Customer data can be a goldmine of insights, assuming the data is structured, accurate, and actionable. Too often, however, companies fall into the trap of housing their data in customer relationship management (CRM) systems that are set up to treat all data equally, without considering how data points relate to one another.
In this article, we’re going to break down why certain types of customer data should be prioritized and structured to reflect the customer’s journey through your marketing ecosystem. We’ll also explore how to set up your CRM in ways that reflect the depths of your organizational needs by optimizing the value of your data to maximize returns on your marketing spend.
Data Fragmentation: The Root Problem
Consider a scenario where a company’s CRM tracks customer demographics, but doesn’t integrate with key behavioral data like website interactions or email engagement.
Without linking these data sources, the company is left with an incomplete view of the customer journey, making it difficult (if not impossible) to identify high-value prospects or nurture leads effectively.
This isn’t a rare problem. A recent study by Salesforce found that an estimated 55% of companies report having fragmented customer data. These companies may be running campaigns based on incomplete data that leads to a wasted budget and missed opportunities.
Data Segmentation: A Customized Approach to Customer Insights
Customers’ ages, locations, and previous purchases are important data points. But to truly optimize your marketing campaigns, you need to dig deeper into the segments that matter most.
Let’s look at two specific segments of customers.
The first segment purchased from you five years ago, and the second purchased from you within the last month. While both segments are customers, their engagement levels are vastly different.
This level of engagement should be noted in your CRM so these segments can be treated differently in your campaigns. For example, the segment that purchased from you years ago may be suitable for a re-engagement campaign, while the more recently engaged segment may be ready for a loyalty offer.
Effective segmentation involves grouping customer data housed in your CRM based on behaviors, preferences, and engagement levels, in addition to fundamental demographic information.
Properly segmented data allows you to craft more targeted, personalized campaigns that resonate with each audience.
Integrating Customer Data Across Channels in Your CRM
Most CRM systems are designed to manage data from different channels. But if they aren’t properly structured, however, they can lead to siloed data that makes it difficult to gain a holistic and unified view of the customer.
Suppose a customer visited your website, opened an email, and ultimately purchased from you after clicking a social media ad. If your CRM is set up in a way that doesn’t integrate data from each touchpoint, you can’t see how each channel played a role in moving the customer from information gathering to careful consideration to purchase.
If your CRM is not set up to integrate data across multiple channels, you won’t have a complete view of the customer’s journey, meaning you can’t scale your campaign properly.
McKinsey reports that integrating CRM data across multiple touchpoints allows companies to improve marketing ROI by 15-20% by granting a more holistic view of customer behavior.
Partnering for Segmented, Integrated, and Accurate Data
While the concepts and value of segmented and integrated data may be easy for professional marketers to understand, properly setting up a CRM can be challenging.
Many companies looking to evolve the way their CRM houses data turn to experienced, trusted data partners with expert-level understanding of data management and data hygiene. The right data partner can help your organization by assessing your unique circumstances, then implementing systems and best practices for ongoing data health such as regular audits and automated updates.
Not all data is created equal. So Demand Better Data™ with a partner who understands your organizational goals, and who can help turn your customer data into high-octane fuel that creates impactful marketing campaigns and powerful results.