How to alleviate costs through database integration

As more businesses use data in ways that help them better understand customers and respond to market trends, it becomes more important than ever to have a reliable method of recording, tracking, and updating information. Databases have become the go-to method for most organizations looking to store data. With the demand for data growing, many companies maintain multiple databases to keep up with everything.

Using two or more databases to store customer information makes it harder to get an accurate picture of who they are. For example, the sales team might have their database, the marketing team another, and the customer service reps may be using a completely different system.

What does it truly cost to maintain a database?

Companies must pay server costs for every database they use. If there’s no coordination between the databases, organizations could end up with duplicate information. It becomes harder to get a complete picture of a customer or perform analysis that helps drive business decisions.

There’s also the cost to employees. First, someone’s got to clean the data and remove duplicates before data analysts can attempt any meaningful analysis. It’s harder for organizations to visualize a complete picture of customers to get a better sense of how to respond to their needs. That can lead to an inability to offer more personalized experiences, which could cause consumers to turn to business competitors.

What is database integration?

Database integration tools consolidate information from various data sources, including databases and cloud infrastructure. Combining data from multiple databases into a centralized repository makes it easier for people and business processes within an organization to access accurate information about customers.

Another benefit of database integration is removing the silos walls between different data sets. Companies have trouble using data to guide their assessments without the ability to view what’s happening with a customer from the start of their journey to completion.

Database integration doesn’t stop at databases. IT professionals can help organizations bring together disconnected customer information like that captured at a physical store or within social media channels with the right software. More information is made available to company leaders looking to glean better insights about consumers from data.

How does a CDP help with database integration?

Database integration software like a customer data platform (CDP) helps IT teams connect information from various data sources. For example, they can pipe in the data held in an Oracle database by the sales team and integrate information captured by marketers within their customer relationship management (CRM) platform.

The beauty of a CDP is that it functions as more than a way to consolidate information. CDPs also analyze data from different sources and offer recommendations and insights. The solution also puts together a holistic view of the customer based on data collected about each stage of their journey, starting from their first website visit to their response to a customer purchase feedback survey.

Because all updates go through the CDP, that reduces the need to rely on multiple databases to store information. That’s money and time saved that an organization and its workers can put to better use. CDPs can hold various types of data, including:

• Behavioral information on customers
• Attributes about consumers, including names and email addresses
• Information on purchases and returns from POS systems
• Customer service data obtained from interactions like chat and website feedback

Best practices for data integration with a CDP

Here’s an overview of some best practices for IT professionals tasked with setting up a CDP for their organization.

1. Engage with users

IT teams should consult with anyone who needs to interact with the new CDP. That way, they can make sure they’re using the right solution and adapting it to fit the needs of each department.

2. Think about data hygiene

IT teams should evaluate ways to ensure the cleanliness of data going in and out of the CDP. The starting point should be auditing the accuracy of the information within each database. Next, IT personnel should set up standardization rules and define what will and won’t be allowed into the CDP.

3. Set up automation

Use automation tools to clean information, streamline data, and remove duplicates. It’s much more efficient and less costly than having workers perform the task manually.

4. Enable real-time information updates

Data changes frequently, so CDPs must receive the most up-to-date information. That avoids the potential of data decay that leads business users to make poor decisions that lead to revenue loss.

5. Align all systems

Connect CRMs, marketing platforms, and other applications popular with business users to a CDP. Having customer information aligned removes data silos and increases the accuracy of customer information.

Make data maintenance easier with Lytics

The Lytics CDP uses machine learning and AI to help businesses leverage the power of their data to improve customer experiences. Learn more about our platform by setting up a consultation with one of our experts.