Ever wonder what makes some marketing campaigns hit the mark while others fall short? The magic happens when human creativity meets well-managed and governed data.
Data has long been an invaluable part of understanding customer behavior, tailoring campaigns, and measuring performance. But it’s easy to get overwhelmed by the sheer amount and granularity of information available. To get to the gold, marketers need a streamlined framework for both data governance and data management.
This blog will explore the definitions, differences, and vital roles that data governance and data management play from a marketing perspective. First, let’s take a look at what these terms mean.
What is data governance?
Data governance refers to the structured framework and practices designed to ensure that data is managed effectively and responsibly across an organization. It encompasses a range of processes and roles aimed at maintaining data quality, security, and compliance.
Key components include:
Foundational governance:
- Security: Implementing measures to protect data from unauthorized access and breaches and adhering to regulations like GDPR.
- Access and data stewardship: Establishing clear documentation of who owns and has access to data within platforms, including managing permissions and creating processes to govern access.
Structure governance:
- Classification: Organizing data through systematic classification and using data dictionaries to ensure consistency and proper data placement.
- Transformation: Setting rules for standardizing data values and ensuring data is appropriately formatted.
Quality governance:
- Monitoring: Setting up alerts and notifications for errors, inconsistencies, and incomplete data.
- Reconciliation: Proactively checking data for inconsistencies, missing elements and anomalies to improve overall data quality.
Data governance provides the strategic oversight and policy framework that guides these activities, ensuring data is managed consistently and in compliance with organizational standards and regulations. For more info on data governance, check out our full guide to the 6 building blocks of data governance here.
What is data management?
Data management refers to the practical implementation of handling data throughout its lifecycle, in line with the strategic policies set by data governance. It involves the operations necessary to ensure data is collected, stored, processed, and accessed effectively.
Key components include:
- Data acquisition: Gathering data from various sources and integrating it to create a unified dataset.
- Data storage: Organizing data within databases and storage solutions to ensure it is accessible and secure.
- Data processing: Applying further transformations for data cleaning, transforming data to meet specific needs, and ensuring it is ready for analysis or reporting.
- Data lifecycle management: Managing data from creation to archiving or deletion, ensuring it is up-to-date and relevant.
- Data backup and recovery: Implementing procedures to regularly back up data and ensure it can be recovered in case of loss or corruption.
Data management Vs. data governance: Key differences
Data governance can be seen as the strategic blueprint, while data management is the operational execution. That means that data governance provides the framework and standards within which data management operates.
Some key differences between data governance and data management are:
| Data Governance | Data Management | |
|---|---|---|
| Focus | Strategic, focusing on establishing the rules and policies that dictate data usage, ensuring data integrity and compliance. It deals with the "what" and "why" of data practices. | Operational, dealing with the implementation and maintenance of these rules. It concerns the "how" of managing data systems and processes. |
| Objective | To create a controlled environment for data use, ensuring quality, harmonization, and compliance. This means reliable cross-platform metrics and KPIs that reflect true performance. | To maintain and optimize data systems for efficiency and accessibility. This capability is crucial for generating timely insights and adapting marketing strategies on the fly. |
| Activities | Includes policy formulation, compliance monitoring, and setting data standards, critical for ensuring that marketing data is accurate and legally compliant. | Includes data storage, backup, recovery, and quality control, ensuring data is always available and accurate for marketing needs. |
| Responsibility | Involves leadership, data stewards, and compliance teams. | Involves data professionals, IT teams, and data analysts. |
Why should marketers care about data management and data governance?
From a marketing perspective, both data governance and data management are indispensable. Data governance ensures that the data feeding into marketing reports is accurate, secure, and compliant, providing a trustworthy foundation for analysis. This is especially important for making strategic decisions based on customer insights, market trends, and campaign performance metrics.
Forrester states that...
- 21% of businesses have a clearly defined and documented data governance program
- Companies with a data governance framework reported a 34% improvement in conversion rates.
Data management, meanwhile, provides the technical infrastructure and processes necessary to handle large volumes of data from multiple sources and to streamline the reporting process, allowing for faster turnaround times and more frequent reporting cycles. This agility is crucial in a dynamic marketing environment, where quick access to insights can make the difference between a successful campaign and a missed opportunity.
What are the risks of poor data management and data governance?
Poor data management and governance pose significant risks. Inaccurate or inconsistent data can lead to faulty insights, undermining marketing strategies and resulting in wasted resources.
Moreover, inadequate data governance can lead to non-compliance with data protection regulations, exposing organizations to hefty fines and damaging their reputation. Such issues can erode customer trust and diminish the effectiveness of marketing campaigns, ultimately impacting the bottom line.
Conclusion
To hit the mark with your marketing campaigns, it's crucial to blend creativity with effective data management and governance. Data governance ensures your information is accurate and secure, while data management keeps it organized and easy to access.
Combining these practices helps you turn insights into successful campaigns and avoid costly mistakes. Focus on both to make sure your marketing efforts are on target and impactful.
