Clean customer data is a vital requirement for any business. While many businesses have implemented customer relationship management (CRM) systems, customer data issues continue to persist because the data often exists in multiple systems. Additionally, there is a need to ensure that relationships and hierarchies between customers are accurate and maintained.

Why is it important for companies to have clean customer data? What steps do you need to take to create a Golden Record View of your customers? Below is an excerpt from the eBook, The Clean Data Initiative, where we discuss customer domain best practices.

The Importance of the Single Customer View

Companies need clean and accurate customer data for three main reasons:

  1. To Improve Customer Service – Having all required customer information available when providing services to customers creates the ability to provide individualized services and increase the customer service interaction.
  2. To Better Identify & Target Customers – Being able to better identify customers, segment customers, assess the customer lifetime value, cross-sell, upsell, and better manage marketing campaigns is only as successful as the quality of the customer data.
  3. To Manage Regulatory Risk – Many companies are required to adhere to regulatory and compliance requirements such as Know Your Customer (KYC) or to ensure that all customer data is legally collected and processed and compliant with GDPR requirements.

The bottom line reason is to increase sales, improve customer retention, support regulatory requirements, and improve business decision making. A recent Global Data Management Benchmark Report published by Experian Information Systems stated that 89% of U.S. executives believed that inaccurate data was undermining a good customer experience. To get to clean customer data, companies work to develop a Single Customer View (SCV) and the Golden Record View. The SCV might also be referred to as the unified view or the 360 view of the customer. It is important to note that there may be multiple SCVs depending on the end user perspective. Someone in finance may need different elements in their single customer view compared to someone in marketing. The SCV also allows companies to view the customer’s past, present, and future relationship with their brand.

  • The Past: product or service activity, reviews, campaigns, and payments
  • The Present: Customer profile, open orders, pending issues, level of service, NPS value
  • The Future: Cross-sell, upsell, and retargeting opportunities

 

Golden Record Process

While the SCV is often tailored for specific use, the golden record is the single source of truth. We recommend this 6-step process to create a Golden Record.

Golden Record Process

  • Create the Golden Record Model: Determine the model for your master data that will be developed in the MDM system.
  • Load the Data into the Model: Set up load processes to ensure that all required data from the various systems of entry are loaded and that all data is identified and stored in the MDM system.
  • Standardize the Attributes: Evaluate the attributes that will be used to create the required cluster of records. Standardize data using standard data templates, for example address, phone numbers or location.
  • Verify the Attributes: Assess how well these attributes will allow the records to be matched and fine-tune the attributes that will be used for the match logic.
  • Match the Records: Match the data on key attributes and create the groups of master data records. Match rules may be exact or based on fuzzy logic.
  • Populate the Golden Record: In this step, also known as survivorship, the system will assess the best system of entry attributes to be used to populate the Golden Record.
Customer Domain Next Steps

Clean customer data is needed not only to successfully operate but to compete. Not having clean data has huge financial implications for companies and needs to be addressed to effectively serve your customers.

In our eBook, The Clean Data Initiative, we explore Customer Domain Best Practices and data quality initiatives across your business. Creating the Golden Record involves data quality, data governance, master data management and selecting tools and techniques that will work for your business. For more information, download our eBook.

Sense Corp is a digital and data consulting company that provides insights and solution to help your company with transformative projects and services. Learn more about what we do or contact us today.

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