The Importance of CRM Data Cleansing

The Importance of CRM Data Cleansing

Accurate information housed in your customer relationship management (CRM) system is important if you want to reach customers and prospects at the right time, using the right channel. However, studies estimate that 30% of company databases grow outdated yearly. The errors and inconsistencies in your CRM data make it difficult to gain reliable insights. Data Cleansing is important.

So why is it important to clean your data regularly? Bad data can waste your time, effort, and resources — impacting your overall ROI. Tedious as it may be, habitual data cleansing and organization can actually improve the way your marketing, sales, and customer service teams work.

The Impact of Bad Data on Your Bottom Line 

When was the last time you organized the customer data on your CRM platform? If it has been a few years, you might encounter issues the next time you try to communicate with your customers. 

If you’re in the B2B industry, companies encounter many changes; your contacts may have left, the company may have hired new leaders, or they simply moved their business address. A similar situation also occurs in B2C, albeit more rapidly as customers change their phone numbers or switch email addresses. 

Bad data is defined as information that is incorrect, outdated, duplicate, improperly formatted, low-quality, or completely missing from your marketing, sales, and customer database. Instead of being able to utilize this data strategically, bad data could actually cause you to commit errors in your marketing campaign or sales interaction. 

Human error is often the cause of bad data; it can’t be avoided if you’re relying on people to input data by hand. You are more likely to find names typed in the wrong case, bouncing email addresses, or blank fields which can be frustrating. Aside from being confusing, bad data can also cause problems within your business. These include:

An ineffective marketing campaign

Customers love it when companies put in the effort to give them a personalized experience. However, mistakes in your database can lead to wrong personalization: opt-outs, email delivery errors, or higher spam reports. Aside from missing an opportunity to build a relationship with your customers, you might end up wasting your marketing budget on the wrong prospects and lower overall customer satisfaction. 

A negative brand perception 

Prospects who might have been interested in your products or services could change their mind if they feel like your brand is not right for them. Maybe you recorded the wrong birthdate or gender for a potential customer and ended up placing them in the wrong demographic. Getting critical information wrong could cost you a good brand perception. And since you would only have a limited number of interactions to attract your target audience, it would be difficult to win them back or develop a good relationship with them. – Read more

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