected, a company has to store it somewhere. 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
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 in order toensure good quality data.
Is your business facing any other major customer data management challenges? Please share with us in the comment section.