In many companies, the term “data silos” describes a situation where customer or prospect information collected across various channels is not integrated in a consistent manner. Data from a manufacturer’s dealerships may remain separate from that collected by a customer service center or a national website. This fragmentation can prevent, for example, a customer from accessing their online purchases from a physical store or recognizing a newsletter subscriber as a customer. Data silos negatively impact customer relationship quality and marketing effectiveness by limiting the range of information available for targeting and personalizing communications.

Addressing data silos typically involves implementing an integration system. However, this often requires complex IT development and can encounter operational hurdles. For example, correlating Facebook interactions with a customer or prospect profile can be challenging due to issues with reliable identification. Data silos can also result from gaps in organizational processes.