What is Customer Data Integration?

Today, companies use a variety of IT systems to run their operations. Each system stores information about the company’s operations in its own warehouse. Since each data storage system is different, a customer has different data in various data sets. In order to ensure customer satisfaction, increase sales and provide better service, companies need to view customer data 360 degrees and see many data in different applications in one place.

As a result of the focus on improving customer service, an important element of customer relationship management is customer data integration (CDI). CDI helps you develop strategies to manage customer relationships and customer service of your business and improve business processes.

What is Customer Data Integration?

Customer data integration (CDI) is a process that collects information about your customers from multiple sources in your business and enables them to identify and manage them from a single source.

Customer data can result from a variety of interactions including email website views, social media direct marketing, and search behavior. Many different numbers of data need to be organized, transformed, cleansed, analyzed and distributed in order to become a valuable resource. CDI is an integration system that undertakes this task.

How Does the CDI Work?

It takes 3 steps to integrate different data into a single corporate repository. These 3 stages are known as ELT (extract, transform and load). Most data integration systems include one or more ETL pipelines.

Data extraction: Many data from different sources are collected and integrated into a single data store.

Transform: It is transformed, cleaned, and collected to ensure that data collected from different sources are stored in a universal format.

Upload: The transformed data is written to the target system, which can then become a data warehouse. Data in the data store is captured for access and analysis rather than processing transactions.
As a result of all these stages, CDI provides a single source of information for companies’ business operations.

What Are The Basic Steps of The CDI Strategy?

  • Identifying customer data and discovering where it is

This is the first step towards understanding the customer journey by revealing the business processes involved in collecting and storing customer data across the enterprise.

  • Analyzing where and how information is saved

In this step, businesses can create a common definition of who their customers are and see who accesses the data and why.

  • Creating a customer data integration strategy

This includes the steps the strategy takes to clean data, replicate and improve data quality.

  • Implementing customer data integration technology

In this step, it is necessary to choose the right tool and technology that will meet the needs of the business for customer data integration.

  • Monitor and evaluate customer data integration strategy

In the last step, the effectiveness of the strategy is monitored and necessary adjustments are made.

Why Should You Use CDI?

Customer data integration policies allow you to view information from different sources in a single source. All departments in the company can access up-to-date and complete customer information. This situation provides many advantages for companies and their employees.

Increases efficiency and lowers costs

CDI helps to significantly lower costs while making data processing and application systems more efficient.

Helps to gain the loyalty of customers

In order to turn customers into loyal buyers, it is necessary to know them well. A customer with a great product and service experience comes back to buy more. CDI allows to get to know customers better and analyze data.

Helps to gain new customers

CDI allows you to target marketing and personalize sales opportunities with the data you have. This allows you to reach many potential customers who are ready to buy your product.

Helps identify sales opportunities

Accurate customer data enables businesses to better understand customers and focus on personalizing sales opportunities. It makes it easy to identify customers who might be interested in spending more on your products, with comprehensive, real-time customer data available to your employees.

Helps to improve marketing strategies

As marketing teams access more customer data, they can segment their customer base and create targeted marketing campaigns for better results.

Allows for predictive insight

Having more data about how customers behave and what they prefer makes it easier to predict future sales potential. Data analysis of past and present customers helps guide trends.

Provides more efficient data management

CDI makes it easy to update your customer records, collect real-time data, manage collected data, and consolidate data stores.

To build a complete CDI, you have to build your application integration in efficient ways. To do that, you may want to know more about MIP which is an IPaaS tool with lots of pre-built connectors to build your integration simply and efficiently.

How to Choose the Right CDI for Your Business

You need to choose the right customer data integration for your business based on your specific needs and requirements. The factors to consider when choosing a CDI are as follows:

  • Size and Complexity of the Business

If you have a business with few data sources, a simple data merge should suffice. However, if your business has a complex data environment, you need a much more advanced solution.

  • Type of Data That Needs Integration

Different data types require different integration techniques. For example, if you want to integrate structured data such as customer contact information, the ETL technique will be suitable for your business. However, if you are going to integrate unstructured data such as social media data, a more advanced solution to overcome this complexity will be suitable for your business.

  • Budget

What your budget is for CDI is also important when choosing.

By understanding the benefits, challenges and strategies of CDI, you can get to know your customers better with your own data management tool. Your business needs reliable sources and manageable data to deliver value.

If you as a business are looking for a powerful tool to better understand your customers, improve customer experience and increase profitability, MIP is the right solution for you. Contact us for more information.

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