Organizations, especially those with multiple branches across a wide range of locations, generate a large volume of data. The generated data is analyzed by experts and insights got to inform decisions made by organizations. Data thus play a strategic role in the decisions made by organizations.
Data on specific locations and demographics provide insights on patterns that organizations can leverage in tailoring products and services towards a specific group. Because of the large volume which organizations generate, specific tools are utilized in storing the generated data.
Data warehouses are tools tailored to the needs of organizations that accumulate a lot of data from multiple locations. Data warehouses serve as a centralized tool for storing data from a variety of sources for subsequent procedures such as data mining. Data warehouses are also tailored for analytics reporting and decision support.
A marketing data warehouse provides a platform from which digital marketers can turn data from a variety of sources into actionable data. With such a warehouse, the data from different sources can become useful to the organization since it can be processed to a more meaningful form.
With a marketing data warehouse, the digital marketer has a tool where analysis of customer information for insights on marketing activities can be carried out. Marketing data warehouses are especially known for the efficient way they carry out data analysis activities and provide actionable information.
A data warehouse differs from a database in a number of ways. A database serves as a form of data storage. Data is stored in a database simply because of recording purposes. For example, everyday transactions within an organization could be recorded in a database.
Databases are thus a basic tool for storing data and can be described as first-line tools that are used in every organization. A data warehouse, on the other hand, is a more comprehensive tool that can extract data from several databases. After extracting the data, further analysis can be carried out in a data warehouse to turn the database into actionable information.
Marketing data warehouses are tools that are applied in organizations for specific purposes and because of the numerous attached benefits. Here are some of the benefits that are associated with the application of a marketing data warehouse within an organization.
1. Saves time
Marketing data warehouses are tools that are designed to provide a summary of historical data. Thus, with a marketing data warehouse, organizations can easily access data from multiple sources on a single platform. If an organization intends to carry out a marketing campaign, for example, they could simply get the required information by carrying out analysis on the applicable data.
With a marketing data warehouse, organizations can save a lot of time when retrieving data for specific marketing campaigns since the warehouses have a pool of historical data. To gather required evidence to embark on specific marketing activities, with a marketing data warehouse, an organization can proceed with the required analysis, saving the time that would have been spent gathering required data from multiple sources.
A marketing data warehouse saves time because it has the ability to turn a large volume of data into useful information in the shortest time. These tools are able to achieve the purpose because of the scheduled data integration feature.
In the competitive business sphere where digital marketing activities are always deadline-based, a marketing data warehouse is a tool that the digital marketing team of every organization needs to produce the best results in the shortest time possible.
Apart from the digital marketing team, other departments could also be trained to use marketing data warehouses appropriately to save time.
2. Saves resources
Organizations apply marketing data warehouses because of the cost-effective nature of these tools. Research has shown that organizations have been able to significantly improve their return on investment by applying marketing data warehouses in digital marketing activities.
Insights from marketing data warehouses inform timely decisions made by organizations. When organizations are able to make strategic and timely decisions, they are bound to make the most returns on investment.
Marketing data warehouses save money because it provides a permanent pool of historical data which can be utilized severally. Instead of going through the process of data retrieval before every marketing activity, the initial investment made on a warehouse can be maximized through different marketing campaigns.
The efficiency of data warehouses also ensures minimal errors and saves organization resources that would have spent on managing errors. When a marketing data warehouse is applied in digital marketing activities, minimal resources will also be spent on all forms of quality assurance activities.
3. Improves data quality
Data warehouses are designed to carry out data analysis in the most efficient way, thus improving the quality of data that organizations apply for activities such as marketing activities. When analysis applied in digital marketing is carried out with a marketing data warehouse, the accuracy of customer information and insights gotten from the information is assured. Such activities that are based on accurate information are also poised for maximum effects.
With marketing data warehouses, errors such as duplicate customer information, which could negatively affect results, can be identified and rectified. Poorly kept records can also be identified and managed with a marketing data warehouse. It is also noteworthy that marketing data warehouses can also identify incomplete data.
When typical errors that are bound to derail marketing activities are identified, the efficiency of such marketing activities is ensured.
4. Improves business intelligence
Business intelligence is determined by the ability of an organization to convert turn routine data collected to actionable information towards the growth of the organization. When an organization is able to effectively and seamlessly turn data into actionable information, the business intelligence of such an organization is said to be high.
A marketing data warehouse is thus one of the tools that directly improve the business intelligence of an organization because of the insights it provides. With a data warehouse, the process of collecting, managing, and analyzing data can run seamlessly and efficiently.
Marketing data warehouses specifically improve the ability of organizations to carry out cross-channel marketing because it cross-references data from a variety of sources. An organization can be able to track leads, for example, across different social media platforms with a digital marketing warehouse. Thus, with a marketing data warehouse, an organization can carry out specific marketing campaigns on social media effectively, in a cost-effective and timely manner.
5. Improves data security
With the increased value placed on data, organizations are tasked with protecting customer data, and consequences could follow when an organization does not apply proper measures for protecting customer data.
A marketing data warehouse is a centralized platform that extracts data from different sources. This centralized information storage and analysis system can ensure improved security of data in the custody of an organization. It is because effective security measures would be applied to the central pool of data rather than the multiple databases which could be easily breached.
In ensuring the security of data in its custody, organizations can apply measures to ensure the protection of the centralized data storage and analysis tool. Security breaches are less likely to occur when data is stored in a centralized system that is well protected than multiple storage units. Security breaches are occurring at a significantly higher rate, a cause of concern form multiple organizations. A marketing data warehouse is a step towards improved data security, especially because of its centralized nature.
6. Enhanced marketing automation
Marketing data warehouses are highly compatible with other tools applied in digital marketing. Thus, with a warehouse integrated into other marketing tools, marketing activities can be better automated.
With a data warehouse linked to email marketing tools, for example, the automation of email marketing activities is abounded to improve significantly.
When the data warehouse is linked with other marketing tools, it would be enabled to extract information from several sources to provide an overview of customer information. Activities could also be scheduled to ensure that proper integration of the different activities. With the integration between marketing data warehouse and marketing tools, leads, customers and prospects can be extracted from different databases.
Marketing activities are bound to proceed more seamlessly when they are linked to other tools such as a data warehouse as the data warehouse will be a comprehensive source of information for the data they need to proceed with the activities effectively.
Social media marketing and email marketing activities are some of the activities that can be improved when data warehouses are integrated with other marketing tools.
7. Enhanced storage of historical data
Data warehouses are specifically poised to serve as a form of storage of historical data. With such a historical pool of data, digital marketers have a ready source of information. With the pool of data available on a data warehouse, digital marketers can easily carry out market analysis based on activities during specific time periods.
The historical data available from data warehouses inform future marketing activities. For example, if marketing activities were to be carried out around a specific holiday, historical data from a data warehouse could be analyzed to identify factors that have determined the success of similar campaigns in the past as well as factors that could determine the success of the present campaign. Also, in making adjustments on marketing campaigns that didn’t perform very well in the past, historical data could be studied to determine areas that could be adjusted.
Digital marketers specifically apply insights from the historical data available from data warehouses in tailoring marketing activities towards achieving maximum results. Insights gotten from historical data will inform digital marketers on factors that lead to the failure and success of previous campaigns. Data warehouses also provide enough information to guide digital marketers towards the changes in marketing strategies that cause customers to respond accordingly.
Historical data provided by data warehouses show the benefits of a data warehouse over a database. Databases typically do not provide sufficient context for guiding marketing activities. Data warehouses help marketers provide enough insight into what went wrong and could be done to correct the wrong as well as what went well and could be replicated to suit the present times.
8. Better decision making
Data warehouses provide insights for better decision-making in marketing as well as other aspects of the organization. Decisions made in an organization where a data warehouse is applied are based on efficient analysis of historical data from a variety of sources.
Such organizations make decisions based on the fuller picture of the scenario than organizations without the tools that provide the required insights. Executive decisions are bound to be made in a very timely manner when they are based on insights gotten from data stored and analyzed in a warehouse.
Regarding digital marketing, for example, digital marketers are able to decide on the best strategy to apply as regards a particular marketing activity when they have access to the extensive data available in a warehouse.
The sales, as well as inventory teams of organizations, are also equipped with the information they need to make a better decision when a data warehouse is applied. Whenever any team needs to make a specific decision, they can seek guidance from the available extensive data from a warehouse.
9. Enhanced system and query performance
The enhanced pace at which queries are affected is some of the basic benefits of a data warehouse leading to the spending of less time and resources on routine activities. Data warehouses are tools that are particularly adapted for the retrieval and analysis of stored data rather than the storage of data as databases are adapted for.
Thus with a data warehouse in an organization, queries are bound to be affected much more effectively. Data will be retrieved and analyzed with much more ease with a data warehouse. Also, routine processes that require data retrieval and analysis are bound to be carried out more effectively.
Data warehouses are specialized tools that can extract data from a wide variety of sources and analyze such data. The peculiar roles of these tools are the basis of the benefits outlined above.