Company information is continually subject to change. Annually, an average of 10 percent of these data are updated. A Graydon survey showed that no less than one quarter of the data that companies are using are not correct. Database management serves to manage these data. This concerns saving, securing, updating and supplementing the data, and making the data available. The intention is to quickly retrieve contact details and other information. Correct and full information also form an important basis for analysis and valuable new marketing insights. This Wiki tells you about the importance of database management, the three key process steps and the benefit of a master data file.
Data and adequate data management are increasingly a factor in the success of businesses. You need correct data to perform analyses, determine profiles and support policy choices. Otherwise, there is a risk of drawing the wrong conclusions or making the wrong decisions based on obsolete information.
Using high-quality data, the marketing department can enhance its knowledge of the customers. That knowledge can be used by marketers to improve the customer experience.
To Finance, correct customer data are vital to improving the accounts receivable and invoicing process. Incorrect or obsolete data result in inefficiency, higher costs and even dissatisfaction among customers.
Where database management is about updating, maintaining and enrichment of the database, master data management takes it one step further. Master data are a unique key within a database. All these keys are saved to a central master data file and subsequently all databases of the company are linked to this master data file. If there are updates to the master data file, all databases are automatically updated accordingly. This promotes efficiency and decreases the risk of error.