Retailers deal with mountains of data. Unfortunately, a lot of this information is trapped in data silos. What does this mean for your business? Picture data silos like islands in the ocean, each with its own information that rarely gets shared. When these islands come together, magic happens. Connecting these data silos can transform a business, making it smarter, more efficient, and maybe surprisingly more human.

What Are Data Silos?

Often, each department in a retail company has its own data. Sales, marketing, inventory, and customer service might all keep their data to themselves, making it hard to share and collaborate. This fragmentation slows decision-making, prevents a holistic view of the customer journey, and inhibits accurate targeting and personalization efforts.

Why Should Retailers Connect Their Data?

When retailers connect their data, they unlock countless insights. By merging data, businesses can see patterns and trends that help them make smarter decisions. This leads to better customer experiences, improved inventory management, and increased sales. 

Think of the customer journey as a puzzle. Each piece represents a different touchpoint—from browsing online to purchasing in-store. You’re missing pieces if your sales and online behavior data don’t connect. Retail marketers can map the entire customer journey by uniting these data sources. This way, they can tailor campaigns that resonate more effectively.

How to Start Connecting Data Silos

So, how do you connect those islands? It will involve talking to the right people, getting the right tools, and building a culture that values clean, accessible data.  

  1. Assess Current Data Systems

First, take a close look at what you have. This is the hardest part. The data silos came into existence because different teams had different goals over the last several years. You’ll need to find the people who use or designed the various silos and sit down with them to figure out what data is stored and where. You’ll probably find redundant data, but you’ll need to get a clear picture of the current systems. This step is crucial to understand the gaps and overlaps. Think of it as a map of your data landscape.

  1. Plan your Data with the right tech

Next, it’s time to bring in technology. This could be a new tool, a new data warehouse, or working with internal tech teams to configure the data. The trick of data management is planning out what you’ll need the data for in the future. Start thinking through what you need from the data, and what those other silos needed. How will your team access the new data setup? How will what you need match what lives in other places? Will email address be your go-to identifier? Or maybe a custom unique value? There are a lot of tools out there; take the time to review them and weigh their pros and cons. 

  1. Create a Single Source of Truth (SSOT)

This is the meat and potatoes. All of the conversations and mapping and planning lead here. It’s by no means easy, but it is worth it. A Single Source of Truth (SSOT) or Single Point of Truth (SPOT) is a central, accessible set of tables containing all the necessary information with a clear process for interacting with the data and mastering data points together. This is the best way to break down data silos. 

  1. Encourage Collaboration

Now, it’s all about teamwork. Encourage departments to work together and share their data. Regular meetings can help build a culture where sharing information is the norm. This will almost certainly need some retraining both on the new tools and on the new culture. One data center also means higher standards for clean data, and of course, those new standards have to be documented and sent out. 

Things to Keep in Mind

As rewarding as this is, it’s a big task. Several teams will need to work together, and that most likely means buy-in at the VP level if not from the C suite as well. Ask your teams how much time they are spending on finding and manipulating data having to fight with data silos. Write up use cases for new campaigns that you need more data for – like the elusive browsing data that probably lives with the web team and not the marketing team. Be ready to show how much time teams are burning with disparate data, and convincing VPs and Executives will get a lot easier. 

Conclusion: A Connected Future

In retail marketing, connecting data silos isn’t just a nice-to-have; it’s essential for success. By breaking down barriers and creating a culture of sharing, you unlock the full potential of your data. This connection allows for better insights, improved campaigns, and a more holistic view of the customer journey. It’s time to join those islands and set sail toward a brighter, more connected future.

If you need help unifying your data, Relationship One is here to help.