Data management is essential for all businesses and is the process of collecting, storing, organising, maintaining, and utilising data effectively. In today's digital age, data is an essential asset for every business and when utilised correctly, it can help improve operational efficiency, allow for informed decision making and maximise profits.
Here are some best practices for data management that will help your business get the most out of your data whilst making sure it is stored efficiently and securely:
8 Data management best practices
1. Format data entries consistently
One of the most obvious but sometimes overlooked best practices for data management is what you name your documents and files. What good is having data if you’re unable to find it? Make sure you have a consistent format for naming files which is user-friendly and descriptive. This will benefit you in the long run as the number of files you have stored increases.
Good ways to name files include:
- Give the file or document a relevant name for the contents
- Add dates in standard formats; YYYY-MM-DD or YYYYMMDD
Correct formatting helps ensure smooth operations and means you and your team don't have to spend time going back and amending incorrectly formatted data entries. For a supply chain, it is key for dates to be formatted correctly and consistently - if one line of products was inputted as ‘YYYY-MM-DD’, and another was inputted as ‘YYYY-DD-MM’, this inconsistency would drastically impact the supply chain and several wider areas of the business.
This approach can also be used to improve customer data management. For instance, if you have a large list of customers, formatting their data consistently is crucial for it to be used effectively. This means personal details and addresses should all be inputted in the same order and format. This can help improve the way you manage customer data in a Customer Relationship Management (CRM) platform helping you to strengthen interactions with them, promote client retention and increase sales.
2. Use metadata for data sets
Metadata is information that describes what the data is about without containing the exact content itself word for word. It should contain information about the data’s content, structure, and permissions, so it can be easily searched for and found at any time, even years later.
Things to include in metadata:
- Data author
- What the data contains
- Descriptions of fields
- When/Where the data was created
- The reason this data was created and how
This will help you understand the data lineage as it lists the origin and purpose of it. It makes it easy to map relevant data and show their relationships to other datasets.
3. Data storage
How you store your data is something you need to consider. The right solution can vary based on the size of the organisation and how many people need access to it. One type should be easily accessible by you and those who need it so that’s something to consider when choosing how you store your data.
Examples of data storage locations:
Desktops/laptops: Data that is stored directly on a computer. Useful for individual access but not for collaboration. Another storage type should be used alongside this in case the computer is lost or damaged.
Networked drives: Stored data on a local access network (LAN) within a business or home. Gives you the security of physically owning the data drive while also being able to access anywhere.
Cloud storage: Stores digital data off-site on third-party servers who host, manage and secure the data. It’s great for collaborating with colleagues as everyone can access shared files. Many providers offer two-factor authentication which helps make logins more secure.
External hard drives: They attach to the outside of a computer and are a useful way of backing up data and transferring it between computers. They are susceptible to fire and water damage and can also overheat and malfunction.
Optical storage: Data written onto optical media such as compact discs (CDs) and digital versatile discs (DVDs). The longest lasting medium currently in production and reliably holds data for 50-100 years without power or cooling or issues with magnetic degradation.
Flash drives: A small, ultra-portable storage device. Not the safest option as they degrade over time and can be easily misplaced or damaged.
Consider the 3-2-1 methodology
An effective way many businesses choose to store their data is by using the 3-2-1 methodology:
- 3: Storing three copies of your data
- 2: Using two different types of storage methods
- 1: Storing one of them offsite
This method gives you smart access and ensures there are multiple copies of your data in case one type is corrupted, destroyed or lost. The 3-2-1 methodology is a simple solution for storing data.
4. Use a data management platform
A DMP (Data Management Platform) is used to collect, organise and optimise data from different sources in one centralised database. They allow businesses to learn more about their customers by matching data against 3rd party lists, segmenting customers into relevant groups and ensuring data is correct.
DMPs help to unify datasets so they’re all in one place. This makes it easier to manage your data. They also help with data quality by auditing the dataset for inaccuracies, duplicates and formatting errors that you aren’t aware of. The last thing you want to be doing is sending customers duplicated communications because they’re on your list more than once.
They can also help businesses create more personalised experiences for their customers by enhancing and enriching your data. This allows businesses to segment audiences into relevant groups where they can send them tailored communications that they are far more likely to engage with resulting in better ROI on marketing campaigns.
5. Ensure data quality
Data quality is vital for effective data management. If data is not accurate it can result in the wrong decisions being made and wasting valuable time and resources. Investing in trusted data management software will increase accuracy, consistency and completeness ensuring you can trust your data to make informed business decisions in a timely manner.
It can also help to avoid things like revenue leakage which could occur due to data inaccuracies. For example, you may be underbilling customers because of data errors, and one simple mistake like this could potentially go unnoticed for years. If this data error is multiplied across hundreds or even thousands of customer accounts, it could result in significant revenue losses.
Sagacity offers Data Cleansing solutions that will maximise the quality of your data with different solutions available depending on your needs. Using reliable tools will help you create, categorise and govern your data which is one of the most important things when it comes to best practices.
6. Implement data security measures
Making sure data is kept securely is crucial for GDPR compliance which is a legal requirement for all businesses. Having sufficient data security will help protect sensitive information from unauthorised access, theft, or corruption. You need to make sure your networks are secure and that your employees fully understand data privacy.
Maintaining trust of customers is important for any business so it’s vital you keep their data secure. The same applies to your own staff whose data must all be stored safely. One data privacy breach can be catastrophic for a business so it’s important you have the right security in place.
Our Goneaway Suppression will help you identify contacts who have changed addresses keeping your data clean and accurate. We use the GAS (goneaway suppression) file which is the most accurate and up-to-date solution in the UK for making sure your customer data is correct.
7. Email marketing database
Data is a key part of marketing and without it, email marketing is unable to perform to its maximum potential. Managing data in the most effective way possible helps to generate more targeted email campaigns, an increased return on your marketing investment, higher number of leads and conversions and stronger customer relationships and brand loyalty.
Data management best practices for email marketing include:
- Defining the metrics and insights required for email content and your overall content marketing program.
- Organising and maintaining accurate customer data so you can tailor your content, segment lists and avoid sending duplicate emails.
- Invest in technology such as machine learning and artificial intelligence. This can assist you with more comprehensive analytics that also allows you to segment groups much faster and derive usable insights.
- Use data to improve your email marketing by sending content to customers based on things such as location. Your strategy could also include SMS content that integrates location and omnichannel methods.
- Work with a partner who can provide proven data management solutions like Sagacity.
We offer an Email Marketing Database which provides you with quality contacts and enhanced customer analytics and insights significantly increasing your chances generating conversions. The data is sourced from the UK’s most comprehensive, complete and compliant database.
8. Regularly evaluate your data management processes
Organisations should be constantly monitoring their data management processes to ensure that they are working effectively. Key Performance Indicators (KPIs) such as data accuracy, data completeness, and data consistency should be regularly checked to identify potential areas for improvement. Incorporating all these best practices while using a CRM is a sure fire way to increase your customer journey experience and maximise sales.
Speak to a data expert
Sagacity provides a range of customer data solutions to manage your data and maximise its value. Get in touch with our friendly team of data experts today to see how we can help improve your operational efficiency.
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