Why Should Companies Implement Social Master Data Management?
Gone are the days, when writing letters and posting them was regarded as the only medium of distance communication. Today, the internet, chat, emails, and of course, real-time telephone conversations keep us updated with the happenings around the world. The development of technology has certainly influenced our lives and the world that surrounds us. Today, businesses no longer depend on word-of-mouth, billboard advertisements or television commercials, to market their products and services. The asset that they are increasing their dependence on, and invest most of their resources into, is 'Social Media'.
Social media no longer serves as a medium of mass communication alone. It has become a part of our daily lives, for business or personal use. Noticing the impact that it has on their customers, with its growing reach, companies have embraced social media as their reliable marketing tool. Though the adoption of social media has benefited companies and has created ample opportunities for them to grow, traditional master data management tools in use are not equipped to handle real-time incoming data from various sources. At this juncture, the need for Social MDM came into existence.
While MDM tools focus on the aspects of data quality management within an organization, Social MDM connects the company’s information and their customer's activities, to make the communication simpler and more convenient to record. This allows companies to engage with their customers in a better way, and make constructive decisions that would help them deliver the best service to their target group. The likes, comments, shares, pins, opinions, their location, their age and other demographics, become vital pieces of information, which is retrieved and analyzed to obtain information on the consumer's behavior and preferences. This information then helps the companies to create and execute the right strategies, which sustain their growth.
Though there are many advantages of using social media and implementation of social master data management can help;, the process poses challenges as identification of real customers is not always possible. A recent survey discovered that there are more than 83 million fake profiles on Facebook. Finding the right audience and determining the real customers from the target groups, adds to the stress. Extracting real-time information from different portals, and updating that in the internal MDM system, is essential to make constructive decisions. One of the ideal ways to integrate real-time data into MDM systems is by using extensions that connect to the customer's records. This helps in storing vital customer information like their point of access and other related details, without hindering their privacy. Thus, the information retrieved can be used to generate APIs, aided by social platforms.
Like every other media, social media has its own set of advantages and disadvantages. Though fake profiles, data privacy issues, false information or misinterpretation are widely evident in case studies, the insights and reports available have also expressed that, social media is relatively more effective in studying consumer behavior and getting real-time feedback. Therefore, implementation of Social master data management is certainly beneficial for any business.
