Merits of a centralized database

Companies are working on integrating their data present on different platforms on to a single centralized platform in order to try an achieve a holistic view of customer behavior and also so that all departments in an enterprise are on the same wavelength as far as customer data is concerned.

Nikon is working on a solution that will merge its databases from five different European countries on to a central platform. The company hopes to achieve a better understanding of the buying behavior of its customers.

Customer data collected from various channels from customers who interact with a company at a number of touchpoints is distributed across several databases; moreover, the same information is recorded in more than one way which often leads to excessive communication with the customers. A merged database enables marketing to come with cross-selling and upselling plans in a better manner.

A detailed and integrated record of customer preferences in front of a customer-facing executive can allow him to customize his pitch to suit the customer’s tastes. It is important to have a single database with information on the lifestyle variables in order to select customers that are most likely to offer a high return on investment. The consolidated database used by Nikon has been developed by Alchemetrics and has helped the company to improve its cross-selling and upselling figures. Nikon has also been able to reactivate dormant customers and is using the information at its disposal to drive its R&D.

Multiple databases that are not connected by a central database can also result in the company lapsing on compliance issues regarding data protection and customer privacy. However, a technology-driven CRM exercise may fail to bring the desired results; it is important that companies implement CRM keeping in mind their business objectives.

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