Having data lakes with a lot of information collected from customers seems like a favorable idea amongst most businesses but is it effective? It is not effective because it burns more resources without a high RoI.
Think about it – collecting and storing large amounts of data requires storage costs computing power as well as human resources to process. All of these aspects cost the business money and valuable time.
Sometimes storing large amounts of data might cause regulatory compliance issues because of privacy and retention policies. What makes lean data management more efficient and how can you implement it?
Less is more
One of the most important lean data principles is that less is more because it is true in this environment. The mentality of collecting a lot of information on customers has proved to be inefficient for businesses. Instead, you should focus more on actionable insights and analytics to conduct the task at hand.
Collecting fewer data reduces the costs of storage and also simplifies the workflow for employees and yourself. If there is no compelling reason you should collect certain information, avoid collecting it.
Engage customers in the data collection process
Being transparent about the information you are collecting can help realize how much data is not necessary. You would not like your customers to know that there is more information gathered about them in secret such as their gender, religion, or other personal data.
If you can’t say what data you’re collecting to the customers, it is probably a sign not to collect it. LeanData only uses data critical for engagement analytics and ABM. Those are the principles you should imitate when collecting and managing data.
Minimal data collection promotes productivity
Collecting minimal data promotes greater productivity amongst the workforce because less time will be spent trying to filter and sort the data. That time will be better spent on more important operations of the business. Your employees might be spending a lot of time figuring out how to effectively use all the data collected.
If amongst that data, there is unnecessary information, it will bear meaningless results. Whereas, collecting minimal data dramatically reduces that time to be the appropriate amount to make decisions based on the insights.
Lean data puts you on the safer side
Remember that unnecessary information puts you under obligation to secure it and the risk possessed by a successful cyberattack is far greater with more data stored by your business. Whereas, minimal data reduces all these obligations, and phasing out information that is no longer needed will be much easier when managing small amounts.
Choosing which data to collect and store
When starting a data collection project for whatever reason your business has identified, you need to brainstorm what type of information will be collected. The key question to ask yourself throughout this process is related to the impact it will have on the business if we did not collect this type of data?
Try to determine all the data that you can do without and avoid collecting information that is unnecessary and will put undue financial pressure and risk on yourself. Having that mentality will lead you to smarter lean data management processes.