The Biggest Mistakes Companies Make with Their Data - And How to Fix Them
Nov 17, 2023
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Eric Dodds, Head of Product Marketing at RudderStack, discusses the biggest mistakes companies make with their data and how to fix them. Topics include managing customer data, streamlining data integrations, success stories in data, and using AI and data cloud to predict customer churn.
Companies should focus on building a unified, abstracted layer for data collection and integration to ensure consistency and accuracy across all data sources.
Companies need to establish a single source of truth for customer data by leveraging a data warehouse or data lake to create a comprehensive view that incorporates information from various systems and tools.
Deep dives
Abstracting Data Collection and Integration
One common mistake companies make in managing and utilizing their customer data is the failure to abstract data collection and integration. When data is used by different end users in various tools like analytics platforms, business intelligence tools, customer success systems, and more, the challenge arises when trying to combine and make sense of data from these different sources. The lack of a unified, abstracted layer for data collection and integration leads to difficulties in reporting, discrepancies in metrics, and challenges in answering simple questions about customer data. To address this, companies should focus on building data infrastructure that captures user actions in a single tool or layer, ensuring consistency and accuracy across all data sources.
Creating a Single Source of Truth through Data Unification
The second common mistake companies make is not unifying their customer data into a centralized, comprehensive view. Even if data is abstracted and collected in a structured manner, many companies struggle with combining data from different tools to answer complex questions and create a holistic understanding of their customers. This challenge hinders optimization of advertising spend, understanding customer behavior, and predictive modeling. To overcome this, companies need to establish a single source of truth for customer data by leveraging a data warehouse or data lake. This allows for the creation of a unified data set with one row per user or customer, incorporating all the relevant information from various systems and tools. By building the customer profiles in the data warehouse, companies can gain deeper insights, optimize ad campaigns, and operationalize AI and machine learning initiatives.
Streamlining Data Integrations with ETL and Event Data Pipelines
To streamline data integrations, companies should focus on two broad areas: structured data and event data. Structured data, such as leads, accounts, and opportunities, can be extracted from different systems using ETL (extract, transform, load) processes. By leveraging ETL workflows and tools, companies can break data silos and consistently bring data from various sources into their data warehouse. On the other hand, event data, capturing various user actions, needs event-based pipelines. These pipelines collect events from websites, mobile apps, and other sources, and then distribute the data to downstream tools for further analysis and utilization. By implementing these pipelines, companies ensure that all meaningful user interactions are captured, empowering them to optimize marketing campaigns, track attribution, and enhance AI and machine learning models.
Success Stories: Optimizing Ad Spend and Operationalizing AI
Implementing the solutions discussed above has yielded success for many companies. By unifying customer data and leveraging granular event data in a data warehouse, businesses can optimize advertising spend and attribute conversions accurately across multiple platforms. With access to a comprehensive customer view, marketers gain insights into multichannel customer journeys and can make data-driven decisions to allocate their budgets effectively. Additionally, by implementing a unified data architecture and leveraging automated data modeling tools like RutterStack's Profiles, companies have successfully operationalized AI and machine learning. For instance, one company leveraged comprehensive customer journey data and automated identity graphs to train machine learning models on customer churn prediction, resulting in significant reductions in churn rate and improved customer retention.
In this episode, I am joined by Eric Dodds, Head of Product Marketing at RudderStack, the warehouse native CDP.
Dive into the world of data as we uncover the biggest mistakes companies make and, more importantly, how to set things right. Eric brings a decade of experience, having advised giants like BMW and WeWork and innovative startups on data strategy.
Whether you're a data enthusiast, a business leader, or simply curious about the art of data management, this conversation is your compass to avoid the pitfalls and unleash the power of your data. Tune in now and get ready to supercharge your data-driven decisions!
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