Navigating the Data Deluge: MDM is Your North Star

by Archit Pathak

March 27, 2024 | 02 min read

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As technology continues to reshape the retail landscape, Master Data Management (MDM) emerges as a crucial tool for harnessing data insights and driving business success.

Retail 4.0 represents a paradigm shift in the way businesses operate, fueled by advancements in technology such as AI, IoT, and big data analytics. For CPG brands, this means navigating an increasingly complex ecosystem of digital channels, omnichannel retailing, and changing consumer behaviours.

According to a study conducted by BCG and Retail Association of India, the sales for CPG products is still largely offline but the space is seeing a shift towards an omni-channel consumer with the rise in quick commerce channels.

At the core of retail 4.0 lies vast amounts of data generated from various sources, including customer transactions, inventory levels, and sales trends. MDM refers to the processes and technologies used to ensure the accuracy, consistency, and reliability of this master data across the organisation.

In sectors reliant on vast amounts of data, the optimal approach for enhancing data flow efficiency, mitigating risks, and extracting precise insights from extensive datasets is through prioritising investments in MDM.

MDM serves as the linchpin for consolidating crucial data into a unified hub, facilitating seamless connectivity and integration. This enables stakeholders across the ecosystem to gain transparent visibility into both product and customer data. A well-defined MDM not only adds value but also enhances the effectiveness of digital transformation initiatives through streamlined workflows.

According to a survey by Wipro, 64% respondents said they utilise data to enrich brand loyalty and 54% said it is very helpful in tracking multi-channel sales. The survey was conducted by asking the respondents to point out 3 areas where they saw big data analytics and management to drive growth.

With products distributed across multiple retailers and channels, maintaining consistency and accuracy in product data is paramount for CPG brands. MDM solutions centralise and standardise product information, ensuring that data is uniform and up-to-date across all touchpoints.

Ensuring the accuracy of data obtained from field sales personnel regarding visited and serviced outlets is paramount, alongside monitoring projected product demand in the market. This practice is pivotal within the framework of Retail 4.0.

As per the Promotion Optimization Institute’s State of the Industry 2023 Report, data cleanliness and management should be the top priority for businesses to transform trade efficiency and effectiveness.

CPG brands operate within complex supply chains involving suppliers, manufacturers, distributors, and retailers. MDM facilitates seamless collaboration by providing a single source of truth for supply chain data, improving transparency, efficiency, and agility.

In an era of hyper-personalisation, CPG brands must deliver tailored experiences that resonate with individual consumers. MDM enables brands to aggregate and analyse customer data, enabling targeted marketing campaigns, product recommendations, and loyalty programs.

As data privacy regulations continue to evolve, CPG brands must prioritise compliance to maintain consumer trust and avoid costly penalties. MDM solutions offer robust data governance features, ensuring compliance with regulations.

In the fast-paced world of retail 4.0, tracking data and mastering data management is essential for CPG brands looking to thrive amidst disruption. By investing in MDM solutions and fostering a data-driven culture, CPG brands can unlock new opportunities for innovation, efficiency, and growth in the digital age.

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