Monday 26 October 2015

To centralize customer profile data or not?


Big data and privacy are often at odds with each other. While businesses are trying every new technique to get maximum data from their customers, on the other hand, customers are becoming increasingly uncomfortable with sharing their personal data online. In the Annual Track Survey, 77% users admitted that they are very concerned about sharing their data online and not sure about the security of their privacy.

And why wouldn’t they??

After all customer data is very sensitive in nature and everybody has full right to be sure whether their data will be secure with businesses or not. 

customer profile data

In this article, I am going to cover up the significance of centralizing customer profile data and how it will improve data security at your end. So let’s start with why you need to centralize data!

Why customer profile data centralization?

Data holds great importance for every business. When collected and analyzed efficiently, this data can provide you precious customer insights. But the same data loses its value when collected through multiple channels and stored in silos!! The concept is quite simple, the data at one place, can help you out with great insights, but when separated, becomes useless.

Benefits of customer profile data centralization

1. Higher Security, better integrity!!

Higher Security
Centralizing customer profile data at a single place removes all the redundancies. Centralized data is more accurate as well as you no longer need to worry about the data being replicated incorrectly. Cloud based data centralization adds security to your data as these systems keep taking automatic backup to your data every hour, every day.

2. Removes data silos!! The next benefit of data centralization is the elimination of data silos. The data gathered by your business comes in various forms and transferred through various channels. This precious data when transferred across multiple departments, becomes useless in separated state and starts creating data silos which can be harmful for your business.
Removes data silos

Some of the problems caused includes the lack of getting relevant data at single place, wastage of resources and time to combine multiple identities, and so on! But data centralization ensures you elimination of silos and surety of useful customer profile data.

3. Single Customer View!!

Single Customer View

Do you know businesses are getting more reliable data than ever and 77% digital marketers reported that data collection has increased over past year. Though that’s a great news, but the problem of linking this data in order to create individual customer profile is all the same. But with centralization, this data becomes more secure, silos are kicked out and you can finally have a unified view of your target customers.

Summary :

Customers have become concerned regarding their personal data like never before and the way you ensure the security of their data can play a huge role in their decision of becoming your customer and data centralization can be a great step in this direction!!

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