CMDM (Customer Master Data Management) is a comprehensive framework that governs how an organization collects, stores, consolidates, cleans, and leverages available data. The evolving landscape of data sources and the escalating volume of information generated across these sources have intensified the challenge of efficient data management in terms of software requirements, time investment, and cost.
For marketing, IT, and CRM professionals, navigating through the myriad of solutions for customer data management can be complex. The principles of a robust CMDM strategy can be distilled into five core topics: customer data… collection, consolidation, cleaning, control, and compliance.
Key Components of CMDM
Collection
The initial phase involves deliberate data collection, focusing on both the source and acquisition methods. Understanding the purpose of each dataset is important. CMDM emphasizes the need to be selective and purposeful, avoiding the common practice of accumulating excessive data from numerous sources while respecting the differentiated needs of business units and functions. Pretectum recommends that you have a clear business objective for each piece of information collected, ensuring clear alignment with your organizational goals.
Consolidation
Pretectum’s CMDM places a strong emphasis on data unification. Unlike data warehouses or lakes, the purpose-built and user-friendly CMDM system enables organizations to centralize data storage efficiently. The Pretectum CMDM is designed for immediate use for integration and analysis, facilitating the creation of a Single Customer View by identifying common elements across datasets and business areas that constitute the organizational data mesh. Interoperability and real-time data transfer capabilities are essential for seamless communication within the ecosystem.
Cleaning
Data consolidation in the Pretectum CMDM provides an opportunity for regularized data cleaning. Eliminating poor-quality and inaccurate data is imperative for optimal campaign execution. Any CMDM system should also support deduplication thereby reducing confusion and storage costs. Regularly cleaning data, including the removal of outdated information, ensures compliance with legal requirements and maintains the accuracy of customer data records.
Control
Pretectum’s CMDM recognizes a shift in perspective, acknowledging that customer data ultimately belongs to the customers themselves. Granting more control to customers over their data is essential. Permission marketing and data control are pivotal concepts, considering recent changes in data collection practices by mobile app operating systems and browser providers. CMDM advocates for the ethical collection of first-party and zero-party data through user-friendly preference centers, fostering a transparent and mutually beneficial dialogue between organizations and customers.
Compliance
For CMDM, compliance with regulations such as GDPR and CCPA is paramount. Other vendors in the CMDM space should also demonstrate a commitment to data security through regular penetration testing and certifications such as ISO. The level of data encryption, both in transit and at rest, is a critical consideration. CMDM platforms should facilitate Subject Access Requests (SAR) under GDPR, allowing individual consumers to view, edit, or delete their data, ensuring compliance with privacy regulations.
CMDMs like the Pretectum CMDM potentially offer a holistic approach to customer master data management, addressing challenges posed by diverse data sources. By focusing on the strengths of CMDM, organizations can benefit from enhanced data quality, streamlined processes, and adherence to regulatory requirements. Consider the selection criteria that might be pertinent to your decision to select a CMDM system over simply a CRM, CDMP or Marketing DP.