Navigating CRM & ERP Consolidation Challenges in M&A

Summary

• Mergers and acquisitions involve complex data challenges, especially when integrating different CRM systems.
• Challenges post-merger include scattered customer data, duplicate records, and sales obstacles.
• Third-party data integration tools are essential for automating workflows and improving data accuracy.
• Implementing these tools involves assessing current systems, selecting the right tool, planning integration, cleaning data, and monitoring post-integration.
• Benefits of a unified data approach post-merger include enhanced customer insights, improved sales efficiency, increased customer satisfaction, and data-driven decisions.

Mergers and acquisitions (M&A) are complex and multi-faceted processes, holding the strategic potential to transform an industry. However, organizations involved in M&A frequently grapple with disparate data systems, data privacy concerns, and the sheer volume of information. Navigating these data challenges effectively can mean the difference between a successful merger and a strategic misstep, particularly when it comes to combining different Customer Relationship Management (CRM) systems. 

Common Post-Merger Data Integration Challenges

The accurate, secure, and timely handling of data is crucial for informed decision-making and seamless integration. But post-merger, organizations often find themselves facing the following challenges:

1. Scattered customer data: Different CRM systems can lead to fragmented data, making it difficult to identify shared customers across the merged entities.
2. Duplicate records: Multiple records for the same customer can obscure the true value and relationship history, complicating customer management.
3. Sales and cross-selling challenges: Disparate data systems can hinder effective sales territory planning and the identification of cross-selling opportunities.

These challenges, if not addressed, will fester, preventing organizations from realizing the full value of the merger, while potentially disrupting valuable customer relationships and stunting revenue growth in the process.

Below, we explore ways for companies to effectively overcome the challenges related to integrating data post-merger.

Solutions for Effective Data Integration

Third-party data integration tools are indispensable for businesses merging with other companies, enabling them to automate workflows, improve data accuracy, and drive efficiency. Inevitably, mergers will result in a plethora of software solutions, from CRM systems to ERP platforms, making the ability to integrate these disparate systems crucial. When evaluating third-party data integration tools, consider the following capabilities:

• Smart record matching: Use tools that employ advanced algorithms to match and merge customer records across different systems. These tools can help identify duplicates and unify records.
• Data validation: Ensure that customer contact details are accurate by leveraging software that validates addresses, phone numbers, and emails.
• External data sources: Utilize third-party data sources to enrich customer profiles and understand company hierarchies, providing a more comprehensive view.
• Unified customer view: Aim for a single, consolidated view of each customer to better understand their value and potential opportunities.
• AI-first approach: look for solutions that employ AI and machine learning to resolve entities across CRM solutions. Doing so will increase automation and free up technical resources by up to 90%.

Implementing Third-Party Integration Tools

Implementing a third-party integration tool is a process that is often easier said than done. When assessing the best way to integrate systems and data from the merged companies, follow these steps:

• Assess current systems: Start by evaluating the existing CRM systems and the scope of data they handle.
• Select the right tool: Choose a data integration tool that fits the specific needs of your merged entity. Look for features such as data deduplication, validation, and enrichment.
• Plan the integration process: Develop a detailed integration plan that outlines steps, timelines, and responsibilities. Consider conducting a pilot test to identify potential issues early.
• Clean the data: Neglecting data quality leads to unreliable insights that can lead to faulty or misguided decisions. That's why it's important to cleanse the data before integrating it to remove duplicates and correct inaccuracies. This step is crucial for ensuring the quality of the merged data.
• Monitor and Improve: After integration, continuously monitor data quality and make necessary adjustments to maintain accuracy and relevance.

Benefits of a Unified Data Approach

Companies that strategically integrate their data post-merger are the ones that succeed. By unifying their data, they minimize disruptions for their customers, which, in turn, leads to better customer experiences. Further, they also benefit from:

• Enhanced customer insights: A consolidated view of customers allows for better understanding and more informed decision-making.
• Improved sales efficiency: With clear and accurate data, sales teams can plan territories more effectively and identify cross-selling opportunities.
• Increased customer satisfaction: Accurate and unified data improves customer interactions, leading to higher satisfaction and loyalty.
• Data-driven decisions: Leveraging comprehensive and accurate data enables more strategic and data-driven business decisions.

Investing in robust data integration tools can turn the challenge of merging disparate CRM systems into an opportunity for growth. By creating a unified view of your customer data, your newly merged organization can unlock the full potential of your unified customer base, resulting in enhanced operational efficiency, new cross-sell and upsell opportunities, and greater customer satisfaction.

Tamr solves the hard problem of third-party data integration by delivering the golden records organizations need to capitalize on the full potential of their data. Using Tamr's AI-powered entity resolution, businesses can elevate their customer experiences, drive operational efficiencies, and uncover new opportunities to grow, positioning the post-merger company to grow and adapt its business today and into the future. 

To learn more, download our latest e-book entitled The Data Integration Blueprint: How AI-Driven Entity Resolution Delivers Golden Records.