Overcoming Data Silos and Fragmentation (Without More Technology)

THE SITUATION

54% of organizations say that their biggest barrier to leveraging customer insights is fragmented or siloed data.

(Source: Treasure Data)

THE OPPORTUNITY

With so much customer data swirling around, it can be tough to process it all. Not only from an analytical standpoint, but simply keeping things organized as well. As seen in The Situation, most businesses say data silos and fragmentation are their biggest barriers to fully leveraging customer insights. So, if you’re struggling with keeping data integrated and synthesized, you are definitely not alone.

In fact, as a customer insight professional and enthusiast, I can’t tell you how often this topic comes up when talking with colleagues, clients, and prospects. But while data isolation or disconnection is bound to occur with information coming from so many different sources, it’s important to stay on top of this. The more your data becomes siloed and fragmented, the easier it is to lose sight of bigger-picture understandings and miss out on the full value of your customer insights.

For anyone facing this type of issue, it can feel like an uphill battle. As more and more data pours into the existing silos, the harder it may seem to do something about it. Fortunately, though, these situations are filled with opportunities to achieve both short-term and long-term growth. Thinking about actions that can be taken today, there are two that come to mind.

First, make data health and accessibility a point of internal discussion. Sometimes it’s simply a lack of broader awareness that leads to an issue’s persistence. By initiating meaningful dialogue on this topic, you can spark new ideas, realizations, or perspective shifts that lead to meaningful outcomes.

Second, consider stepping back from the micro/tactical level to gain a macro/strategic view of your customer insights. It’s easy to get so caught up in the weeds of problem solving that our vision becomes narrowed or blurred. Revisiting your overarching goals and high-level objectives can be a helpful way to see data-oriented challenges through a refreshed lens.

These steps can help jumpstart your efforts to address fragmented and siloed data. Once the wheels get turning, that’s usually when next steps and growth potential come into focus.

THE CHALLENGE

As I previously mentioned, this topic of data silos and fragmentation comes up a lot. Since it’s such a common problem, people naturally look for common solutions. Unfortunately, there isn’t an all-encompassing recommendation I can share because everyone’s data situation is different. But I have found that most solution-based conversations seem to drift toward the same landing point – technology.

There are some amazingly powerful technologies, tools, and platforms to help manage, organize, and synthesize customer data. No doubt, our industry has come a long way in that regard, and I love to see it!

However, not everyone considers technology a viable (or desirable) solution. Whether it’s a matter of resources, capabilities, or goal-misalignment, sometimes adding another “tech stack” layer doesn’t make sense. Being a small business owner, I say this based on my own experience. It’s not that I don’t see the value or benefit of leveraging advanced technologies, it’s just not always the right fit. Still, I want to achieve my goals. I want to be efficient, effective, and competitive in my field – and I know you do as well.

So, for many businesses, a key challenge is finding non-tech ways to address fragmented and siloed data to ensure they’re getting the most from their customer insights and positioning their teams for long-term success.

THE SOLUTION

If you’ve read through other editions of this newsletter, you probably know I’m all about strategy. Especially when it comes to data-driven insights. Many commonly faced issues, challenges, obstacles, and barriers can be addressed – or avoided – by taking a strategic approach to customer insight projects. It comes down to building a solid plan and making the commitment to see it through. The issue of fragmented and siloed data is no different.

Whether it’s the data you have today or the data you’re going to collect tomorrow, there’s a strategic approach suited to every data-driven objective. Knowing when, where, and how the different pieces fit together – that’s the tricky part.

While no two strategies are exactly the same because no two scenarios are exactly the same, there are some tried-and-true steps in the process. So, here are a few tips for addressing data silos and fragmentation without having to onboard new technologies.

Establish Clear Goals for Data Sharing and Collaboration

Clearly define a shared goal that resonates with multiple departments. This could be as broad as improving customer satisfaction, or something specific like reducing customer churn. By aligning different departments around a central objective, teams can have an easier time understanding how their individual roles contribute to each other’s success.

With that connection established, you can explore how customer insights play a supporting role within each department and identify overlapping data needs. Where there are shared data needs, there are opportunities for data sharing. When there is more data sharing, there are fewer data silos.

Create a Cross-Functional Team

Forming a team with representatives from each department creates an initial bridge between data silos. This team can meet regularly or periodically to review customer insights, identify gaps, and share departmental data and learnings. This cross-functional collaboration can also help identify duplicate efforts, uncover data redundancies, resolve inconsistencies, and develop best practices for future data collection and sharing.

Standardize Definitions and Processes

Encourage all departments to use consistent definitions and standards for data collection. This could mean standardizing how customer sentiment is rated or defining what constitutes a “successful” interaction. Clear guidelines allow each department to interpret data in a unified way, minimizing confusion and improving the quality of insights.

Host Regular Knowledge-Sharing Sessions

Implement periodic sessions where departments can share key findings, recent trends, and insights into customer behavior. By setting aside time to openly discuss each department’s data-driven insights, team members can gain a better understanding of how other departments view customer needs and challenges. This kind of open forum also encourages questions, clarifications, and collaborative idea generation.

Encourage a Culture of Transparency and Insight-Sharing

An open culture fosters a commitment to data sharing as part of everyday practice. Leaders have a chance to set the tone by actively seeking input and insights from various departments, showing a tangible appreciation for the diverse perspectives across the organization. When team members feel their data contributions are valued and have a real-world impact, they’re more likely to participate and share willingly.

MY ADVICE

It’s never too late to get started. Don’t feel so overwhelmed or demoralized by current challenges that you drag your feet on implementing new data-driven processes. Take small steps, test different methods, and stay open to new ideas. This is more about steady progress and incremental growth than sweeping changes or overnight successes.

Thinking forward, be proactive during the planning phase of new customer insights projects. Develop action plans, map out next steps, and clarify how insights will be used before collecting new data. Taking a strategic and intentional approach can help avoid data-driven barriers and pitfalls altogether.

HOW WE CAN HELP

For nearly 40 years, we have been empowering businesses to unleash their data-driven potential. From high-level strategic guidance to ground-level tactical support, we offer a variety of services built around our partners’ unique needs and objectives.

One of those services which has been particularly impactful is our Customer Insight Strategy Workshops. Leveraging our knowledge and experience, we facilitate half-day sessions focused on building a roadmap for data-driven success. Our collaborative approach and customizable frameworks ensure each workshop is relevant, engaging, and goal oriented.

If you’re looking to maximize the impact and ROI of your data-driven efforts, we would love to host a Customer Insight Strategy Workshop with your team!

For details and availability, send me a message – or click here.? ?

YOUR TURN

I’d love to see your comments and thoughts about addressing common data challenges. Are you struggling with silos and fragmentation? If so, what are some tactics or solutions you have found to be effective? Do you have any other tips or advice for maximizing the impact of data-driven insights?

By sharing your thoughts, ideas, and suggestions, we’ll foster a collaborative community where actionable insights are the foundation and collective success is the outcome.

Do you have a stat, fact, or trend you’d like me to write about?

Send me a message or share it in the comments. I’ll add it to my list of future newsletter topics!