That data is the new oil is known to all; but how best to capture or analyze the growing velocity, volume, and variety of data is not quite as apparent.
The right data finds a place in almost every aspect of business operation today: from financial reporting to customer management, compliance to supply chain management, demand forecasting, customer service, and more. That’s why developing a content-centric MDM strategy and roadmap is critical to all businesses.
The need for MDM
Businesses are drowning in data. Every time a report is run, a customer list retrieved, revenue forecasts made, or inventory checked, data that is stored somewhere is called upon. If the data is accurate, the report is sure to mirror the right operational status. But if the data is dirty, the report will paint an erroneous picture of the business – and drive wrong decisions. IN a nutshell, this is the business case for MDM.
While focused on data accuracy, MDM promises to play a role in helping organizations:
- Accurately forecast customer demands and act on the right issues to improve customer experience.
- Get insights into security loopholes to eliminate the chances of hacking or system downtime.
- Become aware of product issues and ensure timely product recalls.
- Understand operational hiccups and drive efforts to improve and optimize business processes.
- Address compliance concerns and manage risks and threats in time.
- Acquire end-to-end visibility into the supply chain and make decisions to overcome inefficiencies.
Little wonder then that the global MDM market is slated to grow from $11.3 billion in 2020 to $27.9 billion by 2025.
The rising popularity of MDM in B2C
Access to accurate and updated data is mandatory given the current pace and scale of digital transformation. This is especially true in the B2C industry where companies are struggling to drive sustained value from their business efforts. As the B2C industry gets increasingly competitive and economic headwinds set in, MDM is helping organizations progress.
Here are some industries that can truly benefit from having a strong MDM strategy in place:
- Grocery: The last few months have seen the grocery sector leap forward. For the pandemic-struck retail and FMCG sectors, MDM can play a huge role in bringing new products into the market while adapting to shifts in consumer demographics, tastes, and omnichannel expectations. Using MDM, companies can:
- Centralize information across product lines, suppliers, customers, digital assets, and location data and achieve a single, trustworthy, and reliable view.
- Get a true picture of evolving customer preferences along with their purchasing habits and buying behavior.
- Understand their exact needs and wants and devise well-targeted marketing campaigns.
- Gauge the effectiveness of promotions and offers and tweak them to improve conversions.
- Determine the right price for products to attract customers while sustaining a competitive position.
- Accurately forecast potential sales and maintain a balanced inventory of fast-moving goods to avoid stock-outs.
- Seamlessly manage growing lists of vendors, suppliers, and SKUs and achieve substantial efficiency gains.
- Get a unified view of product and supplier information and track products and all of their crucial attributes from origin to sale.
- Beauty and cosmetics: With the global cosmetics market expected to reach $429.8 billion by 2022, the beauty industry is constantly evolving, with new trends constantly emerging (and fading away). However, being an industry where competition and scrutiny are always high, bringing new products into the market while maintaining consumer perceptions is not easy. Changing lifestyles, increased awareness of possible side effects, and the shift towards sustainable and responsible means, and natural and organic beautify products further add to the complexity. However, efficient MDM processes can help cosmetic companies:
- Set a solid foundation of highly accurate, updated, and reliable product information across complex and diverse business environments.
- Get a better understanding of customer segments based on category (skin, oral, hair, body, fragrances, makeup, etc.), channel (online, departmental store, drug store, brand outlet, etc.), gender, and geography.
- Establish a central repository of information that allow regulatory bodies full transparency into product ingredients, sourcing methodologies, and banned substances.
- Carry out continuous customer profiling to deliver an exclusive or personalized beauty experience.
- Ensure proper traceability of information to aid in product recalls, new market identification, and to fight counterfeiting.
- Ensure repeatable business with targeted loyalty programs based on current needs and preferences.
- Establish strong digital channels while keeping catalogs updated and accessible to distributors, retailers, and customers.
- Apparel: The shifts in apparel consumption habits have a great impact on the business models of traditional apparel manufacturers. The apparel industry has plenty of product lines. Designed products are not always marketed. And product lifecycles are relatively short. Given that, MDM can help manufacturers transform their operations to keep up with these unique agility demands. Using MDM, apparel companies can:
- Provide suppliers and external trading partners a centralized source of product information and introduce products into the market faster.
- Get better insight into consumer apparel preferences as well as into payment and delivery options, preferred channels, and more.
- Better understand seasonal trends and patterns and achieve a powerful advantage while prepping up for surges like the holiday season.
- Segment campaigns and promotions and provide personalized product recommendations based on a customer’s browsing history.
- Recognize the dynamic nature of the apparel sales process like single orders during slump seasons and never out-of-stock products.
- Deliver unmatched omnichannel experiences across e-commerce sites and brick-and-mortar stores and increase brand loyalty and market share.
In today’s data-surplus world, MDM allows organizations to sort, cleanse, and make the best use of the treasure trove of information on employees, processes, customers, competition, regulations, market, and more. It helps them set the right roles, processes, workflows, and governance, so they always have accurate, consistent, and updated data at hand to drive the right evidence-based decisions.