Digital Marketing is gaining traction with evolving technology. Marketers are willing to adapt to newer technologies but turn a blind eye to the risk attached to it. A data governance policy has the most impact on the risk management strategy of a marketer. We read about Data Breaches in a previous article
When a company is data driven, is is essential to have quality data, a policy on master data management. Companies that realise the importance of the stated characteristics grow substantially and sustainably. Significant cost and time savings act as an add-on along with increased trust on the data.
Thus, one can safely say that data governance is fundamental to bring a strong foundation and thus, a “Must Have”.
Data governance means defining and managing different types and categories of data. For marketers, that data may include essential information like:
Personal information of the customers (demographics)
Purchase behavior data
Feedback and interactions
Past, current and future product information
Sales and purchase activities information
Marketers simply cannot function without taking the help of the above data. All the decisions and research is based on this data. We can also call Data Governance as “quality control”. It ensures that entities have an access to reliable and consistent data sets. Reliable data, in turn, enables organizations to assess performance and take strategic decisions.
It is not limited to storing, cleaning and consolidating data. It takes planning and documenting robust policies, procedures and frameworks to manage data and ensure its effectiveness.
Also, it is not a one-time exercise. It is a continuous process of evolving and improving. The major step is “Continuous learning”. Thus, it is essential to build a learning culture in the minds of the management and employees alike.
Reasons Why Data Governance Is Essential for efficient Marketing
In our experience, data governance matters to companies’ data-driven marketing efforts in five essential ways:
Ensuring a consistent and reliable data
Standards and benchmarks are set to achieve the above objectives. Managing your data means defining consistent metrics across the organization. Thus, the management should effectively communicate the expectations to enable the marketers to follow them.
Without documented standards, decisions may be based on false assumptions. This in turn affects the decisions. Governance also guarantees data reliability. One can safely refer a data if it is authentic. It is necessary to update data for changes on a regular basis.
Guiding all other analytics activities
Analytics need a strong data governance policies to bring a structure to the procedures. This ensures that whatever data has been capture is perfect for analysis. It also creates accountability while capturing data. Moreover, it creates a clear alignment between marketer’s analytics tactics and the entity’s strategic goals.
Saving (and making) money
What is the use of a tool if it reduces your ROI?
Data governance saves and helps you earn finances. Optimizing campaigns by defining certain core metrics as well as market segments is an important consideration. Also, variables like Customer lifetime value (CLV) will help the marketers take relevant budgetary calls.
Data and effort redundancy is a common phenomenon in organizations. With data governance, the likelihood of errors due to the above factors reduces. There is high understanding of data. Thus, it nurtures data efficiency and brings the costs down. Moreover, customers start valuing the data
Solving analysis and reporting issues
It is easy to blame technology or tools for a bad decision of the marketer. Yet, this is a challenge faced by many. It is not a technology problem but a data integrity problem. The technologies are supposed to be aligned to business goals by training and communication. Hence, to ensure that the tools work, one should invest in good data governance practices.
Improving confidence and providing clarity
If there are trust issues in an organization, it is because of less faith in the data. Anything less than 100% confidence in analytics data leads to headaches and second-guessing. One should always clarify the meaning of various complex terms and metrics, ratings etc to avoid such second guessing. Also, greater clarity means more confidence in data-driven decisions. It builds efficiency.
With growing legal and financial ramifications of wrongful data is management, poor data quality. Leads to fines and penalties. VComply is tool which lets you monitor the KPIs and KRIs on a single integrated platform. It also enables you to have organizational surveys to get primary data on the same platform.
Thus, data governance shall help the organization to build :
1) data accessibility,
2) data confidence,
and 3) data activation.
It is, thus , essential to drive success and sustainable growth of an organization. To read more about data governance click on this link.