Data Governance and the Importance in retaining customers?
With the majority of the purchases, deals, loyalty programs and electronic transactions done online, Data Governance is getting more important. I believe, it is necessary for the organizations to have a better understanding and start investing in better governance.
I was recently in a very interesting debate with my work colleagues, discussing this subject. I feel that there is some ambiguity around the top and thought maybe I can write an article with my views on Data Governance and it’s important.
Let’s get the basics… what is Data Governance?
Data Governance can be termed as a discipline that governs the availability, storage, management and security of data within an organization, where data can be related to the clients or to the organization’s internal processes. It is comprised of the policies and processes that are used to collect, store, analyze, manage, share and protect data while ensuring the privacy and confidentiality of the individuals.
In short, a data governance program includes the information like how the data is collected, how it is managed, who generates it, who use it and more, and who is responsible to ensure it’s clear and up to date.
Why is it important?
Data governance reduces the risk of poor data, data breaches, data duplication thereby providing organisations with valuable data. At the same time, it protects the confidentiality of the individuals. And the good data received in the process helps the data-driven marketers in a number of ways. Below are the reasons that depict the importance of effective data governance.
It ensures data consistency and reliability
Without consistent metrics, the decisions can be easily based on false assumptions. Data governance lets you manage your data effectively and such management further leads to consistent metrics that you can rely on for getting more visitors and increased conversions.
For example, when data is collected from different channels, there comes the duplicate data. You can govern and manage all the data collected while focusing on the latest updates and the key performance indicators. This lets you get the most reliable data for utilising in your marketing campaigns or other business operations.
Also, the efficient governance models enhance the reliability of the data while dealing with the factors that may restrict you from doing so.
It helps in solving the issues related to analysis and reporting
Organisations generally blame the tools and the technology they use when there comes the confusion about what the particular data metrics mean. And what they do next is replacing their functional systems instead of focusing on the governing the data.
However, it is not an issue with the tools; instead, it is a fault in the data governance. After all, tools are not configured to clarify the meaning of data metric. It is only through proper data governance that such issues related to the data analysis and reporting can be effectively resolved. So, you should ensure to do necessary data governance work.
For instance, done in an effective way, data governance will let to find out the accurate and updated data. In the case you use this data for personalised marketing campaigns, the results would also be accurate, which otherwise can go wrong if the data is not correct.
It provides clarity
Effective data governance lets you have peace of mind that your data is accurate and is properly organized. It enhances the clarity of data while enabling you to figure out that what data need to be used in different scenarios. And this further helps in gaining confidence in the analytics and knowing your most crucial metrics.
It saves money
ROI is one of the most important reasons to invest in data governance. Having an understanding of the way you define your core metrics, as well as the segments and derived attributes can help in optimizing your marketing campaigns and generate more revenue.
Data governance lets you gain access to the reliable, trustworthy and quality data that you can rely on for making your important decisions, regardless they are internal or external. There should be an authorisation for who can and who can’t have access to this data in order to make sure that the data is in the safe hands and will be used for the intended purpose only. and in the scenarios where you need to send data to the other firms, it is essential to use encryption tools for assuring effective data governance.