21 March 2022
Selling a product or service to ‘just anyone’ and ‘just like that’ is obviously not the best plan, so for any company such a question as the building up of a client base is more than relevant. Create, maintain and expand the list of customers – these are the tasks that will bring the business to a new level and allow to achieve high results.
According to The Global State of Enterprise Analytics report:
- 94% of respondents said that data and analytics were important to their organization’s digital transformation efforts
- 64 % highlighted improved efficiency and productivity
- 56 % said data analytics led to ‘faster, more effective decision-making’ at their companies.
Other cited benefits of data analytics include:
- better financial performance – 51%
- improved customer acquisition and retention – 46 %
- improved customer experiences – 44 %
- competitive advantage – 43 %
Customer analytics is a critical component of the business, at all stages. This is a systematic analysis of customer data and their behavior patterns. Its purpose is to compile a portrait of the target audience, attract and retain customers. Based on the analysis, the business model is modified, the audience is segmented, changes in the activities of companies are monitored. All this helps to better understand customers and identify their needs.
Experienced marketers know that attracting one new client is tens times more expensive than supporting old ones. According to customer retention studies, a 5% increase in customer retention increases profits by 25-95%.
Thus, having a 100% complete and 100% accurate customer database is vital to managing ROI. However, a significant percentage of marketing professionals still believe that they do not have accurate customer information before launching their campaigns.
After understanding the necessity of a high quality database, you inevitably have to answer the next question – how to do this? Even with a small client flow, you should not use improvise with a pen in hand and a sheet of notebook. Only the use of specialized data analysis services, together with compliance with the rules, will get the maximum effect from using the client database.
What rules should you follow when analyzing a client database?
1. Save Comprehensive Data
How complete are your customer records in your client database? According to Forbes Insights and KPMG, 84 percent of CEOs are concerned about the quality of their databases. Not only does statistics say that one in five businesses lose customers due to inaccurate and incomplete datasets.
An incomplete client database reduces the quality of contacts, and it makes no sense to store such data. Thus, it is imperative to regularly check your client database so that you can contact the right people at any time.
For example, once you uploaded your clients list by VAT or registration number via EasyBusiness service, you can analyze those companies thanks to the statistical tables and identify their main characteristics (e.g. the most “populated” turnover ranges, company size ranges, activity classification codes, etc.); clicking on those ranges, codes, etc. you can add them as filters directly from the tables, so to use a search to recreate the same characteristics of your client base. The ‘mirror analysis’ feature leverages an advanced algorithm to do the same process automatically, taking in consideration also the market penetration: using data of previous customers, you may generate marketing lists with new prospects that are more likely to be converted into customers.
2. Avoid duplication of contact information
One way to avoid duplicating contact data is to match contact data manually or using partially automated methods. However, such an approach would require a considerable amount of time, resources and efforts. Poor data quality costs the US economy about $3.1 trillion annually.
On the other hand, profile checking will save your resources and quickly manage the incorrect data. It will remove all duplicate info from your databases. So you can save money.
3. Support a unified input format
It is important to ensure that all your data are presented uniformly, while keeping the customer information correct.
The presence of tested formats provides the uniformity of records in the client database and simplifies data conversion. This format is available with the function of data export via online prospecting service EasyBusiness: as soon as you select companies according to your specific filters, set the fields you require and export information to the file.
4. Avoid incorrect customer addresses
Typically, data comes from multiple sources, and maintaining an up-to-date customer database is not easy; however, you can do this using solutions, like EasyBusiness from Kompass.
As rule 1-10-100 used to say, we spend $1 to verify an initial CRM record, $10 to update it, and $100 to cover the losses from errors in it.
5. Update and extend the database
According to a recent survey, about two-thirds of companies admitted that they use outdated customer data. Without regular and timely updates, sales figures will start to decline steadily.
How to avoid this? With a digital tool of online prospecting and new prospect analysis such as EasyBusiness, you can not only get updated data for existing customers and counterparties, but also quickly identify new companies that can become your regular buyers.
Who needs to analyze the client database?
Increasingly focused on the process of continuous lead generation as part of the digital transformation of business activity, the marketing and sales teams are mostl interested in supporting and extending their client databases.
E-commerce companies also benefit from supporting their customer base as up-to-date as possible.
So, regular analysis of the client database provides a number of significant advantages:
- Improves and support client database accuracy
- Leverages automatic process in marketing campaigns
- Reduces time spent on searching for new customers
So, your customer database needs to be up-to-date, consistent and comprehensive. Do you still believe that supporting a high-quality database and dealing with accurate customer data will take a long time? Not at all – the use of advanced digital prospecting tools will save your time and provide a stable sales growth.