The importance of accuracy
Bad data is sadly becoming the norm, and is costing companies between 15% and 25% of their revenue1. Data is an increasingly important aspect of our working lives so it’s crucial that your business has the resources to capture data correctly. Below are four reasons why:
1. Poor data capture isn’t budget friendly
It goes without saying that ensuring data is captured and extracted correctly, whilst being wary of budgets and ROI, is good business practice. Having a poor data entry facility in your CRM can cause a number of problems. For example, inaccurate marketing data for campaigns could result in failed message deliveries or infringement of the GDPR. This results in wasted marketing spend and lacking ROI. The best course of action is to ensure you have an address lookup integration. This captures correct address data at the point of entry.
2. Data quality has an impact on customer retention
Companies who increase their customer retention by 5% can increase profits by anywhere between 25% and 95%2. An important aspect of retention is heightening the customer experience. 73% of consumers say a good experience is a key influencer when it comes to brand loyalty3. However, inaccurate data can be a nightmare for loyalty4. It’s vital that the data being extracted is of a good quality. If the company receives a high number of complaints and loses customers due to inaccurate data what would be the impact on your organisation? How might this effect the motivation of your teams?
3. Customer targeting suffers from missing data
From a marketing point of view data also plays a vital role in customer targeting. If the customer data you have is not high quality, then you will have to try and apply a broad audience which is both inefficient and leaves you hazarding a guess at who your target audience is5. Additionally, missing data can hamper customer targeting by restricting the size of the target audience and subsequently the campaign.For example, if the marketing department are looking to target university students who live in halls of residence and sub-divided houses, any missing address data for customers and prospects would prevent the message from reaching them. And so, in order to avoid niche targeting you must ensure your address data is accurate and complete.
4. Accurate data saves time
Customer Relationship Management is becoming more connected and performance-driven, allowing businesses to rethink costs, reduce effort, and boost immediate revenue6. Therefore, organisations will soon find themselves with less surplus resource for things like rectifying mistakes as a result of inaccurate data. It is worth pre-empt this situation by enhancing your CRM platform with an accurate address lookup solution, which automatically captures and stores data correctly at the point of entry. This will save you a lot of time in the long-run when managing customer relationships.
If you like this blog, have a read of some others written by our partner, Hopewiser.
1 As Data Quality Declines, Costs Soar (datanami 13th December 2017)
2 Customer retention analytics: 5 strategies to reduce churn with data (Thematic 6th December 2018)
3 50 Stats That Prove The Value Of Customer Experience (Forbes 24th September 2019)
4 Getting to the data that matters can boost the customer experience (Retail Customer Experience 18th July 2019)
5 Why Is Data Quality Important? (Lotame 30th April 2019)
6 Marketing, CRM and direct mail after COVID-19 (Royal Mail MarketReach 29th April 2020)