Recent years have seen the arrival of new players such as social networks and mobile devices, as well as the strong trend towards Service Oriented Architecture (SOA) or Software as a Service (SaaS). This diversification of sources and applications makes it more difficult for companies to obtain reports and comply with current legislation. This is where MDM comes into its own.

What exactly is MDM, why is it important for your company to implement it and what are its advantages? In this article we will answer all your questions about this concept.

What is MDM?

Let’s start by defining what MDM actually is. Behind this acronym stands the expression Master Data Management. In short, it is a set of methods, utilities and patterns that allow companies to unite all their critical data in one place: the master file.

MDM ensures that the various lists of master data are in complete harmony. In other words, MDM techniques manage to eliminate any inconsistencies between the different types of critical data.

Master Data Management practices are fundamental to ensure data consistency. MDM methods ensure that information is kept standardised, clean and correctly integrated. The use of master data makes things easier when using multiple applications and platforms.

What types of data are there in master data management or MDM?

In the following sections, we explain what types of data are commonly handled by companies. When initiatives such as MDM are implemented, this data will be integrated into it. Of course, not all companies will need the same information. However, no matter what industry they are in, most companies store the following types of data.

Unstructured data

This is information that comes from sources such as emails, digital documents, the company intranet or other marketing data.

Transactional data

In this case we refer to data that is related to company transactions. This is usually information that comes from sales, deliveries or monetary transactions. It also includes data from invoices, deliveries or complaints, among others.

Metadata

Metadata refers to information about other data. It can be located in a formal repository or in XML files. Metadata are also descriptions of fields within a database or activity log files, also known as logs. In short, metadata is data related to other data.

Hierarchical data

Hierarchical data is of great importance within MDM. It stores the relationships between other data. It is possible to define the hierarchy between the different elements of a database.

Master data

Master data is the critical data of a company and is usually related to four main concepts: people, things, places and concepts. Within each of these it is possible to find other subject areas or entity types. To understand this better, let’s take an example. A customer can be placed within the field “people”. However, it is also possible to do the same for an employee. And this segmentation can be even deeper if the company has, for example, preferred customers and minor customers.

MDM, why it is so important

Master Data Management is a really important technique. Implementing MDM in your company has clear benefits that increase the importance of these methodologies. In some circumstances, moreover, we can say that MDM is not only important, but mandatory.

Master file, its correct management avoids errors

We have already explained that MDM techniques achieve consistency between the different master data of a company. As this information is used within a company by various applications and departments, a data failure can bring down the whole system and cause a widespread error.

Customer-facing errors have fatal consequences. MDM is very important because it prevents discrepancies in information and, as a result, the actions taken by different departments are successful. Without the correct management of critical data, it is easier to make mistakes and, as a consequence, lose customers.

The role of MDM when merging companies

Another area where it is useful to apply master data management methodologies is in the merger of two companies. This is a common occurrence, especially when both companies are looking to grow. Of course, it is a real challenge to ensure that the information stored matches and is fully consistent after a merger.

Data duplication

MDM also prevents duplication of information. It is possible that information about the same customer is stored in different databases. If the customer service department uses software as a service, it will have to retrieve the data for each customer when needed. What criteria should the programme follow to obtain the requested data? Which database should be chosen? MDM is crucial to avoid such situations.

The MDM and the road to master data consistency

After this analysis, all the questions we raised at the beginning have been solved. We now know what MDM is, what types of data companies handle and what the benefits of Master Data Management are. It has even become clear that a company’s critical data must be managed in such a way that it is consistent. Applying the MDM suite of methodologies in companies is becoming increasingly necessary. Proper data management is vital to avoid customer errors or to eliminate any trace of duplication. For this reason, when it comes to facilitating mergers between companies, MDM is essential.

More about DEYDE

DEYDE was founded in 2001 in Spain, along with its core service. They offer name normalisation, postal address standardisation and coding, duplicate identification and geo-enrichment of postal addresses. Ten years later, they developed MyDataQ Global Service and offer Data Quality services worldwide. Fifteen years after its foundation, they were already present in Portugal, Italy, Mexico, Colombia and Chile (www.deyde.com).

One of the main premises of any company is to acquire new customers, but what about the customers who already trust your company’s services and/or products? This is where customer loyalty comes into play, a task that is just as important as generating new customers. And we cannot talk about customer loyalty without talking about the data itself. Do you want to know how to build customer loyalty?

How to build customer loyalty with your databases?

The first thing to bear in mind is that, if you have reached this point, it is because you have already generated a lead previously or because you have a database. Therefore, you are already starting from a previous contact and customer interest. However, as it is about generating value, it is good that you know how to improve the quality of your database.

There are some aspects that will depend on the formal content. But there are other issues that will be more linked to your promotional techniques. In any case, take note of the following guidelines:

1. Make sure that the consent data is up to date.

The first thing to check is that the consent is up to date or appropriate to the service you intend to provide. It is relatively common to have consent data that is either out of date or not fit for purpose. If your relationship with the client is good, ask them to renew their consent online.

On the other hand, it should be noted that data obtained before 25 May 2018 has to be renewed. Although fewer and fewer cases are affected, it is essential to remember this. With the advent of the GDPR, data privacy takes on an importance for any company that deals with data.

2. Check that data is not duplicated

Few things are more damaging to a company’s image than duplicate mailings. As a general principle, you will be well advised to look for alternatives to avoid these situations. There are tools for identifying duplicates, such as those offered by DEYDE, that can help you in this matter.

Remember that, in order to build customer loyalty, the image you offer is fundamental. This is a good reason to think twice about whether your database is up to date.

3. Make segmented communications

Communications can be segmented in various ways depending on your interests. If there’s one thing potential customers can’t stand, it’s feeling like they’ve received a spam or bulk message. Therefore, having postcode or activity information will help you to send personalised communications.

Remember that, at the end of the day, a database has to serve a useful function. The more you match your potential customer’s needs, the better. Thanks to DEYDE’s solution, you will be able to carry out this segmentation in a more precise way.

4. Use the right and necessary information

The quality of a database is not measured by the quantity of information, but by the right amount of information. Therefore, remember the principle that what is good is twice as good if it is short. Ask for only as much information as you need, but also apply it to the way you use it when addressing your customers.

Remember that the idea is to attract attention, not to generate distrust in your customers. If you use too much data or if your data is cluttered, you may have the opposite effect to the one you intend.

5. Send promotional reminders

Promotional reminders are the way to remind your customer that you exist. To do this, it is necessary that you have good information correctly classified. This will allow you to quickly target those customers you think you have something interesting to offer.

Of course, reminders can be used sparingly. Too much information can also be annoying and will not be taken seriously. The aim is to create an interest that can be translated economically.

6. Benchmark effectiveness

Monitoring the progress of your marketing campaigns is essential. However, this should have a specific section dedicated to the use of databases. If you have made changes to improve quality, it would be good to see what the impact has been. After all, the changes have to be passed on to your relationship with your customers.

Remember that the aim, in the medium and long term, is to improve. Therefore, there should be no problem in checking how your work is paying off. Remember that there is always time to make changes.

Conclusion

Much has been written about the capacity of a database. While recruitment is essential, it cannot and should not be done in any old way. The difference between reaching or not reaching is often determined by these small details. This is where the concept of quality comes into play.

Data quality has become an essential aspect of customer loyalty for a number of legal and commercial reasons. DEYDE specialises in providing data normalisation services for all types of companies. Do you want to improve the quality of your database to increase customer loyalty? Here you will find the help you need thanks to the MyDataQ suite.