Customer Data Management (also known as Customer Knowledge Management) is the way in which organizations keep track of the information they have collected about their customers. Capturing customer data and keeping it clean and up to date is a vital process within the Customer Data Management strategy.
For organizations to harness the huge amounts of data that they now collect, a Customer Data Management strategy is vital.
With more customer data than ever being created, it is vital to capture accurate data in a format that can then be easily analyzed and transformed into effective insights into your customers.
Customers now demand a personalized service and an effective strategy can provide this through tools such a Single Customer View and Data Profiling.
With CDM, one or more software applications are integrated to facilitate access to reliable and efficient customer data. Attracting and retaining customers requires a clear understanding of customer requirements. CDM streamlines customer relationship management (CRM), marketing and customer feedback management (CFM).
CDM must be tightly integrated across the departments of an organization, including IT, sales and HR. CDM processes include:
- Categorization: Customer data is classified and subclassified.
- Correction: Collected data is verified for accuracy and consistency. When necessary, contact details are updated, and duplicate records are removed.
- Enrichment: Incomplete data is collected and completed.
- Collection: Customer data and insight activity is collected via a customer feedback system or sources, like sales, customer support, surveys, reports, newsletters and other customer interactions.
- Organization: Customer data is organized and shared throughout an organization.